What is truth?

Posts tagged ‘carbon tax’

overly optimistic Irish Government’s plan

By Sarah Collins in Brussels

Thursday March 18 2010

IRELAND’S plans to bring spending and borrowing under control may require deeper cuts than previously forecast, the European Commission said yesterday, as it demanded that Finance Minister Brian Lenihan take action on public sector pensions and provide more details about plans for further cuts over the next few years.

The commission said in the report that the Government’s plan to slash the budget deficit by eight percentage points over the next four years is overly optimistic and lacks detail. Ireland is currently running a budget deficit that is four times the EU’s limit but has promised to bring it below 3pc of gross domestic product by 2014.

“The budgetary outcomes could be worse than targeted in 2010 and considerably worse than targeted thereafter,” said the report.

“The authorities should stand ready to take additional measures beyond the planned consolidation packages in case growth turned out to be lower than projected in the programme.”

The biggest problem is the Government’s prediction that the economy will expand 3.3pc next year.

The commission’s forecast sees the economy growing by just 2.6pc.

The commission also says there are risks the 2010 Budget could fall victim to spending “slippages”, not least because of injections that could be called in to shore up the country’s banks.

Mr Lenihan did not set aside money to pay for any further cash injections into the country’s banks this year, despite widespread expectations that Allied Irish Banks, Bank of Ireland and Anglo Irish will all require billions of euros.

EU officials said Ireland’s adjustment process will be “rather drawn out” and that emigration and high interest rates on government debt could wear on the economy. The present plans would only stabilise government debt by 2020.

“Specific additional risks relate to the government’s bank guarantees to support the financial sector, which, if called, would lead to increases in deficit and debt,” it says.

It also told the Department of Finance to spell out how it will slash the deficit by three percentage points in 2012 and a further two points in 2013 and 2014 to bring it below the EU’s limit.

The department also needs to provide more data to explain some of its calculations, it adds. Revenue and expenditure projections are “technical” rather than being targets, it says.

“From 2011 on, taking into account the risks to the deficit targets, the budgetary strategy may not be consistent with the (EU) recommendation. In particular, the deficit targets for 2011-2014 need to be backed up by concrete measures and the plans for the entire period need to be strengthened,” the report says.

The call for the Government to strengthen the “binding nature of the medium-term budgetary framework” appears to be a demand for Ireland to make plans beyond the traditional scope of budgets here.

A government spokesman said yesterday that specific extra cuts or tax rises would be announced in relevant budgets, when it would take account of the then-prevailing economic circumstances.

The commission says the Government should introduce more public sector pension reform to improve the long-term sustainability of the public finances.

“The long-term budgetary impact of ageing is clearly higher than the EU average,” the report says.

The report adds that the Government should also consider plugging holes in the budget by widening its tax base. It says the effects of the new carbon tax will be negated by cuts in VAT rates.

“The sharp decline in revenue recorded in the context of the housing market correction and the wider recession has revealed some vulnerabilities of the Irish tax system, such as a narrow tax base and a high reliance on taxing transactions in assets,” the report says. Ireland is one of 20 member states under increased scrutiny by the EU executive for running up a deficit that exceeds the bloc’s limit.

Countries are legally bound to maintain deficits – the shortfall between revenue and spending – below 3pc of gross domestic product and keep gross debt – the amount the government borrows to finance the shortfall – below 60pc of GDP. Ireland’s deficit last year was 11.6pc of GDP, while debt rose to 64.5pc, both above EU thresholds.

In April last year Brussels gave the Government until 2013 to bring the deficit back into line but extended the deadline last December.

– Sarah Collins in Brussels

Irish Independent

How to win a referendum:

Scaremongering but who’s doing it?


Finance Minister Brian Lenihan also warned yesterday that if Irish voters snubbed the treaty the result would “shatter international confidence” and lead to continued scarcity of funding and increased borrowing costs.(Looking for a yes vote)

A ‘No’ vote in next month’s lisbon Treaty  referendum could result in the interest bill on Ireland’s national debt jumping by up to €900m a year according to Indecon
(
Looking for a Yes vote )

A NO vote in the upcoming Lisbon Treaty referendum would represent a “spiritual withdrawal”, from Europe, Minister for Finance Brian Lenihan has warned. (Looking for a Yes vote)

A Yes vote in the referendum would earn Ireland the continued goodwill and support of the EU in tackling the banking crisis, he added.

Mr Gormley “It would be entirely counterproductive to vote “The whole emphasis in terms of the European recovery is a green recovery [which can provide] jobs, jobs, jobs.” Echoing the sentiments of other pro-Lisbon political leaders, “It would be a huge mistake to focus on national issues when this is a campaign to get us out of recession,” he said. (Looking for a yes vote)

How to win a referendum:

1. On top of high VRT, introduce a Green (Party) carbon tax, and just to be on the safe side, impose a €200 a year work parking tax, just for daring to have a job!

2. Make the citizens vote a second time, even though they said No – but make sure you don’t change the wording.

3. Have on the Yes side a millionaire car salesman, like Bill Cullen, who opposed changes to the infamous VRT, and is the biggest over priced merchant for  the Renault spear parts in the country(Nice one Bill!)

 

4 . Have Ryanair on the Government side, who are best known for their F-Service , saying there are a millions reasons to vote Yes (excluding taxes and charges), and (Baggage charges Now approaching 100 euro per bag) then have the same Government introduce a €10 travel tax, contrary to EU law of freedom of movement between member-states.

5 . In case the European Central Bank doesn’t hype up mortgage rates any time soon, re-introduce water rates and a property tax on every family home in Ireland, while at the same time making taxpayers bail out the bankers and the builders.

6 . Make sure Brian Cowen leads the Yes campaign.

7 . Have crooks running FAS

8 . Have people like John O’Donoghue become Ceann Comhairle in the Dail

9 . Create Toxic Banks to help your buddies in the Banks and the Building


Industries

10 . Keep corrupt Politicians in places of power

11 .TAX the Sh*** out of the ordinary people

12 Tell them you are going to crucify them in the coming December Budget

13. Make a complete mess of the Economy, and blame it on the ordinary people

For having paid extortion prices for their own homes

14. Put a Tax on those homes, let say 1000 Euro on average for every home in

The land

15 .when you hold a referendum keep going back to the people until you get the right result (the one you want)

16 .
Keep corrupt Bankers in their High paying Jobs at Bankrupt Banks

17. Allow these same Banks (Now with Government appointed Directors) to

Overcharge their own customers, and then, clam that it was a computer error when found out.

18. Allow dodgy Building Developers stroll into the courts of the land and present fantasy valuations as a means to dance around The Supreme Court rulings

When 80 families are turned out, and lose their overpriced homes every week, sold to them by these developers in the first place

19 . Make it blatantly obvious, that there is one law for the rich, and another law for the poor in this country

20. Tell everyone that NAMA is the only game in town and we the people must pay the gambling debts of the super rich of the country.

That should do it!

 

 

 


Tag Cloud