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Dublin: 8 °C Wednesday 22 May, 2013

FF accuses government of being “out of touch” in fuel levy dispute

Timmy Dooley strikes back at Michael Noonan’s dismissals, saying the minister himself explained the economics last week.

Image: Laura Hutton/Photocall Ireland

FIANNA FÁIL has struck back at comments from finance minister Michael Noonan, saying the minister is “out of touch” with ordinary people on the impact of rising fuel prices.

Noonan had said earlier today that FF’s emergency legislation bring brought before the Dáil this week – which proposes to cut excise duties on a litre of petrol and diesel by 4c, a move which will see prices drop by 5c after VAT – had come from “economic dreamland”.

The minister had said the legislation would take €150 million out of the economy and require the 2012 Budget to be reassembled – but this afternoon FF’s Timmy Dooley hit back and said the idea for the legislation had come from Noonan himself.

“Minister Michael Noonan seems to forget that only last week he confirmed to the Dáil that people adjust their spending patterns in other sectors of the economy depending on the price of fuel,” Dooley said.

“We agree with what he said last week and believe a modest reduction in the cost of fuel would result in a €145 million stimulus to other, more productive sectors of the domestic economy.”

Last week, when a similar proposal was mooted in the Dáil, Noonan had said the current increase in petrol prices would not cause any unexpected surge in VAT takings.

He said:

It should also be noted that there is no windfall for the Exchequer as a result of these increases. What happens is that people who have to use their car to get to work will make savings elsewhere.

In other words, they are spending more on fuel and less on something else. While the Exchequer takes an additional amount on VAT from fuel, it loses VAT on other parts of the spending profile.

Dooley said that by this logic, it was possible to cut the levies on fuel, as the government would then recoup the savings by the resurgence of activity in other sectors.

“The Minister should be careful of accusing others of losing touch with reality at a time when his Government is heaping new charges upon families and is apparently clueless about the effect this is having on people.”

Dooley also pointed out that Enda Kenny, when leading the opposition, had called on Brian Cowen’s fledgling government to initiate moves which would reduce petrol prices.

In the Dáil in June 2008, Kenny had said:

I am disappointed that the Taoiseach does not have an initiative with regard to the mix of excise duties and VAT to ensure they are not used as a further battering ram against the hard pressed consumer.
Dooley’s bill will be discussed in the Dáil this evening and tomorrow, and voted upon tomorrow night at 9pm.

Noonan: FF is in ‘economic dreamland’ with plan to cut fuel prices

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Comments (76 Comments)

  • Bottom line it’s getting to the point where people can’t afford to fill their car in order to get to work . It’s ridiculous to think that “reason for loss of job” in the social welfare office may be answered with “could not afford cost to run car to get to it”.
    The gov have the power to change this situation but won’t.
    A gov minister is getting a nice mileage chq every month on top of inflated wages.

    I don’t think it matters if it’s fianna fail fiana Gail or the hippies that say it ….. What’s right is right and what’s happening is just wrong, and for fine Gael to blame it on austerity it’s really just pointing those of us who are in the undecided camp to vote no in the upcoming referendum.

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  • doesnt matter whos calling for it the price of petrol is sickening especialy given how much of that is taxes!

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  • jrbmc 24/04/12 #

    Parking for public servant ??? Stop that and you have 10 million saved noonan

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  • if they got rid of the carbon tax for good and make up the shortage by cutting ministers salary at least 50% and expenses…how bout that mr. noonan…

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  • To be honest I don’t think a 5 cent drop in fuel would really make any longterm difference. It would leave a shortfall in tax take that WILL be recouped elsewhere and as prices continue to fluctuate the meaning of it will be lost very quickly. The real issue here is will fuel ever be back to reasonable prices. My fear is that if it costs this much during a recessionary period how much will it cost when demand really picks up. As a heavy diesel user ( business ) I am really feel the pinch now as is most of the population I imagine.

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    • I was listening to a fuel trader this evening and he was saying he expected a drop of eight dollars a barrel soon , the price of the barrel depends on circumstances on a worldwide scale not the FF handling of the economy and might I remind you that under repeated FF led governments when there was nearly full employment and a feel good factor FF was returned for 16 years to govern and probably some of the detractors here were also returning FF to govern .

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    • censored 25/04/12 #

      @Mark: some of us have learned from our mistakes – never again!

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  • Jesus FG have a goldfish memory

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  • As much as I detest FF, you certainly can’t accuse anyone of living in a fantasy world, when they offer tax advice by means of a reduction on one of the most taxed, yet crucial, commodities used in any economy. I respect Michael Noonan, but I am afraid he is the one living in fantasy land this time around.

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  • Any initiative that reduces the price of fuel has to be welcomed regardless of party politics. If this was a SF/ULA initiative there’d be lots of supporting comments. But SF/ULA don’t do solutions, do they…

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  • Dooley, if only your party had put the people first while ye were in the hot seat, I might believe that you acually were concerned about the Irish consumer!

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  • Thanks for your concern, FF.

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  • the hatred spewed on these forums is mind blowing and really deserves editing
    why can’t people just argue points like civilised people should

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  • Fianna Fail in touch? Hey all we wanted was to afford a home but Fianna Fail did everything in its power to help banks, developers and speculators like the Kelly guy with 34 properties. Fianna Fail? more like Free for all.

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  • The Govt’s rejection of this Bill is one of the more damning indictments of the whole political system in this country & goes only to demonstrate the need for reform.

    I mean, this Bill wasn’t populist bull… It was a perfectly costed Bill that would’ve cost the exchequer nothing (since all savings would be v unlikely to be squirreled away in saving accounts but spent on VAT’d goods) but would’ve cut business operating costs & helped the consumer by a couple of hundred a yr potentially.
    It literally, & quite simply, benefited the consumer & businesses (thereby indirectly helping consumers & those employed by those businesses) with the stroke of a pen yet they rejected it out of nothing more than spit, because it wasn’t their idea!

    Noonan didn’t even show up in the Chamber to hear the argument. He dispatched some backbencher to read out a pre-drafted statement about why he was voting no.
    This is particularly galling considering, as Michael McGrath pointed out in the Dáil, Noonan himself was calling for a reduction when petrol was €1.30 in Opposition but doesn’t seem to think people need one when the average price is €1.69

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  • I live in the border area. I’ve noticed a massive increase in use of petrol stations across the border in NI. The gap has closed significantly in price over the past year.
    Listening to Conor Faughnan of the AA on radio yesterday, he said that there was a decrease in sales of 8%.
    From what I can see, much of that is cross border sales.
    That 8%, if you take the figures I’ve read of 60% of the price going to the Government, amounts to €240m that the Government has lost.
    If they reduced the price by 5cent, there would be a widening of the price between North and South. This would make it more worthwhile for NI consumers to come back down.
    So loose €145m but gain an extra €100m in extra sales.
    Noonan needs to think outside the box.

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  • ….by fuel I mean “crude” oil per Barrel

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  • They’re doing what Fine Gael didn’t do in opposition… They’re putting other options and ways of doing things to them and trying to keep them in check and not lose the run of themselves.

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    • @ Rob: And yet they are failing to say from where they would cut the €145m necessary to pay for this measure. It’s false to suggest that that it would the €145m being spent in the economy would make up the €145m difference in the budget. While some consumers might save the money they save on petrol, most would spend it and only the VAT part of that (23% maximum) would be returned to the Exchequer.

      They are putting an option out there, but not a realisable one unless somewhere is affected.

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  • FF simply can no longer talk about ‘putting the consumer first’ while there are members of their party who have in fact done the exact opposite in Government. It’s amazing how FF have decided to now try get on the electorates side by doing exactly what we would expect from them: lying. If they were in Government now, they by hell wouldn’t be cutting fuel duty.

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    • they are still right though.. petrol is far too expensive

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    • Fagan's 24/04/12 #

      Aye. It’s only a few months since they gave Bertie and Cowen a standing ovation, their National Exec. refused to condemn Ahern and Flynn in any way, only referring to the payments in a round about way. They are refusing to co-operate with CAB in to the money Pee Flynn took from the party, 50k in punts. Why couln’t they report him if he does not pay it to a charity.

      They know that aul Pee pot would start talking if he is under threat and that he would end up sending a very large no. of FF TD’s from the last 30 years to the courthouse.

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    • Fagan, Ahern did not get a standing ovation at the Ard Fheis. That is dishonest. Nat. Exec. had motions to expel them down (and expulsion is the most they could do after all) but the bold Bert and Pee resigning as members days before the meeting stopped the vote taking place (you can’t expel people that aren’t members after all). The party has said time and again that any investigation shall get the full co-operation of the party. CAB haven’t even been called on yet. The DPP is still considering the Mahon report as far as I am aware. And if you check it up, FF asked the government to hand the report to the DPP for full investigation (including the IR£50,000).

      So please, if you feel the need to FF bash in every thread you are most welcome to. The party has many questions to answer and bad policy to be apologetic for, but that’s no excuse for you Fagan to be blatantly making things up/misrepresenting the facts!

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    • Fagan's 25/04/12 #

      Niall. FF are the aggrieved party in the 50k donation. Unless they report it to the Guards, then it does not matter what the Govt. decides. I could report it to the Guards and they would tell me that unless FF do so, then nothing will happen. I suspect that you know this as well as I do. FF’s Nat. Exec could have issued a statement condemning Ahern and Pee Flynn, of course one cannot expel people who have left. A firm statement could have been issued though, it was not. They only spoke of fund raising issues. FF are hoping to absolve themselves of any responsibility for the actions of its members, try to blame it on the Guards, the DPP or the present Govt. They are the only ones that have the legal right to do so.

      Ironically if they did report them, it would mark FF as moving away from tolerating and having a sneaking regard for corruption and theft, but if they do and people start to talk then there will be many many well known names in the party of the last 30 years that will be in and out of court for years to come.

      We both know that as well!

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    • Fagan's 25/04/12 #

      Meant to say Eoin. Gabh mo leithscéal.

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  • This FG/Labour Government needs to remember that austerity is about reducing costs not increasing them, every item of food, clothing, or indeed other non essential items that require transport around the country costs more due to increased fuel costs. The Government are wrong in overtaxing fuel and wrong to reject Fianna Fáil’s bill to ease the burden on the car owning public.

    FG and Labour need to go back and look again at the cost of governing the country it’s costing us €15 billion more every year than we are bringing in.

    Michael Noonan should reflect on what Ronald Regan said “Government is like a baby. An alimentary canal with a big appetite at one end and no sense of responsibility at the other.”

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  • You liked a bit of labour if I am not mistaken….how do you feel now that FG have taking over the labour party ?… Do you think Enda will have to answer to the unions the way Eamon did ? Are the grassroots happy with their new title of ‘Enda’s Biiiiaaaatttttccchhhsssssss’ ?

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  • Never forgive, never forget. Disband FF NOW!!!

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  • If people put the same effort into finding solutions as they put into their hatred of FF we might actually have some chance of recovery

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    • Nah, ye made such a balls of the country we are going to enjoy hating ye for a good while yet.

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    • It does not take effort to hate FF by the look of it. I think peoples faith in politics across the board is somewhat diminished to put it lightly. FF are not offering a solution here ?? Just politics..

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    • If FF took some effort to admit that they banjaxed the country it might be a start. You could say Lenihan was misled and cornered by the banks, but the real damaged was done pre-2007 during aherns time with the growth of public service, the HSE, misleading those that bought into crazy house prices – remember aherns suicide speech, and let’s not forget the Drumcondra drainage port tunnel that will flood this week and cost us €3billion by the time it’s closed in the 2020’s.

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    • Frank. There is no evidence to suggest that Lenihan was not aware of the true positions of the banks. He was a willful accomplice to them. If he hadn’t been misfortunate in his health, he would now be as reviled as Ahern. The debate will go on as to whether he was a shyster, which the evidence suggests or just the most incompetent Minister that we have ever had, and continuously unlucky, and that by co-incidence his party’s donors were consistently lucky.

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    • Fagan there’s no evidence to say that he knew the full position no more than FG Labour the Shinners or any of the other people he feared would lose their pay cheque should the banks have closed their doors. The state of the nation is due to Ahern not Lenihan. Martin and Harney also have questions to answer to why they let Ahern have his way. Lenihan wasn’t part of the cabinet per 2007. In my mind he gave his life for Ireland and should rightly be regarded as a true patriot. The rest of the FF shower sold Ireland away for their lifestyles.

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    • censored 25/04/12 #

      In between working on solutions to the situation that FF created, I still hate FF and will never forget what they did to our country. Traitors!

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    • censored… calling ff traitors is a big statement, were they not founded on a principal of bringing about a united ireland, the economic policies of the last decade are negligent at worst, based on bad advice and a sure element of cronyism, but traitorous is not a suitable insult in this case is it? As I said in earlier post, they were voted in democratically time after time, …best of a bad lot if you like, so therefore the represented and executed the will of the people of Ireland. the housing policy was definitely incompetent at the very least, and is reprehensible, …as has been the case, but this article is about a proposal for a 5c reduction in fuel tax as i understand it, so as has been mentioned by other above, at least look at this case on its merits, I for one drive a car and would appreciate the hepl in getting from a to b.

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  • FFS that €150million that the government would lose is needed to pay for the maintenance on Ahern’s Drumcondra Drainage Tunnel also known as the Port Tunnel.

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  • More populist crap from FF….still hoping we’ve all forgotten the 14 years they rode the country into the ground…any word on Mehole acting on Pee Flynn? Get that sorted and then start this kind of rubbish…

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    • Mahon tribunal report (including the evidence and findings against Pee Flynn) has been passed to the DPP at the request of all parties in the Dáil including Fianna Fáil. It’s a matter for the DPP now.

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    • They rode the country into the ground..and how in the name of god did they get into power? ah yes, they were voted in time after time. People get the government the deserve. The country is in a sh*t, as is every industrialized nation bar a few who are rich in sought after natural resources. I agree with whoever said above that FF have a lot to answer for, and I think the ard fheis was a good starting point, but the opposition have also, if FG were in power for the last 15 years would things be any different.,..?! answer that one honestly.

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    • No arguments from me as regards FG Padraigh….voted for them for years but it’ll be a long time before I vote for them in the future. There’s absolutely no difference between the two (FG & FF) which is a very worrying thing because it raises the question who to vote for next time?? But FF piping up with this kind of s**t regarding cutting fuel prices just smacks of them brown nosing the Irish people…I’d love if the excise on fuel was cut by 5 cent..but cutting from fuel means they’ll take it back somewhere else…the sooner FF realise they’re a broken party the better.

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  • Imagine politicians using politics . They are both scum with their own agendas.

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  • @ Fagan every point you MADE from Ahern getting a standing ovation to FF failing to cooperate with Cab are wrong at least research the facts

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  • @Mark Power. Your comments really show how out of touch FF are. Keeping to the subject matter, How many times has FF governments raised fuel prices? Not sure it will give me a feel good factor.

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  • Yawn .. This site is turning out to be a replica of politics.ie unedited hate filled comments with news items whipped from other news organisation thrown in to start it off .

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    • No point commenting so ?

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    • There is that tendency but sure it’s great crack.

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    • Jerry – I can’t let that comment stand without two points:

      i) We never – never – ‘whip’ stories from other outlets. If we ever follow a story that originally appears elsewhere, that outlet is fully credited, and the story tries to move on from the original.

      ii) We don’t deliberately post stuff simply to whip readers into a frenzy (they’re quite capable of doing that themselves, boom boom, etc). In all seriousness, though, a story with a frenzy of comments only creates more work for us. Put it this way: having been in work from 9:30 to 6 today I’d rather not be sat up in bed at 11:40pm moderating comments.

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  • And this is coming from a party that got us into the shit in the first place ….gimme a break!!!!

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  • jimbo 24/04/12 #

    Codswallop as usual

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  • Peter 66 24/04/12 #

    Above reply to David whelan

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  • I agree that a cut in fuel prices is needed but don’t want to hear it from FF

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  • The rise in the cost of fuel has nothing to do with tax but with the situation in the Middle East, so to assume it’s just a temporary problem is naive. Petrol and diesel are only going to get more expensive in the coming years so we need a long term plan. Also you could say that if we were to cut tax on fuel, people could afford to buy more, which would increase demand, which would just cause the price to rise again.Secondly the argument that the cut in tax would filter back into the economy can be used to justify a reduction in any tax so why single out fuel? This time last year the Government cut vat on services like restaurants etc, industries that at least would benefit the Irish economy rather than foreign oil producers.

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    • Cut in the tax and excise the government takes would benefit the consumer (Irish citizens) AlanG and wouldn’t make a blind bit of difference to what the foreign oil producers get.

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    • Yes it would. It would increase what foreign oil producers would get as demand for fuel would go up in Ireland and so we would import more fuel, thus improving their exports. What I’m saying is that if opposition parties are going to suggest cutting tax (which let’s face it, is not going to happen) at least they should target tax cuts that may benefit Irish industries and the Irish people, not just as customers, but also as workers in these sectors.

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    • LeeKelly 25/04/12 #

      They increased tax on petrol and diesel in the budget and also vat so its pretty connect the dots clear where a large part of the hike of 15+c came from compared to feul prices last year.

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  • Keep putting the price of fuel up……

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