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Government expresses fears for jobs after EU decision 'upends' our tax system

Minister for Finance Michael Noonan requires Cabinet consent to allow Ireland to appeal the European Commission’s recent ruling.

THE DÁIL WILL not be recalled to discuss the European Commission’s decision that Ireland granted illegal state aid to Apple worth €13 billion in uncollected taxes.

Minister for Finance Michael Noonan requires Cabinet consent to allow Ireland to appeal the European Commission’s ruling that Apple owes Ireland €13 billion in back taxes.

Cabinet is meeting today, with the Independent Alliance said to be considering its position on the issue. Fianna Fáil finance spokesman Michael McGrath has said the decision requires “careful study”.

Paschal Donohoe, Minister for Public Expenditure said the Cabinet meeting will allow all ministers to “fully understand” and be briefed on the issue.

Asked on RTÉ’s Morning Ireland whether there are other companies with similar arrangements to Apple, Donohoe said:

That’s for other companies themselves to determine.
Yes, there will be and I expect, we’ve already heard from the Revenue Commissioners that there are other companies here who engage with Irish law in the way it has been correctly set up.

“It’s open to the EU Commission to do what they see fit in the future.

But that’s why the Irish national interest is so clear here. The companies we’re referring to … corporation tax alone each year for Ireland is worth €7 billion.

“That’s corporation tax alone, not to mention income tax, PRSI, all the other forms of taxation that are generated by the jobs here in our country,” said Donohoe.

What the European Commission is now saying is the global taxation on the largest company in the world should be collected out of Ireland – even if the economic activity that creates that tax has not happened in Ireland.
That upends completely the principles on which our own tax system is created, not to mention efforts to coordinate dealing with this issue globally.

Donohoe added that he wants everybody to pay fair and appropriate level of taxation, but that it’s an international issue that is far broader than Ireland or Apple.

He said 360,000 people either work for a large employer, or are dependent on a large employer for their work in Ireland.

My main worry is what’s right for Ireland, and the particular jobs I’ve mentioned.

“Ireland is not doing all of this on its own. The situation we found ourselves in is that the European Commission is saying that all of Apple’s global economic activity should be taxed out of Ireland. That is not right.

The consequences of that pose a direct challenge to the way we manage job creation in our country. That’s why I’m clear on the right course of action.

Belgium EU Apple European Union Competition Commissioner Margrethe Vestager speaking yesterday. Virginia Mayo Virginia Mayo

Preferential benefit

Eamon O’Dea of the Revenue Commissioners said the Apple tax problem is an international issue that should not be laid at Ireland’s door.

“The essence of yesterday’s ruling was that Ireland, through Revenue, gave a preferential benefit, an advantage, a preferential advantage by not charging its global profits, its worldwide profits that would have produced this €13 billion,” he said.

Revenue has to operate by applying the Irish tax law, and Irish tax differentiates between companies that are resident in Ireland and companies that operate through a branch.

He said the two Apple companies involved were not resident in Ireland for tax purposes, and he said while somebody may be owed the €13 billion, it’s not Ireland.

Tax avoidance

Pearse Doherty, finance spokesman for Sinn Féin said:

“We welcome that there is a new €13 billion and probably a further €4-5 billion in interest that will benefit Irish taxpayers into the future.

“And I think whatever decision Apple takes, the idea of an Irish government refusing to collect taxes that it is legally entitled to as a result of the Commission’s decision and that it is willing to spend hundreds of thousands of euro defending Apple’s position, and wants to spend more taxpayers’ money is simply not acceptable.

Ireland has facilitated tax avoidance through its tax code for many, many years.

He added:

If the government was acting in the interests of the Irish people, it would be collecting the billions of euro that it is due.

“Let’s put this into context, it’s roughly the overall cost of running our health service.

This government is willing to take me and other people who haven’t paid their water charges to court, when the bill runs to €500.

It’s willing to spend hundreds of thousands of our money to actually defend Apple’s interests and go to the European Court of Justice so Apple don’t have to pay tax that is liable to the Irish taxpayer. It’s simply not acceptable.

Labour

Labour, however, will support a Government appeal of the European Commission’s decision. Leader Brendan Howlin said it was “inconceivable” that Ireland would not be attached to Apple’s appeal of the decision.

Meanwhile, Cork North Central TD Mick Barry has questioned Minister Noonan’s assertion that the tax would not be available for current spending.

“A cynical attempt was made to pull the wool over the eyes of the public by saying ‘even if we get the money, we can’t spend it anyway because of the fiscal rules’,” Mr Barry said.

This has been exposed as untrue after the intervention of EU Commissioner Vestager and the admission by Minister Paschal Donohue on Drivetime that any funds received by the State through the ruling could be spent on capital projects such as housing.

Read: “The government needs its head examined” – should Ireland really throw €13 billion back in the EU’s face?

Read: With €13 billion, Ireland could build Metro North, Dart Underground and solve the homeless crisis

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106 Comments
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    Mute Ger Comings
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    May 3rd 2016, 12:16 PM

    No phone boxes either…

    149
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    Mute Ger Comings
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    May 3rd 2016, 12:22 PM

    Post boxes to go next – as internet communications/e-commerce/e-mails increase, and take over.

    49
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    Mute Ger Comings
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    May 3rd 2016, 12:25 PM

    Then post offices for the same reasons.

    39
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    Mute Neal Ireland Hello
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    May 3rd 2016, 12:27 PM

    Son there’ll be nothing left to pee into.

    147
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    Mute Ger Comings
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    May 3rd 2016, 12:34 PM

    Finally, the post office will disappear (with benefits paid into bank accounts) when postal deliveries cease, for good.

    21
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    Mute Chris Kirk
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    May 3rd 2016, 1:23 PM

    Where we live they already use disposable nappies and throw them in the ditches……

    41
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    Mute Neil
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    May 3rd 2016, 1:38 PM

    Post will benefit from the continued increase in online shopping. Going nowhere.

    74
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    Mute Ger Comings
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    May 3rd 2016, 1:42 PM

    The majority of my internet purchases come by courier.

    21
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    Mute Joe Keogh
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    May 3rd 2016, 3:02 PM

    It was the number one spot outside Trinity.

    30
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    Mute Gareth Cooney
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    May 3rd 2016, 5:57 PM

    Doddle is dealing with deliveries in London. 300 stores will be open at train stations across the UK. Argos is also in bed with eBay

    3
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    Mute aboutallthethings
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    May 3rd 2016, 8:05 PM

    True. I always wonder why eircom (eir) don’t just convert the phone boxes into worked hubs with boosted range and provide WiFi throughout the country. I know it might not be lightening fast but it would be something. I was in Limerick recently and noted that there is city wide free Wi-Fi. A few cities on mainland Europe do the same.

    7
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    Mute John Hagin Meade
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    May 6th 2016, 8:54 PM

    @Ger Comings: “The majority of my internet purchases come by courier”. The majority of Heroin and Cocaine comes by gurrier.

    1
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    Mute Cosmo Kramer
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    May 3rd 2016, 12:20 PM

    If you ever wonder what they were like just think about the toilet in the bookies in Trainspotting..

    107
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    Mute Chris Kirk
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    May 3rd 2016, 1:20 PM

    In a thousand years time this will probably be looked upon as a great archaeological discovery of how the Irish pissed in the twentieth century…..academics will probably write books on the subject or whatever they will use then to document these things.

    35
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    Mute Danny Flynn
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    May 3rd 2016, 12:25 PM

    It was a shit hole anyway

    95
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    Mute liam
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    May 3rd 2016, 12:48 PM

    Think the fact we even had public toilets that could be considered historic is the real story here.

    66
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    Mute Ger Comings
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    May 3rd 2016, 12:54 PM

    Yes liam. They were British toilets built by Armitage Shanks of Staffordshire – and, I suppose, they had to be gotten rid of, like Nelson’s Column.

    47
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    Mute Phil Blanc
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    May 3rd 2016, 12:43 PM

    There’s a story that one day some Japanese tourists stopped by Pat Ingoldsby selling books outside the Bank of Ireland and asked for directions to St Stephen’s green. He apparently pointed across the road to the toilets and told them to head down to the subway, take one stop and they’d be there.

    65
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    Mute EmmaQ@gmail.com
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    May 3rd 2016, 1:56 PM

    A couple of old underground victorian style public toilets in london have been turned into cool little bars and restaurants.
    Unfortunately our planning authorities are failing the city yet again

    55
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    Mute Ger Comings
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    May 3rd 2016, 2:02 PM

    Yes Emma – there’s a fine/largish one on Shepherd’s Bush Green, which does extremely well. Because its near the massive Westfield Shopping Cente, which is the biggest in the UK.

    20
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    Mute James Xenophon
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    May 3rd 2016, 3:37 PM

    We’ll just have to struggle on.

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    Mute John R
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    May 3rd 2016, 5:24 PM

    In fairness, these toilets were rather tiny from what I remember and would never have been viable as bars or restaurants.

    12
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    Mute The Pope
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    May 3rd 2016, 6:24 PM

    Westfield is actually the third biggest in the UK Ger, the MetroCentre in Gateshead, Tyne and Wear, is the biggest, followed by the Trafford Centre in Manchester.

    6
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    Mute Ger Comings
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    May 3rd 2016, 6:38 PM

    Biggest – in terms of business, not square footage, which is not cost effective. In other words, the most profitable and busiest. Sorry for confusing you, pope.

    3
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    Mute Ger Comings
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    May 3rd 2016, 6:59 PM

    Which pope is the wiki freak…p1, the kraut?

    2
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    Mute Ger Comings
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    May 3rd 2016, 7:04 PM

    JR, in fairness? In fact, some were huge – with several staff.

    2
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    Mute The Pope
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    May 4th 2016, 1:22 AM

    Not even a nice try, you stated ‘biggest’ – not ‘most profitable’, sorry to piss on your parade Mr. Shortcomings :)

    5
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    Mute Ger Comings
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    May 4th 2016, 9:13 AM

    Biggest, as in business. Pope wiki…

    1
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    Mute Strong silent type
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    May 5th 2016, 2:41 AM

    Wrong again, you claimed ‘biggest’ period, Google ‘biggest’ and physical size will be the only results returned, learn how to communicate before digging an ever bigger hole for yourself and your overly sensitive ego.

    1
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    Mute OneTrueVoice
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    May 3rd 2016, 1:02 PM

    These toilets were used during the 1916 Rising by the martyrs. This is an OUTRAGE!

    I’m organising a march starting on Parnell St (outside party headquarters) on Saturday at 10am.

    55
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    Mute Wesley Moore
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    May 3rd 2016, 1:17 PM

    Will try pop down also. I have hoped for most of my years to see these public restrooms restored and put to use.

    These will be as much of an improvement to the cityscape as the corpo flats. Our history is slowly being erased..

    15
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    Mute Neal Ireland Hello
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    May 3rd 2016, 3:05 PM

    If you’re being serious, why did you wait until now? This was all planned ages ago.

    8
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    Mute Rashers Tierney
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    May 3rd 2016, 3:30 PM

    Ah, Dublin City Council. From the people who brought you fines for pissing in the street, on foot of the closure of public conveniences in the 1990′s. What other civilised Capital City in Europe is without public toilets? I am not well travelled, but have been to Paris, Rome, Lisbon and Berlin – facilities which recognize human physiology are available in all these places. I cannot speak to their availability elsewhere.

    39
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    Mute postman pat
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    May 3rd 2016, 2:59 PM

    I’m surprised it wasn’t objected to by people claiming a 1916 leader had a S***e in one during the rising

    37
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    Mute Zx5vZulB
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    May 3rd 2016, 1:44 PM

    George Michael petitioning Dublin city council to preserve the toilets

    33
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    Mute Ger Comings
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    May 3rd 2016, 1:46 PM

    Who she?

    4
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    Mute Pharmyco
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    May 3rd 2016, 1:59 PM

    Sad that we had to lose the loos for the luas.

    29
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    Mute Brian Kearns
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    May 3rd 2016, 1:20 PM

    I cant understand why the existing structure couldn’t be used for a control box?

    15
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    Mute Ger Comings
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    May 3rd 2016, 1:22 PM

    For the control of what exactly, Brian?

    8
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    Mute Brian Kearns
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    May 3rd 2016, 1:26 PM

    “Plans are now in place for a control box to be fitted at the site which will allow operate the College Street and Westmoreland Street Luas stops when they are completed.”

    I would assume its that?

    29
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    Mute Michael Kavanagh
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    May 3rd 2016, 2:44 PM

    Remember that these particular jacksies have not been used (or abused!) for 20 years. Whatever alternative arrangements were to be made were made long ago!

    15
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    Mute Brian Kearns
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    May 3rd 2016, 1:19 PM

    Whatever the plan for the site is, It’s not available to view on the DCC planning search. I wonder Why?

    12
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    Mute Edmond Mc Grath
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    May 3rd 2016, 2:12 PM

    Ah now! Demolished and not a protester in sight! I honestly thought that this action would surely merit a dirty protest!

    11
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    Mute Michael Burke
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    May 3rd 2016, 12:53 PM

    Good riddance

    11
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    Mute WC Herren
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    May 3rd 2016, 2:15 PM

    remember the graffiti -Welcome to the Pleasure Dome. But seriously where are people meant to go for a pee in the city centre?

    10
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    Mute John Barry
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    May 4th 2016, 2:38 AM

    Against the spire…

    3
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    Mute Ronan McDermott
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    May 4th 2016, 4:52 AM

    It hasn’t been in use for 20 years. Didn’t bother you then

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    Mute John Hagin Meade
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    May 6th 2016, 8:59 PM

    I think you have a point.

    1
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    Mute Colette Kearns
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    May 3rd 2016, 12:33 PM

    Put’s a new meaning to “taking the piss”

    9
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    Mute bings
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    May 3rd 2016, 2:09 PM

    Luas drivers now going down the crapper. What next???

    8
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    Mute Do the Bort man
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    May 3rd 2016, 12:21 PM

    agh sh*te!

    8
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    Mute Donal Lucey
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    May 3rd 2016, 5:57 PM

    Pretty disgraceful treatment of the city’s Victorian heritage.

    7
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    Mute Richie C
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    May 3rd 2016, 3:25 PM

    This is a real bummer.

    4
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    Mute ironballs mcginty
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    May 3rd 2016, 6:26 PM

    The only sh*te you will see there in the future will be driving a tram. Ding ding.

    3
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    Mute Eugene Conroy
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    May 3rd 2016, 2:47 PM

    If those walls could only talk. Shot no, we don’t want to go down that shady lane

    3
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    Mute Gareth Cooney
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    May 3rd 2016, 6:00 PM

    Shur we’ll puss up the nearest alleyway it’ll be grand, we’re irish what else would you expect?

    2
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    Mute The Pope
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    May 3rd 2016, 6:17 PM

    The Loos have made way for the Luas.

    1
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    Mute Mondoburley
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    May 3rd 2016, 7:52 PM

    That’s some old shite..

    1
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    Mute John Hagin Meade
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    May 6th 2016, 9:02 PM

    “Public toilets over 100 years old are demolished to clear way for Luas”. I think this article is a load of sh*te. I’m pis*ed off!.

    1
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    Mute Tomás Ó Briain
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    May 3rd 2016, 4:36 PM

    No shit!

    1
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    Mute Frank
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    May 3rd 2016, 1:07 PM

    A lot of Brown envelopes around the JC Decauox Dublin Bikes scheme. The deal was done in private and city manager did not allow transparency.

    1
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