Donohoe announces €1.5bn in tax cuts for Budget 2026 but says figures are based on ‘a no-tariff scenario'
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Irish Examiner
4 hours ago
- Irish Examiner
TV licence fee revenue down €58m after RTÉ payment scandal, new figures show
TV licence fee revenue has decreased by over €58m in the last two years. New figures confirm that revenue from the licence plummeted following a range of financial scandals engulfing RTÉ in the summer of 2023, which sparked a wave of non-payments. Before the scandals, between July 2021 and June 2023, some 1.9m people paid the €160 annual fee, resulting in revenue of €306m. This included 1.7m people who renewed the licence, as well as 243,179 first-time purchases. However, figures for the two-year period after the RTÉ controversies, between July 2023 and June 2025, reveal revenue decreased by €58.4m compared to the previous two years. Some 1.55m people paid the licence fee, a decrease of more than 365,0000 people. This resulted in revenue of €247.6m, a decrease of 19% compared to the preceding two years. There has, however, been a slight increase in the number of people paying the fee since the Government announced a new funding arrangement for RTÉ on July 24, 2024. Between July 2022 and June 2023, some 947,999 paid the €160 fee. This fell to 761,762 payments between July 2023 and June 2024. In the last 12 months, the number of licences bought increased to 785,595. However, this is still 17% below the pre-scandal levels. This year to date, some 376,140 people have paid the licence fee. Figures for the two-year period after the RTÉ controversies, between July 2023 and June 2025, reveal revenue decreased by €58.4m compared to the previous two years. Picture: Colin Keegan The figures were provided to Fine Gael TD Micheál Carrigy following a parliamentary question to media minister Patrick O'Donovan. The RTÉ scandals included revelations that former Late Late Show host Ryan Tubridy was paid €345,000 over six years that had not been declared by RTÉ in its annual declaration of top-paid stars' salaries. It later transpired that money had been paid to Mr Tubridy as part of a three-year 'side deal' that would see Renault pay him €75,000 per year. They pulled out of the agreement after the first year, with RTÉ paying the remaining €150,000. Subsequent Oireachtas committee hearings heard of extravagant spending at RTÉ, including €5,000 on flip-flops, memberships to swanky London clubs, and a failed musical based on The Late Late Toy Show. Mr O'Donovan has reconvened the interdepartmental technical working group (TWG) on the TV licence to 'examine potential enhancements to the television licence'. 'I will consider the report of the TWG when I receive it and decide the next steps,' he added. It was reported last month that the number of people being taken to court or prosecuted for non-payment had dropped. In 2022, An Post made 13,709 summons applications for non-payment and pursued 7,263 court cases. There were 13,198 summons applications and 6,555 court cases in 2023. However, last year this fell to 12,229 summons applications and 5,392 court cases. The Government announced plans last year to provide RTÉ with €725m in funding over three years. Media minister Catherine Martin confirmed that the TV licence would remain in place, with the State providing top-up funding to ensure that RTÉ had a certain amount of ring-fenced funding each year.
Irish Examiner
4 hours ago
- Irish Examiner
Paul Hosford: Public patience has limits — especially when their tax cut is on the line
Like Christmas, it feels like the budget comes around earlier every year. Part of that is the fallow summer period during which the idle hands of the country's political journalists are searching for work. Without the day-to-day Punch and Judy show of the Dáil, there has to be a focus somewhere, though ask ministers at doorsteps and press conferences about the budget any time pre-August, and you will find them rolling their eyes to heaven and asking has it gotten earlier this year and repeating a mantra about the "budgetary process". Given that much of the mid-summer choreography focuses on the summer economic statement and the release of the Tax Strategy Group papers, it is no wonder that those idle hands drift towards budget speculation. This year, the focus has started early on one key issue, not just because it is being speculated upon, but because its actual merit is being discussed, which is novel at least. Usually, budget measures are seen as something of a fait d'accompli and in recent, more prosperous, times everything was on the table because everything was possible within reason. Of course, there were competing interests, but with huge economic surpluses the last government was well able to cater to everyone even a little. However, while Tuesday's announcement of the summer economic statement brought with it news of another surplus, there is a serious question about how it is going to be deployed. Contained in the document was the news that the overall tax package in the October 7 budget is due to be around €1.5bn. Over a billion and a half euro to spend solely on cutting taxes is the stuff of dreams for many governments and one to which this coalition has become quite accustomed. Where does the money go? Last year's €1.6bn income tax package was aimed squarely at low- and middle-income earners with the main tax credits; the personal employee and earned income tax credits increased by €125. On top of that, the standard rate cut-off point was increased to €44,000 and the USC was cut to 3%. Across the board, there were increases in carer tax credits, in credits for renters, in benefit in kind, in capital acquisitions and and with it an extension of mortgage interest tax relief. This year, however, the landscape is somewhat different. With €1.5bn to play with, the Government has already tacitly pledged a large chunk of that away. While a commitment to cut the Vat rate for the hospitality sector is not in the programme for government, despite what some have said this week, it was agreed as part of government formation talks and was taken as a win by Fine Gael, which had pushed hard for the reduced rate. The problem with the reduced rate for restaurants and hotels comes with its costs. In the Tax Strategy Group papers published on Thursday, the authors outlined that cutting the Vat rate for the hospitality sector, including pubs, restaurants, hotels, and hairdressers, would cost €867m per year. While that is lower than the estimated figure put out by finance minister Paschal Donohoe of between €950m and a billion euro, it is a sizable chunk of the tax package available to the government in just two-and-a-half months. Political and social choices On Tuesday, as the government announced a €30bn capital plan alongside the summer economic statement, which warned of moderated spending, it was put to Mr Donohoe that the commitment to one industry could come at a cost to workers. This he accepted, but said that every budgetary decision comes with trade-offs. While the idea of sacrificing tax cuts for workers in order to aid one specific industry is an argument which has been carried out all week, it was refreshing to hear Mr Donohoe say explicitly that the budget is a mechanism of political and social choice. Too often it has been framed as a winners and losers argument, but what it is in actuality is an argument of priority, a statement of intent and the positioning of where we are at any given moment. It is a series of political choices, not a mere shopping list. In a radio debate on Wednesday, economist Barra Roantree argued against a blanket Vat cut, saying that the biggest beneficiaries would be the biggest chains. Why, he questioned, should McDonald's get a Vat cut at a time when its profits have jumped almost 17%? The counterargument, of course, is that the real beneficiary of a cut is the customer. It will come as no surprise that the cost of eating out has risen alongside the cost of food in supermarkets. In my house we use the crudely designed and implemented Spice Bag Index. Through the miracle of food delivery apps keeping receipts, we are able to track the cost of a spice bag in our local Chinese in the years since we bought our home. In that seven-year stretch, the price has jumped from €6.40 to €10.20, though it must be said that the quality remains excellent. There is no question that hospitality, like every other industry, is facing a crunch. The sector has come through covid lockdowns only to face rising costs, constrained supply lines, and a public less willing or able to spend money on entertainment. Divisions But hearing Fianna Fáil junior minister Niall Collins on radio this week saying that he did not believe a blanket cut in the Vat rate was justified, while Fine Gael's enterprise minister Peter Burke "unequivocally" backed it, shows that there will be friction in the run-up to the budget on the issue. Government sources questioned on Thursday whether Mr Collins had gone on something of a solo run given that he had somewhat contradicted his party leader Taoiseach Micheál Martin on the issue. But those in government who want to see the cut in the books that Jack Chambers and Paschal Donohoe hold up on the steps of Government Buildings in 10 weeks, might be minded to listen to the message of Mr Collins. Speaking to Limerick's Live 95, Mr Collins said that there was no evidence that a previous reduction in the Vat rate to 9% was "actually passed on to the consumer" and that there was price gouging in the sector. While the budget will lay out a statement of priorities, the passage and success of this particular measure will depend on public buy-in. Convincing stretched middle-income earners to forego tax cuts, which would put somewhere in the region of €75 a month back in their pockets in favour of an industry which many believe has been too expensive for too long will require some finesse in its messaging. While the row has focused on the differing opinions of coalition partners, the consumer has been left out of the discussion. If the Government is faced with a list of choices that are broken down into binary winners and losers, the average person will always choose to win. But if a Vat cut can be sold as a net good for employment, for tax take and for those who just wish to eat out once a month, then it has a chance of resonating with the public. Simply telling members of the public that businesses are a Vat cut away from viability is not a communications strategy, because it doesn't hold up to any scrutiny. If the public sees nearly €700 million spent, they will want to know what's in it for them, be it affordability or the greater good. Otherwise, it will be back to splitting a €10.20 spice bag. Read More Government to invest €102bn in infrastructure by 2030 under revised National Development Plan
The Journal
7 hours ago
- The Journal
Foreign Affairs Committee recommends inclusion of services in Israeli settlements trade ban
A COMMITTEE HAS 'unanimously' recommended that services should be included in the Government's proposed ban on trade with illegal Israeli settlements, a TD has said. The Oireachtas Foreign Affairs committee is making the recommendation after hearing evidence from expert witnesses in relation to the Israeli Settlements (Prohibition of Importation of Goods) Bill 2025. The report containing the recommendation is expected to be published next Wednesday. The Irish Government has said it will legislate to ban the trade of goods with illegal Israeli settlements following an advisory opinion from the UN's top court. The International Court of Justice (ICJ) said last year that countries should 'take steps to prevent trade or investment relations' that maintain illegal Israeli settlements on Palestinian land. Although the opinion does not differentiate between types of trade, government figures have indicated a ban on services is more legally complex. Sinn Féin TD and member of the committee Donnchadh Ó Laoghaire said the 'vitally important' recommendation to include services received 'no push back' from any committee member. He said that could encompass services across financial, tech and accommodation sectors. Advertisement 'Clearly, morally, the same issue arises whether it is goods or services, you're still trading with illegal settlements that are undermining the potential for peace in the Middle East.' He lamented the humanitarian disaster and widespread starvation in Gaza in what he called 'human rights abuses upon human rights abuses' in the Palestinian enclave. The foreign affairs committee's recommendation has been welcomed by Christian Aid Ireland as 'hugely significant'. The charity's head of policy Conor O'Neill said: 'Despite all the spin, misinformation and threats, TDs and senators from both Government and opposition spent weeks looking at the Occupied Territories Bill in detail, weighing up the evidence, hearing from experts and considering the impact. 'They have said unequivocally: it is time to ban all trade with the illegal Israeli settlements, both goods and services, in line with international law. 'This is a crucial vote of confidence and a clear message to Government that we must do this right. 'Ultimately it doesn't matter whether you're importing a box of olives produced on stolen Palestinian farmland, or booking a holiday rental in a stolen Palestinian home on a service platform like Airbnb. 'A euro of support is a euro of support, and the ICJ was clear that all of it has to end. The Oireachtas Foreign Affairs Committee have upheld this very strongly today, and Government must listen. 'We need to pass a full, effective Occupied Territories Bill as a matter of urgency.'
