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THE GOVERNMENT WANTS to maintain the budgetary discipline put in place by the Troika according to a new strategy laid out today.
Launching the Medium Term Economic Strategy in Leinster House today, Taoiseach Enda Kennny said that they do not intend to “go back” to the strategies of the past.
“What we do want to do is maintain the discipline we’ve shown because it is clearly achieving dividends in terms of attracting jobs and growth… We don’t intend to lose the discipline that’s been put in the system by the Troika being here,” he added.
The plan pledges that under the “high growth” scenario being chased by the Government, unemployment will be down to 10 per cent by 2016 and under 6 per cent by 2020.
Kenny says that this will be achieved by “replacing all of the 330,000 jobs lost during the crisis”. In essence halving unemployment, Kenny said.
Budgets
The document outlines that the budgetary adjustments required to bring the Government deficit in line will not be required after 2015 because growth rates will do enough to keep the target on track.
Finance Minister Michael Noonan says that the planned deficit reduction in Budget 2015 is targeted at €2 billion between tax and expenditure.
He said, however, that current estimates show that it is likely to be less than that. “The material around is that the target will be less than that by the end of the year,” he said.
Tánaiste Eamon Gilmore warned that there is “no question of suddenly being able to loosen the purse strings” but did sound an encouraging note for people who have seen their income fall:
“People should be expected to believe that those who have made sacrifices will be able to receive some payback,” he said.
Gilmore also echoed the plan to reduce unemployment to under 6 per cent by 2020, something he described as “full employment”.
“This time we will be talking about real and sustainable jobs. Export-led jobs, not temporary bubble-led jobs, ” he added.
Taoiseach and Fine Gael leader Enda Kenny at today’s announcement. (Pic: Sasko Lazarov/Photocall Ireland)
Jobs
Noonan was questioned on the target of of reducing employment to 6 per cent by 2020, a target described during the briefing by one journalist as ‘conservative’.
“When jobs are created there are various cohorts of people available for them..You cant just subtract your job creation from the Live Register, ” he responded.
Noonan referenced those already in employment, the fact that Ireland is again becoming an increasingly attractive destination for European immigrants as well the possible return of recent emigrants for his caution.
“Those who went away temporarily or those who were forced out because of lack of jobs,” he said.
Reaction
Sinn Féin and Fianna Fáil have both criticised the plan for being “disappointing”.
Fianna Fail spokesperson Michael McGrath TD said that the Government were using growth figures to “essentially take a gamble” that economic growth will deliver targets.
“It’s a rehashing of existing departmental policies,” he told reports outside Leinster House.
If you are going to go to the trouble and indeed the expense of putting together a new economic strategy than at least it should be meaningful. When you look at issues such as mortgage arrears, personal indebtedness, issues of credit to the economy, there really is little or nothing is this document.
Sinn Féin’s Pearse Doherty TD also criticised the plan for being short on detail and reliant on growth projections that haven’t been reached before:
This is the seventh time that the government have produced a strategy with growth figures for the Irish economy. On the previous six times they have missed all of their targets and there’s nothing in this document that shows that this will be anything different.
“Also the fact that they aren’t changing strategy in relation to stepping up the anti, looking for retroactive recapitalisation of the money the Irish people have pumped into the banks or using the money at their disposal to inject into the economy to get people back to work.”
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It says everything about this government that we could have an extra 14bn that we desperately need and they won’t take it because they are quaking in their boots that they anger the tech giants. How many healthcare staff and houses and other resources could get with this money?
@Sylvia Power: You clearly don’t understand what happened here. Ireland was never owed “an extra 14 billion”.
@honey badger: Over 10 years, Apple paid close to zero tax. The Commission ruled this to be a breach of Ireland’s tax law. The govt is saying it isn’t. If Apple paid almost zero tax then I think it should be returned, that is what would happen with a regular citizen, so I don’t see why corporations should get different treatment
@Sylvia Power: Yes but Ireland would only be entitled to a percentage of that 14 billion regardless. Ireland was never entitled to the full amount.
@Sylvia Power: it’s the EU that is saying Ireland is owed the money. If anything, the £14bn should actually be paid to the countries that made the profit that is being sent to Ireland (allowed under their own individual tax laws) that benefits from Ireland’s low tax regime. Be careful what you wish for….
@Yvon Queguiner: like a little*
@Yvon Queguiner: Why the insult? What are you trying to achieve?
@Yvon Queguiner: Doesn’t make it less insulting. A despicable comment either way.
@Sylvia Power: Ireland wouldn’t see a cent. It would be used to pay back debt from the bailout we received all those years ago!!
@Yvon Queguiner: Thanks for clarifying your insulting remark.
@Sea-point Point:
It doesn’t matter who is exploited.In China the workers jump from the roofs of the Apple factories and here in Europe their private jet flights f… up the climate.
This has to stop and the string pullers like PWC and Co. have to be banned from operating in Europe.
Money talks.
@antisocialbarber:
The bailout was bred by the same mafia as Apple’s tax rip-off.
@Juri Hertel: well it sorta does clearly, as you go on to list a whole bunch of people exploited differently…
@Sylvia Power: or free child care for all children up to 5 years old
@Sylvia Power: “I don’t see why corporations should get different treatment”
Apple’s defence is that they pay tax in the US and that all taxes have been paid in this case.
If I have an income from a property in France and pay my taxes there I don’t have to pay in Ireland as long as I follow Revenue’s rules and guidelines.
@Declan Joseph Deasy: In the unlikely event that we get the €13b the one thing we can’t do is spend on day to day spending.
We’ve been there before and down that road lies ruin.
@Stanley Marsh: I think if a corporation uses our (tax-payer funded) water, our electricity, our labour and our infrastructure to generate profits, they should pay their dues.
I genuinely believe this government would rather Apple have the money then spend it on public services for the people.
@Brian Boru: is that why you use a pseudonym, so colleagues don’t realise you’re actually that daft….?
We can see here the government ate NOT working for the good of the people.
@David Mercedes: are
@David Mercedes: I figured that’s what you meant.
Ireland is a tax haven, those who don’t see it choose to be blind. The recent R and D loophole is the reason we are seeing the huge increase lately,
but this won’t last. Then the totally spurious argument that if you create employment, this somehow means you don’t have to pay tax is wrong. An employee of a multi billion euro corporation will, between income tax, usc and vat give roughly 60% to the government, but these corporations pay negligible rates. If you think this is right then you are brainwashed and part of the problem.
Ireland has a reputation among other nations of being tax pirates and somewhat wanting in data regulation. We can wear the green shirt all we like, but ask yourselves where is the actual Irish economy and what role do Irish firms play in it outside of SMEs, because they are largely ignored by this govt and economic model. Multinationals pay little to no tax, whilst Irish SMEs are hammered. Further why should Apple pay next to zero, but PAYE workers pay over half their earnings on average. We deserve much better.
OT
In case someone wants to know the background of the FB-Meta-Google mafia case:
It was the Dutch consumer organisation and two other parties who brought them to court, a fact which is not mentioned in the Irish media.
The Dutch state news agency NOS reports: nos.nl/artikel/2476129-consumentenbond-komt-met-massaclaim-tegen-google
One wonders why Ireland’s consumer organisation exists.
The Dutch consumer’s organisation is now preparing a massive compensation case, all Google users in Europe might benefit.Again: not mentioned in Ireland
See the court ruling:
uitspraken.rechtspraak.nl/#!/details?id=ECLI:NL:RBAMS:2023:1407
Apple did pay taxes and the idea that Apple paid no taxes creates a false picture. They paid their employees PAYE and PRSI and vat on sales in Ireland. They may have paid commercial rates and tax on services they purchased. What they did not do was pay enough corporation tax on foreign earnings according to the EU. Meanwhile Ireland is saying that a deal, good or bad, was a deal legally and Apple should not have to pay this money. The people shouting about collecting the money are forgetting that at a stroke of a pen Apple could find somewhere else to channel it’s oversea sales denying us future earnings from Apple, and potentially other companies, if Ireland looses the case or breaks it’s own agreements. Warning, many outside Ireland are jealous of our success. . .
@Niall Ó Cofaigh: people who say the money could be put to good use tackling the shortage of housing seem to forget that, bolstered by foreign company’s taxes, we are running a budget surplus and already have the money to tackle issues, just we seem to lack the understanding and will to build. I read that over the last few years about 1 billion euro, or more, remains unspent from the housing budget, so do not blame homelessness on Apple’s low tax rate or failing to pocket the 13 billion. I think many issues are a lot more complex that appear on the surface but I do know without the multinationals and IT companies ireland would be a lot poorer
@Niall Ó Cofaigh:
Gosh.
The employees paid the PAYE and PRSI.Make yourself familiar with economics.
The “Apple-Lady” who organised the rip-off lives here in Youghal,East Cork.
The BBC reported.She had a 1.5 company, herself and and a half position as far as I remember.And made € 14 billion tax rip-off.
Mighty PAYE and PRSI contributions I guess :)
Interview her and come back with your findings.Thank you.
@Juri Hertel: The employer pays part of the PRSI also so you’re not quite right there.
Embarrassing. We’re so owned by these people it’s pathetic.
@Bart Teeling: What’s embarassing? Do you understand what’s going on here, because I don’t think you do.
Imagine 14 billion from Apple, 2.5 billion from Meta and 10 billion surplus. That’s 26.5 billion surplus. Don’t tell me we can’t get rid of USC and major tax cuts in next budget!!
@Will Roche: The 14 billion from apple was euro wide, we would only be entitled to 2% of it.
Apple will stay or go, regardless.
Take the money.
Ok, this is actually very simple
14bn in an escrow account for ages pending this decision
IRELAND, US, get a very small amount of this if the decision goes against us/apple
The tax liability is based on the points of sales, most of this 14bn will be going to other countries, not us, we’re just acting as the collecting agent here as that’s where they are tax based.
Why don’t we want this/why did we join apple in the appeal? – Because to not do so would be to give in to the EU’s assertion that we granted State Aid to Apple.
Ireland won’t get a penny ! Because leo or what ever ruling not having morals or dignity or respect ! Or sovereignty
@ibrahim Sudane: Leo and the gang also know the facts of this case. We’d be entitled to only 2% of this 14bn.
Future Headline
Apple wins €14.5bn tax case appeal
Apple announces massive investment in its Irish operations including the manufacturing of its new VR headset to be manufactured at a new IDA approved and funded premises.
Something that’s quite funny here, the Author basically makes it look like we’re due a 14bn windfall, we Ireland. But this article doesn’t appear in the Irish News filter on the site.
Curious to know what people jumping up and down to get rid of multi-nationals think is gonna replace all those jobs? Over 6,000 jobs in Apple in Cork alone – if they left (not saying they would even if this case goes against them but you never know) where are all those people gonna get work? If tax breaks are why they based themselves here, then I say let em have them so the jobs stay here.
Apples employees pay more tax from their wages than Apple do from their profits.
Dont be a dumbass and say the stupid thing yiz know what i mean
Ah here i’ll point it out. An employee pays what about 45/50% on tax on their wages. Apple most certainly do not pay that on their profits.
Slag me all yiz want im off for a days fishing on a big as boat down Wexford way
@Denis Rathsallagh Brady: A lot of Apple’s employees don’t even make enough money to be taxed. They didn’t acquire assets of $346,000,000,000 by paying their employees decent wages.
Build more hotels.
If we dud get it then it will go straight to the coffers of the social dependent as they badly need it let’s keep the Welfare state going everyone
Buy apple shares today
Well girls and boys……seems a ruling won’t be made until November with a final ruling not until early next year. Only ones making money from this are the legal teams
Can you imagine the amount of brown envelopes being passed around, of course they owe it
have your say