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Prices ‘relatively elevated' – but Taoiseach says Budget spend will be on infrastructure, not cost of living

Prices ‘relatively elevated' – but Taoiseach says Budget spend will be on infrastructure, not cost of living

Sinn Féin leader Mary Lou McDonald told him: "You must include a cost of living package in the Budget."
She was speaking, she said, after a raft of reports that there would not be any such provision, worth about €1,000 per taxpayer in recent years.
Mr Martin said however the focus in the Budget "quite simply has to be on transforming our infrastructure."
It would be a better allocation of the Exchequer surpluses, he said.
He spoke of investment in energy, roads and water, in order to protect and help create jobs in future.
Ms McDonald replied: "The deficit in infrastructure is on you.
"Home heating oil up by €25 per fill, rents up up up, LPT up, petrol and diesel up in May and again in October.
"People need these supports. They will need a cost of living package in October, mark my words," she said.
Mr Martin said there would be supports in the Budget, but refused to promise any cost of living package.
"Prices are at a relatively elevated level following the peaking of inflation," the Taoiseach said. "Inflation peaked at about 10pc in the immediate aftermath of Covid-19 and the Russian invasion of Ukraine.
"This Government did an awful lot. We did more than any other European Government, actually, in terms of cushioning and trying to reduce the impact on people, and we continue to do that."
In April, the Government decided to extend the VAT reduction to 9pc on gas and electricity, he said.
"This measure will save households €70 for gas and €55for electricity.
"From September onwards, there will be a significant increase in the number of people who qualify for the fuel allowance.
"And since the first of June, women can receive HRT free of charge. At the beginning of June, the Carers Support Grant increased to €2,000. That's the highest level ever, and that benefits some 138,000 carers.
"Then we have the back-to-school clothing and footwear allowance will be paid out over the summer months, and that's been extended for the first time to foster carers," Mr Martin said.
"From September, the free school book scheme continues to be extended to all students in post-primary schools, and from September all primary schools are eligible for free hot school meals.
"So, far from your assertions that the Government is doing nothing, we have taken all of these measures on top of the measures that we took in budget 2025."
The Taoiseach added: "But it's also worth noting that inflation in Ireland will come down to about 1.6pc this year.
"We will have the third lowest rate of inflation among the 27 member EU countries. And given the strength of the domestic economy, that's quite a remarkable outcome."
Mr Martin also claimed that wage growth will was "set to reach 5.5pc this year". Real incomes would rise 3pc to 3.5pc as a result, he said.
"We are turning the tide in terms of this issue."
Ms McDonald said he had comprehensively ruled out providing a cost of living package in October's Budget.
"You're doubling down on the removal of support payments for struggling households at a time when living costs are through the roof."
She added: "People, frankly, can't believe their ears when they hear you talk as if sky-high living costs they experience every day are a thing of the past.
"Taoiseach, people are being fleeced now today - when they open their electricity or gas bill, when they get to the checkout with the weekly shop, when they go to fill the car, and when they go to buy basic toiletries like toothpaste or shampoo.
"For one thing, households in Ireland are paying 30pc more on their electricity bills each year than the EU average. That's nearly €350 more.
"The ESRI says that it is difficult to explain why electricity prices here are so far above other countries. People are being taken for a ride.
"And now you propose to cancel the very help that they desperately need. ou should be continuing to provide energy credits as part of a cost of living package in the Budget."
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Data flags hundreds of Russian 'shadow fleet' visits to Irish EEZ
Data flags hundreds of Russian 'shadow fleet' visits to Irish EEZ

RTÉ News​

time20 minutes ago

  • RTÉ News​

Data flags hundreds of Russian 'shadow fleet' visits to Irish EEZ

Some 245 so-called 'shadow fleet' vessels passed through Ireland's maritime Exclusive Economic Zone (EEZ) more than 450 times in the first seven months of this year, according to data obtained by RTÉ. Several countries under international sanctions operate "shadow fleets". Most of the vessels, many of which analysts say are poorly maintained and lack proper insurance, are Russian-affiliated and used to help Russia export oil and circumvent oil price caps imposed as part of western sanctions. Seventy two vessels which have been directly named on sanctions lists transited through the Irish EEZ in the time period, which covers 1 January to 23 July. Experts have warned that their continued movement through Irish waters poses a serious environmental risk and undermines international efforts to isolate Russia's energy sector which is used to fund the country's war in Ukraine. Ireland's maritime EEZ extends roughly 370km off the west coast and is the site of major international shipping routes and multiple globally-important undersea cables. Countries are obligated under the UN Law of the Sea to monitor activities within their EEZ, prevent illegal activity, and control pollution. Vessels suspected of being part of the Russian shadow fleet often use deceptive practices, including falsifying paperwork, to try to obscure the origin, destination and selling price of Russian oil on board. They have been linked to damage caused to undersea cables in recent months, in particular in the Baltic Sea. Shadow fleet vessels have also conducted activities considered risky at sea, including turning off location transponders and conducting ship-to-ship oil transfers. The figures for activity in the Irish EEZ were provided by maritime intelligence company Windward, which uses satellite imagery and AI technology to spot and monitor ships, including those which turn their transponders off. A specific break down of the data on visits to the Irish EEZ during the first five months of the year was also provided by Windward. It showed that 40 of the 162 vessels which entered the Irish EEZ during that time frame were directly sanctioned with clear Russian affiliation. Five of those were sailing under the Russian flag, while six were beneficially-owned by Russian companies. Most of the others were flying under what are known as "flags of convenience," meaning they were registered in countries with minimal oversight. These can be used to disguise ownership and thereby avoid scrutiny and evade sanctions. Windward links the others to the shadow fleet through research and analysis of maritime activities. The top five "flags of convenience" on shadow fleet vessels travelling through the Irish EEZ were from the Marshall Islands, Liberia, Malta, Comoros and Panama. Asked about its monitoring of shadow fleet activity within the Irish EEZ, the Defence Forces said, "while it is our policy not to comment on specific operational matters, all relevant information gathered in support of Maritime Domain Awareness is shared in a timely manner with the appropriate national and international authorities." "The Defence Forces, through the deployment of Naval Service and Air Corps assets, maintains a continuous presence and vigilance within Ireland's maritime domain. We monitor all activity within our Exclusive Economic Zone (EEZ) as part of our routine operations to ensure the security and integrity of our waters." Irish Coast Guard data released Separately, data from the Irish Coast Guard released under the Freedom of Information Act and analysed by RTÉ,shows that the service also picked up signals from four western sanctioned Russian registered vessels in Irish EEZ waters since the turn of the year. RTÉ used vessel tracking website to trace the activities of these vessels around the time they were referenced in the Coast Guard data. The Valentin Pikul carried out three ship-to-ship transfers with a Russian bunkering vessel in Murmansk in northwestern Russia between 30 March and 10 April, one week after it passed through Irish EEZ waters on 23 and 24 March. The European Union-sanctioned Russian vessel Bratsk sailed through the Irish EEZ on 26 and 27 April, turning off its location transponder as it proceeded north off the Donegal coast. The Russian-flagged crude oil tanker Belgorod transmitted intermittent location data as it travelled through Ireland's EEZ on 6 and 7 May, two months after EU sanctions on the vessel were announced. The Primoyre passed the Irish coast twice between 13 April and 2 May, going 'dark' to location tracking services for periods while off the coast of Clare and later Donegal. Tony Cudmore, a retired Brigadier General with the Irish Defence Forces, said "an awful lot of this activity is intended to provoke and possibly to call into question the State's authority." "The danger is that a perception is being created that the State's authority in this area is being diminished," he added. He warned that there is also a significant environmental risk linked to the oil tankers, and that the clean-up cost would likely have to be borne by Ireland in the event of an oil spill while a vessel was uninsured. "These ships are like having vehicles travelling on your roads which have no NCT. They have no insurance. They probably have not been serviced correctly. It's quite possible that even their drivers, their masters, may not have professional competence," he said. As of May 2025, vessels transiting through EU EEZ waters, including Ireland, are required to provide proof of valid insurance even if they do not enter an EU port. CEO and co-founder of Windward, Ami Daniel, said some countries have recently started to take enforcement actions, and Ireland could follow their lead. "In the last month or two we are seeing the UK and the EU take a voluntary approach of questioning vessels who are transiting, on the radio - asking for their insurance coverage and other safety parameters," Mr Daniel said. In January, German authorities confiscated an oil tanker believed to be part of the Russian shadow fleet off the country's Baltic Sea coast. The Panama-flagged vessel, the Eventin, had been on its way from Russia to Egypt with a cargo of around 100,000 metric tons of oil, worth some €40 million. Ami Daniel believes Ireland could take other steps to challenge vessels operating without insurance or valid maintenance records. "It's not just enforcement at sea. It's enforcement on the flags [of convenience] and what they do with the flag states," Mr Daniel said. "The Irish Government can absolutely reach out to them and send them letters. For instance, are they allowing them to do ship-to-ship transfers and get fuel or other provisions while out there?" he added. The Department of Transport told RTÉ that the Irish Coast Guard, through its responsibility for search and rescue, maritime casualty and pollution response, actively monitors traffic in Irish waters and recognises the "risk that some of these vessels pose." "These risks include the increased possibility of a maritime casualty and search and rescue incidents from such vessels. For this reason, the Coast Guard has instituted specific measures to monitor the presence of these vessels and passage through and out of Irish EEZ" it said in a statement. Sanctions impact Since Russia's invasion of Ukraine in February 2022, the EU, UK and the US have imposed restrictions on Russia's energy sector, aiming to weaken its economy and limit its ability to fund the war. As part of that, specific ships have been banned from EU territorial waters, denied insurance, and prevented from accessing certain maritime services as well as all European ports and territorial waters. Last week the EU announced its 18th sanctions package against Russia which includes an additional 105 vessels being banned from accessing EU ports and locks, or undertaking ship-to-ship transfers of oil. The UK also placed sanctions on 135 oil tankers in Russia's "shadow fleet" this week. In total, the EU has now imposed sanctions on more than 400 shadow fleet ships. All European ports are also effectively barred from temporarily storing, handling, or processing Russian crude oil and petroleum products, with limited exceptions. However, even with the sanctions, income generated by Russia's exports have remained stable. The federation exported 7.8million barrels of oil per day in 2021, a figure that had dipped only slightly three years later to 7.5million barrels per day, as it successfully redirected supplies to countries like China and India, according to the International Energy Agency. John O'Brennan, Professor of European Politics at Maynooth University, attributes that at least in part to the activity of the shadow fleet, and says that individual European countries could do more to step up enforcement at a national level. "Some national authorities within the EU have been less than vigilant about upholding those sanctions. That gap is one that Russia has been successfully able to exploit over the last couple of years," Prof O'Brennan added. Prof O'Brennan noted some Greek shipping owners have been prominent in selling their old vessels on to Russia to repurpose, rather than spending money on scrapping them.

Government likely to delay VAT reduction for hospitality sector until mid-2026
Government likely to delay VAT reduction for hospitality sector until mid-2026

Irish Times

time20 minutes ago

  • Irish Times

Government likely to delay VAT reduction for hospitality sector until mid-2026

The Government is likely to delay the VAT cut for the hospitality industry until the middle of next year, creating more room for tax cuts in Budget 2026. It is also possible that the lower VAT rate of 9 per cent will be extended only to hospitality – ie, food and drink in bars, restaurants and hotels – and not to accommodation. The tax strategy papers due to be published today, which inform the budget process now under way within Government, are expected to say that such a separation would be complicated, but not impossible. [ 'Economic vandalism': Unions condemn plan to cut VAT for hospitality sector Opens in new window ] Senior political sources involved in discussions on the issue stressed that it would be possible, if complex. READ MORE Minister for Finance Paschal Donohoe said at the launch of the Government's summer economic statement on Tuesday that the full-year cost for the VAT cut would be almost €1 billion – which would take up to two-thirds of the available resources for tax cuts in the budget. However, three senior sources, all with knowledge of the discussions at the top level of Government on the issue, confirmed that they expect that the VAT cut for hospitality would be introduced in mid-year, possibly on July 1st. This would dramatically cut the cost of the move for next year, creating room for other tax cuts in the budget. Current modelling suggests that the full year cost of reducing VAT to 9 per cent for hospitality and hairdressers would come to €715 million. New Central Statistics Office data out next week may drag that estimate up further, however. Will the Government's big projects survive the next downturn? Listen | 36:20 Sources indicated that an introduction halfway through the year would bring the cost down to roughly half that figure, although that could move marginally up or down due to seasonal factors. The programme for government promises measures to support small to medium-sized enterprises, in particular those in the retail and hospitality sector. It emphasises this will 'entail changes to VAT, PRSI and other measures' as part of the budget process, but does not detail specific commitments. The Department of Finance has long-harboured a deep ambivalence about the benefits of such a measure. A previous cut was reversed in 2023 and there was intensive but unsuccessful lobbying from the sector to secure another reduction in last year's budget. Tax strategy group papers from last year noted the inherent difficulties in applying different rates to the industry – namely, that the higher rate would apply to all accommodation operators, including small B&Bs and hotels, as well as 'significant practical operational concerns' including those relating to packages ranging from bed and breakfast accommodation through to all-inclusive deals. Officials last year warned these could combine to lead to underpayment of VAT and additional complexity for Revenue and taxpayers, as well as increased risk of avoidance and scope for manipulation. On Wednesday, Fianna Fáil Minister of State for Justice Niall Collins stated a personal belief that a universal VAT reduction for hospitality is 'not merited', arguing on Limerick's Live95 radio station that there was 'little to no evidence' that a previous temporary reduction was passed on to consumers. [ Does the hospitality sector really need a VAT cut? Opens in new window ] Trade unions also criticised the move, describing the suggestion that tax cuts worth up to €1 billion could be granted to hospitality as 'economic vandalism'. They also argued that the facts about the hospitality sector do not justify tax cuts, saying the sector is now growing. It comes as the Irish Fiscal Advisory Council said the Government's ongoing spending overruns amount to 'poor planning and budgeting'. It follows the summer economic statement showing that planned expenditure for this year is now expected to amount to €108.7 billion, €3.3 billion more than set out in Budget 2025. Some €90.5 billion was allocated in the budget to current expenditure, or the cost of delivering public services, and €14.9 billion to capital expenditure. Both have since increased.

National day of protest over Gaza
National day of protest over Gaza

Irish Times

timean hour ago

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National day of protest over Gaza

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