Sir, - Brian Callanan of IBEC (September 16th) writes: "The Irish Business and Employers Confederation (IBEC) strongly believes a golden opportunity was lost in the last Budget when no provision was made for a significant reduction in employer's PRSI".
The reductions in employer's PRSI introduced in the 1996 Budget cost £51 millions a year. "These reductions are in addition to those introduced in the previous two Budgets which cost a further £111 million, making an ongoing total of £162 million a year. These reductions apply only to the employers' portion of the PRSI contribution. Reductions were also made in employee PRSI.
The Minister for Social Welfare will shortly publish a discussion document, as a further contribution to the debate on the role of social insurance in Ireland. - Yours, etc.,
Press officer,
Department of Social Welfare, Dublin