News Ireland update as told by Donie on Thursday

Ireland’s food and drink exports have hit the highest value figures ever

   

The value of Irish food and drink exports reached an all time high of €8.85bn last year, as rising commodity prices and increased output boosted the agri-business sector.

Bord Bia, the state food and drink agency, said on Wednesday that the strongest performers were the dairy, beef, prepared foods and seafood sectors, which all experienced double digit growth in 2011. Over the last two years, the value of Irish food and drink exports has increased by a quarter, said the agency.

“Global market conditions, reflected in strong commodity prices, remain favourable and exporters are voicing continued optimism about their business prospects for the year ahead,” said Michael Carey, Bord Bia chairman.

The value of dairy exports increased by 17 per cent to exceed €2.66bn last year, helped by stronger prices reflecting high global dairy demand for much of the year, and higher milk production in Ireland. European prices increased by 15 per cent for most dairy products.

The combined value of meat and livestock exports grew by an estimated 11 per cent to €2.8bn in 2011. The value of beef exports is estimated to have jumped by 15 per cent, or over €200m, as lower volumes were offset by a rise in cattle prices.

Bord Bia said agricultural commodity prices remain at record levels, with the United Nations’ food price index recording growth of 26 per cent in the first 11 months of 2011.

Revenue Commissioner’s apologises to pensioners over confusing letter controversy

           

Revenue Commissioners chairwoman Josephine Feehily

The chairwoman of the Revenue Commissioner Josephine Feehily has apologised before an Oireachtas committee following the recent controversy over letters sent to pensioners.

Ms Feehily said the Revenue would review its communication strategy and learn from what had happened.

“We caused confusion and distress to some people and I’m sincerely sorry for that,” Ms Feehily said.

In the course of the three-hour meeting, Ms Feehily revealed that 35,000 phonecalls had been made to Revenue and there had also been 20,000 “walk-in” callers since last Thursday.

She said €60,000 had been spent on postage and paper for the 150,000 letters that were sent to pensioners.

Ms Feehily said it was also too early to determine the scale of the impact on about 115,000 pensioners who have either under-declared or who have not at all reported their pension payments. “The range and complexity of these records makes it impossible to give a simple answer and we need to understand it better,” she said.

But a random sample suggests previously untaxed income in some cases could be as much as €18,000, while more than a third were liable to pay tax on an extra €2,000.

Revenue has come under attack from organisations representing older people for their handling of the fall-out, which emerged after updated records from the Department of Social Protection were sent to the tax-collectors.

Worried pensioners who have not been contacted are continuing to call Revenue about their tax liabilities, said Ms Feehily. But she said there was no further tranche of letters to go out and those who had not received one need not worry.

“I can say to those who did not get a letter that you should not be concerned,” she said.

Revenue asked the Department of Social Protection for updated information on pension payments last year, which they received on December 1st. There was no immediate issue with three quarters of all cases, while another 100,000 people are expected to return their records through the self assessment system as normal next October.

But when they compared the files with their own records, Revenue found mismatches in 150,000 cases taxed through the PAYE system.

Ms Feehily said they had to take immediate action to make sure arrears did not build up for the taxpayers.
She said “tailored letters” were sent out to four separate groups.

These included 20,000 people who were paying too much tax, 30,000 people who had never reported their pension to Revenue and 85,000 people who had under-reported their pension or whose circumstances had changed.

There were also 15,000 pensioners who had not reported their State payments but had no tax liability.

Ms Feehily said they decided to send out letters because a large scale announcement about mismatches in the tax records would have sparked even more wide scale upset.

Of the 20,000 pensioners who may be due money back for last year, Ms Feehily said Revenue will process their claims as soon as they get their P35 details. Revised tax credit certificates will be issued in the coming weeks for the 15,000 pensioners thought to be tax exempt.

Confusion remains over the remaining 115,000 cases. Ms Feehily said she will not be in a position to clarify this until well into the year.

Revenue has carried out a small random sample of 51 pensioners who got letters, which showed Revenue owed them money in four cases. In 14 cases, the recipients never told Revenue about their pension payments, while in 33 cases the amount of their pension was understated for various reasons.

The amount of income not taxed in those cases ranged from 20 cent to €17,820.

More than a third, 19 cases, involved an extra €2,000 taxable income that Revenue did not know about.

Ms Feehily said Revenue will start by examining in detail 2,500 of the largest cases – where the taxpayers have a non-State income of €50,000 or more a year. She said she did not expect penalties and interest to happen in many cases.

Representatives from Age Action met  Revenue officials this morning.  In what was described as a “productive  meeting”, the charity is to help design a public campaign which will inform pensioners of the details Revenue need from them about their changing life circumstances in order to accurately assess their tax liability.

“What is clear from the controversy over the last week after 115,000 letters were sent by the Revenue to pensioners claiming they had a tax liability, is that there is a lot of misunderstanding and a lack of accurate information about what older people have to do to remain tax compliant,” said Age Action spokesman Eamon Timmins.

The Irish Senior Citizens Parliament said there had been a “full and frank exchange” of views when representatives met two Revenue officials yesterday. It said Revenue had not provided the level of detail it had hoped to receive and they hoped there would be more information available at today’s Oireachtas committee meeting.

The €100 Household Tax protest-United Left Alliance members occupy Galway City Hall

    

Galway city’s councillors heard the message loud and clear today when over a hundred protesters descended on their first meeting of the year at Galway’s City Hall. They were left in no doubt as to the intention of everyone there –

“Can’t pay, won’t pay!”

Following a energetic rally outside the building which heard representatives of the United Left Alliance, Occupy Galway, and many individuals express their disgust at the injustice of the household charge and implore everyone present not to register for or pay it.

Dette McLoughlin of the Galway city branch of the Socialist Workers Party said: “It is amazing that Galway city councillors appear to be unaware of the national and local controversy over the household tax and septic tank charges. Despite people demonstrating outside the City Council budget meeting in December, the councillors did not even deem the subject worthy of comment, never mind opposition, and agreed the flat rate €100 per annum household charge as part of the city budget without a by-your-leave.

On New Year’s Day, the Government began the registration process for the charges. Over the next three months it will run a massive propaganda campaign to get people to sign-up and pay-up. But, after three years of massive austerity, this is the first opportunity for people to say that we’ve had enough. We who are against having to pay for the debts of bankers, bondholders, and gamblers must take a stand.”

Following the rally outside, the protesters then moved into the lobby of the City Hall itself, and attempted to enter the Council Chambers to express their opposition to the household charge in person to their elected representatives. The councillors refused to allow them entry, and refused even to send someone out to speak to the demonstrators. Efforts by the over 100 demonstrators to gain entry to the Council Chambers were repelled violently by over 20 Gardaí, who shoved several protesters to the ground.

Those who administer the austerity programme of the ECB / IMF troika, whether at a local or national level, must know that they do not act unopposed. The campaign against the household charge, a charge conceived only as another device to make ordinary people pay for the gambling debts of gangster bankers, is only the first battle in what will undoubtedly be a year of discontent for the Fine Gael / Labour government. Their local city councillors heard the message loud and clear today; the elites at the highest levels of national government will hear it very soon.