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Taoiseach warns of 'sobering' budget ahead as tension grows over student fee cuts

Taoiseach warns of 'sobering' budget ahead as tension grows over student fee cuts

The Taoiseach and senior Government ministers have held a 'sobering' budget meeting as a coalition row over cuts to student fees continues.
Taoiseach Micheál Martin revealed that the upcoming budget will be 'challenging', as the level of increased public spending seen in recent years is 'not sustainable under current conditions.'
Speaking in Japan, Mr Martin confirmed that he held a special meeting with Tánaiste Simon Harris, Finance Minister Paschal Donohoe, and Public Expenditure Minister Jack Chambers over the weekend to discuss the upcoming budget and the updated National Development Plan.
'It was a sobering enough meeting, to be frank, in terms of the challenges that lie ahead, given the backdrop of tariffs and uncertainty in trade, and also the warnings we've received in terms of the once-off nature, or the temporary nature, perhaps, of certain corporation tax revenues,' Mr Martin said.
'So it's challenging, and expenditure has been rising very significantly in Ireland, and that has to be factored into the equation. We will be doing everything we can.'
When asked if this meant the Government would target specific areas of spending, Mr Martin said no agreement had been reached yet, noting that negotiations on the updated National Development Plan must happen first.
However, the Taoiseach stressed that the Government was not considering cuts to the overall budget, calling such suggestions 'completely removed from reality.'
The meeting followed a growing rift between Fianna Fáil and Fine Gael over third-level education fees.
Mr Martin reiterated the coalition's commitment to reducing fees over the lifetime of the Government but warned that the lack of a cost-of-living package complicates the issue.
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Tánaiste hits back at minister as college fees row heats up
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Minister Lawless has recently announced that from September college students will have their fees revert to the amount owed before the Government began introducing cost-of-living reductions three years ago. The last three budgets reduced student fees by €1,000 as part of wider 'once-off' cost-of-living packages that, he said, will not be repeated this year. Newly elected Students' Union President at University of Galway Maise Hall firmly criticised the decision. She said: 'University of Galway Students' Union believe this is a retrograde step that will price people out of education. Students are already struggling to make ends meet with the ongoing cost of living crisis and ever increasing rent costs. Should this shameful decision come to fruition it will further add to existing financial pressures on students and their families.' Shortly after the announcement, Minister Lawless appeared to backtrack as he explained to RTÉ's Drivetime programme that he is working on measures for this October's Budget 'which will kick in at the start of next year'. However, Ms Hall argued the Minister's comment sounds like an empty promise. 'It sounds like an empty promise. It was something that was outlined in the programme for Government when they were running at the elections so it's very disappointing,' she told the Irish Independent. Ms Hall added the announcement over college fees comes despite 'long overdue reforms to the SUSI grant system not yet being enacted'. The SU President also mentioned that 49pc of University of Galway students have said they struggle to pay rent. Half of students reported working part-time to afford college, and 56pc reported that working has had a negative impact on their education. Ms Hall said: 'Even if you're working full time over the summer and every weekend through collage, you're still scraping through. ADVERTISEMENT Learn more 'For people in the Government it might not seem like a lot of money, but for students who are already struggling with the cost of living, it's a big jump. 'That's a month of rent gone, three or four months' worth of food that they have already budgeted for and planned for. This is not good enough. She added: 'An increase in fees will simply make this bad situation worse. We urge the Government to decide not to increase fees and instead take the appropriate measures to decrease and eventually abolish fees.' The decision on students' fees was also criticised by many elected members and different parties. Sinn Féin TD for Galway East Louis O'Hara labelled the €1,000 hike as 'outrageous and a slap in the face for students and families who are already struggling to keep their heads above water with the spiralling cost of living.' While Labour Party Councillor in Galway City Níall McNelis shared: 'This government doesn't know what they're doing. Hiking student fees one minute, backtracking the next. Students and working families deserve better.'

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