In this week’s Public Policy Bulletin, Read about Ireland’s decision to reduce the VAT rate on gas and electricity to help with inflationary pressures, the new trade strategy for Ireland and the latest quarterly Director Sentiment Monitor survey. We also cover the release of the most recent Labour Market Report from the Northern Ireland Statistics and Research Agency.
VAT rates on gas and electricity reduced to 9 percent
Minister for Finance, Paschal Donohoe, confirmed plans this week to reduce the VAT rate on gas and electricity from 13.5 percent to 9 percent to help combat the rising cost of living. The temporary VAT reductions will begin on 1 May and will last until the end of October.
The Government announced this reduction while launching their National Energy Security Framework.
The Institute wrote to the Government in February recommending that they investigate the possibility of reducing the VAT rate on gas and electricity to 9 percent.
New trade and investment strategy for Ireland published
The Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar published a new trade and investment strategy Value for Ireland, Values for the World this week. The strategy, which contains seven key actions, aims to protect and grow Ireland’s trade with other countries, as the country faces rising competition from other fast-growing economies.
In a press release the Tánaiste stated “This new Strategy is an opportunity for us to look at the changed global landscape and the implications it has for trade. Record levels of trade cannot be taken for granted. Maintaining and expanding global trade in a principled way will continue to be essential to Ireland’s economic wellbeing, living standards and sustainable development.”
Ireland’s total trade with the world exceeded €840 billion last year, the highest level on record, and 1.3 million jobs, almost half Ireland’s workforce, is underpinned by international trade and investment.
Minister of State with responsibility for Trade Promotion, Digital and Company Regulation Robert Troy recognised a need to "maintain our open, pro-trade outlook and continue to grow our global footprint” and stated that “in the past decade Ireland’s trade in goods and services increased by 171% from €310 billion to over €840 billion.”
Read the press release here.
Institute of Directors releases Q1 2022 Director Sentiment Monitor survey results
The Institute of Directors in Ireland have released the results from their Q1 2022 Director Sentiment Monitor survey. A significant majority surveyed, 93 percent, have indicated that they believe Government should go back to the drawing board with the Draft Scheme of the Right to Request Remote Working Bill 2022. Only 28 percent believe the Bill balances the rights and requirements of both employees and employers.
The survey also found that 48 percent of respondents belief that the hybrid working model has been a success for their organisation, but nearly one third think it is too soon to tell.
We have previously highlighted the draft Bill to give employees the right to request remote working published by Tánaiste Leo Varadkar. The proposed legislation will set out a legal framework to apply for remote working, the reasons the request could be refused and outlines the process for appeals. The Institute recognises that clear guidance will be critical to help employers implement the new legislation and wrote to Tánaiste Leo Varadkar on the issue.
Latest Northern Ireland Labour Market Report published
This week, Northern Ireland Statistics and Research Agency (NISRA) published its most recent Labour Market Report. This report shows an increase of 4.8 percent in the number of payrolled employees in the twelve months to March 2022. March 2022 is the tenth consecutive month where payrolled employees are higher than the numbers seen pre-pandemic.
The claimant count reduced again in March 2022 to 37,900 people, representing 4 percent of the workforce. This is still 27 percent higher than the figures seen pre-pandemic but is a 41 percent improvement from the peak in May 2020.
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