THERE was a very deliberate element of ‘a lot done, more to do’ to this week’s Budget from the Fine Gael/Fianna Fail/Green government. The government went far enough to give everyone a bit of a lift, but it also came across as a bit of a ‘teaser’ Budget, implying that if the country returns them after the impending election, there may be even more goodies to come.
Within minutes of Finance Minister Jack Chambers getting to his feet, the ‘we are great, aren’t we, though?’-type press releases began to be issued by government TDs and senators.
‘Budget 2025 will benefit working families and parents’ screamed one, ‘Small businesses will benefit immediately’ roared another.
And, yes, there were big ticket items – accompanied by the predictable clichés, like claims the Budget ‘would put money back into people’s pockets’ and ‘secure your future’.
Budget2025 aims to deliver more housing, open more hospital beds, and build more schools.
But while it is easy to make such claims, the government failed to address the realities behind such big ambitions – where are the people to build those houses and schools and service those hospital beds?
On the very same morning that the Budget was announced, we had a very successful business in Cork city – Lennox’s restaurant – saying it is a thriving family-run business but it cannot get staff.
It’s a similar story in the hospitals and schools – hundreds, if not thousands, of jobs lying empty, because our young people are either already gainfully employed, or have left these shores to find a better life.
And one of the reasons they have left these shores is because of the incredibly high cost of living and, as a result, the high cost of owning or renting a home.
It is hard to see how these issues were addressed in Budget 2025.
Yes, the Finance Minister increased the point at which people pay the higher rate of tax – from €42,000 to €44,000, and cut the USC by 1pc on incomes between €25,000 to €70,000.
Minister Chambers even announced that a single person on an income over €50,000 per year will pay €859 less this year in tax compared to last year, meaning a full-time employee on €56,000 will get €916 in tax savings.
But there are not as many single people in employment as there should be – because so many of them have emigrated, due to the fact that the very same government has been unable to entice them to stay.
It was widely acknowledged on Tuesday that housing is the biggest issue facing the country.
Several measures were introduced by the government this week to help fix the scourge of homelessness which, in itself, is leading to the forced emigration.
The Land Development Agency is to get €3bn to help upgrade water and energy infrastructure which should lead to the construction of more homes under the various social schemes – providing the construction staff can be found to build them.
One measure which should help is the increase in stamp duty on bulk purchasing of homes by investors from 10% to 15% – though it may not be enough.
The credit for renters is being increased to €1,000 and the inheritance tax threshold increases from €335,000 to €400,000.
Yes, there are little ‘treats’ in store for many – energy credits for all, two double child benefit payments before Christmas, free schoolbooks in senior cycle, free transport for under 9s, a cut in college fees, and increases in maternity, paternity and parental benefits.
All useful measures, yes, but none of these are ‘big’ ideas that will bring about any short-term change in the fact that our housing sector is a basket case.
At last count, we had almost 14,500 counted as homeless, over 4,400 of those were children.
And all analysts estimate those figures are vastly underestimated.
The figures have continued to climb steadily over the past 10 years – when the figure was well under 1,000.
What a shameful legacy for any government to leave behind.
Other sectors were disappointed by Budget 2025, too, including farmers and the fuel industry.
So, the question remains, if the Taoiseach decides to go to the polls sooner, rather than later, will Budget 2025 be enough to see the current regime returned?
A storm with no name
MET Éireann’s status orange weather warning for heavy rainfall last Sunday was well and truly flagged but what took many by surprise were the strong winds. Broken branches and bushes lined many roads and some were even blocked by entire fallen trees.
The seas all around the coast were raging with stormy waves and many over-topped walls and rushed piers.
Many people in West Cork were surprised that the storm hadn’t been named.
All this was within hours of one of Florida’s worst storms – a timely reminder to us all that we must adapt to constantly changing weather and increasingly violent storms.
