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Minister for Finance Paschal Donohoe this afternoon made his first solo budget speech.
Among the measures announced were:
A €5 across-the-board increase to weekly social welfare payments
Reductions to the USC and an increase to the secondary tax band for middle-income earners
An additional 3,000 new social housing units to be built by 2021
The establishment of a €1.5 billion Rainy Day Fund
An increase of €645 million to the health budget, bringing it to €15.3 billion
The long-awaited Sugar Tax made its debut
1,300 new teaching roles to be created in 2018
800 more gardaí to be recruited
The establishment of a Brexit Loan Scheme to help SMEs deal with Britain exiting the EU
Here’s how it all went down:
10 Oct 2017
11:20AM
Good morning, and welcome to our Budget 2018 liveblog. It’s Christine Bohan here covering the run-up to this afternoon’s announcement.
It’s a bright, sunny day here in Dublin as the countdown is on to the big announcement. We can expect Paschal Donohoe to get to his feet at 1pm in the Dáil chamber, with the speech to last at least an hour (but possibly more – this is the first time in almost a decade that the speech has been given by just one minister rather than being broken up into two speeches).
After that, Fianna Fáil TDs will respond to the speech between 2pm and 3pm, followed by opposition parties from 3pm until around 8pm tonight. In other words: long day ahead for Budget wonks.
It’s been an unusually subdued run-up to this Budget, with both Leo Varadkar and Paschal Donohoe ramping down expectations of any major changes. As my colleague Killian Woods wrote over on Fora.ie:
After several years of bad-news budgets, followed by a few better-news budgets, 2018 could be the first ‘no-news budget’ for some time.
Here’s what we know already:
There’s unlikely to be any change in the tax rates, but there probably will be a change in the tax bands, in a bid to help low and middle-income earners
USC will be cut from 5% to 4.5% for people earning up to €70,000
The minimum wage is expected to increase by 30c per hour
The State pension will rise, probably by €5 per week.
The price of a packet of cigarettes will rise by 50c but the cost of alcohol will not change, nor will the price of diesel or petrol
A package of measures is expected to be announced to help tackle the housing crisis
The sugar tax is likely to be back on the agenda today after being postponed by former minister Michael Noonan last year
Stamp duty may be increased on commercial property
'No fireworks' - The Taoiseach is ramping down expectations for the Budget
If you’ve heard any Fine Gael minister talking about the Budget at all over the past week, you’ll probably have heard them promising a quiet Budget with no surprises – and Taoiseach Leo Varadkar is no exception.
'No fireworks, no bonanza' says Leo as he arrives ahead of #Budget18. Will be putting money in pockets of pensioners, welfare recipients. pic.twitter.com/Q2OeukdYB6
Speaking this morning outside Government Buildings, the Taoiseach was giving few details away but promised there would be “further investments in health and education – more teachers, more nurses, more gardaí” along with a “very significant increase on spending on infrastructure – with big increases for housing and transport in particular.”
He described it as a “good Budget overall” albeit one with “no fireworks, no big bonanza.”
“There’s also a tax and welfare package which puts more money back in the pockets of taxpayers, working people, families, pensioners, people on welfare as well as measures to reduce the cost of living – particularly in relation to childcare and prescription medicines, he said.
Some good news for families: the “average family with two incomes” will be getting an extra €500-€600 per year, according to the Taoiseach. “It is modest but it is real,” he said.
At a briefing with reporters this morning, the Minister for Finance didn’t wear a tie (just to ramp up the anticipation?).
Place your bets now for what colour you think it’ll be. The winners get the glory of knowing they correctly anticipated Paschal Donohoe’s sartorial choices.
Sam Boal / RollingNews.ie
Sam Boal / RollingNews.ie / RollingNews.ie
Speaking of Leo and Paschal… TheJournal.ie will be hosting a special one-off Facebook Live with the Taoiseach and the Minister for Finance at 8pm on Wednesday night.
We’ll be putting your concerns and observations about the Budget to them, and digging into the thinking behind the decisions made for the country and what it means for our collective future.
You can watch it live on our Facebook page from 8pm tomorrow night and submit your questions either here on the site from this evening or else directly on Facebook once the broadcast starts.
10 Oct 2017
12:13PM
How are things in Leinster House right now? Our political reporter Christina Finn says TDs and ministers have started to roam around the corridors in the past few minutes. Fine Gael politicians are upbeat – Education Minister Richard Bruton says he’s “all set” and seems pretty happy.
Out of all the quirky little stories that emerge on Budget Day, the Examiner has got one of the best ones so far.
Political editor Daniel McConnell reports that Minister for Public Expenditure Paschal Donohoe will have to write a letter to Minister for Finance Paschal Donohoe in order to get clearance to increase the spending ceiling for his department.
McConnell writes: “Because they remain two departments and technically he is minister for both, under existing rule, the minister for public expenditure must write to the finance minister to approve increases in spending ceilings for departments, as required under legislation.”
Previous years have seen a heavy garda presence outside Dáil Éireann during and after the Budget speech with large numbers of protesters converging, particularly during the worst years of recession and austerity.
This year, however? Not so much. At least, not yet.
Hello everyone, Cianan Brennan here, I’ll be manning the liveblog for the next couple of hours as political power duo Minister for Finance Paschal Donohoe and Minister for Public Expenditure Paschal Donohoe lead us through our Budget 2018 paces.
We all think we know almost everything there is to know about this year’s no frills entry in advance – but surely there’ll be a surprise or two in store?
Time to shine Paschal.
Sam Boal / Rollingnews.ie
Sam Boal / Rollingnews.ie / Rollingnews.ie
Immediately after the two Paschals are done outlining the tax and expenditure movements we can expect in 2018, the whole shebang will go live on the government’s own Budget site.
You can check that out here as soon as Donohoe retakes his seat.
Incidentally, Paschal has thrown us all, and is wearing a purple tie.
Delightful.
10 Oct 2017
1:14PM
We’re still going through the financial fundamentals.
Meanwhile, opposition deputies are using the time to get in some feverish Budget reading.
10 Oct 2017
1:17PM
Ok here we go.
Tax reductions on income are to be introduced worth €335 million.
The Department of Finance is to raise additional revenues of €830 million, giving a total Budget Day package of €1.2 billion.
10 Oct 2017
1:21PM
Donohoe allocating €1.83 billion for housing, increases HAP by €149 million
Paschal is talking housing.
“Commencement notices for new housing are up 47%,” he says.
I am allocating €1.83bn for housing in 2018, 3,800 new social homes will be built by local authorities.
The government will increase the Housing Assistance Payment by €149 million in 2018. An additional 17,000 homes and households are to be accommodated by next year.
Funding for homeless services will increase by to €18 million to €115 million next year.
10 Oct 2017
1:22PM
Donohoe is set to make €750 million of the Irish Strategic Investment Fund available for commercial investment in housing finance.
10 Oct 2017
1:24PM
Stamp duty on commercial property sales is to increase from 2% to 6%, about a percentage point higher than expected.
This is still less than the maximum rate of 9% charged between 2002 and 2008 Paschal stresses.
The National Training Fund levy is set to increase from 0.7% to 0.8% to provide additional investment in higher education.
10 Oct 2017
1:36PM
An additional €310 million is to be made available until 2021 to address the infrastructure needs of higher and further education.
Meanwhile, the Minister for Education is set to announce details of an additional €200 million investment in public private partnership in the sector to support regional development.
800 additional gardaí are set to be hired in 2018, along with an additional 500 civilians.
10 Oct 2017
1:39PM
Donohoe announces the provision of a Brexit Loan Fund
Paschal announces the provision of a Brexit Loan Fund.
It’ll see up to €300 million made available to small and medium enterprises (SMEs) to help them prepare for Brexit.
10 Oct 2017
1:39PM
No change to VAT rate on the tourism and services sector.
10 Oct 2017
1:42PM
Transport and sport now.
€9 million extra is to be allocated for public transport and roads up to €414 million to 2018.
Meanwhile, €111 million capital is being provided for sport next year.
10 Oct 2017
1:45PM
Back to Brexit.
In addition to the previously mentioned Brexit Loan Fund, Donohoe announces an additional Brexit Response Loan Scheme for the agri-food sector.
He’s also set to keep the stamp duty relief of 1% for inter-family farm transfers for another three years.
10 Oct 2017
1:47PM
Childcare.
An additional €20 million allocation will support ‘a range of childcare measures’.
Child and family agency Tusla’s budget increases by €40 million.
10 Oct 2017
1:49PM
Electric vehicles.
In order to incentivise the takeup in non-fossil fueled cars, Paschal is bringing in a 0% rate of Benefit in Kind (BIK) for such vehicles, for a period of one year to allow for a ‘comprehensive review’ of the sector before next year’s budget.
McGrath is done with the government, and now has his sights set firmly on Sinn Féin – “they’re the classic hurler on the ditch – when the chance comes to have their say, they run for the hills”.
10 Oct 2017
2:10PM
The Rainy Day Fund is set to be one of the talking points of the Budget just announced – McGrath says it is “the right thing to do”, so you know where Fianna Fáil stands.
Just €3 million has been allocated for cycling. Eamon Ryan isn’t one bit impressed:
Shocking lack of support for sustainable transport. Not a single rail project ready to go. A measly €3m allocated for cycling. #Budget2018pic.twitter.com/lZlxdumFZ4
The various government departments natty Twitter graphics explaining the various initiatives Paschal was talking about are everywhere at present – here’s Public Expenditure and Reform talking about the Brexit Loan Scheme:
Michael McGrath has concluded his speech. Now it’s time for… Dara Calleary, also of Fianna Fáil. He’s not particularly animated either:
Oireachtas.ie
Oireachtas.ie
He likewise draws attention to the fact that Fianna Fáil’s “mark is on this Budget”.
Which sums up the party’s problem – it’s had a huge amount of input into this year’s entry, so there’s only so much its representatives can say to admonish the government.
Which makes for dull enough speeches it has to be said.
The Social Democrats’ Catherine Murphy isn’t particularly impressed by what’s going on today – it’s a budget of “squandered opportunities” she says.
She pours particular scorn on the increase in the vacant land levy – saying that if it doesn’t even keep pace with land inflation then what’s the point?
Tonight on RTÉ News, Fine Gael will be debating… Fianna Fáil. Paschal won’t be talking to any representatives from the next largest opposition party Sinn Féin.
Dara Calleary signs off saying that the Budget “is a lot more ambitious than it would have been if we hadn’t been involved”. Indeed.
Now, it’s time for Sinn Féin’s Pearse Doherty to have his say. Expect this to be a good bit more confrontational.
10 Oct 2017
3:09PM
Doherty says: “at the centre of this Budget is a lie”.
“It’s a lie that says you can solve housing and health crises while at the same time lowering peoples’ taxes.”
“Sinn Féin showed you how this can be done, in our alternative budget,” he says to Donohoe.
What does the Budget mean for the child who has to listen to his mother crying in a hotel bedroom, night after night, because she feels like she has failed her child?
Doherty wants to know why the Strategic Communications Unit is going to cost €5 million when the Taoiseach had previously argued it would be cost-neutral.
He brands it “just crazy” that in a €1.2 billion budget package the government prioritises tax cuts over building any additional social housing.
He raises the plight of a child with scoliosis who was left waiting two years for spinal fusion surgery:
She has no set date as of yet. That is a result of your policies. No one would set out to do that. But when you underfund your health budget that is what happens.
For all the muted speeches that went before, no-one could accuse Doherty of delivering similar.
He’s been loud, pointed, and angry.
“We’re actually incredulous,” he says of what Paschal Donohoe announced regarding housing and homelessness initiatives, or the lack thereof in his party’s opinion.
“Fine Gael doesn’t believe in social housing. We expected the government to do what it always does. But to do nothing at all. It’s actually incredible.”
Doherty’s marathon speech finally comes to an end.
Assuming Donohoe is paying rapt attention, he’s getting a helluva chastising.
“Minister, this could’ve been a very different budget. You’ve done what you always do. You’ve got one eye on the next election. You hope that you’ve done enough to pick up enough people to safeguard a return to the government benches,” he says.
“But Minister we’re elected to lead this country. At a time of crisis we have to prove that we can lead.”
I said I would judge this budget on housing and on health. On both counts you have failed, and failed spectacularly.
I will repeat, I cannot for the life of me understand that no provision has been made to deliver additional social housing compared to what was promised by the previous Housing Minister Simon Coveney.
No more has been given to health to stop that service from running to stand still.
“I am extremely disappointed in this budget,” he concludes.
There’s trouble brewing on the health front. The National Association of GPs (NAGP) has reacted angrily to the levels of funding announced by Paschal Donohoe for the Department of Health – specifically a lack of ‘meaningful’ investment in General Practice.
They say that GPs are set to consider industrial action as the government has declined to reverse the application of FEMPI (Financial Emergency Measures in the Public Interest) for General Practice:
Meanwhile, back in the Dáil chamber, Joan Burton says that the Budget shows “an alarming lack of vision”. She’s particularly concerned about rural development.
Alan Kelly, who’s sharing the Labour speaking duties, then gets to his feet.
“Wake up there Minister,” he says. We’re not sure which Minister he was talking to, most of Fine Gael have fled the chamber for press events. But to be fair, it has been a long three-and-a-half hours.
Kelly takes aim squarely at Minister for Transport Shane Ross:
“I can’t tell what Shane Ross is doing in this government, for the life of me. I can tell by the chairman’s face that he can’t tell either.”
10 Oct 2017
4:51PM
Back to the coffee cup analogy, which is about as close to a diversion as we’ve come unfortunately, Kelly says that the government’s promise to raise social welfare payments across the board by €5 is something of a misnomer:
Will the government stop telling lies when they say they’re giving €5 a week [in social welfare payments]? When you take out the calculator it’s €3.80.
Our sister site Fora spent the duration of the Budget speech breaking down the significant aspects of what Paschal had to say from the point of view of Irish businesses.
Over in Government Buildings, meanwhile, Housing Minister Eoghan Murphy is talking about, well, housing.
He’s in bullish form. He says that the government’s year-old housing strategy Rebuilding Ireland “is working”.
The Minister says that 5,000 social homes will be constructed next year, up from 3,100 last year, with 900 of those coming from acquisitions.
There are a lot of different interpretations of the government’s housing figures coming out of today’s Budget, it must be said. The government says it’s making progress. The opposition says its gobsmacked at the lack of initiative being shown at the height of a full-blown housing crisis.
Health Ministers Finian McGrath and Simon Harris are now holding their Budget presser in Government Buildings.
Health, along with Housing, is attracting more criticism than any other provision in the new Budget:
After what were described as some tense talks, Finian McGrath seems pleased enough with provisions for those with disabilities pic.twitter.com/rOCJ9minXo
Boyd Barrett says that the nurses that the State needs to recruit can’t be found “because you won’t pay them Minister”.
You practice pay apartheid.
10 Oct 2017
6:01PM
Ok folks, we’re going to bring the Liveblog to an end here. It’s the end of the blog, but naturally we’ll continue to provide Budget coverage on the main site throughout the evening.
Thanks for being with us, bye.
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he is good cvompany,,enda doesnt know the min wage,,leo cant count bed trollys ,noonan doesnt know diff between billans and billions and labour well enough said
I was watching it live yesterday. Adams was remarking about the cutting of time for discussing the redress package to the magdelines and said “……Now I’m not good at maths, but….” as part of a tongue in cheek remark about the time difference WRT the disgraceful way the government was refusing to allow proper debate on a most serious subject.
Given the seriousness of there ladies plight, the reaction from the government benches was childish and disgraceful.
This article stinks of the ‘we built it’ slogan that the romney campaign ran (and lost) on the last US Presidential election.
Seriously man. You were actually watching it live yesterday? You need to get a life. Every time there’s a spat involving Sinn Fein in the Dail, were jammin comes on here with “I was watching it live” blah blah blah. I know you work as a full time shinnerbot on social media but still..
Love all these new twitter accounts spouting pro government bs. Was the training in a fancy hotel? Did you all get new ipads? Did iphone burton sign the cheque?
Yeah Pepper, god forbid Were Jammin has an interest in something and then likes to spend time learning and talking about said interest. He needs to get a life and stop doing things he enjoys. ^_^
Well aware of how it works but the cuts will destroy NI. SF go for the big I am and it fails. The exact same would happen in Europe with a debit write down!
funny how a voluntary redundancy scheme in the south was an absolute disaster but in the north its okay… for shinners… getting harder and harder to speak out of both sides of your mouth sam jammin
The majority of the members of the Dail are professional politicians, in the sense that otherwise they would not be given jobs minding mice at crossroads.
If only they were.Professionals would have studied and qualified in their trade.Not one of ours I believe has a degree in political science for example.We have a school teacher as leader and one as minister for finance and half a dozen other things.The rest are made up of solicitors , publicans , medical doctors and a few other odds and ends thrown in for good luck.No wonder they get shredded by the big boys in Europe.Basically we have amatures running the place who have found cushy numbers for themselves , 78 of whom cost the taxpayer a combined €100 million in the past three years.
FG maths at not to hot… We are over 200 Billion in debt because of their policies and they won’t even try to get a reduction off Europe … At least Adams would have tried!
Two thirds of the debt was incurred paying our bloated public servants and on social welfare payments. Why should we be entitled to a write down on that money?
It really is beyond a joke that these idiots are actually paid to carry on like this.
The carry on is akin to the script of a remake of Halls pictorial weekly.
Brendan O’Carroll should be taking notes.
Ok then pepper,I’ll bite…
You seem to know so much about me could you please show an example of where I have ever stated that..
It’s ok,I’m out sick so I’ll await your post.
Look brooks your making yourself look more of a gobs*ite .
Kindly prove your statememt and I would be happy to answer your questions..
Otherwise crawl back under one of your other accounts and stfu.
Bunch of children. Shameful carry on from this government. Sickening watching them in the dail skitting and laughing and on their phones tweeting. Shows the respect they have for the dail if all their are doing is acting like kids tweeting during dail time. Maybe leo should be doing his maths a bit better and learn subtraction and get the trolley problem sorted.
I’m sure the author of this article didn’t think he’d solicit this response. This article, about a government party undermining democracy with an allegedly “witty” retort was a massive own goal for the journalist and the politicians involved.
This reminded me of the following insightful dialog from that Simpsons episode where Lisa becomes a vegetarian:
Janey: Are you going to marry a carrot, Lisa?
Lisa (wearily): Yes, I’m going to marry a carrot.
Janey: She admitted it! She admitted she’s gonna marry a carrot!
Can Leo add up how many people are currently on trolleys in our hospitals? Can Enda ably grasp the English language so he can debate live? Stones in glasshouses comes to mind.
How can they laugh at the abuse and torture of women and children. Not a SF supporter, don’t support any party.. But he was asking for more time to talk about this topic… Leo how do you have time to tweet??? The HSE is falling apart. Less time laughing at very serious issues and more time doing your job would be helpful , they should apologise to all victims for laughing at their misery and suffering . And Leo .. How many people on trollies the last few weeks???? Maths… Or should we talk about your early intervention for autistic children ??? 15 months I waited to be seen and have my son diagnosed. Now I have the pleasure of waiting 12 months (yes a YEAR) to meet with any autism specialist to go on more waiting lists by them…. In the meantime I am now approaching my second year of unpaid leave from my job, because I cannot get the care or facilities that he needs.. So Leo , look up the meaning of ” EARLY INTERVENTION ” and see if 4-5 years from awaiting assessment to having everything in place for your child, ADDS UP????
If they put as much time and effort into running the country efficiently and looking after the best interests of the people, WE MIGHT HAVE A COUNTRY THAT WASN’T COMPLETELY SCREWED. Bunch of time-wasting prats. It’s infuriating.
Would it not be better for fine gael to spend their time sorting out things like the A + E departments than constantly taking swipes at the opposition.this government seems to have already ended their term in government and are now on an election campaign V. disappointing.
I’m sick and tired of this Blueshirt nonsense.
People are being crucified and the rotten despot Government doesn’t give a flying Fouck.
The sooner we gave an election the better. And before all the Blueshirts lapdogs get excited, i’m voting for a left candidate.
Well I am from fine gael family who voted for fine gael for decades. So not a shinner. Thats the problem you assume every one who has had enough of this government are shinners. Some of us are just sick and tired of lies and cronyism. I voted for a government to act for the people not themselves and think tds and ministers should be respecting the dail and not tweeting. That goes for all tds of all parties
Its the dail they are in not a playground .
I remember chatting to a SF councillor during the bailout and explaining that Ireland was getting money below market rates given Ireland’s poor standing. His response will stay with me forever: “Why don’t we sell bonds in Ireland that people from all over the world to buy.”
I smile every time I recall this story. Tragically such poorly thought through utterances aren’t rare in SF.
Another SF councillor apparently told a Waterford Co Co meeting that it was unfair to expect councillors to balance a budget.
It is surprising that there are so many comments from the little Shinners because it is the secondary school teachers that are on strike and not the primary school teachers.
On a day when statistics were released showing just how many people in this bent republic are living in dire deprivation it would suit fg to examine their own math.
And Leo is able to remember a 6 worded sentence, now how is the maths for the HSE going Leo, can you count the number of people on the trollies still or has the radio show taken over from those on the trollies…
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Reports can be generated based on the combination of data sets (like user profiles, statistics, market research, analytics data) regarding your interactions and those of other users with advertising or (non-advertising) content to identify common characteristics (for instance, to determine which target audiences are more receptive to an ad campaign or to certain contents).
Develop and improve services 83 partners can use this purpose
Information about your activity on this service, such as your interaction with ads or content, can be very helpful to improve products and services and to build new products and services based on user interactions, the type of audience, etc. This specific purpose does not include the development or improvement of user profiles and identifiers.
Use limited data to select content 37 partners can use this purpose
Content presented to you on this service can be based on limited data, such as the website or app you are using, your non-precise location, your device type, or which content you are (or have been) interacting with (for example, to limit the number of times a video or an article is presented to you).
Use precise geolocation data 46 partners can use this special feature
With your acceptance, your precise location (within a radius of less than 500 metres) may be used in support of the purposes explained in this notice.
Actively scan device characteristics for identification 27 partners can use this special feature
With your acceptance, certain characteristics specific to your device might be requested and used to distinguish it from other devices (such as the installed fonts or plugins, the resolution of your screen) in support of the purposes explained in this notice.
Ensure security, prevent and detect fraud, and fix errors 92 partners can use this special purpose
Always Active
Your data can be used to monitor for and prevent unusual and possibly fraudulent activity (for example, regarding advertising, ad clicks by bots), and ensure systems and processes work properly and securely. It can also be used to correct any problems you, the publisher or the advertiser may encounter in the delivery of content and ads and in your interaction with them.
Deliver and present advertising and content 99 partners can use this special purpose
Always Active
Certain information (like an IP address or device capabilities) is used to ensure the technical compatibility of the content or advertising, and to facilitate the transmission of the content or ad to your device.
Match and combine data from other data sources 72 partners can use this feature
Always Active
Information about your activity on this service may be matched and combined with other information relating to you and originating from various sources (for instance your activity on a separate online service, your use of a loyalty card in-store, or your answers to a survey), in support of the purposes explained in this notice.
Link different devices 53 partners can use this feature
Always Active
In support of the purposes explained in this notice, your device might be considered as likely linked to other devices that belong to you or your household (for instance because you are logged in to the same service on both your phone and your computer, or because you may use the same Internet connection on both devices).
Identify devices based on information transmitted automatically 88 partners can use this feature
Always Active
Your device might be distinguished from other devices based on information it automatically sends when accessing the Internet (for instance, the IP address of your Internet connection or the type of browser you are using) in support of the purposes exposed in this notice.
Save and communicate privacy choices 69 partners can use this special purpose
Always Active
The choices you make regarding the purposes and entities listed in this notice are saved and made available to those entities in the form of digital signals (such as a string of characters). This is necessary in order to enable both this service and those entities to respect such choices.
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