Syndicated

Finance Minister Paschal Donohoe has delivered his first Budget and it’s safe to say it was a bonanza for nobody, but who has fared the best?
WINNERS:

Social welfare recipients
Social welfare recipients are set to receive a €5 increase to their weekly payments. While the amount has been criticised by some, it is the second year in a row increases have been introduced after eight years with no hikes. The cause for celebration is further limited by the fact that it will be delayed until the last week of March, however.
Patients and medical card holders

Private patients with high monthly medicine bills will save €120 a year once the threshold for the Drugs Payment Scheme is reduced from €144 to €134.
All medical card holders will see the prescription charge fall from €2.50 per item to €2.
It means the maximum they will have to pay per month is €20, leaving them with €60 extra a year in their pockets.

There are around 500,000 medical card holders, covering around 1.3 million people, who will benefit from the cut that was first introduced for the over-70s last year.

Self-employed
There was a €200 boost to a key tax credit, the earned income credit for those who work for themselves, and they will also benefit from income tax and universal social charge (USC) changes.

But the self-employed will continue to pay an extra 3pc USC surcharge on income over €100,000.
Operators of small and medium-sized businesses will gain from a new incentive called the Key Employee Engagement Programme (KEEP), designed to help firms recruit and retain key staff.

Staff will get options to buy shares in the operation.

When they come to sell the shares they will pay capital gains tax of 33pc, rather than income tax, pay related social insurance (PRSI) and USC when the shares are sold.

The scheme is expected to be welcomed by the self-employed as a way to get people to work for them and stay with the company.
LOSERS:

Smokers and sunbed lovers
Smokers have been hit again with another increase with the price of a box of cigarettes rising by 50c. Meanwhile, the VAT on sunbed services has also been hiked to 23pc. So not good news if you’re a smoker… or a tanner.

Both measures are linked to the Government’s action plan to lower cancer rates.

Boom-time buyers
Homeowners who bought their houses between 2004 and 2012 will lose their Mortgage Interest Relief on a phased basis from next year.

It had been hoped that the scheme would be extended in full.

Parents
Families where one parents stays at home are set to be €100 better off due to a rise in the home carer tax credit to €1,200.

However, families where both parents are working are set to benefit only minimally from the budget. For example a couple with a combined income of €55,000 and two children will be €8 better off per week thanks to changes to the USC.

But with no rise in the childcare subsidy introduced in Budget 2017 and no additional measures introduced to alleviate the cost of childcare, along with an unchanged child benefit

Farmers
The Department of Agriculture and Food may have been given an extra €64m, but farmers are not happy about the increase in Stamp Duty rise that will add thousands onto the cost of land for many.

Michael Fitzmaurice has estimated that the increase from 2pc to 6pc will cost farmers in the region of €12m. That’s nearly half the €25m that was allocated to low-income farmers through the Areas of Natural Constraint (ANC) top up in the Budget.

Farmers are also aggrieved that they didn’t get a measure to allow them put away money in tax efficient manner for years when farm incomes are low, whey they also remain €500 behind employees in tax income credits.
Let’s call it a draw:

Fianna Fáil
Budget 2018 marks the second in three budgets under the Confidence and Supply agreement. The party can claim a few significant wins, including lowering the teacher-pupil ratios in schools. But any credit must be divvied up with Fine Gael and with a Budget that cast its net this wide there is only so much credit to go around – much like the available cash.

Middle income earners
The average worker will be €5 better off per week thanks to changes to two USC rates and widening of the tax bands. But in light of changes to the Mortgage Interest Relief scheme, lack of measures to address spiraling childcare and housing costs any gains are likely to be wiped out.

Leo Varadkar
In case you haven’t heard from the Taoiseach or Minister Donohoe this wasn’t an election budget and the measures included were not designed to be ‘election measures’- but if it was Fine Gael have emerged probably no better or worse off than they were previously.

Article Source: http://tinyurl.com/kbwqb42

Nama’s top bosses have moved to pre-empt criticism of the agency’s new role managing the Government’s latest housebuilding fund, including telling the Irish Independent they’ll work with builders regardless of any previous disputes.

Since 2009 most of the country’s main builders have had some or all of their debt in Nama and in a significant minority of cases relations were strained or broken.
However, asked if builders who had a poor past relationship with Nama will be able to access loans from the new €750m Home Building Finance Ireland (HBFI) fund, Nama CEO Brendan McDonagh insisted they would.

There will be “no restrictions on borrowers if they have a business case” and a “viable proposition”, he said.
“We’ve all been through a lot,” he said.

In relation to criticism by some builders of Nama, the agency’s chairman, Frank Daly, said it went with the job.

“It’s business, it’s not personal,” he said.

The agency faces a legal challenge in relation to its existing role as a lender for housebuilding.
A group of five builders whose loans are not in Nama – New Generation Homes, MKN Properties, David Daly, Paddy McKillen and Michael O’Flynn – complained to EU Competition authorities, claiming use of Nama to fund rival builders amounted to illegal State Aid.

Nama’s existing housebuilding funds have been available since 2014, but only to Nama developers.

However, under plans unveiled by Finance Minister Paschal Donohoe in the Budget, a new vehicle, Home Building Finance Ireland (HBFI), will be funded with €750m from the Ireland Strategic Investment Fund (Isif).

Nama’s staff will manage lending the money to builders, with a target to boost housing supply by 6,000 units.
Both HBFI and Nama loans will be issued on the same terms and conditions.

It’s understood that means interest rates on senior loans of around 8pc, slightly above the level charges by the pillar banks for senior development loans.
Borrowers will have to have equity – typically that means the site itself debt free – with the loans going to fund construction.

Frank Daly rejected claims it lack the skills to drive a ramp up in construction.
“There is a claim that Nama knows nothing about funding and delivery of houses. It’s not true,” he said.

Nama’s in-house team includes engineers, quantity surveyors and planners who have the range of skills needed to drive house building, he said.

Agency chiefs said the team there is now experienced in build prices, sale prices and fit-out costs and will make “commercial, objective, evaluations” of any proposals made to them.
Nama is expected to sign a service level agreement with HBFI to manage the new fund.

Brendan McDonagh said €750m from Isif will fund construction of as many as 6,000 homes. Funds used for house building can be recycled twice in a two year period, he noted, as houses are built and sold. For Nama, the new role will make it easier to retain staff.

“People who are good will stay on for a few more years,” Mr McDonagh said.
“The Government has recognised that the skill-set here is an asset to the State and put it to use,” Frank Daly said.

Article Source: http://tinyurl.com/kbwqb42

The Government has been accused of only adding 31 homes to house building targets for next year.

While Finance Minister Paschal Donohoe admitted some of the numbers in the Budget on social housing had been announced before, Sinn Fein said one of the headline figures had been unveiled in the middle of last year.

The party’s housing spokesman Eoin O Broin claimed a plan to build more than 5,800 social houses was unveiled as part of the Rebuilding Ireland package, and that Budget 2018 only includes a provision for another 31.

Mr O Broin also claimed the Government’s solutions for 19,600 people and families on social housing waiting lists is to push them into the private rented sector.
“Subsidising social housing tenants to live in the private rented sector is not the same as real social housing. Families cannot put down real roots in their communities,” he said.

“It is also much more expensive to the state in the long run.”
Mr O Broin added: “Over-reliance on the private sector to meet social housing need is part of the reason why we have a housing crisis.”

Amid the criticism, Mr Donohoe accepted that the total number of social houses being developed between now and 2021 will increase by 3,000 from the previous figure of 47,000 to 50,000.
A figure of 3,800 social homes being built next year, included in the minister’s speech, had been announced by Housing Minister Eoghan Murphy several weeks ago.

There are estimated to be between 90,000 and 180,000 vacant homes in the country while more than 8,000 people, including more than 3,000 children, live in emergency accommodation and more than 90,000 people wait for a social house.

Head of homeless charity Focus Ireland Mike Allen questioned whether the actual number of houses due to be built next year is any bigger than had previously been announced.

As part of the Government’s budget plans to secure 25,000 tenancies for people who need a home the Housing Assistance Payment scheme increases to 149 million euro and there is another 18 million euro for homelessness services.
Mr Donohoe insisted it was not true that there were no new house-building measures in the Budget and said he has increased spending for the next four years.

“They will be building more social houses but, because it takes to build these homes, we cannot build them all in a single year,” he said.
“The difficulty we have (is) if I was to say to you in October we are going to have thousands of new homes built next year, you’d ask me then the question: how are they going to get planning permission? How are they going to get tendered? Doesn’t it take a period of time for them to be actually built?

“It’s because of that there’s little change in the direct build figure for next year. It changes beyond that.”
Mr Donohoe said the Housing Assistance Payments – paid to help families cover rent in the private market – is doubling next year while efforts continue to get house-building projects under way.

On the traditional post-Budget phone-in on RTE’s Today with Sean O’Rourke, the minister also insisted his budget was not designed with an election in mind.

He also defended his decisions by saying he was not in a position to “do everything for everyone”.
Sean Healy, of Social Justice Ireland, said: “The approach taken in Budget 2018 towards addressing the need for a substantial programme of building social housing is totally inadequate.”

Taoiseach Leo Varadkar defended the housing strategy and said: “We understand the stress faced by people without a home and the strain on our society that homelessness is.

“We know so many people struggling to buy or to rent a home. These people aren’t faceless statistics, they are our friends and families, constituents and supporters, people we know and people we want to help.”

Article Source: http://tinyurl.com/kbwqb42

It’s the one day when the most popular thing for Irish people to talk about is not the weather.

Budget Day gives us an incredible amount of mileage to air our views to anyone who will listen.

Which mostly involves plain old giving out.

Here are ten of the things you’re likely to hear next Tuesday, October 10.

1) “That’s it… I’m giving up the fags”

Cigarettes are likely to be hit again in Budget 2018 so prepare for the vehement promises never to have another ciggie. But on Wednesday the refrain will probably sound more like “I can’t believe my fags cost this much”. Moaning – but paying.

2) “Will somebody please explain who the squeezed middle is?”

This oh so vague phrase encompasses just about everyone who feels like they’ve been financially hard done by. So before you assume that you fit in to this bracket – which is apparently due to get some relief – take a look at the small print and make sure it’s your own back pocket that benefits.

3) “The price of a bottle of wine has gone up Again?!”

See point no 1. The chances are that a good many people will be so disappointed – nay bored – with the speech on Tuesday that they’ll need a tipple. And sure we’ll have that €5 for the price of a (cheap) pint no?

4) “I’m never voting for Fine Gael or Fianna Fáil again”

Ah yes, the disgruntled resolutions…Let’s see what happens in the next election so.

5) “Ah sure the boom is definitely back”

This regularly trotted out phrase applies to the ever growing rush-hour traffic, the return to camping overnight in the hope of paying over €400k for a standard three-bed house and bank officials suddenly asking ‘Are your lending needs looked after?’. And while it might not even really be relevant on Tuesday, be sure the worn out expression will be given an airing.

6) “You won’t see those cuts in Leo’s wage packet, will ye?”

When the dust settles and we’ve totted up how we fared on the Budget calculator (and realise that we’re really no better off than we were before all the fuss), there’s only one thing to do. Give out about how much the politicians are earning. Sure that’ll make you feel better.

7) “But what the hell is happening with Brexit?”

Yes, there’s another B-word in town, and it’s still relevant. With all those businesses, agencies and individuals impacted by Brexit calling for extra support to ward off the threat, it remains to be seen how much money will be allocated to stretch around.

8) “This country has gone to the dogs”
See point no 5. You can’t beat the old reliables. Even if you haven’t got a breeze of what’s going on around you, at least you’ll sound like you care.

9) “Why didn’t we take that €13bn back from Apple?”

With hope pretty much completely dashed that Donohoe will pull a wad of hidden cash out for Budget 2018, that €13bn would come in really handy…

10) “I remember when a Mars Bar used to cost 30p”

Best start making a little kitty of those 10c coins or you’ll be stuck shaking the vending machine again.

Article Source: http://tinyurl.com/kbwqb42

Budget 2018 will have ” no fireworks” and no “big bonanza”, according to Taoiseach Leo Varadkar.

But he said the series of tax and spending measures will ensure the country’s books are balanced, as well as giving a little back to hard working families.

Speaking on his way into government buildings ahead of Cabinet, Mr Varadkar confirmed that the budget has been agreed with Fianna Fáil and the Independent Alliance.

Mr Varadkar said an average family with two children will save €500-600 per year as a result of Budget 2018.
And he said it will result in the biggest health and education budgets ever – resulting in more teachers, nurses and doctors.

“It’s a good budget overall. There are no fireworks, no big bonanza. But it is another small sustainable step in the right direction for our county.”

Article Source: http://tinyurl.com/kbwqb42

The Telephone Allowance is to be brought back from October 2018, Independent.ie has learned.

A decision was taken to prioritise the allowance which was abolished in 2014 over the restoration of the €850 bereavement grant.

Independent Alliance ministers had sought both payments to be included in today’s budget but were told by Finance Minister Paschal Donohoe that he can only afford one.

In particular OPW Minister Kevin ‘Boxer’ Moran had been pushing for the Telephone Allowance, while it’s understood junior education minister John Halligan favoured the Bereavement Grant.
When it was cut during the austerity years the Telephone Allowance was worth €9.50 a month to pensioners and low income households.

Today’s budget will also include an increase in the Fuel Allowance from next October.

Article Source: http://tinyurl.com/kbwqb42

Tomorrow’s budget will be the first of a series that will attempt to gradually increase living standards over a number of years, Taoiseach Leo Varadkar has said.

Mr Varadkar is seeking to cast Budget 2018 as the beginning of a period of continuous but affordable reductions in tax and increases in spending.

The Taoiseach told The Irish Times such an approach would lead to a “modest, sustainable increase in living standards every year” and a “new period of sustained progress”.

Negotiations will continue today between Minister for Finance Paschal Donohoe and Fianna Fáil, as well as with the Independent Alliance members of Government.

Tomorrow’s budget will be the first of a series that will attempt to gradually increase living standards over a number of years, Taoiseach Leo Varadkar has said.

Mr Varadkar is seeking to cast Budget 2018 as the beginning of a period of continuous but affordable reductions in tax and increases in spending.

The Taoiseach told The Irish Times such an approach would lead to a “modest, sustainable increase in living standards every year” and a “new period of sustained progress”.

Negotiations will continue today between Minister for Finance Paschal Donohoe and Fianna Fáil, as well as with the Independent Alliance members of Government.

The main, outstanding difficulties with Fianna Fáil are on the spending side with discussions continuing in areas such as disabilities, mental health and the package of social welfare measures. It is acknowledged by Fianna Fáil and Fine Gael that there are insufficient resources to introduce wide ranging welfare increases from January. Fianna Fáil sources say they want an increase of €5 in almost all welfare payments, including unemployment benefit, from next March at the latest.

Senior Government sources also said budget day will not see an outline of tax and spending commitments for the next three years, as had been originally suggested by Mr Varadkar. Such a plan will instead be unveiled later this year.

It was claimed, however, that the Government’s future policy direction in areas such as income tax, deposit interest retention tax (Dirt), pensions and welfare, public sector pay and the minimum wage will be clear from the budget.

The exact composition of the income tax package has yet to be finalised, with last minute tweaking still being done. It is understood the threshold at which the higher rate of income tax kicks in will not be raised by as much as €1,000 for a single person but will increase by more than €1,000 for a couple.

At present, the higher, 40 per cent rate of tax applies on income above €33,800 and raising this threshold has been identified as a priority by Mr Varadkar.

Two methods of reducing the universal social charge – Fianna Fáil’s favoured tax cut – are being considered. One would see the 5 per cent rate, which applies on income between €18,800 and €70,000, drop by 0.5 per cent. The other would see the 5 per cent rate and the 2.5 per cent rate, which applies on income between €12,000 and €18,800, reduce by 0.25 per cent each.

Tax cuts, spending increases
The budget will see Mr Donohoe outline a package of new tax cuts and spending increases of between €900 million and €1 billion, split on a 2:1 basis in favour of spending. This will be largely funded through revenue-raising measures, such as a significant increase in commercial stamp duty and moves to change some multinational tax arrangements.

Mr Donohoe is expected to meet the Independent Alliance today. Minister of State Finian McGrath has threatened to resign unless his budgetary demands are met. It is understood that his concerns centre on €3.4 million of funding to help give effect to Ireland’s ratification of the UN Convention on the Rights of Persons with Disabilities.

Article Source: http://tinyurl.com/kbwqb42

Budget 2018 will prove an important test for Taoiseach Leo Varadkar and will be his first chance to show what the government has in store to further his vision for a ‘republic of opportunity’.

Here is everything you need to know ahead of the big day.
His name is on it:

Sixteen weeks after he was elected Taoiseach, his Government’s first Budget is a huge test. Unlike many predecessors going back two decades – Enda Kenny, Brian Cowen, and Bertie Ahern – his name is already on this one. The former Taoisigh took a back seat before Budget day. Leo Varadkar has been very strident.
It is a case of share the limelight, share the blame:

He is hand-in-glove with his Finance Minister, Paschal Donohoe, on this one. But unlike the solo Budget act of his predecessor, veteran Michael Noonan, Paschal Donohoe must share the spotlight. If it goes wrong they will both share the blame.

There has been many slogans:

Leo Varadkar wants to help “people who get up early in the morning” and who “pay for everything.” But these are slogans from his internal Fine Gael leadership campaign. He must show these are more than political guff. But, by signalling some tax cuts will happen in this Budget, he has set the bar very high for himself.

He lacks money and Dáil numbers:

The Government lacks money because under EU rules it must deliver its first break-even Budget in 10 years. Of a total €58bn spend, he needs to stretch beyond the €350m spare cash for tax cuts and service improvements. Also, leading a minority coalition he has to keep a lot of demanding people on board.

And there’s the little matter of Fianna Fáil:

Unless he gets the nod of opposition leader, Micheál Martin, Leo Varadkar will have no Budget – and we’ll have an election. At minimum Fianna Fáil must abstain to allow Budget 2018 go through. That means Martin & Co must be allowed show their Budget wins. It’s a tricky balancing act.

Article Source: http://tinyurl.com/kbwqb42

With just days to go and negotiations on some aspects of the budget down to the wire here is everything we know so far about what to expect when Paschal Donohoe presents Budget 2018 on Tuesday.

Tax cuts

A cut to the much-hated USC and a tweaking of income tax bands will be included in next week’s Budget following a compromise between Fine Gael and Fianna Fáil in an effort to ensure that the budget will pass.

As part of a compromise deal being hammered out between Finance Minister Paschal Donohoe and Fianna Fáil, it has been agreed that a double-edge approach to personal taxation will be taken.

The USC cut will help the ‘squeezed middle’ earning up to €70,000 a year, while the tax band changes will benefit people on salaries over €33,800.
However, the net increase in workers’ pay packets is likely to be less than €20 a month.

Pension and social welfare payments

The Government looks set to make good on their commitment to introduce another €5 increase in the old age state pension. However, it is understood Finance Minister Paschal Donohoe is considering delaying the increase for a number of months due to concern over the €150m cost of the move. The reintroduction of a telephone allowance for elderly people is also expected.

Article Source: http://tinyurl.com/kbwqb42

Q: I have an early-stage food business and I am looking for an investor as I need to fund additional equipment etc? Can you direct me?

A: This is a classic case of the chicken and the egg. In many cases, investors won’t invest in an early-stage business as they will need to see proof of concept and results.
The business owner will argue that they can’t prove the concept or show results unless they get much-needed investment.

That is the dilemma you are going to face. It is particularly difficult, but not impossible, to get investors into early-stage food businesses, as some investors perceive a low return in the short to medium term.

I am not sure if you are familiar with HBAN (Halo Business Angel Network) http://www.hban.org/. This is an Enterprise Ireland supported initiative where investors set out their willingness to invest in certain sectors.

My understanding is that there is a food sub-group within this, although I would caution that many may only be looking to invest in medium-sized businesses that already have a track record.
Don’t be disillusioned, as there are many other sources of funding apart from private investors. I meet two or three companies every month now which are able to tell me that they have been able to secure significant funding from their bank or other sources like Micro Finance Ireland. I would also encourage you to look at those in your immediate circle. You may well have a family member or someone close to you who could have the resources and an interest in investing. It does not have to be a total stranger.

Before you talk to anyone, do make sure that you have a solid investor prospectus, as you don’t want to attract someone to have a look at the business and find that it is not investor-ready.
Q: What is your top advice for all entrepreneurs trying to create a successful business?

A: Believe in yourself, has to be somewhere at the top of that list. As an entrepreneur, you will meet many obstacles on your journey and sometimes will doubt whether you have taken the right direction or not. That is when strong self-belief, energy and passion come into play. Be determined and stay focused.

Talk to others. During my Superquinn career, I made a point of attending as many conferences and seminars and building up a global network of others in the sector. I found it invaluable and very often a 15-minute conversation with someone else from your own industry can stimulate thoughts and ideas, which you might never have come up with yourself.

For most of the challenges that you have in your business, someone else has already solved them. You just need to find these people. Peer learnings are invaluable and the good news is they cost nothing.
Put yourself in the customer’s shoes. If you can keep this philosophy central to your business, it will serve you well. By putting yourself in the customer’s shoes on a constant basis, and ensuring that all of your team do the same, you are sure to get an advantage over your competitors. Very often, I found that even very simple initiatives that were focused on the customer led to some of our biggest successes.

The last one is simply to have fun on your journey. You only live and run your business once. It would be a shame if you didn’t enjoy every moment of it!

Article Source: http://tinyurl.com/kbwqb42