Treasury Minister Eddie Teare MHK has welcomed positive feedback from the Isle of Man’s business community to a new scheme aimed at boosting employment and economic growth.
During his Budget speech in February, Mr Teare announced the introduction of a national insurance holiday for employers who take on new staff. The initiative, which came into effect on April 6, will run for an initial period of two years, with regular reviews to determine its impact. It is designed to stimulate employment in the private sector and provide benefits for both the economy and the wider community.
The Minister said:
‘The scheme has been in operation for less than a month, so it’s too early to say what the take up will be like. However, the early feedback from the private sector has been very encouraging and I’m aware of companies who are planning to recruit new staff as a direct result of this measure. It has given them the confidence to expand in what are challenging financial times. I hope the scheme will prove extremely beneficial to a wide cross section of the community, in particular those young people currently not in employment, education or training (NEETs). I feel that this is a responsible measure with a clear goal. It can be said to be revenue-neutral in the sense that the people who may find employment as a result of it do not currently pay any national insurance contributions.’
Mr Teare said he hoped employers would embrace the spirit of the scheme and see it as an opportunity to grow. He commented:
‘This is a positive step by Treasury to support the private sector and create jobs, so it would be a great pity if companies simply reduced the hours of their existing employees and then recruited new staff in order take advantage of the national insurance holiday. We will be conducting spot checks over the next two years to ensure the scheme is operating as intended.’