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Dublin: 12 °C Wednesday 19 June, 2013

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

Michael Noonan dismissed Fianna Fáil’s plan as ‘wishful thinking’ and said it would take €150 million out of the economy.

Michael Noonan speaks to the media before the Cabinet meeting this morning
Michael Noonan speaks to the media before the Cabinet meeting this morning
Image: Sasko Lazarov/Photocall Ireland

MICHAEL NOONAN HAS said Fianna Fáil’s proposal to cut the price of petrol and diesel by 5 cent is an ‘economic dreamland’.

The Minister for Finance said the proposal would take €150 million out of the economy and would mean the budget for the year would have to be dismantled.

“Fianna Fáil in government made an agreement in Europe that when there are spikes in the price of petrol that government would not react by making adjustments. Over cycle the price will adjust,” said the Minister.

This is Fianna Fáil reverting to wishful thinking and economic dreamland. They think they can take €150 million out of the economy and have no effect.

Speaking before a Cabinet meeting this morning, Noonan said that people are “very hard pressed” and would be unlikely to be able to spend any money saved from a cut in petrol prices.

Noonan’s comments seem to confirm earlier speculation that the government will reject the proposed legislation that will be put before the Dáil this evening.

Fianna Fáil’s Motorist Emergency Relief Bill will be debated by the Dáil from 7.30pm. The draft legislation would effectively lead to the cost of fuel being reduced by 5 cent.

Earlier today Fianna Fail finance spokesperson Michael McGrath said that the loss to the Exchequer would be made up for by consumers using the money they saved on petrol to spend on other goods and services.

Government likely to vote against FF proposal to cut fuel duty >

How much have fuel prices risen in Ireland recently – and why? >

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Comments (53 Comments)

  • “take €150 million out of the economy”, Erm the tax take is part of the economy, not the whole of the economy. That €150 million will still be around, in people’s pockets, in their bank accounts, being spent in shops, reducing people’s mortgages etc etc.

    Reply
  • “Noonan said that people are “very hard pressed” and would be unlikely to be able to spend any money saved from a cut in petrol prices.”

    Ya, because if I save €100 in petrol every month, of course, I’m going to stick it under the mattress where it will never again see the light of day. Obviously, I’m not going to go and spend it on such luxurious items as groceries, etc!!

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  • Of course if the 23c global warming tax was removed it would help greatly… thanks to Gormley for that one!

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  • Easy for them when they have taxpayers footing mileage charges to ferry them in and out of their work place and every where else they need to go, the price at the pump is of little concern to them and will continue to be unless they like the rest of us have to fuel up using our own money to go to work.

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  • Something has to give on fuel as it is a tax on work as the public transport in this country is (1) Not very good (2) Expensive (3) Unrealiable (Buses pull away from DART stations before the DART arrives). It is affecting the disposible income of families which is affecting the high street. We need the price dropped FAST

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  • FGs ethos is simple: Pay the bankers debts as quickly as possible before the whole lot comes down. Why leave a few quid extra in peoples pockets to spend in the economy when it can go straight to the exchequer ready for the next bondholder bonanza.

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  • pjryan 24/04/12 #

    Dreamland , isn’t that where the politicians live. La la land where pensions are large And happiness guaranteed

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  • “Noonan said that people are “very hard pressed” and would be unlikely to be able to spend any money saved from a cut in petrol prices.” What a fool does he not care about the citizens of Ireland or is it all about cash?
    Clown :-(

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  • james 24/04/12 #

    How much more austerity must we take before we say enough is enough. Looks like this euro crisis is back to haunt us (never went away though the muppets thougt it had)…shows you these bureaucrats haven’t a scooby doo..god help us.

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  • Dave 24/04/12 #

    Noonan lying through his teeth – it will NOT take 150 million out of the economy, it will take 150 million out of the EXCHEQUER and put back in to the economy!

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  • ahhh green stuff all d way..

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  • David 24/04/12 #

    Here’s a suggestion to give something to the ordinary person and make things a little easier and this Government refuses to even consider it.

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  • FG policy is to create an economic nightmare

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  • I for one think that the Government are doing a fine job! No, wait, wait…that was Dreamland.

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  • Noonan doesn’t half talk some nonsense….”Over cycle the price will adjust”!

    Total BS! I have lived here for eight years and I remember the price when I came here was 79c per litre. The reason I remember is because I was amazed at how low it was. Its is now bordering on €1.70 and there has never been a drop only a steady rise…how is that cyclical????

    This just goes to show that no matter who is in government that they all just use soundbites and BS to get by without any actual knowledge. Of course he wouldn’t know as he hasn’t paid for petrol in quite a while. What a sad act that man is!

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    • Yeah, but the cycle is 100 years long … can you not wait for that?? Pull on the Green jersey and spend your money to get the economy moving, but don’t spend too much, because as a green jersey Paddy, you need to save at least 600 euro per year, starting next year for the Household charge, and an extra 500 euro per year after that for the water charge, and oh, yeah, if you complain about any of it, you are a Shinner and unpatriotic.

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    • THey always up the taxes on fuel in their budgets.What brings down the price of fuel is the price if the barrel.

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    • @Grant Grieve

      Jesus, I had no idea how fast it went up until you said it above. That’s just bloody crazy. Went up as fast as the overpricing of bloody houses! Nonsense! Bring it down a little Noonan for Christ sake. I am trying to run a little business, unemployed since August 2008. Used any redundancy that was left and put it into the business. Since last October, I cannot get around the country because I cannot afford the petrol. If I want to go to Cork, Kerry, Sligo etc. from Dublin I need to put at least EUR80 petrol in the bloody car. No, I can’t take public transport because I carry boxes in the boot (supplies). I still don’t get an income from it and no social welfare! My savings are on their last leg. I think I am too.

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  • Noonan u are a Muppet… too far up ur own ass….if you reduce petrol u will make more money and there will be more displayable income which will filter into the economy….get a grip u dickheah

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  • Between Minister Noonan & the FF remnant I don’t know which of you is in Dreamland. If only I could emigrate there. I hear there are rivers of chocolate & rivers of cheap petrol, money grows on trees & doctors & nurses sit around in hospitals with nothing to do as nobody gets sick.

    Bitch please….

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  • 1) It won’t take it out of the economy, only the exchequer 2) The fact you left no room to re-act to unforeseen,slight change of plan,etc in a budget says it all for your budgeting skills.

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  • I think this is 150 million out of the exchequer and into the economy, unlike the household charge with proposes 160 million out of the economy to go God knows where.
    Someone is in economic dreamland alright!

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  • its a dream the everyday joe shares.

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  • Nivek 24/04/12 #

    Agreed, they spin their political BS as usual but this doesn’t affect them as we also fund these clowns transport costs!

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  • Think you should have a read of this Noonan, you’re the one in dreamland. Where are the jobs, growth and recovery? http://www.bbc.co.uk/news/world-europe-17826455

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  • jimbo 24/04/12 #

    Norman you live in Disneyland what the hell are you on about

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  • This is dreamland for FG. They always wanted to cut cut cut to make the rich get richer the thatcherite tory wannabes that they are. They would have done exactly the same without the financial crisis. They belong in another time.

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  • I’m totally against tax cuts on fuel, in fact I’m for more tax increases. As a country we need to change our habits and wean ourselves off the stuff. We import 100% of it and the vehicles we run it with. Aside from the tax that money goes to the Arabs and German/Japanes economies, that’s money that could create a lot of jobs in Ireland.

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    • John, can you tell me how we get to those jobs if we don’t have public transport in the location or should we all learn to ride horses again?

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    • Create Jobs that no one to get to, with the cost at the pumps. Or do you live in a world where only people living in Cities should work in the cities and everyone else in rural areas should just work on a local farm or something.

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    • Good news for you john. Carbon tax out next week.

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    • Just a stupid comment John, maybe if we had a good transport system I would agree but we dont.

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    • It’s a bit of a chicken and Egg. Cheap oil has created a situation where many people have being able to live in one off housing far outside villages and towns. That will come to an end as oil dries up globally. Governments should prepare people for that. High taxes on fuel is one way. Though we should be putting those high taxes in to proper public transport not Angle debt etc etc.

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    • Kerry, can you tell me why the Irish can’t share cars to get to work? It works well in Germany. I’m sure we can do better than horses!

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    • I’m sure that some do share cars Colm. I would if I could but my partner and I work in different towns and one of us brings 5 kids to school every morning the other family we share that transport with brings them back from school in the afternoon. There is no public transport that could get me to my place of work let alone back home in the evening. We do our best to cut the cost of transport believe me as much as practicable.

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    • I’m glad to hear you share school runs, Kerry. I realise public transport can’t take you from home to your workplace but if you’re driving a good distance then there ought to be a way to drive to a location where you could park and either ride with others who pass your workplace or take a bus. Of course that requires an IT system to assist in solving these routing problems – like the Germans use.

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    • Colm a bus does go through my local village times wouldn’t be ideal would mean I’m away from home an extra hour or more a day. Problem is while it does stop in the town were I work it stops 1&1/2 miles away from where I work funnily enough even though it does drive past my place of work when I inquired if it could stop there I was told no because it would interfere with the time table. Mind this is the same company who once the local by pass had been completed decided not to service the village anymore to improve it’s time table. Need to get a petition organised to stop that. Needs to be a hell of a lot more joined up thinking before even talking about a system such as used in Germany.

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    • Of course incompetent/corrupt planning decisions hasn’t exactly helped our oil dependence, nor did the housing bubble. It made decisions to live in one off housing in the middle of no where seem viable. It also made vast housing estates that lack soul/community/public-transport (aka commuter towns) a reality for a generation of young Irish people.

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    • Fair play John, the most idiotic statement this week on The Journal. I’ll just change my habits and walk 80 miles home at 4am when I finish work, what a bat habit I have developed, putting petrol in my car. Idiot.

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    • Sorry you live 80 miles from work. That’s a lot of driving which must have an impact on your quality of life, not to mention wallet. If you had any sense you’d realise the habits I was talking about are those who drive when they haven’t alternate means, eg public transport, car pooling etc.

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    • Doh, that should be ‘have’.

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    • But we know it creates a certain amount of employment BUT it all goes to
      Central Government and gets swallowed up just like all our taxes and levies USC’s and PRSI and Vat ??????

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  • a car has to use fuel to move. in general it is petrol or Diesel. by keeping fuel at the current price they ensure income. changing to hope someone will spend the money in the local shop is naive. there is evidence that savings have increased dramatically there last three years why would someone not save
    the money. introduce high rate income tax and get some extra money for the state them lower fuel prices. therefore the rich pay.

    Reply

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