Paschal Donohoe and Jack Chambers resist spending demands from ministers
The summer economic statement – a key marker for the October budget – which is normally published in the first or second week of July, will not be agreed until next week at the earliest, according to several people involved in the process.
It is being held up by the need to agree a revised National Development Plan (NDP), and also by a Government desire to see the outcome of the trade talks between the EU and the United States, with US president Donald Trump's deadline for a deal due to expire on Wednesday.
Failure to agree a deal by then could spark a trade war between the EU and the US, with severe consequences for the Irish economy.
READ MORE
Sources with knowledge of the issues confirmed that Government ministers have made requests for substantial extra capital spending in the revised NDP, which is provisionally scheduled to be published on July 22nd, amounting to 'tens of billion' above the existing €165 billion plan, bringing it to just under €200 billion. The plan lays out capital projects until 2030.
Ministers are also pushing for significant increases in current spending next year, despite signals from the budget ministers and party leaders that the sort of increases seen in recent years cannot be repeated this year.
Taoiseach Micheál Martin said last week that it was 'not sustainable' to increase expenditure at the levels of recent years.
It is understood that both Mr Donohoe and Mr Chambers have made clear to colleagues that they will not agree to increases in public expenditure which far outstrip the rate of economic growth.
Sources confirmed that Government ministers have made requests for substantial extra capital spending in the revised National Development Plan
The two ministers met with their party leaders at Government Buildings a fortnight ago which, sources say, saw the key decision-makers agree that they will not repeat the cost-of-living packages that were a feature of the last three budgets.
Last week's controversy over possible increases in third-level fees, however, unnerved many in Government by demonstrating how politically difficult it will be to scrap benefits to which people have become accustomed.
On Wednesday, the deadline imposed by Mr Trump for agreement of a trade deal between the EU and US expires and the EU faces the possibility of 20 per cent tariffs – imposed by Mr Trump on April 2nd, but delayed until July 9th – being placed on EU imports.
If that happens, the EU is likely to respond with its own tariffs on US imports, which could trigger further retaliation from Washington – raising the prospect of a transatlantic trade war.
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Irish Times
an hour ago
- Irish Times
Letters to the Editor, July 8th: On equipping the Defence Forces, Botox, and replacing the president
Sir, – Conor Gallagher's gripping account of Operation Piano captures not only the most audacious Irish Defence Forces mission in decades, but also a quiet truth: Irish sailors, soldiers and Air Corps crews perform extraordinary feats despite systemic neglect (' Hizbullah and Iran suspected of involvement in MV Matthew smuggling operation ,' July 5th.) The daring interdiction of the MV Matthew amid Storm Agnes – with Army Ranger Wing operators rappelling on to a moving vessel in heavy swells, a lone helicopter pressed into service, and a single Naval Service ship shouldering the entire mission – should have been impossible. That it succeeded is testament to the skill, courage and sheer determination of those involved. Yet this triumph must not blind us to the wider reality. These are forces running on fumes: unable to put more than one ship to sea at a time, reliant on overstretched crews, battling chronic equipment, and recruitment and retention crises. READ MORE Ireland's neighbours know it. So, too, do malign actors, from drug cartels to Russian surveillance ships lurking near undersea cables vital to the global economy. Operation Piano should not just be a proud moment; it is a chance to inspire a new generation to serve. But recruitment campaigns must be matched by serious investment: competitive pay, modern equipment and political commitment. And let's be clear: building a modern, capable military does not compromise Ireland's traditional neutrality – and it shouldn't. This is not an 'either/or' choice; it's an 'and'. The success of this mission should galvanise a grown-up conversation about Ireland's place in an increasingly dangerous world. – Yours, etc, DAVID SWEENEY, Washington DC, United States. University fees increase proposal Sir, – I'm writing as a 51-year-old mother of three, full-time worker, taxpayer and voter, to express my deep frustration and disappointment at the Government's plan to increase third-level college fees back up to €3,000. Like so many others in my generation, we have raised our children without a modicum of State support beyond the basic children's allowance. We paid full whack for everything: childcare, creche, GP visits, dentists, school books, uniforms – you name it. There was no Early Childgood Care and Education scheme when we needed it, no free GP care, no tax reliefs worth mentioning. We paid full stamp duty on our first home, we've paid PRSI and USC since it was introduced, and we've continued to pay high income taxes throughout. We didn't qualify for any grants. No Susi. No back-to-school allowance. No medical card. Nothing. And we didn't complain – we worked hard and got on with it, trusting that at some point we'd see a bit of recognition or support. That recognition finally came in the form of the ¤1,000 reduction in college fees. It was the only tangible help we've received in 22 years of raising children. And now, just as quickly, it's being taken away. We have two children in college right now. We pay for everything – fees, rent, food, transport – and we are doing it on after-tax income with no financial assistance. It is demoralising in the extreme to be told, in effect, that once again our cohort doesn't matter. We've done everything 'right' by the State and have been left holding the bag at every stage of our parenting journey. I urge the Government to seriously reconsider the reversal of this small but meaningful relief. For many of us, this isn't just about money – it's about fairness, dignity, and the principle that people who have contributed so much to this country should not be punished for quietly getting on with things without ever asking for help. I speak not just for myself, but for countless friends, colleagues, and neighbours who feel just as let down. – Yours, etc, ANNE KEANE, Cork. Sir, – How many actual, or potential, university students spent far more than the previously allowed €1,000 reduction in fees that is not being given this year on holidays in Spain or Greece this summer? – Yours, etc, EAMONN DILLON, Farranshone, Co Limerick. Awarding HSE contracts Sir, – I find it troubling to reconcile the recent revelations concerning the HSE, specifically, that current and former employees have acted as directors of a limited company engaged in multimillion euro contracts with the very organisation they serve or once served. Having spent years in the private sector, I can perhaps just about understand how ex-employees might find themselves in such a position, though even that raises questions. But the notion that active employees of the HSE could be involved in awarding or benefiting from such contracts is, quite frankly, inconceivable. This situation raises an obvious and urgent question: were those responsible for managing these tenders, whether within the HSE or acting as its agents, fully aware of the employment relationships involved? If not, why not? If they were, even more serious concerns arise. In an era when regulatory compliance, ethical standards, and fitness and probity have been significantly tightened, it is difficult to imagine how these transactions could meet the standards required of public bodies. A full, independent inquiry is not just warranted, it is essential. – Yours etc, DAVID CASSIDY, Griffith Avenue, Dublin 9. Turner, take a bow Sir, – I dislike cartoons largely because they leave me unmoved. Your cartoon (July 5th), about environmental damage jumped off the page for me. Martyn Turner, take a bow for grabbing my attention and telling me so persuasively about costs to the exchequer, the planet and US workers' predicament, no less. – Yours,etc, BERNADETTE BARRINGTON, Dublin 12. Mission impossible Sir, – After President Michael D Higgins vacates the office of Uachtaráin na hÉireann I suggest the position be stood down as a suitable candidate to replace him is an impossibility. – Yours, etc, DEREK HENRY CARR, Mountjoy Square, Dublin 1. Sir, – In order to alleviate the lethargic approach to our upcoming presidential election, why don't we do what they did in the US and vote for a monarch? – Yours, etc, DAVID CLEERE, Co Wexford. Nurses and injecting Botox Sir, – In response to the recent letter claiming that nurses are authorised to independently administer botulinum toxin under the direction of a doctor, I must clarify the legal position. On one point, we can agree: the law has not changed (Letters, July 4th). Under current Irish law, botulinum toxin-classified as a prescription-only medicine (POM) – may only be prescribed and administered by a registered medical doctor or dentist. A nurse may administer toxin only after a doctor has conducted a face-to-face consultation, assessed the patient, and formally delegated the procedure to a staff nurse within their clinical team. This is not equivalent to autonomous practice. Botox is not a cosmetic product – it is a potent neuromodulator requiring clinical oversight. In cases of adverse events such as infection, anaphylaxis, or ptosis (drooping eyelid), timely intervention with prescription medication is critical. Only a qualified prescriber can provide this level of care. Ireland, unlike many of our EU counterparts, continues to allow ambiguity in this sector. Most European countries sensibly restrict aesthetic medical procedures to doctors and dentists and formally recognise aesthetic medicine as a medical speciality. We would do well to follow their example to protect patient safety and professional standards. – Yours, etc, Dr SEAN FITZPATRICK, President of the Irish College of Aesthetic Medicine, Dublin. Sir, – On the basis that nurses are trusted by medical systems in a variety of crucial roles from ICU decision-making to palliative care, Christina O'Rourke (Letters, July 4th) suggests there is 'no valid reason to restrict' them from injecting Botox into people. I'd argue there may be. A Google search of the term 'most lethal substance' immediately identifies this toxin of Clostridium botulinum as the lead in this regard. A Wikipedia search of 'median lethal dose' puts Botox at 1 nanogram/Kg. So, given that five grams of the substance, if distributed frugally, could kill all of humanity perhaps the case to allow its more widespread injection should be more nuanced? – Yours, etc, BRIAN O'BRIEN, Co Cork. Hpat and all that Sir, – It could be argued that Carl O'Brien provides a well balanced assessment of the relative merits and demerits of private tuition for the Health Professions Admission Test (' Hpat: Can students be 'coached' to pass aptitude tests for entry to medical school? ,' July 4th). At the end of the article, I was wondering with some trepidation, whether or not I would 'pass the Hpat' so I attempted the three questions. I was much relieved there were no issues with the first and third questions, but I was left scratching my head on checking the answer to question two. Maybe my level of interpersonal understanding isn't all I thought it was. – Yours, etc, Dr MICHAEL MULHERN, Letterkenny, Co Donegal. Sir, – Brenda Morgan writes (July 4th) that as a teacher she would value neat handwriting and other factors over any extra test such as the Hpat in selecting doctors. Were this truly a requirement for entry to medical school, it is likely that only a tiny minority of current doctors would have been admitted (myself included). – Yours, etc, Dr DAVID VAUGHAN, Mornington, Meath. Sir, – Carl O'Brien's very interesting piece on the Hpat test for admission of students to Irish medical schools omits one important reason for the introduction of that test in 2009; ie to try to weight the gender balance more in favour of male students who were faring less well than females in the traditional exam-based selection process. Has it succeeded in that aim? Or has it, as Prof Hyland predicted, merely contributed to the grinds industry? – Yours, etc, CELIA KEENAN, Dublin. Sir, – While a discussion about the relative weighting of the Hpat is welcome, people have forgotten about the situation before its introduction. At that time, it was not unusual for students to complete two, three, or even four Leaving Certificates to reach the required points. As well as the waste of the students' time, the ability to pay for the extra tuition in the grind schools was only for people with money. The use of points only also made the prospect of random selection much more common, as is being seen in other degree courses now. There is no perfect medical school admission test. How can any test predict the ability of the many roles of a doctor? An interview, even if semi-structured, has obvious potential biases and would certainly create a new industry to prepare students for this, too. The Hpat tests abilities other than rote learning. It is not ideal, but it has reduced the number of students taking multiple Leaving Certificates. The number of free sample questions it produces is limited, and certainly, these could be increased to allow everyone more pre-test practice. By all means, reduce its importance in the selection process, but it should not be discontinued. – Yours, etc, KEVIN DUNNE, (Retired consultant), Galway. Why have any nuclear arms? Sir, – May I be so bold as to ask why certain countries such as America, India, Israel, Russia, China, France, the United Kingdom, North Korea and Pakistan are allowed nuclear arms without question and others such as Iran are totally forbidden to have them? Is this not total hypocrisy and putting other countries at a disadvantage? Is it not fairer to ban nuclear arms from all countries? – Yours, etc, MAGGIE FITZGERALD, Killiney, Co Dublin. Airport set down enforcement Sir, – Terminal 1, Dublin Airport, Friday, July 4th: an entire lane of the constricted roadway at the departures set-down area is blocked by motorists sitting there to collect arriving passengers. Constant announcements bark that 'this is a set-down area only', but the waiting motorists, cocooned in their cars, know that the airport police will not disturb them. Maybe Dublin Airport cannot exercise the authority to enforce its own traffic bylaws when it refuses to accept capacity restrictions imposed by national planning laws? – Yours, etc, DAVID LOUGHLIN, Dublin 6. Support your local seagulls Sir – Des Boyle in complaining about seagulls (Letters, July 7th) states that they are 'vermin' and as such should be culled or exterminated for his convenience. For his information seagulls are not vermin and like any other creatures are entitled to live and raise their young free from the selfish entitlement of humans. Had humans not destroyed their natural habitat and decimated their food sources, they would not be forced to live in cities and scavenge for a living. Rather than exterminating seagulls, humans should work to restore their habitat and food sources and we would all, humans and birds, be the better for it. – Yours, etc, HUGH PIERCE, Celbridge, Co Kildare. No rocket science Sir, – Is it not feasible that with a little accommodation, change of bylaw if required, a solution can be found for residents wishing to charge their EV outside their homes. A concrete saw operator, and an electrician and a means to connect from the gully adjacent to the footpath. It's not rocket science. – Yours, etc, STANLEY WHITE, Delgany, Co Wicklow.
Irish Examiner
2 hours ago
- Irish Examiner
Irish economy expected to continue to grow this year despite tariff treat
The Irish economy is expected to continue to grow this year despite the potential fallout from US tariffs, a new report by KPMG has found, but housing and infrastructure continue to be major risks. In its latest economic outlook, advisory firm said while the economy grew — both in gross domestic product (GDP) and modified domestic demand (MDD) terms — during the first few months of the year, a large part of the increase was American businesses importing high volumes of products from Ireland, preempting a tariff announcement from US president Donald Trump. KPMG said it anticipates that GDP growth will be 3.3% or greater over the course of the year, excluding the one-off front-loading of exports between January and March. Growth may moderate to between 1.5% and 2.0% in 2026 as tariffs impact exports. MDD growth could be 2.5% or greater this year and will be similar in 2026, with this growth driven by domestic consumption and infrastructure spend. Dr Daragh McGreal, head economist at KPMG, said that indicators of the Irish economy point to a domestic economy that is ' holding up well' despite 'ambiguity around the prospects for global trade'. Mr McGreal said the prevailing view is that US tariffs of 10% will be 'most widely applied to EU exports to the US'. However, while the outlook for the domestic economy is positive, KPMG identities infrastructure and housing as major risks. It said that the country is 'continuing to see all-time high levels of demand for infrastructure and housing, goods, and services and one of the country's biggest challenges is meeting its own domestic demand'. Mr McGreal said that the pace at which the housing crisis is being addressed is 'too slow' and the longer it goes on the more elevated rents and sales prices drag down overall economic growth. Read More Trump's tariff threat to pharma in Ireland is leading to a push for trade unions
Irish Times
2 hours ago
- Irish Times
Barnardos study shows impact of cost of living: ‘Dreading next winter's bills'
Almost 20 per cent of families have cut back on, or gone without, heating in the past six months, research from Barnardos into the impact of the rising cost of living shows. The data also show that two in five are going without other essentials , including food and medical appointments, already this year. The survey from the children's charity also suggests one-third of parents went into arrears on energy bills, with 40 per cent of parents skipping meals or reducing portion size so their children would have enough. A further 28 per cent said at times from January to June, they didn't have enough food to feed their children, with 12 per cent using a food bank. READ MORE Since 2021, Barnardos has been monitoring the effect of cost-of-living increases and detailing the number of families cutting back, recording the impact it has on their general quality of life and stress levels. [ The Irish Times view on tackling child poverty: If not now, when? Opens in new window ] It commissioned Amárach Research to carry out a nationally representative survey with 1,000 parents or guardians with children aged under 18 in their care in May The study also showed that 52 per cent of parents reduced or went without social activities, while 41 per cent either cut back on buying clothing or did without. 'There's not much left for any pleasures in life. It's grim and not getting any better,' one parent told researchers. '[It ] just keeps getting worse and worse. Dreading next winter's bills,' another is quoted as saying. A further 40 per cent said they had borrowed money at least once over the past 12 months to provide their children with essentials. Only 27 per cent said they did not need to cut back or go without essential items. 'The statistics in this report show that parents and children across the country are still going without or having to cut back on basic essentials, reflecting the experience across our services,' said Barnardos chief executive Suzanne Connolly. 'Parents on the lowest incomes are really struggling, as well as those just outside the threshold for welfare supports.' She said that since the charity first started reporting on the impact of the cost-of-living crisis four years ago, 'things have remained static, despite repeated once-off Government cost of living measures'. 'She added: There must be targeted permanent supports introduced, otherwise more children will go without essentials next year.' Her intervention comes after a string of senior Government Ministers have signalled that one-off supports to tackle the impact of inflation will not be seen in Budget 2025. Meanwhile, Minister for Public Expenditure Jack Chambers and Minister for Finance Paschal Donohoe are said to have made clear to colleagues that they will object to increases in current spending that outstrip economic growth. Barnardos is advocating for some specific policy changes, including increased child support payments in line with inflation, an increased income disregard for means-tested payments, and changes to tariffs for vulnerable families on prepaid energy meters.
