IT WAS signalled yesterday that employers' PRSI, especially for low earners, would be substantially reduced in the next Budget. In a pre-Budget submission the Oireachtas committee on small businesses and services said that despite improvements in last year's Budget, the level of PRSI payable by employers was still one of the greatest deterrents to job creation.

The cost to employers of taking on extra employees was too high. The committee was seeking a further substantial reduction in the level of PRSI payable by employers in the forthcoming Budget, particularly for low-wage employees.

The committee's recommendations were adopted at a meeting of members.

It supported the demands of small businesses that the PAYE allowance be extended to owner-managers and working spouses. These taxpayers had a strong sense of grievance that they took risks and created employment yet they were less favourably treated in relation to taxation than were their employees.

The committee would like to see an improvement in the arrangements for payment of unemployment benefits to those in irregular employment.

"Currently, unemployed persons are reluctant to take up work for short irregular periods which arise because of peaks and valleys in some industries. Regardless of the level of pay for such work the delay in restoring unemployment benefits following a period of work is too long so that constant unemployment far outweighs the benefit of even higher paid part-time work.