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Dublin: 15 °C Wednesday 19 June, 2013

Varadkar says budget leaks impacted on consumer confidence

Speaking in the Dáil last night the Minister said the fall in consumer confidence was probably due to Ministers talking about issues like child benefit and property tax.

Minister for Transport Leo Varadkar
Minister for Transport Leo Varadkar
Image: Laura Hutton/Photocall Ireland

MINISTER FOR TRANSPORT Leo Varadkar has admitted that leaks about the forthcoming budget may have had a negative impact on consumer confidence.

Speaking in the Dáil last night in response to questions from Fianna Fáil TD Willie O’Dea, Varadkar said last month’s consumer confidence was the highest in five years but it declined recently.

“Within a month that had fallen by ten points, probably due to Ministers and others talking about child benefits, property taxes and all sorts of things,” he said.

O’Dea said Varadkar’s comment was “a startling admission for a senior Minister to make”.

“Over recent months we have consistently warned of the damage that is being done to the economy by Ministers jockeying for position and leaking budget proposals,” he said. “Now we see a senior Minister acknowledge the point and link the comments of his colleagues to a measured collapse in confidence.”

The Fianna Fáil TD said Varadkar should relay his concerns to the Taoiseach and to his colleagues in the Cabinet.

Read: Sharp fall in consumer sentiment in September>
Property Tax: Where do the political parties stand?>

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Comments (55 Comments)

  • Wait for the fall in confidence in the government when all these leaks become reality..

    Reply
  • There is NO consumer confidence. There are 3 divides in Irish society,

    The working class (formerly middle class), the unemployed, and the top tier. Working class are the worst hit, sorry but it’s true. Not only are they working all week, they have nothing to really show for it due to increase stealth taxes and cost of living. The top tier are quietly lapping up all the value out there in houses, shop discounts etc due to their disposable income. The unemployed who WANT to work are caught up in a zombie state of fighting for whatever benefits they can get to survive and no job prospects worth taking as they are probably better off on the dole…….. very sad :(

    Reply
    • Exactly
      The wealthy are now busy consolidating their wealth and waiting to screw the next generations, so give yourself a mortgage brake this christmas, take a holiday in the sun, buy a car, to hell with this of shower bank puppets, take your power back.

      Reply
    • You have basically summed up the whole terrible situation and I agree. Life on the dole is just barely existing. I know there are many abuses in the system and depending on a persons circumstances some get more help then others. I have worked all my life over 30 years and i still can’t get a payment. I am getting supplementary of 186 a week while i waid for an appeal for a benefit I am entitled to based on my PRSI but they turned me down for it. I live in a community where many are unemployed who worked but there are many who never worked and what angers me most is they have had a choice of a house (regeneration gives them that choice). They have three or four welfare benefits they are “entitled” to and get. They don’t have to pay house insurance, property tax, tv Licence, or Housing maintenance (council does it). I got a small mortgage because as a single man the council will not house you and now i can no longer pay this mortgage being out of a job yet i get no assistance from anyone. I had to house myself and leave home. I am the one who is left abandoned after working all my life and contributing to this system. Why did i pay PRSI only to be refused a payment while kids as young as 16 living with their parents (not with serious disability but add adhd which is nothing compared to some kids serious disabilities) are getting full disability allowance of 188 euro a week with an annual Respite care grant of 1700 a year on top of free travel, household benefits package and other allowances? This system is insane. A person who worked gets less than a 16 year old minor who never worked living at home. I am not saying kids with disabilities should not get their allowances but the category of add adhd kids getting the same as those with serious disabilities is totally unfair and there are many abuses in the system because once they got to 18 they automatically “migrate” to the payment in their own right as an adult without ever having to go through the grilling and hastle that those newly applying have to. The system needs to be changed and those who worked should not have payments withheld as is the case.

      Reply
  • More excuses from Leo the Liar. The fact that the government you are a part of has taken every last bit of disposable income from our pockets could have something more to do with it!!

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    • Not one more red cent!!!!! Liar and complete con-man. Leo you are a complete embarrassment as a public representative. In a proper democracy, you would be locked up awaiting trial on treason charges.

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    • FartBox 10/10/12 #

      everybody is pissed off about cuts, but the money to get this country out of this mess that fina fail got us into has to come from somewhere…

      Reply
    • Well FartBox we paid €18 billion over to bondholders so far this year. I guess we could have used that….

      Reply
    • FartBox 10/10/12 #

      that was agreed by the previous government, FINA FAIL… in November 2010 we got an 85 billion euro bailout from the ecb and imf…. wake up, we’re in this mess… WE OWE MONEY THAT MUST BE PAID BACK….

      Reply
    • FartBox 10/10/12 #

      the previous government agreed to bail out the banks in April 2010, don’t forget that. it’s not a mess that’s going to go away over night…

      Reply
    • FartBox
      The problem isn’t what Fine Fail have agreed – and they are responsible for the mess, to be sure. The problem is the current shower of apes don’t have the first clue how to write their own budget, instead carry on the madness that was destroying the country.

      The problem is people like you who insist on glorifying Fine Gael and Labor; and refuse to see how they’re compounding the issue. A real government would have stood up and pushed back on our behalf. Instead, they blindly apply whatever IMF and Merkel tell them to, without first assessing whether the economic pressure is capable of taking it. Instead of reducing their income – and keeping it there – they’re earning over 20% more than equivalent posts in other bigger EU countries (actually that was before they all took a nice raise). They’ve refused to tax the wealthy properly, to the point that we know that over THREE BILLION can be found just by equalizing the wealthy tax with the rest of EU.

      Seriously, I mean for example property and water tax – maybe they couldn’t negotiate around these. But an intelligent government that actually is in touch with it’s public, can easily walk around that. For example, grant credits in return for paying those amounts; leave it up to individuals to apply for them. So they couldn’t work around the 2% increase in VAT? Ok, implement the high band of tax at 50k instead of in the low 30′s (France set this at 70k, with another band for earnings over 100k). Seriously, something is very f-d up when a person earning a little over minimum wage (a little more than someone on the dole after all is said and done) hits the same tax bracket as someone earning half a million euro. Right?

      I mean come on, are you that naive to think that it’s all Fine Fail’s fault, while Fine Gael and Labor are the one’s in the driving seat, AND the one’s writing policy on budgets?? Are you that simple?

      Reply
    • FartBox 11/10/12 #

      John we’re in this mess because of fina fail, corrupt bankers, a regulator that was asleep at the wheel and corrupt developers. the mess was inherited by the current government… if they doubled all of our taxes in the morning we’d still be on this mess… and yes, fina fail signed the deal with the imf and ecb so they are to blame. wake up we owe money, the best government in the world couldn’t get us out of the disaster they have created.

      Reply
  • Leo varuca

    Reply
  • Is Leo not the biggest kite-flyer of them all? He’s being a complete hypocrite by saying this. Hypocrisy seems to be Fine Gaels main policy.

    Reply
  • He’s wrong. Consumer confidence didn’t fall because of leaks about budgets etc. Consumer confidence fell because the consumer knows only too well that the country is going down the tubes….

    Reply
  • Varadkar is a spin’ologist, but not a very clever one.

    Reply
  • I think it’s time for us all to join together and put our shoulder to the wheel instead of crying over this.

    Reply
    • indeed seamus, a shot of positivity would do us the world of good. Take for example the nordic countrys they work together in order to achieve their goals. lets stop crying guys

      Reply
    • Lads the sound of working together is good to hear but the tragedy is not everyone want to work together. This recession is hitting some people a lot more than others and as soon as you mention oh the wealthy are better off or the working class are struggling the heckles go up. It is all relative. Well paid people will tell you they pay more tax so they have taken a hit but their “hit” is only a minor glitch. They have resources that the unemployed and low paid never had or never will. Pick up any social commentary analysis book and they will spell out the privileges they are used to. But that cannot be compared to people on the breadline. I mean those who are struggling to put food on the table. I honestly believe that they think we are making all this up. That there are no people who have no food, or a holiday or be able to buy a cup of tea in a cafe because we are not visible. I don’t go into town because there is no point. I have no money and many are like me. We struggle at home. I worked in a place with very high earners ( I was getting about 400 a week ) and they had no concept of how working class poor people lived. I often told them at meeting about kids with no clothes eating tayto’s for a dinner and parents with no heating in their homes and they just looked at me in disbelief. They said where? I can’t see them. I told them take a drive up to where i live (which they declined). In short they were more comfortable in their fantasy land than they were acknowledging very poor people existed on their working door step. You are never going to get these people to work in solidarity with people who have lost the most in this recession. The working and middleclass low earners and unemployed. It won’t happen.

      Reply
    • @Robbie,
      Actually, if we do what the Nordic and Icelandic did – and they are flying at less than 5% unemployment, loans paid back, etc – then we would have to have massive protests and get much angrier. Somewhat like Spain are doing now.

      I’m game if you are..

      Reply
  • its also very cruel to people who can’t cope. Getting up daily is a struggle and when you hear this is being cut or that is being looked at it just causes panic in those of us already on our knees.

    Reply
  • No Leo it’s not talking about child benefits and property taxes that’s causing the negative impact on consumer confidence it’s fact that child benefit cuts are on the way and also a new property tax that the public still has no idea how it will be calculated. That’s the reason right there Leo.

    Leo really needs to step back from the mic as he’s turned into Mr Sound bite for the government and not in a good way.

    If he put as much effort into his role as he does being on tv and radio the man would get loads done.

    Reply
  • Leo has got to be the most dangerous TD in government. I think he is so driven and so addicted to power and money he could be a reincarnation of Charlie H. This guy deceived us in his lead up to the election and is still lying and cheating us. He is the most devious and callous.

    Reply
  • No shit Sherlock! Also sick of Varadkar and his statements. He says a lot but does very little to change the status quo. Now calling for extra points for speeding. People are broke paying speeding tickets and increased insurance costs for doing 84 kph on an 80 kph road that should be a 100 kph in anyone’s book. Just another money making scheme for the government. Cannot bear the man now, and actually thought he might have been one of the effectual good guys!

    Reply
  • Has anyone ever heard Varadkar talk about Transport?

    Reply
  • wrong Leo.austerity budgets are what affect consumer confidence

    Reply
  • If we heard less from Talking Head Varadker it would be good too!

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  • Why is Leo Vanker even commenting on ‘other’ ministers talking about child benefit cuts etc affecting consumer confidence?
    What is he up to?

    Reply
    • Because he loves the sound of his own voice and loves being in front of a reporter. Also I think Kenny and Co like having him around as he deflects attention away from the fiasco that is the Enda Kenny lead coalition. OF COMPLETE JOKERS

      Reply
  • i agree with us all from bottom to top taking a hit in the next budget in order to steady the ship and move forward in a positive manner….to much negativity surrounds this country..

    Reply
    • I think the reality of it is that it will start at the bottom, happily work its way through the middle; only to stall out just before it gets to the top, as per usual in my opinion.

      Reply
    • The bottom? How can you take blood from a stone?

      Reply
    • Attic

      Is that your first name or am I misunderstanding something. You seem to have extraordinary views about people who express contrary views to your own and your suggestions about my likely activities at home clearly indicate an underlying pathogenesis that is either undiagnosed or under treated . Experts will tell you of the lack of awareness among patients with these conditions but place your trust in them and if they suggest Electro Convulsive Therapy go for it!

      Reply
    • There is no more money. Currently over a quarter of mortgages are in arrears, 1 in 5 mortgages are in arrears more than four months.

      People – you know, average working stiffs – are unable to feed their families and keep the sheriff away from their door. Yet the wealthy are getting wealthier, with over 22 million euro earned in the top end of the economy only having paid under 2 million in tax (god go look it up, its referenced enough). The billion euro expenses are still uncut for ministers (only the garda got hit and that looks to be about to reverse). Enda and co are taking increases while our taxes grow ever larger.

      Unless you’re in the wealthy boat, more taxes and cuts on the working incomes is NOT a good thing. Piling on taxes to the already strained will do nothing to steady the ship.

      Reply
  • No shit Sherlock!

    Reply
  • No lack of confidence comes from knowing you’re getting screwed financially while bondholders and the wealthy get breaks and deductions a-plenty.

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  • You’re right howsabout but I can’t see how Kenny could like what he’s saying. Has Leo Vanker got his own agenda? Or is he just a complete and utter fool?

    Reply
  • Reading all of the above and parsing the negativity I am today writing to Phil Hogan and proposing an additional charge.
    The Minister needs to remove fluoride from the water and replace it with both an anti depressant and Valium.
    We can then survey areas to find the biggest whingers and increase the dosage to match the particular need.
    It would be helpful actually if all the above contributors would agree to live in a specific area to ensure maximum benefits for the knockers and the naysayers and the people who generally gripe continuously on these pages.
    A Dear Abby section of a woman’s magazine is more uplifting than most of this.

    Reply
    • Paddy if we were all loaded like you we’d have nothing to winge about, and by the way. We are free to complain here that is what this commentary is about. Go back to your wasteful greedy selfish lifestyle. Why don’t you go away then and don’t read what we have to say. Pity anyone who has to live with the likes of you.

      Reply
    • For the record Paddy, all things considered I’m doing quite well at the minute, and I count my blessings, but that doesn’t mean I turn the other way and let the country I love get run further into the ground. It’s called caring, you seem to be more of a ”pull up the ladder I’m alright” kind of guy, I hope it stay’s fine for you.

      Reply
    • Paddy. You probably like reading the women’s section and the odd Valium yourself.your probably sitting at home now as we speak in your wife’s underwear,thinking of penning big Phil.

      Reply
  • no disposable income? I work in a shopping centre and the place has never been busier, it wasn’t this busy before the crash either. whilst I don’t have a lot of money, it appears to me that most of Ireland’s poverty is just in the media.

    Reply
    • Shane are you living in the real world.

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    • Shane please do not insult us with a comment like that. You have obviously never set foot in a disadvantaged housing estate. I agree there are loads out shopping and its like recession existed but here is the thing. This recession is not hitting everyone. Its only hurting the low paid and unemployed. Everyone else has plenty money for shopping because they are not getting targeted like those at the bottom are. Just check out some of the clothing labels of those in the shops. I bet they don’t wear pennys or dunnes labels. Its designer all the way.

      Reply
    • Shane. Can’t you figure it out for yourself? Shopping centres are packed with people coming in, so as to avoid turning on heating in their own homes.

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    • its a big mistake to assume I have never been to a socially deprived estate,

      I am a single man, no kids and I rent. I’m being hit as hard as anyone else.

      if someone can afford to drop their money on designer goods, they can afford to pay more towards getting our country out of this hole. my point was, there appears to be plenty of money out there but that is being ignored.

      I have been on the dole, I know what its like to struggle but there are people out there not paying a fair share

      Reply

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