Michael Noonan signals ‘less cuts, less tax increases’ in the next Irish budget
The Irish Cabinet is to hear today of a not so demanding approach in the October budget says Mr. Howlin.
Minister for Finance Michael Noonan has signalled ‘less cut backs and less tax increases’ than previously expected in October’s budget.
The Minister for Finance Michael Noonan has signalled there will be “less cut backs and less tax increases” than previously expected in next October’s budget.
Speaking on his way into this morning’s Cabinet meeting, Mr Noonan said the Government would beat its financial target because the first six months of the year had gone better than expected in economic terms.
“We thought it would be necessary to increase tax and cut expenditure by €2 billion. We’ll get under three per cent now by making less cut backs and less tax increases,” he said.
However, he said it was too early in the year to say “by how much”.
Separately, Minister for Public Expenditure and Reform Brendan Howlin has confirmed that Cabinet will learn the “over-arching approach” to a “less demanding” budget this morning.
Speaking on his way into Government Buildings, Mr Howlin said he and Mr Noonan would bring a joint memo to Government today.
“The economy has grown, the tax revenue has increased, the number of unemployed has fallen. So these are all good auguries, they’re assistances,” Mr Howlin said.
He confirmed the budget would “certainly” not include €2 billion in cuts to bring the deficit to the three per cent target or below.
So while he said people would be facing a “less demanding budget than that”, he also warned: “We’re not out of the woods”.
Fianna Fáil finance spokesman Michael McGrath has said the Budgetary adjustment could be less than €1 billion.
He was speaking after Mr Noonan confirmed it would no longer be neccesary to increase tax and cut expenditure by €2 billion
“I welcome very much the confirmation now from Government that the Budget adjustment will be less than €2 billion. I hope it will be considerably less than €2 billion. Some of the emerging data is quite positive,” Mr McGrath said.
“I think it could well be the case that the adjustment is less than €1 billion in fact. I think we’re all hoping that six years into this crisis and €30 billion of a budget adjustment later that this budget will be as painless as possible,” he added.
“The Government has promised now to give something back in this budget.”
However, he warned it would be “deeply unfair and regrettable” if the Government excluded those on low and middle incomes from benefiting from “the first tax cut in a good number of years”.
Mr McGrath said he expected the Labour Party to advocate strongly in this regard.
Does strong Irish coffee sales mean our economy is improving?
Retail Excellence Ireland says that hot beverage sales are an indicator of a stronger economy and employment market.
SALES OF HOT beverages are up by almost 8% in the second quarter of the year, providing a strong indicator of employment, Retail Excellence Ireland said.
“The reason we track it is because it’s a really good indicator of footfall and employment”, REI chief executive David Fitzsimons said.
The number covers high street retail chains like Insomnia as well as forecourt outlets including Applegreen and Topaz.
However, despite the positive sales of hot drinks, overall numbers for the second quarter showed only a slight increase on 2013, reflecting the challenging environment for retailers in the country.
Overall like-for-like sales were up just under 2% on average, with sales figures boosted by Easter falling in April and relatively good weather during the second quarter.
Fitzsimons said: “The big point of difference between this quarter and last quarter is the weather. I’d love to say its employment or sentiment but its not.”
The leading sales segment was unsurprisingly among Garden Centres, while camera sales declined by a whopping 28%.
Budget
Fitzsimons called on the Government to preserve the 9% VAT rate in a bid to stoke consumer spending, and also to target reliance on social welfare in the hope that it will encourage people back into the labour market.
“You have pockets of unemployment of up to 20% and employers are saying they can’t find people to come and work for them.”
He also called for a decrease in tax rates in order to put more money back in consumers’ pockets.
Finally, he said that a scrappage scheme for white goods, such as dishwashers and washing machines, would encourage people to trade in older machines that are less water-efficient, and hence more costly once water charges come in.
Manufacturing prices in Ireland rise by 0.3% in June as export sales increase
THE LATEST CSO FIGURES GIVE A MIXED PICTURE OF INDUSTRIAL INFLATION IN IRELAND.
Prices paid for goods leaving Irish factories rose by 0.3 per cent last month, figures from the Central Statistics Office(CSO) show.
However, on an monthly basis, manufacturing prices fell by 1.7 per cent in June, compared with an increase of 3.1 per cent in the year to May.
The price index for export sales increased by 0.3 per cent in June, while the index for home sales increased by 0.1 per cent.
On a yearly basis, there was a decrease of 2.1 per cent in the price index for export sales – which is heavily influenced by currency fluctuations – and an increase of 0.3 per cent in respect of the price index for home sales.
According to the CSO, the most significant changes in June were increases in printing and reproduction of recorded media (+1.4 per cent), computer, electronic and optical products (+0.6 per cent) and basic pharmaceutical products and pharmaceutical preparations (+0.5 per cent).
On the downside, there were decreases in dairy products (-0.5 per cent), meat and meat products (-0.3 per cent) and other manufacturing including medical and dental supplies (-0.1 per cent).
Contributing to the annual change were increases in wood and wood products (+8.3 per cent), dairy products (+7.8 per cent) and other manufacturing including medical and dental supplies (+1.2 per cent).
There were, however, decreases in basic pharmaceutical products and pharmaceutical preparations (-4.9 per cent), other food products including bread and confectionery (-2.9 per cent) and computer, electronic and optical products (-0.2 per cent).
TDs agree a blueprint for Oireachtas banking inquiry
IT WILL SEE SEPARATE MODULES FOR DIFFERENT AREAS OF BANKING
TDs running the Oireachtas banking inquiry have signed off on a blueprint for how it should be run.
Members have agreed to a blueprint which will see separate modules concentrating on the response of the banks, the regulators and the government itself to the banking crisis.
The inquiry has also agreed to hold an extensive phase of initial investigations before it begins to call witnesses for public hearings.
Inquiry chairman Ciaran Lynch says the committee has “ambitious” plans to take a large amount of oral and written evidence.
Cannabis oil cured Mike’s terminal cancer
A Cancer patient Mike Cutler has hailed cannabis as a miracle cure for the disease after his symptoms vanished when he began taking the drug.
Mike, 63, was diagnosed with liver cancer in 2009 and was given a transplant. But in late 2012 he learned cancer had attacked the replacement organ.
In desperation he began researching online and found a YouTube video advocating the use of cannabis oil for cancer.
He decided to try it – and claims that three days after taking the banned Class B drug his excruciating pain disappeared. Two weeks later he began coughing up blood, which he believes contained the dead cancer cells.
I couldn’t accept that I was going to die. And when I found I was cured I was completely shocked
Mike Cutler: The grandfather-of-nine went for a biopsy at the Royal Free Hospital in London in May and doctors told him the cancer cells had gone.
Retired builder Mike, of Hastings, East Sussex, recalled: “Finding I could die was terrible, so I began searching for something that could help me.
“I couldn’t accept that I was going to die. And when I found I was cured I was completely shocked.
“I’m a normal family man, not a druggie. But I had a serious illness and this helped. I can’t believe cannabis oil isn’t being used regularly as a treatment. It is a miracle cure. The NHS should use it.”
Mike resorted to illegally buying the substance from a dealer and used it to make his own tablets, taking one a day.
He is now campaigning for law changes to allow medicinal use of cannabis.
He spoke at a debate on the subject with Professor David Nutt and Green MP Caroline Lucas in Brighton.
Mike’s claim came as research published last week by the University of East Anglia revealed the main psychoactive ingredient in cannabis, Tetrahydrocannabinol or THC, can help fight cancerous cells.
Dr Peter McCormick, from the university’s School of Pharmacy, said: “THC has anti-cancer properties. This compound is known to act through a specific family of cell receptors.
“We have provided an important step towards the future development of therapeutics to reduce tumour growth.”
A number of organisations, including Cancer Research UK, are investigating the medical use of cannabis. Cannabinoids are known to affect brain and nerve activity, energy metabolism, heart function and the immune system.
The Royal Free Hospital confirmed that Mike has received no further cancer treatment since his transplant.
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