The Irish Hotels Federation has called for the introduction of a special tax-free allowance to encourage Irish homemakers to return to the workforce.

The federation believes that news ways to increase the labour force and attract people back into the workplace must be devised. It proposes that an additional tax-free allowance of £2,000 (€2,539) per annum be given to persons over 35 years who have neither a work history nor were in receipt of unemployment benefit claims for five years.

"The economic activity created by our proposed Homemakers Revenue Job Assist Scheme, while costing the Exchequer £480 per person, would net in excess of £8,400 to the Exchequer for every extra person employed full-time in the tourist industry alone," the federation says.