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FINANCE MINISTER MICHAEL Noonan has delivered his Budget speech.
It began shortly before 2.30pm and ended at 3.10pm, clocking in at just under 6,000 words.
Much of its content had been leaked to the media before he took to the Dáil floor, such as cuts to the much-hated USC and a 50 cent increase on a packet of 20 cigarettes (up to €10.50).
The above word cloud illustrates the frequency of words in Noonan’s speech.
Here is the full text of his speech:
Introduction
A Cheann Comhairle,
2016, the centenary of the Easter Rising, is an opportunity to reflect on the journey travelled over the past 100 years. To recall the many major social and economic challenges along the way. It is the opportunity to celebrate the achievements, and to remember how we overcame the challenges and emerged from each stronger than ever before.
The banking, fiscal and economic crisis of recent years will rank as one of the greatest of such challenges. But we have emerged from this challenge too and we are on a new path
The last few budgets have been hard, but they made it possible for Ireland to exit the bailout, reduce our debts and move into a real recovery. The top priority of this Budget is to keep that recovery going, while providing relief and better services for the Irish people. It includes steps like a cut in the USC, more nurses and doctors for the health service, more affordable and quality childcare, and end the unfair treatment of the self-employed. These are sensible, affordable steps that will keep the recovery going and bring its benefits to every family.
The economy is growing strongly. 1,100 jobs are being created on average every week. The public finances are in a strong position and we will exit the corrective arm of the Stability and Growth Pact this year. The banking system has been strengthened, with domestically focused, well capitalised banks operating within a European wide Banking Union.
Most importantly, our people and our country are in a much stronger and certain position than in 2011 when this Government took office. The Irish people gave this Government the task of fixing a broken economy and getting Ireland working again. We put in place a plan and the people stuck with us. It is a testament to the commitment and resilience of the Irish people that Ireland is on course to be the fastest growing economy in Europe for a second consecutive year.
A Cheann Comhairle, both parties in Government, Fine Gael and the Labour Party, know that the job of recovery is not yet complete. Though strong, the recovery remains fragile and the benefits of a growing economy have not yet been felt inside the door of every family.
We must keep the recovery going and provide relief and better services for the Irish people.
But we must not gamble with the future. This Government will not take chances that destabilise the recovery.
To raise living standards for all of our citizens over the medium term we need to boost productivity, foster innovation and remove barriers to employment. We must invest in the critical infrastructure needed in a modern economy and our plans to do so are set out in the Government’s capital investment framework, Building on Recovery. We must create the conditions in which new ideas, innovation and entrepreneurship will be encouraged, leading to increased long-term growth and wellbeing. We must ensure that work pays.
This Budget is the final Budget of the 31st Dáil. But it is also the start of a new series of Budgets where we start to meet these challenges.
Economic and fiscal position
Our economy has been transformed. It is growing strongly across all sectors and, most importantly, is sustaining and creating jobs. The economy has recovered all of the output lost during the crisis and is bigger than ever before in our history
Ireland is forecast to be the fastest growing economy in Europe again in 2015, with my Department forecasting growth at 6.2 per cent. This forecast has been endorsed by the Irish Fiscal Advisory Council.
My Department is forecasting growth of 4.3 per cent in 2016 taking account of the figures endorsed by the Irish Fiscal Advisory Council and the full impact of today’s overall Budget package. Economic growth is expected to average around 3 per cent per annum thereafter
Risk
Despite the strong economic position that is emerging, we must remember that Ireland is a small and open economy and that there are international concerns regarding the outlook for the global economy. These risks, which are discussed in the Economic and Fiscal Outlook of the Budget, inform our policy choices. This emphasises the importance of managing our public finances and the economy prudently.
Labour market
One hundred and thirty thousand more people are now in work than at the low point in 2012 and this growth in employment is spread across the vast majority of the sectors in the economy. The Action Plan for Jobs, The Pathways to Work initiative and the strategy in successive Budgets of focusing resources on SME’s in key sectors of the economy such as Agriculture, Tourism and Construction is supporting businesses to create new jobs. The pursuit of Foreign Direct Investment means Ireland continues to attract and retain a higher proportion, relative to our size, of new jobs and investment than other European Countries.
The 53,000 new jobs forecast to be created this year will bring the number in employment close to 1.97 million people by the end of this year and my Department is forecasting that 48,000 jobs will be created in 2016. This will bring the total number of people in work in Ireland to just over two million. We are on track to recover all of the jobs lost and have more people working in Ireland by the end of this decade than ever before.
Importantly, unemployment continues to fall. My Department is forecasting that the unemployment rate will fall to 8.0 per cent by the end of 2016, down from 9.4 per cent now and the peak of over 15 per cent in 2012. A significant improvement but still too high. Unemployment is forecast to drop to 6¼ per cent by 2021.
Public finances
The public finances continue to improve, with a broad and growing tax base providing stable funding for vital public services. Our reformed budgetary framework and fiscal rules are designed to protect the public finances and ensure that the mistakes of the past are not repeated. The National Economic Dialogue held in Dublin Castle last July has helped to frame the policy choices in this year’s Budget.
The forecast deficit for 2015 of 2.1 per cent is well ahead of our original target of 2.7 per cent and our excessive deficit requirement of less than 3 per cent of GDP. Consequently, we will exit the corrective arm of the Stability and Growth Pact and move into the preventive arm of the Pact. This Government has consigned to the history books the days of boom and bust, and the attitude of ‘if I have it, I’ll spend it.’
My Department forecasts that we will balance the books in headline terms in 2018 with balance in structural terms following in 2019.
While headline deficits will continue to reduce, the anchor for fiscal policy is now a balanced budget in structural terms. This is our medium term objective and in 2016 we will make significant progress towards this target with the structural balance reducing by 0.8 per cent of GDP – ahead of the 0.6 per cent requirement of the Stability and Growth Pact.
This fiscal stance will enable the Government to comply with the Fiscal Rules and:
Against this background, talk of an excessively expansionary Budget is well off the mark.
Reducing the high debt levels
The high level of Ireland’s debt has been an obvious risk to our economic progress in recent years. We are moving into a much better position now and having peaked at over 120 per cent of GDP in 2012, General Government Debt is forecast to drop to 97 per cent of GDP in 2015. Following the introduction of the Budget, as I have outlined, the debt will fall to just under 93 per cent of GDP by the end of 2016; around the Euro area average.
Taking account of cash and liquid assets, including those held by the NTMA and the Ireland Strategic Investment Fund, our net debt position will be 80 per cent of GDP by the end of this year.
This debt level, while sustainable, remains too high and remains our biggest internal risk. Debt reduction is a critical goal as building fiscal capacity or an ability to borrow is the best way to mitigate the risks of crises as yet unforeseen and undreamt of.
This Government has made significant progress in reducing both the size and cost of servicing the national debt. In addition to bringing the public finances under control, specific initiatives such as the Promissory Note transaction, the extension of maturities on our EU Loans and the early repayment of the IMF loans have also resulted in real and substantial savings to the Irish taxpayer. The interest cost of the general government debt is forecast to drop below €7 billion in 2015. It is worth recalling upon entering office it was estimated that interest costs would be in excess of €10 billion in 2015.
The Economic and Fiscal Outlook section in the Budget book forecasts that the debt to GDP ratio should be below 80 per cent of GDP by 2021, with the exact level depending on the fiscal stance pursued over the period. This forecast does not take account of the value of the States shareholdings in AIB, Bank of Ireland and PTSB. These shares are now valuable assets belonging to the taxpayer and I remain confident, based on the best advice available to me at this time, that we will recoup the investment made in these institutions.
The proceeds from the sale of the share holdings in these banks will be used to reduce the debt levels further and there will be a major impact on the debt level when these assets are sold and the proceeds are used for this purpose.
Tax
I will now turn to the specific tax measures of the Budget.
The Budget package includes €750 million in revenue relieving measures in 2016. This cost is partially offset by a single revenue raising measure, specifically the excise duty on a pack of 20 cigarettes is being increased by 50 cents, including VAT, with a pro-rata increase on other tobacco products. This public health measure will take effect from midnight tonight and will bring the price of cigarettes in the Most Popular Price Category to €10.50. This measure will raise €61.4 million in a full year and the additional revenue will enable the funding of new initiatives in the Health Sector to support young families with children.
This is the only tax increase in the Budget.
Making work pay
Creating jobs and rewarding work is a key driver of growth and prosperity in the economy. More importantly, it is essential to ensure the benefits of a growing economy are felt inside the door of every family in the country. Just under two million people in Ireland have a job and by the end of the decade we will have more people at work in Ireland than ever before.
It is critical that work pays for every family. The Taoiseach has set a key objective for the years ahead of ensuring that every family is better off in employment. However, we must strike the right balance between rewarding work for the very lowest paid and keeping the tax base as broad as possible. This was a key issue discussed during the National Economic Dialogue.
The many barriers to taking up employment include taxation, wage levels for the low paid and childcare costs, which has a very negative impact on female participation in the labour force.
These three issues are also barriers to growth and investment, and are discouraging many of our young people who have emigrated from returning home.
In Budget 2016 we have put a particular emphasis on addressing these challenges. I will address the taxation issues and my colleague, Minister Howlin, will address the other two.
The changes I introduced in Budget 2015 resulted in every worker in Ireland receiving increases in their pay this year; for many, the first increase in years. It also supported job creation across the economy. Focusing the majority of the available resources for tax reductions on low and middle income families was the right thing to do last year. By reducing the marginal rate for people earning less than €70,000, workers kept more money in their pocket.
I will continue this approach this year.
From the 1st of January, I am increasing the entry threshold to USC from €12,012 to €13,000, removing approximately 42,500 workers from the scope of the charge entirely. It is estimated that over 700,000 income earners will not be liable to USC at all from next year
I am also reducing the three lowest rates of USC.
I am reducing the 1.5 per cent rate to 1 per cent. This applies on the first €12,012 of income:
I am reducing the 3.5 per cent rate to 3 per cent. This applies on income in excess of €12,012 up to an increased threshold of €18,668.
I am reducing the 7 per cent rate to 5.5 per cent. This applies on income in excess of €18,668 up to €70,044.
This will reduce the marginal rate of tax to 49.5 per cent for all earners under €70,044; the first time since the supplementary budget in April 2009 that the marginal rate has dropped below 50 per cent for middle income earners.
I am retaining the exemption from the top rate of USC for all medical card holders and those over-70 earning less than €60,000. This group will benefit from the reduction in the second USC rate to 3 per cent from 3.5 per cent.
As with the measures I introduced in Budget 2015, I have crafted these measures to restrict the benefit to people’s income up to €70,000 per annum. People with higher incomes will not receive any benefit on their income above €70,000 but of course will benefit on the portion of their income below this level.
Supporting single-income families
I am also announcing an increase to the Home Carer Tax Credit of €190 to bring it up to €1,000 per year, to assist single income married couples with children or who care for an elderly or incapacitated relative. The income threshold up to which the home carer can earn has also been increased by €2,120. This measure will help lower-income families by allowing the home carer to earn up to €7,200 and still benefit in full from the tax credit.
These changes mean that every worker and every pensioner who currently pays income tax or USC, or both, will benefit from today’s Budget changes. Taking account of the tax and expenditure measures:
Keeping the benefits of minimum wage increases in workers’ pockets
Minister Howlin will announce the Government’s decision in relation to the recommendations of Low Pay Commission. The PRSI system, as currently structured resulted in a situation where an employee could receive a pay increase but find themselves with less money. Following the publication of the report of the Low Pay Commission, the Government committed to taking action to address this step effect in the PRSI system.
I am introducing a tapered PRSI credit with a maximum level of €12 per week or €624 in annualised terms to alleviate the step effect across a range of incomes. This change will ensure that low income earners will see a significant improvement in net incomes.
For Employer PRSI, I am increasing the entry point to the top rate of 10.75 per cent by €20 per week to €376 per week. All of the PRSI changes will be brought forward by the Minister for Social Protection in the Social Welfare Bill.
Capital Acquisitions Tax
Capital Acquisitions Tax thresholds were reduced considerably over the period of the financial crisis and at a time of falling asset prices in order to help maintain the yield from capital taxes.
In recognition of the recovery in asset prices, particularly property, I have decided to increase the Group A tax-free threshold, which broadly applies to transfers between parents and their children, from €225,000 to €280,000.
Local Property Tax
I will be making a proposal to Government to postpone the revaluation date for the Local Property Tax from 2016 to 2019. This is one of the recommendations in the Review of the Local Property Tax submitted to me by Dr. Don Thornhill, which is being published online today.
The postponement of the revaluation date means that home owners will not be faced with significant increases in their LPT in 2017 as a result of increased property values and it gives sufficient time for the other recommendations to be considered in full. Legislation to implement the postponement will be brought forward in due course.
Exemptions for properties significantly affected by pyrite
In relation to exemptions for properties significantly affected by pyrite, I am accepting the recommendations made by Dr Thornhill. Accordingly, I have asked Revenue to agree to a change in LPT procedures on an administrative basis, pending the implementation of necessary legislative amendments. Full details are included in the Review.
Pension Fund Levy
Deputies may recall that the Government introduced a pension fund levy to finance the reduced rate of VAT and the other measures in the Jobs Initiative that I presented to the House in 2011, shortly after taking office. The pension fund levy has done its job and is no longer needed to fund the 9 per cent VAT rate because it is more than made up by increased activity and employment. So I can confirm that the remaining pension fund levy of 0.15 per cent introduced for 2014 and 2015 will end this year and not apply in 2016. The original 0.6 per cent levy ended in 2014.
Extention of bank levy to 2021
The current Financial Institutions Levy which I originally introduced for the 3 year period from 2014 to 2016 allows for a contribution from the banking sector to the economic recovery. The levy, which brings in €150 million per annum, is currently calculated on the basis of DIRT payments made in 2011. I propose to extend the bank levy to 2021, subject to a review taking place of the methodology used to calculate the levy. This measure will bring in an additional €750 million over the period; a very significant additional contribution to the Exchequer. The scale of the levy over the period is equivalent, for example, to the cost of the new National Children’s Hospital.
Encouraging entrepreneurs and supporting small business owners
Small and medium enterprises right across the country are critical to our economic well-being and in the business economy account for 99.7 per cent of all enterprises and 68 per cent of all employment, some 730,000 jobs. All of these SMEs are being run by entrepreneurs. We need to encourage new entrepreneurs and support existing entrepreneurs.
Earlier this year, I launched a public consultation seeking the views of Irish entrepreneurs on additional tax measures we could take to sustain the progress we have made to date.
Income Tax as currently structured, means that an employee will take home a greater proportion of their salary than a small business owner or entrepreneur on the same gross income. This disparity was raised frequently during the public consultation process. To start addressing this disparity I am introducing an Earned Income Tax Credit to the value of €550. It will be available to those with earned income who do not have access to the PAYE credit. This will be a significant benefit to small business owners right across the country, including small retailers, publicans, farmers and tradesmen. I see this measure as a first step and further steps will be taken in future budgets, as resources permit.
Capital Gains Tax was also highlighted as an issue during the consultation process. Successful entrepreneurs often look for new challenges. To assist them and reward their hard work, I am introducing a revised Capital Gains Tax relief from the 1st of January 2016. A reduced capital gains tax rate of 20 per cent will apply to the disposal in whole or in part of a business up to an overall limit of €1 million in chargeable gains. The relief will represent a simplified and upfront benefit for individuals who propose to sell their business.
Based on the findings of a review of the three-year tax relief for certain start-up companies, I propose to extend this relief in its current form for a further three years until the end of 2018. The relief has been identified by entrepreneurs as an important support. The review, which is being published today found that in 2013, the relief supported 1,038 companies who employ 11,750 people at an estimated cost of €4.9m.
Continuing to build strong sectors
Over the last four years, I introduced and extended a wide range of targeted tax measures to promote the growth of new enterprises and to sustain existing ones. These supply side initiatives assisted the rebuilding of the economy sector by sector. An economy built on a number of strong sectors is more stable, more resilient and less susceptible to shocks. One key lesson we have learned from the most recent crisis is the danger of an overreliance on one sector for growth, jobs and taxation.
I am continuing this approach this year.
Tourism sector
The reduction in VAT to 9 per cent in the tourism sector and the abolition of the air travel tax improved Ireland competitiveness. The benefit of these policies can be seen in tourist numbers, new businesses, the survival of established businesses and, most of all, in employment. The 9 per cent VAT rate is a major benefit to the tourism sector and is much sought after by other sectors in the economy. While the case for retaining the measure for the hotel sector in Dublin is diminishing each year with room rates rising particularly during major events, the case for retention of the measure for the rest of the country remains. So, I will not be making any changes to the 9 per cent VAT rate in this Budget.
The Agri-Food sector
I have often stated how important the farming and agri-food sector is to the economy. It is not just the sheer economic importance of a sector that is responsible for over 12 per cent of our exports and 169,000 jobs, it is the fact that this economic activity and these jobs are located across the length and breadth of our country.
Consequently, I am announcing the extension of the general stock relief, the stock relief for young trained farmers, the stock relief for registered farm partnerships and the stamp duty exemption for young trained farmers for a further three years to the end of 2018.
I am introducing a new succession transfer proposal to provide increased certainty about the timing of the transfer of a family farm to the next generation of farmers. This will greatly assist with long-term planning and farm productivity. The proposal, which is subject to state aid approval, will allow two people, for example family members, to enter into a partnership with an appropriate profit-sharing agreement which makes provision for the transfer of the farm to the younger farmer at the end of a specified period, not exceeding ten years. To support this transfer, an income tax credit worth up to €5,000 per annum for five years will be allocated to the partnership and split according to the profit-sharing agreement.
Micro-breweries
The production of drinks is an increasingly important sub-sector of the agri- food sector. Last year, I increased the amount of beer that micro-breweries could produce and still qualify for this excise relief. To further assist their development, the relief will now be available upfront thus reducing the cash-flow burden of the current rebate scheme.
Supporting Retailers by reducing costs and incentivising electronic payments
I wish to support Retailers and other merchants by reducing costs and incentivising electronic payments. Payments are the lifeblood of a modern economy and the National Payments Plan aims to modernise our payment practices and help Ireland take full advantage of modern payment methods. Many of our retailers and service providers have made significant investments in their electronic payment systems, with debit card and contactless payment facilities available in nearly all of our shops, restaurants and pubs. The improvements in mobile technology means that the majority of service providers and sales people can also now offer their customers the option of paying by card.
This has benefitted retailers, consumers and the wider economy.
However retailers in Ireland currently face excessive fees for accepting card payments. This needs to be addressed. A new EU regulation is halving the so-called interchange fees faced by retailers to 30 basis points for credit cards. I am today halving the corresponding fee for debit cards to 10 basis points. These changes significantly reduce the costs of accepting card payments and combined, these reductions will save retailers an estimated €36 million in fees per year. These changes come into effect on the 9th of December this year. It is important that this saving is passed on to the consumer in terms of lower prices, and this new fee regime will be monitored closely to ensure this happens.
In parallel, the transaction limit on contactless payment cards is being raised from €15 to €30 on the 31st of October. Together with the reduction in bank fees, retailers should now bring an end to practices such as requiring a minimum payment for card use.
To further encourage and incentivise greater usage of card payment by consumers I will recast the €5 Stamp Duty on Debit/ATM cards. From the 1st of January 2016, this stamp duty will be removed and replaced with a 12c charge per ATM transaction. There will be no charge for debit card transactions. No consumer will lose out as a result of this change as the stamp duty will be capped at the existing levels of €2.50 or €5 depending on card type.
Supporting businesses in Ireland by reducing transportation costs
Almost every business in Ireland is reliant on transportation by road for their raw materials and to get their product to the market. As a result transportation costs are a major issue for every business in Ireland; big and small. To keep Ireland competitive and to help businesses, I have decided to significantly reduce the commercial motor tax rates.
Road tax for large goods vehicles in Ireland is too high by comparison with the regime applying in Northern Ireland and the rest of the UK. This is causing distortions in the haulage industry and increasing costs across the economy.
So I am simplifying the rates of commercial motor tax by replacing the 20 existing rates with just 5 rates of commercial motor tax, ranging from €92 to €900 with effect from the 1st of January 2016. Furthermore, over 28,500 commercial vehicles will benefit from these reductions.
The most significant reductions are concentrated on the larger goods vehicles. The maximum rate of commercial motor tax will be €900 per annum, down from €5,195.
This is an interim measure pending the replacement of the current commercial motor tax regime with a fairer basis for calculating commercial motor tax, which will be based on the Gross Design Vehicle Weight of the goods vehicles.
Film relief
Ireland has a significant opportunity as a location for the production of films and television programmes. Having reviewed the film tax credit, I am increasing the cap on the eligible expenditure to €70 million. This limit will be kept under review going forward. It is my hope that the industry will now make the necessary investments in studio space in order to attract high quality films and create new jobs. This change is subject to state aid approval.
Fostering innovation
As I have outlined, fostering innovation in Ireland will be critical to our new economic model. To incentivise substantive R&D and innovation, as committed to last year, I will introduce, in the Finance Bill, a knowledge development box – or KDB. This will be the first OECD-compliant KDB in the world. This puts Ireland in a unique position to offer long-term certainty to innovative industries planning their research and development investments.
Income that qualifies for the KDB will be subject to a reduced rate of corporation tax of 6.25 per cent. The KDB adds a further dimension to our ‘best in class’ competitive corporation tax offering, which includes the 12.5 per cent headline rate; the R&D tax credit; and the intangible asset regime.
This significant enhancement to our corporation tax regime shows Ireland’s ability to retain our core strengths, while keeping a keen competitive edge in attracting and retaining quality jobs and investment to our country.
International tax strategy
Today I am publishing an update on our International Tax Strategy. This update explains our approach to the implementation of the OECD Base Erosion and Profit Shifting reports and how we will engage with the emerging EU tax agenda.
Ireland is well positioned to compete in this new international environment. Our corporation tax system is transparent and statute-based. Our long-standing policy has been to align our tax system with substantial economic activity, investment and jobs.
To enhance transparency, we will provide in the Finance Bill for the introduction of country-by-country reporting, in line with the OECD recommendations.
Independent review of marine taxation supports
The Budget Book contains details of various reviews. This includes the independent review of Marine taxation supports that I am publishing today and my officials will be examining the proposals in conjunction with the relevant departments, with a view to establishing the feasibility of their implementation in future Budgets.
Employment and investment incentive scheme
I announced changes to the Employment and Investment Incentive scheme last year subject to compliance with European State Aid provisions. The changes I am making ensure this compliance, so with effect from midnight, the amount of finance that can be raised by a company is doubled to €5 million annually subject to a lifetime maximum of €15 million, up from €10 million. The Scheme is also being improved by allowing investments in the extension, management and operation of nursing homes, and all eligible small and medium-sized enterprises can qualify for the Scheme irrespective of geographical location.
Increasing the supply of residential housing
It is clear that there is a market failure in the provision of new housing across the country but particularly in Dublin. Driven by demographic demands and strong economic growth, there is a requirement for a minimum of 10,000 new units per annum in the Dublin area but the market only delivered 3,300 units in the last year.
In line with the NAMA Act, I asked the NAMA Board to review the residential sites under its control and to estimate what it could deliver on a commercial basis, in terms of residential units, over the next five years consistent with NAMA’s mandate to deliver the best financial return to the taxpayer.
In response, NAMA is aiming to deliver a target of 20,000 residential units before the end of 2020. 90 per cent of these units will be in the greater Dublin area. About 75 per cent of these units will be houses, mainly starter homes. NAMA will deliver these units by working with developers. Achieving this new target by the end of 2020 means delivering on average 80 new housing units every week across some 100 active sites.
This commitment will require funding of the order of €4.5 billion, which will all be recovered, and will support 30,000 house building and ancillary jobs based on peak funding. This initiative will not compromise NAMA’s debt repayment commitments.
Conclusion
As we look forward and plan for 2016 and the years ahead, the opportunity now exists to build an economy that delivers secure and well paid jobs, incomes and pensions, world class infrastructure, high quality public services and certainty.
Certainty about the future. No booms, no busts.
Every measure in this Budget is designed to grow the economy, create additional jobs and increase living standards.
When implemented, the measures will deliver real benefits, boost confidence across the country and give families the prospect of a stable future with living standards increasing steadily year by year.
To further increase confidence and to enhance the stability that is so essential to growth and prosperity I would like to indicate how today’s announcement will be further developed if we are returned to Government.
As resources become available we will:
The Budget I have announced today will help to secure the recovery.
It will provide stability to families across the country.
It will reward work, enterprise and innovation.
It will provide the resources for investment in essential public services.
It will provide working families with more money in their pockets and higher quality public services.
It will give certainty to the Irish people of a better future.
But more important than anything else, it will keep the recovery going.
I commend this Budget to the House.
Why does the journal keep saying the gardai “left” the talks when they were never “in” them to leave
Correct Johnny.
The Gardai left the room which they were being “briefed” in while the talks down the corridor were taking place.
The journal.ie is continuing with Alan Shatters spin and lies
Public sector workers average weekly wage is € 918.99 compared with € 611.66 in the private sector (at the end of June 2012), according to the Central Statistics Office (CSO):
for Regonald Timpson,
Maybe you should read the link you posted. The average gross wage is €687.84.
After pension, pension levy, tax, prsi, income levy and other deductions an average wage is 400-450 euro.
Also how many people in the private sector wear a stab jacket to work or have people
vomit all over them. The greats trick the government (FF/FG/Lab) ever pulled was blaming the crash of 2008 on the public servants. And now their spin doctors have both the Public and Private sector fighting between ourselves as Ministers/TDs/Councilors/ Senators sit back with their over payed wages and laugh at us all.
KIeran
Wouldn’t bother with Reginald, he posts the same links on all matters concerning the PS, tiresome at this stage. Anyone can quote figures, but short on facts..
Funny enough, he says the country’s broke, yet he is refusing to pay property tax and water charges… In reggies own words, ” should others pay?”
I await his ” don’t cut thee” quote.
Well put
Could it be, finally the unions are starting to fight. About time
Same Teaching unions who advised their members to allow the government pay new graduates less, in order to protect themselves. They should be ashamed of themselves.
Like your avatar, Conor!
Unions fight? Never!
Their members fight? Yes, but they have to fight their own fat cat bureaucrats too.
It’s like fighting with no arms.
Exactly Rodrigo , these teaching union are a disgrace , piping up now after willingly stitching up their new entrants for fear some of the very well paid mid career coasters would take any impact . try to talk out of both sides of their mouth now. Cue the 800 red thumbs Journal now being heavily patrolled by union members
Unions start to fight now that the higher earners are being targeted? Not even pretending to be credible.
I have my doubts.
65k a year &5 months holiday… cop on.
Dont forget iron clad job security regardless of performance.
I don’t necessarily disagree….but just want to point out that school leaders don’t get the same holidays. Also it’s been hard to recruit principals. No one wants to do it even with the higher salary! There has to be a reason it’s never been worth 65000!
65k and 5 months holidays for whom ?. I would like to know ?
I’m a junior lecturer represented by the TUI, I’m on between 20 and 30K. Between contact hours and preparation I am probably working 60 or 70 hours a week. I am on a 2 year contract, many of my colleagues – some of whom have over six years experience – are employed on an hourly paid basis with not contract let alone ‘Iron clad job security’ in sight
why do we always get this union propaganda dribble out every public sector worker being on 20 -30 K like Dietrich below . laways they same rubbish folk we always haer about entrance salaries as if these guys wages didnt go up dramtically increase . Just go on these CSO and all the actual dat is there
I graduated last year as a teacher and the only work I’ve had is 2 weeks substituting and a number of unsuccessful interviews. I know things are different nowadays and it wasn’t as tough years ago but the idea that there’s something out there in the public sector for those who have qualified for something like teaching/nursing/Gardai there is limited demand in the private sector for these jobs.
If there’s one thing from the private sector that should be learned by the public sector it’s the idea of what has been called above “iron clad job security”.
Now I’m not certain how it is achievable to put metrics on a lot of these jobs given there often is no “product” in the way there mostly is in private industry but I’m sure it’s possible.
People should be performing in whatever job they are in and so, if performance is measurable, so is underperformance – in which case the “coasters” should be kicked and/or fired.
If the metrics are demonstrable then there is little that a legal challenge could achieve.
I’m sure the bunch of classmates that went to England for work would love to be back in Ireland.
Tomy… I’m very sorry to hear of your plight. After achieving a degree and not being able to find work is a real travesty. I know that this is no consolation. .. However, this is the way it has been in the US for years. For this reason, in the US, you will find people with several degrees, or working in a field that has little relationship to their degree, or a person at an age past 30 furthering their education. In the US we are use to reinventing ourselves. For example, if something doesn’t work out career wise… Then we try something new. There is no shame in this.
I am a prime example. I have three degrees, several certifications and have worked in 12 different industries. Furthermore, I have been employed since age of 12. Yes I did have a childhood. However, my parents decided early on… That they would give me the basics… If I wanted more, I would have to work for it.
It was tough with sports, school and a job… But I knew nothing different. My success or job was never guaranteed.
I’m not saying you are in tbis group… But there are plenty of people believe that tbey are owed something. Either from their parents, the state or their employer. This type of mentality doesn’t improve the life of the person or our country.
Good luck… Something will come if you take a broader look at your abilities and skills.
Indeed Marlon – I think though that the perception that there are a lot of people out there right now who believe they are “entitled” is overstated.
I never believed I was “entitled” to a job – only entitled to look for one. For my own situation, I’ve chased after this because it’s what I want to do (after working in private industry prior to going back to college) – given there is no work there right now, I’m already branching out to complete a course which has the double benefit of serving private industry and of being extremely relevant to technology teaching.
I do think there is some management that could come from government on PS jobs though. To stick to teaching, there are a bunch of fresh, willing new entrants who’s morale is being sapped before ever getting to the work. While they search for work, they are getting JSB/JSA. Addressing areas where there are poor teachers or teachers near retirement is not, to me, unreasonable. And I’m not talking about forced retirement – just incentives which, while they may cos a little extra, would overall reduce the public pay bill as the retiree is replaced by someone on the lower end of the pay scale who would also not then be claiming social welfare.
This Government has brought to life the meaning of ” Death By A Thousand Cuts ” . What’s worse again is the sublime arrogance in their methods. I’m tired of hearing the Private/Public sector arguments over and over , the fact is the normal everyday man and woman are doing their best to make ends meet and just get by from day to day. I think as a people we have been robbed of a decent standard of living in general by the very people we elected on the basis that they understood and actually cared about its citizens. Is there anybody out there that can actually say that they don’t go from one end of the week to the other without worrying about where they will find the money for the next bill or expense. Isn’t it a sad day in Ireland when we have our disabled people , our most vulnerable people , who receive very little general help as it is getting their allowances cut overnight at the whim of a Minister. The same Minister’s may I add that claim thousands in expenses a month . They then treat with utter distain the frontline workers by cutting into their pay over and over and over till eventually they bring morale to an all time low and have people going into work in many cases hungry and with no money in their pockets to get a cup of tea. What I will say is the Private Sector better heed warning , as when they are done tearing apart the Public Sector I can only imagine that they will be coming after the Private enterprise . Get these overpaid clowns out once and for all .
The target with Croke Park 2 is €1bn
Perhaps that could be increased to €4 bn ?
Can the country even afford the public sector payroll?
Did you see what we pay compared to other Eurozone countries?
Reg simple question you might answer,you keep mentioning other countries notably Greece and Lativia,can you tell everyone the cost of living in these countries.Be honest because i have been to both these countries,Riga is especially beautiful in the autumn.
Yeah you’re right there troll. Get rid of the public sector.We’ll outsource the lot.
Get the Gardai from Greece. A bit of corruption wouldn’t be out of place.
Some teachers from Texas. The have a great ethos there and the exam results should skyrocket.
Some big scary Russian nurses would sort out the health system. Just chop off that arm it’ll be quicker than stitching.
Some Eskimo firemen would help too with all their experience.
The one group we should keep though are the politicians. They’re running the country perfectly and with great passion and sobriety.
Greece and Latvia reg, Greece and Latvia
http://m.youtube.com/#/watch?v=vUJrkl8A3cI&desktop_uri=%2Fwatch%3Fv%3DvUJrkl8A3cI&gl=GB
Just for Reg
So you’re saying don’t pay them? That’s very nice of you regi. I guess their value of work is lower vibe than yours since you’re a private worker and all.
As already stated reggie, but u choose to ignore..
Ireland cost of PS playbill is 11.2% and the euro average is 11.1% OECD figures… But the again reggie, couldn’t be bothered with actual facts…
Yes reggie, occording to OECD we pay 11.2% of GDP for the PS and the euro average Is 11.1%, I’ve already pointed this out to u on other threads, but because its a FACT, you will ignore it as usual…
Regonald is some banter in fairness,
Gets me every time
Reported abusive comment.
Loads more deductions in the public sector wages than in private sector…
‘Abusive comment’
Haha good man reg, if that’s your idea of abuse , than thank god your bit one of our frontline workers.
Good man
Not *
I have learned many things about the Irish cultural and people since relocating to Ireland. Generally, the Irish culture people are very curious in regards to visitors of this country. The average Irish person is compassionate. I’ve never seen such empathy, until I moved to Ireland. However, I’ve never seen such begrudgery until moving here. Further, the blatant amount of greed, entitlement, ignorance, ineffective and disorganization that exist with politicians, public sector managers, and union officials is astounding.
I guess as a blow-in, I see the obvious… And sadly, the obvious is continues to damage this country.
Ireland cannot afford to dwell on the old ways of yesteryear.
Can you elaborate!? What’re the ‘Old Ways of Yesteryear’??
The old ways of yesteryear:
• Lawyers, priests, doctors, politicians are above reproach.
• Governmental decisions and processes are hidden by hind close doors.
• The Church and State are and integrated entity that makes decisions for Ireland.
• The Catholic Church is a deciding factor written the Irish Constitution.
• Political and governing bodies self-regulation
• Expensive tribunals
• The difficult act of pursuing white collar crimes
• Lack of accountability
• Poor health care
The above are a number of points from yesteryear… I’m sure there are more.
Some of the points are being addressed to some degree. However, a complete make-over stops when any decision affects the pay of the ruling of our politicians.
I think he means Nigeria.
Declan Conway…. What does Nigeria have to do with anything?
Marlon – I would say we have good healthcare but a poorly run system (which admittedly could be a LOT LOT better)
Other than that, I think Irish local communities think and vote on a local level and that’s not good overall.
To some degree, I think Ireland is changing and the more information that’s out there, the more people are demanding better. I think instead of a revolution type of action we’re slowly evolving into more action. That’s not to paint a picture of major national protest and upset – just that I think people are being more active about mobilising to inform their local representatives about what they want changed.
Tomy… Unfortunately, I disagree with you regarding health care. The system is poorly managed and there is a major divide as to scientific advances. Please see article in Journal.ie yesterday:
However, I do agree… Ireland is changing to some degree… However, it isn’t by choice. To be honest… I have yet to see an original thought or idea come from any of our politicians or government. If it weren’t for our membership to the EU, many of the laws that exist would not be in place. Ireland was forced by the EU to move forward. Further, changes also happened because of scandal (e.g. Banking, Priests, Laundries, Aherne, Haughey)
Please note… In no way is this attack on your opinion nor am I suggesting a revolution is required. However, I would suggest that an alternative choice must be made. Our representatives and politicians are not prioritising our needs before their own. They seek to insure their security without thinking of our country.
Please remember… It was at Charles Haughey’s funeral that a speech was given as to how selfless, honest and hardworking he was. The speech also included the fact that Haughey was a patriot of this country. This was the same man who requested that the average hardworking Irish person tighten their belt as he was robbing the country blind.
Marlon makes a fair point in some respects!! I’ll give him his dues! However, on a side-note, your take on the Bloody Sunday massacre & U2′s subsequent tribute to it is ‘slightly’ off there fella!
It’s time for Ireland to rewrite the lousy labor law and allow trade unionists to fully represent members with binding arbitration AND the right to strike.
I don’t think there is a need for a right to strike. What exists currently is a system which protects strikers provided sufficient notice is served. Personally, I don’t think that’s a bad system given that it allows time for reaction and intervention.
It is one of the more interesting aspects of this great little nation that the usual suspects turn up in court or tribunals with a batch of lawyers, accountants, spin doctors and whatever to ensure that their ‘rights’ are vindicated but an individual employee has to fight his/her own corner if an employer chooses to not recognise a union.
That’s great if you have the wherewithall to stand your ground and good luck to you. But if you don’t you can be treated like dirt. You have the right to be or not to be a member of a union it should automatically follow that you have a right to be represented by a union if you so choose.
Kind of surprised to see such an amount of red thumbs. I’d love to hear from someone as to why a “right to strike” would be stronger than the current system of serving notice?
Would a “right to strike” not also be conditional of serving notice etc? I just don’t see what would change in that respect.
Ah here Dietrich Död, will you stop with your facts, you’ll upset the anti public sector brigade.
Uniona can leave the talks all day want they know and everyone else know these cuts have to happen if they want to look like they are fighting them then so be it because they know only to well if the goverment just legislate for them
I’d like to see them try and legislate it in. They started the fight and we’ll end it. Enough is enough.
Ryan the know that people cant afford to strike and they are using the leglislation treat to force them to agree to the terms
They can threat all they want, strike is inevitable if they legislate, we’ll call their bluff.
We will see
Then they just sit it out. No big deal. You can’t strike forever. The reason unions are leaving these talks is because they know they’ll be pushed through regardless, so it’s time to save a little face and look like they opposed them all along.
Kevin,
No one will be able to sit it out if the Unions stand together and implement widespread and prolonged industrial action. Doctors, nurses, gardai, teachers, civil service, council workers, electricity and gas utility workers , road, rail, sea and air transport workers and the list goes on. They can grind the country to a shuddering halt in a matter of hours if they choose to do so. That is the power of organised labour if the Unions are prepared to wield it and the government would be wise to tread carefully. We are governed by consent. It’s time the people remembered this truth.
Every one went out on the austerity marched organised ny impact, so if they go for the vote yes in the upcoming ballot the will have thousands walking away from them and the other unions are currently recruiting and plenty are -impressed with the attitude of the others, walking away.
700000 public sector workers in a population of 5 million ……
300,000 public sector workers in a population of 5 million!
A P if your gonna try and start an arguement,will you at least use correct figures.Both amounts are incorrect,Public Sector 292,000 i believe and 4.5 million population.
Little off the mark there
If people don’t want to work in the public sector they should get a job in the private sector it’s so much better.
the cartel need to see the light its “yes ” for people power now knows what the pay is as against what most of them earn
Today as a therapist I’d half the wards where I work to check/work on. One person a few hundred beds… Yes a few hundred. Why? Well annual leave, mat leave and yes sick leave. I’m at the point of falling down tired. Did I get everything done No. Will I tomorrow No. Should I even get out of bed tomorrow? I’m beginning to wonder as I feel I’m getting more and more bogged down. I’ve a month if admin on my desk and yes next wk we still have the mat leave and annual leave…. Its a permanent cover saga as people are off. Is my salary worth this crap? My body doesn’t think it is. So I’ve clocked up 40+ hours and I have tomorrow to go. Should I accept impacts recommendation – I honestly don’t know.
have your say