Madam, - When calling for a cut in the minimum wage, Patricia Callan, director of the Small Firms Association, neglected to point out the advantages which Irish society offers to her members.
Most businesses in the Small Firms Association are limited companies which benefit from a corporation tax rate of only 12.5 per cent, compared with the basic income tax rate of 20 per cent. In the UK, the small corporation tax rate for 2008 is 21 per cent.
The shareholders and directors of limited companies also enjoy protection from the debts accumulated by their companies in cases of insolvency, a protection not available to insolvent PAYE workers. In effect, Irish society provides a hidden subsidy to minimum-wage employers.
If the SFA wishes to renegotiate the terms of its contract with Irish society, then all aspects of the contract should be examined and revised. - Yours, etc,
GEARÓID Ó DUBHÁIN,
Mount Oval Village,
Rochestown,
Co Cork.