
Paul Hosford: US tariffs take shine off summer economic statement
On Tuesday, in Government Buildings, their prospect hung low as the Government announced its summer economic statement and National Development Plan.
In a two-and-a-half-hour session of back-to-back press briefings, government leaders stressed the need to "recalibrate" economic plans in the face of the Trump administration's threats of a trade war with the EU.
While Tánaiste Simon Harris has said that a 10% scenario is "baked in", the summer economic statement was based on a zero-tariff scenario. This, both finance minister Paschal Donohoe and public expenditure minister Jack Chambers, said would see the plans for the budget change if tariffs aren't avoided after August 1.
In the document, the tax package available will amount to €1.5bn. The spending package will be €7.9bn, an increase of 7.3% on the revised 2025 general expenditure ceiling, but there are caveats.
The most notable is that the Government isn't sure how much of that €7.9bn is spoken for. In previous summer economic statements, the existing levels of service has been outlined to break the available money down between extra spending and tax cuts.
However, Mr Chambers said on Tuesday he was going to "engage with government partners" on just what their spending for this year will actually be. So, as of now, there is no clarity on just how much money Mr Chambers has to play with when ministers come banging on the door looking for their spending envelopes in September.
Of course, Mr Chambers later said that this year's spending ceiling of €105.4bn will be overrun by €3.3bn, meaning that some departments will receive supplementary budgets.
Uncertainty reigns
The document itself is much more limited than previous ones, not featuring projections for future years, a sign that uncertainty reigns.
"Our budget day decisions could change depending on the economic environment we find ourselves in during the summer and beyond," Mr Donohoe said, rejecting the idea that the statement was a wasted exercise given that much of the economic outlook will be decided after the EU and US decide what the future of their relationship will look like.
It's very clear that we're at a moment of significant transition
That level of transition is weighing heavily on Irish policymakers but, as they preach prudence on one hand, government leaders had taken to the same stage just minutes previously to talk about record amounts of money which would be unleashed to build houses, infrastructure, and safeguard future finances.
The revised National Development Plan was touted as "transformational" and would "overcome pinch points that are holding back investment", but its announcement was a lot less prescriptive than in previous years.
Whereas plans in the past were effectively a shopping list of projects it would aim to deliver from roads to mega projects in water, electricity, and transport, this version is more a statement of intent.
With billions set to be deployed, categories for spending were remarkably vague.
Much of the investment will go towards housing, with a total allocation of €36bn in the next five years. Some €7.68bn of this will go to water. This does not include another €4.5bn in 'equity injections', which brings the total for housing and water to €40bn. Some €22.3bn will be spent on transport, with €2bn for the Dublin Metrolink.
Sea change in Irish policy
For the public who are hearing that belts need to be tightened and day-to-day spending is to be "moderated", they may look at the billions heading towards projects aimed at other parts of the country and wonder where all of the money is going. In truth, we don't know yet.
The plan is merely a way for the Government to ringfence funding that can be argued for when individual departments work out what they can deliver and when. Pumping money into infrastructure is both necessary and overdue, but the watchword here will be delivery.
For something which is being touted as a sea change in Irish policy, it doesn't feel like it
This is largely down to two factors: A lack of detail on projects, and even less detail on how delivery of infrastructure is going to change pace in Ireland all of a sudden.
The ringfencing of €2bn for the Metrolink in Dublin was hailed as a show of commitment, but the project has been on the political agenda for a decade — after a decade and a half of planning before that.
I, personally, have been to two launches. At what point was it not committed to?
The plan is a war chest the likes of which has never been seen. It has the potential to genuinely transform Ireland. However, its lack of a detailed timeline or plan of how this will be achieved will leave much to be desired from a public that is facing the reality of an economic downturn head-on.
Read More
Government to invest €102bn in infrastructure by 2030 under revised National Development Plan
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Irish Sun
an hour ago
- The Irish Sun
Charming English town is getting new £42million train station that will reopen key link shut for over 60 years
A RURAL English town has been given the green light for a new £42million train station that will reopen a vital link. After more than 60 years without a railway station, Cullompton has been granted funding by the Department of Transport and HM Treasury. 2 Cullompton has been given the green light for a new £42million train station Credit: Alamy 2 The new station will also be next to the motorway services at Junction 28 of the M5 Credit: Alamy The announcement is set to turbo-charge the economy of the Devon town and provide desperately needed transport links for locals and visitors. The funding will also help to support plans for a new station in Wellington. Cullompton station first opened in 1844 and closed in 1964. The reopening will be key to enabling the Culm Garden Village development, which will create around 5,000 homes. Read More on Transport The new station will also be next to the motorway services at Junction 28 of the Councillor Jacqi Hodgson, Devon County Council Cabinet Member for Climate Change and Biodiversity, said: 'Further investment in rail infrastructure in Devon is always welcome and this railway station for Cullompton is key to the town's economic growth and will help reduce carbon emissions in the county. "People need improved public transport options if they're going to be encouraged to change their travel habits. "Hopefully Cullompton could follow the success of Okehampton Station and the re-opening of the Dartmoor Line, which is a great example of what can be achieved given the necessary funding from government.' Most read in Travel In April, a delegation of 30 people from the region travelled to London to hand-deliver powerful letters of support to rail minister Lord Hendy. Backed by a cross-party group of South West MPs and Wellington Town Council, the letters stressed how restoring rail links to both Okehampton and nearby Wellington could unlock major economic, social and environmental benefits. Lord Hendy said: 'The stations would contribute to sustainable development, connecting new residential areas with regional employment, education and healthcare opportunities. "The case for taking a combined approach presents significantly higher value for money compared with a stand-alone project in either area.' He added: 'Reopening Cullompton and Wellington stations would be a strategic investment aligning with the Government's goals to drive economic growth, reduce environmental impact and improve social mobility.' Economic growth Gideon Amos, who also backed the scheme, said: 'For the cost of around £42 million, £180 million of economic growth would go into the region — which I know the Government would want to see. 'Frankly, there is no other rail project in the south-west that is ready to go and could be built and completed in the next two years, as the project is so far advanced. 'In fact, had it not been for the review in July last year, the spades would be in the ground and the platforms under construction, because the contract was about to be let and the detailed design was almost finished.' And Labour MP Simon Lightwood added in the Commons: 'The strategic objectives are clear. "Enhancing public transport connectivity will support growth and productivity in Exeter, Taunton and Bridgwater, while also reducing road congestion, car dependency and carbon emissions.' He continued: 'The stations would contribute to sustainable development, connecting new residential areas with regional employment, education and healthcare opportunities." This comes as The GWR Regional Growth Manager David Whiteway said the project would provide "valuable support for the community and local economies". Satellite images show the rapid development of the £15million scheme, which is being funded by the Department for Transport with contributions from Devon County Council and West Since work began in January, major progress has been made to create the new station on the edge of Okehampton, two minutes from the A30. In March, 300 metres of the single-line track was moved 90cm north to allow a new platform to be built alongside it.


Extra.ie
an hour ago
- Extra.ie
SImon Harris to push for national day of solidarity for Gaza
Táiniste Simon Harris has stated he will work to make a national day of protest for Gaza a reality. The claim was made in response to a letter written by a Mr. Michael Cush which was published in Thursdays Irish Times. The letter stated that the Irish government has been strong in its condemnation of Israel's actions in Gaza, but that the government and the people of Ireland are growing frustrated as they feel 'helpless' to prevent the ongoing conflict. Táiniste Simon Harris says he will talk to his colleagues about how to make a national day of protest for Gaza a reality. Pic: Olivier Hoslet/EPA-EFE/REX/Shutterstock Taking to Instagram on Saturday, Simon Harris said: 'The people of Ireland stand with the people of Palestine. We stand for human rights, for international law, for a two state solution, for aid to flow, for hostages to be released. We stand for peace. We stand for an end to genocide'. Michael Cush had also said in his open letter to the newspaper that 'If the Government were to call a national day of protest, the turnout would likely be enormous' Today, Simon Harris posted the letter on his social media, alongside a statement endorsing the suggestion made by Michael Cush. The letter stated that the Irish government has been strong in its condemnation of Israel's actions in Gaza, but that the government and the people of Ireland are growing frustrated as they feel 'helpless' to prevent the ongoing conflict. Pic: by Moiz Salhi/Anadolu via Getty Images He went on to add: 'The suggestion for a national day or moment of solidarity made by Michael Cush in the letter above is sensible and a good idea. 'It could be powerful if many countries did it together. I will now talk to colleagues on how to make this happen.' The Irish government has been one of the few within Europe that have labelled Israel's actions in Gaza as 'genocide', while internationally the world looks on as the humanitarian crisis in Gaza worsens, and the population face the very real threat of starvation as the war continues. The claim was made in response to a letter written by a Mr. Michael Cush which was published in Thursdays Irish Leah Farrell/ Earlier this month, Tánaiste Simon Harris said 'careful consideration' was given to a number of visa applications from a group of Palestinians, adding that the granting of a visa was a 'very important legal document.' The GAA Palestine group were set to arrive in Ireland later in July for a GAA tour. The group of 47 people included 33 children between the ages of nine and 16 years old. Ahead of the visit, The Journal revealed that the visa applications for the group had been refused by the Irish Immigration Service due to 'insufficient documentation.' 152 families in Ireland had signed up to host the group when the were due to arrive on July 18. Tour organisers admitted they were 'devastated' following the ruling, adding that they had included the required information such as detailed itineraries and financial arrangements. In an official statement released on Instagram the following week, GAA Palestine announced that their planned summer trip to Ireland cannot proceed as it is no longer possible to acquire visas and depart on time.


Irish Examiner
an hour ago
- Irish Examiner
Campaigners rally at Cork City Hall in protest against LNG terminals
Climate activists, local councillors, and concerned residents gathered outside Cork City Hall this week to protest against potential plans for liquefied natural gas (LNG) terminals in the region. Organised by the environmental group Not Here Not Anywhere (NHNA), the demonstration featured banners reading 'No LNG Terminals' and chants of 'Flooded Lee, rising seas, we say no to LNG.' Campaigners warned that the Government's reversal of a ban on fracked gas imports earlier this year has opened the door to new fossil fuel projects along Ireland's coast — including the Port of Cork. The protest supports a motion submitted to Cork City Council by Green Party Councillor Oliver Moran, which calls on the Council to oppose any LNG infrastructure and instead prioritise large-scale renewable energy. The motion is due to be debated in September by the Council's Environment, Water & Amenities Strategic Policy Committee. It states: 'That, as a Mission City to be climate neutral by 2030, Cork City Council is opposed to the development of Liquefied Natural Gas (LNG) terminals, as new fossil fuel infrastructure, and will work to ensure no LNG terminals are developed in the Cork region; and shall focus its support on the development of large-scale renewable infrastructure for energy security instead.' "Cork City Council is a member of regional energy stakeholder groups and an EU Mission City to be climate neutral by 2030," said Mr Moran. "Cork's future is in renewables. It's why the Port of Cork is investing €100m in a deepwater berth dedicated to servicing offshore energy. "Offshore energy will bring jobs and energy security tied to Cork. LNG will bring neither of those." Niamh Guiry, an NHNA campaigner and PhD researcher, added: "The people of Cork have made it repeatedly clear, we do not want and cannot afford any new fossil fuel infrastructure in the midst of a widespread and devastating climate crisis. "We are at a pivotal point in history. Now is the time for radical action and political bravery." She urged Cork City Council to pass the motion in September, calling it a critical signal to Government that the fossil fuel era must come to an end. Campaigners argue that LNG terminals would lock Ireland into high-carbon energy for decades, risking failure to meet 2030 climate targets and potential EU fines of up to €26bn. A recent EPA report also identified 115 climate-related risks to Ireland, with Cork seen as particularly exposed. They also pointed to a landmark advisory opinion issued last week by the International Court of Justice, which found that states may breach international law by supporting fossil fuel development or subsidies. 'It's unthinkable that Ireland could be locked into fossil fuel infrastructure and dependency for years to come," Ms Guiry added. "Passing anti-LNG motions that champion a just transition and the development of widespread renewable energy infrastructure like the one before Cork City Council is hugely important."