Latest memorandum reveals more austerity ahead in Budget 2013

14/02/12 5,970 Views 67 Comments

Finance Minister Michael Noonan

Image: Laura Hutton/Photocall Ireland

THE LATEST MEMORANDUM of Understanding (MoU) between the Troika and the government has confirmed that “at least €3.5 billion” will be taken out of the economy in the next budget through tax increases and reductions in spending on social welfare and capital projects.

The document, published by the Department of Finance today, provides detail on the government’s commitments to the Euopean Union and International Monetary Fund partners as part of its bailout programme.

It includes a commitment to strengthen training and intervention polices related to tackling unemployment including penalties against those who do not show up for interviews with the Department of Social Protection.

For the first time, the MoU also outlines that money raised from the sale of State assets can be used for the purpose of reinvestment in the economy, specifically job creation – a supposed long-time aim of the government.

The document says that the sale of State assets would reduce the country’s financing needs and “provide additional resources for reinvestment in the economy”.

The proportion of the amount that can be used for reinvestment is not made clear but a detailed plan is expected to be presented to the Troika at the next review in March.

The MoU also contains details on what can broadly be expected in terms of tax increases and expenditure reductions when the government puts forward its budget for 2013 later this year.

Revenue raising measures amounting to €1.25 billion will include a broadening of the personal income tax base which could mean either raising taxes or lowering the bands on the amount at which people are taxed.

There will be further restructuring of motor taxation, increases in excise duty and other indirect tax measures. A reduction in general tax expenditures is also proposed – meaning a potential cut in tax credits.

The document also outlines where €2.25 billion in savings will be made including reducing expenditure on social welfare, cutting the total bill for pay and pensions in the public sector and reductions in capital expenditure – all areas where the government has previously implemented cuts.

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Comments (67 Comments)

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Mike Turner 14/02/12 #

Report this comment 17 97

Asset Stripping in exchange for monopoly money we could print ourselves. — Asset Stripping in exchange for monopoly money we could print ourselves. — Asset Stripping in exchange for monopoly money we could primt ourselves. — Asset Stripping in exchange for monopoly money we could print ourselves. — stop this now!!!!!!!!!!!!!!!!

Reply
- Adam Keane 14/02/12 #
  
  Report this comment 43 27
  
  It’s not as simple as turning on the printing press and “creating” money to pay our debt. Didn’t work out so well in Hungary in 1922.
- Aydo 14/02/12 #
  
  Report this comment 8 28
  
  Works in the US it seems*
  
  *for now
- Eddie Walsh 14/02/12 #
  
  Report this comment 1 27
  
  Yes mike,assets sold and it will be wasted with nothing to show for it
- Red Squirrel 15/02/12 #
  
  Report this comment 0 5
  
  Printing money destroys peoples savings, the US will have huge inflation in the future. Anything imported will be extremely expensive as money loses its value.
- Colm 17/02/12 #
  
  Report this comment 1 0
  
  You want to put our crowd (ie Leinster house) in charge of printing currency, and you think that will make things better somehow?
Ken Forde 14/02/12 #

Report this comment 9 116

I think it time we tell these guys to take a running jump most people can not pay anymore and they are looking for more to give to broke banks and the IMF . Stop stop stop

Reply
- Máirín 14/02/12 #
  
  Report this comment 2 23
  
  @Adam Keane there is a lot of rhetoric about what “could” happen if we stopped doing what is asked of us but few actually know what would happen in reality. This is out biggest problem. People who do not understand the markets and the laws of bargaining are in charge and are running with the hare and the hound.
- Paul Mallon 14/02/12 #
  
  Report this comment 3 27
  
  the IMF have no problem with us burning bond holders and the like.
  If I remember correctly they praised Iceland for how they handled things.
- Dermot Purcell 14/02/12 #
  
  Report this comment 2 13
  
  Mairin oh but they understand all right ,the problem is corruption is rearing its ugly head , im so angry with the people who are in leinster house
Peter 66 14/02/12 #

Report this comment 6 153

They were creating 100,000 jobs yesterday & today they plan to take another €3.5b out of our pockets…..am I missing something here ?

Reply
- Adam Magari 14/02/12 #
  
  Report this comment 2 54
  
  The 100000 figure is pure wizard of oz stuff. Every week that goes by sees retail suffering more and more. Take a quick tour around any major shopping streets in your town and work out how many shops are closed that were open two years ago.
- Dermot Murphy 14/02/12 #
  
  Report this comment 2 39
  
  Peter,they will not wait till next year for their budget.Watch this space.
- john g mcgrath 14/02/12 #
  
  Report this comment 1 33
  
  Yes it’s called endanomics a subject that has no rhyme or reason
- Tony Skillington 14/02/12 #
  
  Report this comment 0 18
  
  The next flight out of here Peter…hold the door..I’m with you.
- Colm 17/02/12 #
  
  Report this comment 0 0
  
  How many jobs did they create when they stole money from our pension funds?
made 14/02/12 #

Report this comment 7 83

I don’t see how they’re going to get all these new taxes especially as people don’t have it and if we don’t have it we can’t give it. This government is going to turn Ireland into a Greece.

Reply
- D Burns 14/02/12 #
  
  Report this comment 4 42
  
  I now have less income after paying tax, rent, travel to work etc than I would if I was on the dole. If i’m taxed any more, i’ll be suffering from malnutrition!
- Paul Mallon 14/02/12 #
  
  Report this comment 1 38
  
  My family and I left Ireland last august, we are on half the income we had in Ireland, and have more disposable income than we did in Ireland. figure that one out.
Gavin Mckenna 14/02/12 #

Report this comment 3 74

oh dear. watch Imigration rocket if this is the path we face for the next two years! Of course we will hear the same old FG line that it is all FFs fault This deluded lot must think we are all loaded and will just keep paying out more and more. somethin will tip the scales soon, mass demos are ahead! we just keep bending over and taking it from the IMF

Reply
- john g mcgrath 14/02/12 #
  
  Report this comment 3 34
  
  No protest till o Connor and his buddies find the feeding trough has run dry
- Paul Mallon 14/02/12 #
  
  Report this comment 2 12
  
  Why stick with that union, why not start a new one?
- Bryan Holmes 14/02/12 #
  
  Report this comment 6 6
  
  It’s the ECB and EU that are fucking us, if we were only dealing with the IMF we would be on the road to recovery now .
Tony Skillington 14/02/12 #

Report this comment 12 80

Enough…enough…enough….this has gone beyond all reason. Either we get back to the bond markets or WE call the shots…we have done all that has been asked of us and we’re told we’re going to suffer for a while to come. What’s the point of doing this…for Christ’s sake Noonan..strap on a pair please and remember above all…your Irish!!!!

Reply
- Sheila Murphy 14/02/12 #
  
  Report this comment 1 17
  
  as (our?) debt was 119.4billion at the end of Jan we’re in this for a very long haul.
  
  well said Tony +000
- Paul Mallon 14/02/12 #
  
  Report this comment 5 9
  
  He’s not here to help you, he’s here to bleed you dry.
Frank2521 14/02/12 #

Report this comment 63 33

We got ourselves into this mess! The people elected the politicians ie FF and now the money needs to be paid. We still elect the same type of politicians as Labour are as corrupt as FF and FG are as deluded as FF. look at the guys we elect – Healy Rea’s , Bertie, P Flynn, Roaire Quinn, Adems, all brown envelopes or ones with bombs in them.

Reply
- Paul Mallon 14/02/12 #
  
  Report this comment 9 12
  
  lol, this comment never ceases to amaze me, you honestly believe that??
  You need to do some research.
Karl O Flynn 14/02/12 #

Report this comment 4 41

I have to say it is great news that we will be allowed to use some of our own money for the benefit of the state by our bailout masters. Great!!!! I just wonder how much we will be able to get from prospective buyers considering they know our backs are against the wall. 3.5 billion more to come out of the economy next year. Social welfare, pensions and croke park. Well isn’t this just great!!! What a country. I can’t see these measures being accepted laying down, but sur ya never know.

Reply
- Paul Mallon 14/02/12 #
  
  Report this comment 1 20
  
  They’re only saying that so people will be amicable to the selling of state assets. fuck all of that money will go into job creation – government job creation is a myth.
  What do you think will happen once these assets are sold??? pretty sure they won’t be hiring any extra people at these places.
Rory Byrne 14/02/12 #

Report this comment 3 51

Welcome to Dictatorship….

Reply
- D Burns 14/02/12 #
  
  Report this comment 4 22
  
  Es ist nicht so gut!
- Eileen Gabbett 15/02/12 #
  
  Report this comment 0 2
  
  Rory
  Welcome to the dark side . :)
  Rory , it is not a dictatorship YET !
  We have time …. Stand together . Do not be afraid .
  Enough is Enough
Dermot Murphy 14/02/12 #

Report this comment 2 56

Well I did say the news on jobs was a smokescreen for something coming next.Another smokescreen to follow soon.

Reply
HEADWRECKER 14/02/12 #

Report this comment 5 2

well??

Reply
john g mcgrath 14/02/12 #

Report this comment 2 24

Getting permission to use state asset sale will be a trade off for no reduction in Anglo debt repayment and the big elephant to try and buy the referendum which I believe is coming

Reply
Ratzo 14/02/12 #

Report this comment 3 48

They will not be accepted laying down, we Irish don’t lay down. We bend over.

Reply
echancrure 14/02/12 #

Report this comment 15 15

Well unfortunately (not !) budgets need to be balanced. The quicker we get there the better. The borrowing orgy has to stop.

Reply
B Collins 14/02/12 #

Report this comment 4 89

F*** that. 2012 I save, 2013 I leave. This isn’t our mess. I’m not paying.

Reply
- Diego Attley 14/02/12 #
  
  Report this comment 4 45
  
  Same here. Didn’t want do it but I don’t see much choice. Maple syrup for me!
- Paul Mallon 14/02/12 #
  
  Report this comment 4 28
  
  well you might want to consider leaving about 9 weeks before the end of the year so you can claim your tax back before you go.
- Diego Attley 14/02/12 #
  
  Report this comment 1 5
  
  If I had a job or thought I might get one when I get I finish college then I wouldn’t be thinking about leaving in the first place.
Bill Walsh 14/02/12 #

Report this comment 5 48

I’ll pay more tax, household charge etc – as long as the price of everything else (food, petrol, electricity etc) falls so that I have the money to pay, otherwise Mr Kenny you’ll get nothing because I wont have it

Reply
- Paul Mallon 14/02/12 #
  
  Report this comment 2 13
  
  Not going to happen I’m afraid – if they got rid of upward only rent reviews then there might be some hope, that’ll never happen though.
Tomas O Beag 14/02/12 #

Report this comment 3 27

This governments on a different planet yesterday it’s jobs for the unemployed and today let’s tell everyone about next years budget . We are only into 2012 any they start spinning more crap

Reply
- Eddie Walsh 14/02/12 #
  
  Report this comment 5 32
  
  Tomas
  This government is lost..
  It’s spin spin spin lies lies lies and more spin..
  This crowd are worse than the last lot because they can do what they want and blame FF.
  They are clueless and don’t care..
Dermot Murphy 14/02/12 #

Report this comment 4 35

Somebody said before,we irish wont stand up until we are eating grass by the side of the road.Its looking more like we wont be standing up till the grass is gone.These money grabbing shower wont stop until they destroy Ireland.

Reply
Dermot Murphy 14/02/12 #

Report this comment 6 24

Somebody said before,we irish wont stand up until we are eating grass by the side of the road.Its looking more like we wont be standing up till the grass isb gone.These money grabbing shower wont stop until they destroy Ireland.

Reply
Dhakina's Sword 14/02/12 #

Report this comment 6 21

In trying to analyse the motives of our cowardly, lying traitors, I have been looking at the psychological traits that may be involved. Roughly, six per cent of any given population are considered to be submissive, to the point that they will submit to any requests, however unreasonable and however damaging to others around them, once they feel accepted by their peers. Most people value being accepted by their peers but not at the expense of others. These submissive types usually have underlying psychological problems. They tend to have anger and self esteem issues, regarding their lack of success and acceptance by their peers. Their unrealistic goals and equally unrealistic expectations of their parents, and others, leads them to accept almost any draconian demands,
once they themselves, feel accepted. It is worth noting, that these pathologically submissive types, are amongst the easiest types to manipulate, by successful and socially adept psychopaths.

Reply
Eddie Walsh 14/02/12 #

Report this comment 5 45

Sweet mother of God !!!
There will be nothing left and sweet F all to show for it..
This will bury us..
Assets stripped..proceeds wasted and taxed out of existence..
Does this government have any idea how close to the edge people are..
I think we are just about join the Titanic..

Reply
- Paul Mallon 14/02/12 #
  
  Report this comment 3 29
  
  isn’t there another few years of this 3.whatever billion per year of cuts, then a major payment after that.
  this is just the beginning!….eh, sorry – the continuation!
jimbo 14/02/12 #

Report this comment 6 52

Noonan shut up we have no more to give you so tax your lot and cut your pensions!

Reply
Wayne O'Callaghan 14/02/12 #

Report this comment 2 39

We just can’t give anymore! How deep do they think the well is ? It’s f###ing well is dry lads tell that troika shower to f### off !

Reply
Karl Océane 14/02/12 #

Report this comment 4 74

It’s the saddest thing to be a young person and see your country goong down the toilet. It never ends.

Reply
Paul Mallon 14/02/12 #

Report this comment 1 7

I’m pretty confident most Germans aren’t too happy about this situation either. The banks have them by the short and curly’s too.

Reply
Oskar Fritsche 14/02/12 #

Report this comment 3 29

These Asses are creaming everything that they can get hands on, This is Taking the Piss, Noonan Stick to Teaching please

Reply
Dermot Purcell 14/02/12 #

Report this comment 9 26

THEY DONT THINK WE ARE LOADED THEY DONT CARE THEY ARE NOT AFFECTED BY WHATS HAPPENING ,HAVING A FEW BEERS AT THE HOUSE AND WONDERING HOW LONG IS IT GOING TO TAKE BEFORE SOMEONE TAKES ONE OF THEM OUT

Reply
Bryan Holmes 14/02/12 #

Report this comment 6 40

We live on an island,
FG sold our state shipping company in 1984
FF sold our state ferry company in 1992
FG/Lab are about to sell Dublin Port and leave us at the mercy of Foreign share holders
Our dire situation requires fresh thinking
But Teachers always follow the (EU) curriculum
Fuckwits

Reply
Ed Kavanagh 14/02/12 #

Report this comment 2 31

Its a bltzkrieg policy using a debt bomb. Its an an intentional takeover strategy. Ireland is being annexed and there is no self defence as our government are not on our side. Unfortunately its going to take the fear of a lynching to sort this out. All revolutions are the same.

Reply
- Adrian Monaghan 15/02/12 #
  
  Report this comment 0 6
  
  when is this revolution goin to start ?when are we as a unified people goin to say enough is enough? its amazing there are loads of meetings around the country which seem to be no more than talking shops with no proper organisation solutions or direction ,and for some politicians(most) are political popularity campaigns in prep for next election.we need more focus and organise a mass protest in response to the stealing of our country and all we have worked as a nation to build up.the most enslaved are those who mistakenly believe they are free.We are and will be enslaved for many years to come if the troiks are allowed run riot here squeezing us for every penny.its time we shouted stop.so shout it from the roof tops.
- Nick Caffrey 16/02/12 #
  
  Report this comment 0 0
  
  There will be no revolution. Read your history books. As soon as we Irish are faced with an enemy, we immediately start killing each other.
  The enemy waits until enough of us are dead, and takes over. It’s called “900 years of oppression”.
  Substitute ‘emigrating’ for ‘killing each other’, ‘strips the country’s assets’ for ‘and takes over’, and ’900 weeks of austerity’ for ’900 years of oppression’.
  See the picture?
  We couldn’t organise a p***-up in a brewery!
Mark Rodgers 15/02/12 #

Report this comment 17 6

How come everyone is reacting as if this is news. These fiscal goals have been around since the last Government signed the Bailout terms. Not alone do we have a difficult budget for next year but also the year after that too!
Negotiating behind closed doors on the Anglo promissory notes takes on a huge significance for the newr term but public screaming at Minister Noonan could actually damage the outcome.
Softee softee etc.

Reply
connman 15/02/12 #

Report this comment 3 18

Considering the hundreds of thosands of people who would like to stand up and be heard but who also can’t even afford a bus ticket to dublin, plus the government would just turn off the tv in the bar and ignore it, why don’t we get together and protest outside every single T.D’S homes from FG/Labour, that way people wouldn’t have to travel too far and making every T’D see and listen to what people really think every time they come and go from their homes will have a bigger impact i think or at least i would hope so.

Reply
Brian Houlihan 15/02/12 #

Report this comment 0 9

Yay! I can’t wait!

http://brianpolitics.wordpress.com

Reply
Martin Evans 15/02/12 #

Report this comment 3 22

We need to pull back from the Euro completely and build our own economy where we (Ireland) make the rules. The simplicity of the situation is we cannot even begin to pay back a loan from anyone (EU/IMF) while you are still borrowing. It doesn’t make sense. The Irish are being made into debt slaves and it is a non hostile takeover of a country without a single shot being fired.

Reply
Jimmy Cahill 15/02/12 #

Report this comment 0 4

And thats why Sinn Fein are going to be the next people in control.

Reply
Colm 17/02/12 #

Report this comment 0 0

It’s time to go after Noonan’s pensions.

Reply

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Latest memorandum reveals more austerity ahead in Budget 2013