Donie's news Ireland BLOG Friday

Joan Burton at war over €440m Social protection cuts

  

SOCIAL PROTECTION MINISTER SAYS CHANGES ARE NEEDED TO AVOID HARSH CUTS

Defiant Joan Burton has pledged to protect benefit payments as she goes to war over €440million cuts to her department.

The Social Protection Minister has admitted she will struggle to find the savings her Cabinet colleagues have demanded by this October.

Speaking on her way into a meeting with interest groups on Friday, Ms Burton said she is determined to preserve her budget as best she can.

She said: “I am particularly conscious that is about almost every family in Ireland, every town, every community in Ireland and that the monies involved add up to large amount of spending but in terms of someone who managing on a social welfare income exclusively it is vitally important in terms if their life.”

Ms Burton said there were changes that needed to be made within the system to avoid making harsh cuts.

She said: “There are structural reforms of the social welfare system which are really important and a lot of those structural reforms limit the amount of fraud and abuse in the system and again for people who have worked – particularly retired people- and contributed, it is really important for me as a Minister that I make savings that enable them to maintain their social welfare payments.”

The two Finance Ministers have demanded the Labour Minister slash €440 million but she admits that figure is far too high.

Minister Burton has won the fight before – in 2011, she reduced the cuts needed from €665 million to €475 million and last year, she dragged it from €540 million to €390 million.

She revealed she is determined to maintain core social welfare payments and looks set to stay clear of half-rate carers allowance and the old age pension.

She said: “People who are at work will know that they look every month at what they receive in terms of their take home pay.

“In the same way, somebody who gets a weekly social welfare payment (does likewise).

“Most important item in maintaining domestic demand if you think of your pensioners. The cast bulk of that money is spent in Ireland and it is spent in local shops, local communities.”

Minister Burton met volunteer and charity groups yesterday as the Budget talks begin ahead of October’s announcement.

Carers have already warned they can’t take any more pain and Social Justice Ireland has demanded welfare payments increase by €5.

The Minister said she “hopes” she can get the support from her cabinet colleagues to maintain social welfare payments.

Age Action said multiple austerity budgets is having a severely damaging effect on the most vulnerable of older people.

Spokesman Eamon Timmons said some older people are even considering giving away their family pet because they can no longer afford to feed it.

Two-thirds of new jobs in Ireland created by entrepreneurs

19,000 FIRMS STARTED-UP IN 2012

  

Two-thirds of new jobs in Ireland created by entrepreneurs – 19,000 firms started-up in 2012

The latest Global Entrepreneurship Monitor (GEM) reveals that 19,000 businesses were started-up in Ireland in 2012. Not only that, the GEM research indicates Irish early stage entrepreneurs have a stronger focus on international markets and exports than their OECD and EU counterparts.

This year’s research has been compiled by Paula Fitzsimons of Fitzsimons consulting, who is also the national GEM co-ordinator, and Dr Colm O’Gorman, professor of entrepreneurship at Dublin City University Business School.

Since GEM research has been carried out in Ireland for nine of the last 10 years, the 2012 report contains a 10-year perspective. High levels of entrepreneurial activity, with many people perceiving opportunities to start new businesses, characterised the earlier period (2003-2008). The overall culture was very supportive and entrepreneurship was considered a good career option.

Mirroring the changes in the economic environment, an overall decline in the rate of early stage entrepreneurial activity, particularly among men, is apparent in the latter period (2010-2012 inclusive), as is a rise in the proportion of those starting a new business out of necessity.

THE ENTREPRENEURIAL ECOSYSTEM IN IRELAND

However, significant improvements in the overall entrepreneurship ecosystem in Ireland make it an increasingly supportive environment for starting a new business.

Advances in access to seed and venture funding, international incubator supports, access to top-level mentoring supports, and Enterprise Ireland’s and the City and County Enterprise Boards’ wide range of supports for start-ups, have all contributed to making Ireland a highly attractive location in which to start a new business venture.

Improvements in the degree of perceived innovation and intended internationalisation among those starting new businesses in the more recent period are also very positive and suggest an improvement in the quality of the new enterprises being started. Successful entrepreneurs continue to be held in high regard.

The GEM report indicates that Irish early stage entrepreneurs have a stronger focus on international markets and exporting than their OCED and EU counterparts. This focus of entrepreneurs on developing innovative products and services for export is essential for growth and economic recovery. The increase in the level of ambition and export focus among women entrepreneurs is also welcome.

ENTREPRENEURS CREATING JOBS IN IRELAND

“Two-thirds of all new jobs are created by start-ups in the first five years of existence. That is why we have placed entrepreneurship at the centre of our plans for jobs and growth,” Ireland’s Minister for Jobs, Enterprise and Innovation Richard Bruton, TD, said in relation to the latest GEM report.

“Through the Action Plan for Jobs, we have put in place a series of measures to support greater levels of start-up activity across the economy, including a range of new credit measures and world-class supports for small business through the local enterprise offices. Now we are taking advice from world experts and taking views from the public on the next phase of our plan to support more entrepreneurs and start-ups, and ultimately create the jobs we need.

“Today’s report is a very welcome analysis of entrepreneurship in Ireland. It provides substantial detail on trends across a range of indicators and will be of immense help as we frame policies in this area.”

Commenting on the report, the chairman of the Government’s new Entrepreneurship Forum Sean O’Sullivan said Ireland has always been a place full of dreamers and doers and that’s essentially what entrepreneurship is, a blend of the two.

“As citizens, we must take on the responsibility of creating our own jobs, and figure out how to be more efficient, working at greater speed with higher innovation and reduced cost.

“If we can field world-class rugby players, artists, and scientists, why can’t we also field world-class, fast-growing indigenous businesses? An Ireland that restores economic growth is an Ireland that expands opportunity and quality of life for all its citizens.

“After the battering we’ve endured in recent years, we’ve got a long road ahead of us to return to being No 1 in entrepreneurship in Europe. As Taoiseach Enda Kenny has made it clear, however, Ireland is open for business. Our challenge is to seize this opportunity, move quickly and boldly go beyond where we have ever been before,” said O’Sullivan.

Number of new cars taxed in Ireland down 40% in June

   

Diesel cars accounted for almost three quarters of those licenced for first time

The number of new cars licensed in the State was 40 per cent lower in June than in the same month last year.

Figures from the Central Statistics Office show that the number of new vehicles licensed in the first half of this year (49,503) was 16 per cent lower than in the same period in 2012 (58,936). Last year’s sales were bolstered somewhat by the Government’s scrappage scheme, which ended last June.

The CSO reported that 3,293 new private cars were licensed last month, compared with 5,481 in June 2012. The number of new goods vehicles licensed fell by 25.4 per cent to 745.

The CSO figures differ from those issued earlier this week by the Society of the Irish Motor Industry (SIMI). The CSO measures the number of cars taxed for the first time while the SIMI figures are based on new registrations issued by the Vehicle Registration Office.

The SIMI registration figures showed the new car market down 73 per cent in June and 20 per cent for the year. Total new car registrations from January to June were 53,230, with last month seen as particularly bad (1,673) as buyers seemingly held on until July to do business and get a 132 registration plate. Car registrations on July 1st (1,927) were higher than for the whole of June.

Volkswagen was the highest selling brand, with 466 new cars licensed last month, followed by Toyota (381), Ford(335), Skoda (253) and Opel (205).

Diesel cars accounted for 72.7 per cent of all vehicles licensed (2,393) last month, with 874 petrol cars taxed for the first time.

Casual sex in Irish college’s linked to depression

   

College students who engage in casual sex – that is sex with partners they know less than one week – may be more likely to suffer with depression and anxiety, a new study suggests.

This autumn, thousands of young people in Ireland will begin or return to third level education and for many, the social side of college life plays as big a role as the academic side.

US researchers decided to investigate any links between casual sex and mental health in emerging adults. They surveyed almost 4,000 heterosexual students from more than 30 colleges.

Just over one in 10 admitted to having casual sex in the month prior to the survey.

The researchers found that among the college students, casual sex ‘was negatively associated with wellbeing and positively associated with psychological distress’.

Overall, those who recently engaged in casual sex had higher levels of depression and higher levels of social and general anxiety.

While previous studies have suggested that women are more negatively affected by casual sex than men, in this study, gender did not appear to affect the outcome.

The researchers said that it is still unclear whether casual sex leads to psychological distress or whether people engage in risky sexual behaviours because of mental health problems they already have.

However, they insisted that ‘it is premature to conclude that casual sexual encounters pose no harmful psychological risks for young adults’.

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HOUSE RULES FOR IRISH FAMILIES IN DEBT

    

The average Irish family will be left with €1,760 a month to live on under new rules outlining what should be considered reasonable living expenses for people in mortgage distress.

Debtors may be asked to move to cheaper accommodation, give up their cars and health insurance, and prove the economic rationale for childcare arrangements under the guidelines for personal insolvency arrangements.

They were given a cautious welcome by advocacy groups, who hoped the rules would re-balance the current one- sided approach of banks’ dealings with customers in arrears.

However, there remained some concern that they leave too much power in the hands of the banks — who will not be compelled to enter arrangements and will have a final veto on any deals.

Anybody entering the arrangements will be subject to strict spending guidelines which the Insolvency Service of Ireland said will be fair, and not draconian.

They will allow: 

– €278 a month for food for an adult and €72 for a pre-school child; 

– €33 a month for personal hygiene and grooming including hairdressers; 

– €35 per month on clothing and footwear and €22 for a pre-school child; 

– €48 a month for electricity and €57 for heating. 

Under the new arrangements, a family will only be allowed to keep its car if it is necessary to get to work and no public transport is available.

The personal insolvency practitioners (PIPs) — or government- appointed mediators — can dictate what type of car is needed, based on a family’s needs, which will be cheaper than €2,000.

They will also decide the hours, location, and type of childcare that working parents can pay for.

A controversial clause in the initial draft guidelines which allowed banks to force parents to give up work if childcare cost more than they earned has been removed.

However, the final version still states that “the reasonableness” of childcare can be considered, and parents will have to prove an economic rationale for paying for it.

Private health insurance will not be allowed, unless the debtor has a particular health condition which would result in spending that costs more than insurance.

It will also be allowed for people with medical conditions that “would make it difficult or impossible to regain insurance cover” when they emerge from the insolvency arrangement.

However — in another last- minute tweaking of the guidelines — people will be allowed to keep their Sky Sports subscriptions.

Sinn Féin said the guidelines “condemn people to live for years hand to mouth because the banks have been so irresponsible with lending”.

Fianna Fáil described them as a bankers’ charter that will “provide little comfort to families crippled by debt”.

But the Justice Minister Alan Shatter said he would keep a “watchful eye” on the banks and would “swiftly intervene” if the process was not working.

“We expect them to do what they have said they are going to do and to properly and fully and constructively engage with people who are in debt difficulties,” he said.

The Free Legal Advice Centre, Flac, said that up to now, banks have been pressing people beyond acceptable limits: “This legislation is badly needed for those who are insolvent and need a proper process to resolve their indebtedness.”

Irish Travellers ‘excluded’ from the labour work force

Council of Europe finds widespread discrimination

    

Urgent measures need to be taken to address the de facto exclusion of members of the Travelling community in Ireland from the labour market, the Council of Europe has warned.

In a report on Ireland’s implementation of the European treaty on the protection of national minorities, the human rights watchdog found that members of the Travelling community continue to experience discrimination in accessing the labour market and health services in Ireland.

It found despite the “positive developments and the general climate of dialogue existing in Irish society”, towards the Travelling community, Travellers face discrimination accessing health, education and accommodation.

It noted that a large number of Travellers remain unemployed, citing data from the 2006 Census which revealed a 75 per cent unemployment rate for Travellers compared to 9 per cent generally. “The main reasons for this deplorable situation, identified by the Travellers themselves, are discriminatory practices and social exclusion leading to low self-esteem and poor performance in education,” the report states.

Similarly, the school drop-out rate for children aged 15 from the travelling community according to the 2006 census stood at 63.2 per cent, compared to 13.3 per cent nationally, while participation of travellers in higher education was 0.8 per cent, compared to 30.2 per cent of the national population.

While Ireland does not recognise Travellers as a national minority, the report welcomed the fact that Irish authorities had introduced measures to recognise the community’s special position in society and to better protect their rights.

However, it highlighted the persistence of negative stereotypes regarding the community in some written press and electronic media, in particular with regard to criminality, abuse of social benefits and nomadism.

Noting that political representation at both local and national level remains very low, the report added that the various Traveller representative bodies that have been set up remain purely advisory with no decision-making powers. It also described the absence of any Roma representatives from the various Traveller committees that have been established by the State since 2007 as “regrettable”.

In addition, the Council of Europe urged Irish authorities to “finalise the consideration of the proposed recognition of travellers as an ethnic minority”. Responding to the Council of Europe report yesterday, the Government said that “consideration of this issue remains ongoing”, noting that all the protections afforded to ethnic minorities in EU directives and international conventions apply to Travellers in Ireland.

It added that the Bill to establish the Irish Human Rights and Equality Commissionwill be published and presented to the Oireachtas shortly.

The Government also pointed out that significant progress had been achieved in the delivery of Traveller accommodation, including Traveller-specific accommodation, since the enactment of the Housing (Traveller Accommodation) Act 1998.

MINISTER JOAN BURTON REFUSES TO RULE OUT REDUCTION IN SOCIAL WELFARE CUTS

     

Minister for Social Protection Minister Joan Burton has said any possible easing of austerity measures is going to be a roundtable discussion.

It follows comments by EU Commissioner Ollie Rehn at the G20 in Washington yesterday that Europe will ease austerity in a bid to accelerate growth.

Speaking at a Saint Vincent De Paul conference in Dublin today, Minister Burton refused to rule out seeking a reduction in her own Department’s targeted spending cuts.

Reports during the week suggested that she would seek a reduction in the €440m target set for social welfare cutbacks in October’s budget.

However, the Labour Minister did say the Troika now acknowledges that they got their original approach to austerity wrong.

Ms Burton said: “They got the calculation of the impact of the cuts in expenditure wrong.

“There was an economic model which they said, with some confidence, would produce growth, but it hasn’t produced growth to the level that they estimated.

“In fairness to the IMF they have been very intellectually honest about that.”

Up to 200,000 sleep apnea sufferers, A conference in Galway was told

   

As much as 100,000 people in Ireland suffer from sleep apnea – but the true figure could be twice that, a conference in Galway was told today.

An expert on the disorder told delegates at the annual conference of the Irish Dental Association that 90% of those who suffer from sleep apnea are undiagnosed.

Sleep apnea occurs when the airway collapses and there is a cessation of airflow for 10 seconds. If this happens constantly during the night every night it prevents the person getting the deep sleep required to function normally.

“Overall we believe the condition affects between 2.5 and 4% of the population but because most people who suffer from it remain undiagnosed that figure may be a little on the conservative side,” said Dr Michael McWeeney, Consultant Respiratory Physician in Galway Clinic and Bon Secours Hospital.

“We are in an obesity epidemic and that increases the severity of apnea. Poor muscle tone and alcohol consumption also increase the risk substantially. What we really want to do is raise awareness of the condition not just among the general population but also among health providers such as doctors and dentists.”

More than 40,000 apply for one-way ticket to Mars

  

It seems that there has been huge interest in signing up to sampling life on Mars in ten years, even though it is a one way ticket.

Mars One — a plan to colonise Mars in stages, with the first humans arriving in 2023, won’t begin accepting 60-second video applications until July, but already more than 40,000 applications have applied for the unique journey.

Heading off to the Red Planet for good wouldn’t be our cup of tea, but it has spiked the interest right across the globe. Mars One will largely be financed through an application fee of up to $25 and a global reality TV show that will help vet the candidates.

Dutch physicist Gerard Hooft told the New Scientist magazine that the interest levels so far have surpassed what they had anticipated.

“This is many more than I had imagined, although some psychologists and cultural anthropologists had apparently predicted there would be at least a million candidates,” he said.

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Ireland’s OAPs facing €5 travel charge and electricity cutbacks

   

Civil servants are looking at charging old-age pensioners for free travel and cutting back on their electricity allowances, the Irish Independent has learned.

The proposals are being examined ahead of the Budget, which ministers have acknowledged is going to be savage.

It would mean pensioners would be asked to pay €5 for long rail and bus journeys.

High earners would also be hit, with anyone earning more than €200,000 set to be penalised.

But social welfare is seen as the area where most of the cuts will have to come.

It is not yet known if rent allowance for social-welfare recipients will be targeted.

The Government faces a potentially massive backlash if it goes ahead with the proposed cuts to allowances for the elderly. These include the free TV licence, electricity, gas and telephone allowances and the free travel pass — all costing a combined €450m a year. Under changes to the free-travel scheme that are now being considered, pensioners would be asked to pay towards the cost of their travel — possibly a €5 contribution for a train fare.

“It would be subsidised, rather than free,” a government source said.

Ministers believe that old-age pensioners would not object to making some contribution towards the cost of their travel.

However, cuts to the free TV licence and subsidised electricity and gas would be highly contentious.

The additional entitlements for pensioners – known as the Household Benefits Package – are under the spotlight as Social Protection Minister Joan Burton seeks to find cuts.

“It would be a surprise if the Department of Social Protectionwas not looking at all these schemes,” another source said. Aside from opposition from elderly people, there will also be concerns expressed by the companies that benefit from the funds. CIE, ESB, RTE and Eircom are among the companies that would be affected if there were cuts to the benefits.

Cuts to the package were also looked at last year when the department drew up a menu of potential measures. Around 400,000 people get the current package of benefits. The schemes cost almost €370m last year.

The package of benefits is available for all those aged 70 or over, regardless of their income. The benefits are also given to: people in receipt of the Carer’s Allowance, who live with the person being cared for; pensioners aged between 66-70, generally living alone and getting a social welfare payment; and people aged under 66 who are receiving a disability or a caring-related payment.

The Household Benefits Package is made up of:

- The electricity or gas allowance. – Telephone allowance. – Free TV licence.

The Free Travel Scheme is a separate entitlement available to over 1.1 million people – pensioners, people with disabilities, carers and their families.

Currently, there are 720,000 elderly and disabled people eligible for free travel. But when passes for spouses and companions are added in, this rises to over 1.1 million.

A review group – made up of officials from the departments of Social Protection, Transport, Public Expenditure and Reform and the National Transport Authority – is currently examining the scheme.

The cost of the Free Travel Scheme has risen from €46m in 2001 to €75m in 2011.

Impact: But the sums paid to transport companies have been frozen for the past two years. The review is to examine and report on the current operation and future development of the Free Travel Scheme.

The department says no decisions have yet been made about the scheme and that it appreciated the important role of free travel in preventing the isolation of elderly people. Any cuts would have a direct impact on the companies who get direct or indirect payments from the Department of Social Protection.

“You can bet the impact would be raised with ministers,” a source said.

Under the electricity and gas allowance, customers get 1,800 units. ESB customers with Electric Ireland receive an allocation of 150 units a month on their bills, with direct payment made by the department to Electric Ireland under the standard rate. Customers who use other suppliers, such as Airtricity or Bord Gais, or who use gas, receive a cash payment of €39.40 a month.

The telephone allowance is €22.22 a month. Eircom customers have this paid directly on their bills and under a special deal negotiated with the telephone company they get €26.86 off their bill each month.

Anybody else, including those who use mobile phones, gets €22.22 in cash. The free television licence is worth €160 a year.

Minister Reilly says plans for free GP care for long-term ill ‘is on track’

  

Government plans to roll out free GP care to people with long-term illnesses are “very much on track”, according to Minister for Health James Reilly.

Dr Reilly rejected a report in yesterday’s Irish Times that the measure was delayed by at least a year. However, he acknowledged there had been “some delay” and that the legislation underpinning the change was complex.

The Bill providing for the extension of free GP care to people with diabetes, epilepsy and other long-term illnesses will be published in the next Dáil term, Dr Reilly said.

The measure, the first step towards a Government promise to introduce free GP care for all, was supposed to have been introduced by last March, according to the programme for government.

Dr Reilly subsequently promised that everyone on the long-term illness scheme would have access to free GP care by the summer, but this deadline was not met.

The Bill has been delayed because of drafting difficulties arising from the proposal to grant medical cards on the basis of illness, rather than means. Another factor has been the priority given to other health legislation in the Attorney General’s office.

Talks have yet to take place with the Irish Medical Organisation and the Irish College of General Practitioners on the measure.

Fianna Fáil health spokesman Billy Kelleher said he had no confidence the measure would be introduced this year.

Warning for Irish household’s over bogus home tax charge callers

   

Ireland’s local authorities have issued a warning to householders to be wary of bogus callers demanding cash payment of the €100 household charge.

Cork County Council confirmed it had received numerous reports that individuals claiming to be from the authority were calling to houses and demanding payment.

Similar bogus callers are also understood to have been reported in Dublin, Waterford and Galway.

Gardai urged elderly people concerned about callers never to allow anyone into their house and to alert neighbours or family if concerned.

Organic food industry myth of more nutritious food is hard to swallow ‘claims a professor’

    

The organic food industry is wrong in its claims to produce more nutritious, healthier and tastier food, a leading Irish food scientist has said.

And its credibility will “go down the drain” when it is finally asked to prove these claims, said Professor Mike Gibney, director of UCD’s Institute of Food and Health.

He slated the “foolish debate” over the supposed superiority of organic food, noting that every major review, including a recent one by Stanford University, had refuted these claims.

The organic industry will eventually be brought to the European Food Safety Authority to prove its claims, but they have a record of rejecting 90pc of health claims made to them because there’s no scientific proof, Professor Gibney told an Agricultural Science Association conference in Wicklow yesterday.

Organic week was just finishing but the industry was wrong on all four counts that it produced more nutritious, tastier, healthier and more environmentally friendly food, he said.

“They are building themselves up for a big crash… Trust is hard won and easily lost”.

The organic lobby would be better to market their lifestyle appeal to middle-class people rather than trying to frighten them by claiming they fed their children inferior food if they didn’t buy organic.

Professor Gibney said he was incensed as a scientist by the claims made for different foods and had written a book, ‘Something to Chew On’, to try and dispel myths.

He accused environmental groups of “hideous scaremongering” in the debate on genetically modified crops, which had featured grim reapers and coffins in a protest in Dublin this week.

None of the warnings of environmental or health disaster had come to pass in the US or South America where GM crops were widespread, yet Europe remained risk-adverse to them, said Professor Gibney.

He also noted that while obesity was portrayed as the biggest public health nutrition issue, malnutrition among the elderly had been found to be even more costly, according to aEuropean Parliament white paper.

That was because while there were various drugs to deal with the impact of obesity on heart health, malnutrition among older people led to more hospital admissions and complications.

In Britain, oral nutritional supplements had been found to be highly effective in reducing these high hospital costs, but there was no such initiative or monitoring of this is Ireland.

“We live with a rapidly ageing population and thus there must be a greater investment in studies of diet in areas such as cognitive, motor and visual decline,” said Professor Gibney.

Owner of Lusitania insists it was carrying explosives when it sank

   

The owner of the wreck of the Lusitania has rejected the findings of a €1.5m documentary into what caused the liner to sink so fast.

Greg Bemis told the Irish Independent he was now looking for permission from the Government to organise a second dive to the wreck — some 16km off the Old Head of Kinsale.

Mr Bemis was speaking in Cork, where he attended a special event to mark the worldwide launch of the National Geographicdocumentary ‘Dark Secrets of the Lusitania’ — the most ambitious underwater film project ever attempted here.

“I believe the truth is vital, we need to pursue the truth in all major historical events,” Mr Bemis said.

The Lusitania was struck by a single torpedo from the German submarine U-20 on May 7, 1915 off the Cork coast.

However, a second explosion was reported just minutes later, and the ship sank in less than 18 minutes.

A total of 1,198 people died. There were just 761 survivors.

The British and American authorities wrongly accused the U-boat of having fired a second torpedo at the stricken ship.

The second explosion was then blamed on coal dust in a bunker igniting, and the new TV documentary speculates that a boiler blew up when cold sea water rushed into the hull following the torpedo strike.

But Mr Bemis said he remained convinced that Allied munitions being carried by the liner was the real cause.

“They (National Geographic) used insufficient data when they made their decision,” he said.

“In fact, they did not have all the information they should have had — they used a computer analysis to get their theory and a computer is only as good as the garbage you put in. You put garbage in, you get garbage out,” he said.

Mr Bemis said a second dive with full access to the hull was now required before the Lusitania centenary.

“You have to understand there were two different types of munitions being carried — there were three million rounds of .303 (rifle) ammunition on the ship.

“But they would not have caused the second explosion. That was caused, in my opinion, by explosives stored in a magazine at the base of the ship. This was in the bow in a converted coal bunker.”