I want to make a short contribution to the debate, because I think that the Government are introducing an important measure. In this House we often discuss the macro-economic steps that can be taken, such as huge injections of money for infrastructure development and so on, but often—we have certainly found this in Northern Ireland—micro-interventions can be very effective in creating employment, improving conditions for employers and giving them greater confidence to invest. I believe that the measure will have that impact.
I, too, am a little disappointed that the measure’s full impact will be delayed until 2015, because I believe that unemployment among young people, especially in Northern Ireland, is a huge problem that we are trying to tackle. Once the measure is fully in place by 2015, I think that it will have a dramatic impact and will provide a big incentive for employers to take on younger people.
We must not underestimate the importance of even small amounts of money—£2,000, for instance—in influencing the decisions of some employers. One measure that was introduced back home in Northern Ireland was a 20% business rate relief for employers with a net annual value of less that £15,000. The maximum amount of money any one business received was probably £3,000, yet the feedback from employers on the impact was quite encouraging. Therefore, although some people might say that it is a small amount of money per employer initially, nevertheless I think that it will have that positive impact.
I take the Minister’s point about the difficulty in measuring how many extra jobs and how many new businesses the measure will create, but it is bound to encourage employers to hold on to existing employees, to take on an extra employee, to have a better cash flow situation, which might get them over a particular difficulty, or to invest some more money in improving their business. That is the important point.
There is one thing I am concerned about, because the national insurance holiday did not have the impact we had expected, certainly in Northern Ireland. Indeed, uptake was very low. I take the point that at least the process has now been simplified, which means that it will be much easier for employers to access it. Of course, the more universal we make these things, the wider their impact. However, I hope that the measure’s effectiveness will be monitored constantly and that, if it is seen not to have had the impact that the Government had hoped, there will be a willingness to look at what could be done to improve it.
I congratulate the Government on the measure, which I believe is another important tool in the economic toolbox. I believe that it will have a positive impact.
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