Irish Economy and Budget Watch / / /Emergency Budget Announced for April 7th

Competitiveness as they rightly say has been eroded progressively since 2001. The figures were released every year to show that was the case, and it was ignored.

Just a few examples. This week a charge was put on Nursing Homes for inspection. High time that the public homes were inspected, no argument with that. But why is it costing 4 times the cost in the UK and how come Mary Harney thinks this is all right?

Telecommunications, energy costs, the most expensive in the EU - as a result of Government decisions.

Public Sector wage bill - through the roof and wage levels much higher than EU equivalents.

Cost of taxis - deliberately pushed up by the Regulator when drivers themselves didn't want the increases.

Pharmaceuticals - paying several times over what is paid in other EU countries for the same drugs - some of which are manufactured here.

Cost of food - highest in the EU. What has been done about it?

Health care - agreement with the Consultants to pay three times the EU average.

Ironically, the one area in which Government took action to try to reduce prices was housing.

http://www.irishtimes.com/newspaper/breaking/2009/0311/breaking32.htm

Emergency budget announced for April 7th. The Easter break will be shortened by one week.

Jim Power economist with Friends First was this morning saying that cigarettes would rocket up to €10 or more. I believe the price issue of cigarettes is going to the European Court of Justice following a complaint lodged by the Commission (?) LINK

Then there is the issue of 'smuggling' stuff cross-border because cigarettes are cheaper up there. Surely it's permitted to import as much stuff as you want from other member states so will be see more cigarette holidays to Spain? What can Ireland do about this then - hike up the flight tax?

Cigarettes : the Tea of the Belfast Tea party ?

(see shutuplaura's comments on http://www.machinenation.org/forum/ for reference to above if baffled)

It appears that the Government now think their estimates of less than two weeks ago may be out of date.

Quote :

TAOISEACH BRIAN Cowen has said the emergency budget will be even tougher than anticipated, due to the steadily worsening state of the public finances. April 7th, a Tuesday, will be budget day.


Mr Cowen told Opposition leaders in the Dáil yesterday that the Department of Finance had estimated at the end of February that a gap of €4.5 billion would have to be dealt with in the budget, but the final figure could be greater.

http://www.rte.ie/business/2009/0312/social.html

Pin thread:
Pressure on Social Insurance Fund - sounds bad

Quote :

Senior civil servants have told the Public Accounts Committee that the Social Insurance Fund will run out by the end of the year or early next year.

This is due to both the added burden of social welfare payments and companies going bust while owing PRSI.

Secretary General of the Department of Social and Family Affairs, Bernadette Lacey, said the fund would need an exchequer subvention or a change in how it raises income.

AdvertisementFred Foster, a Principal Officer in the Department of Finance, said the issue may have to be dealt with in the forthcoming mini-Budget.

Labour TD Tommy Broughan said we could be looking at an empty kitty. His party colleague Roisín Shortall said the situation was dire.

The PAC also heard that €20m is being sent to support children living abroad in child benefit payments. Ms Lacey said the department was supporting 10,000 children abroad and this would continue until the child is 18, provided one parent was living and working in Ireland.

Quote :

Friday, March 13, 2009

Social welfare cuts and PRSI hike loom

THE Government could be forced to cut social welfare payments and increase PRSI contributions, after it emerged that the Social Insurance Fund, which had a surplus of €3.4 billion in January, will run out by the end of the year.

The Dáil Public Accounts Committee heard the fund, which is used to pay a variety of social welfare payments including unemployment benefit, will be in deficit by 2010 at the latest due to the dramatic rise in redundancies. The revelation came after the Government was warned the Health Service Executive is facing a funding deficit of e480m.

However, with large financial holes emerging on two new fronts, Taoiseach Brian Cowen refused to be drawn on what were his top priorities ahead of next month’s crisis budget. He appealed for space to consider what cuts would be made and which taxes have to be raised.

http://www.examiner.ie/Ireland/idgbgbsnau/rss2/

The dole going to be cut by 10% or more ?? I reckon it's pretty generous the way it is - especially with inflation deflating.

A PRSI hike - to what?

http://machinenation.org/forum/viewtopic.php?&f=8&t=281&start=0