2010 Irish budget
Presented | 9 December 2009 |
---|---|
Parliament | 28th Government of Ireland |
Party | |
Minister for Finance | Brian Lenihan |
Website | Budget 2010 |
‹ 2009 2011› |
The 2010 Irish Budget refers to the delivery of a government budget by the Government of Ireland on 9 December 2009, its third in fourteen months. It was also the third overall budget to be delivered by Fianna Fáil's Brian Lenihan as Minister for Finance.
The 2010 Budget was described by commentators in Ireland and around the world in unusually harsh terms as €4 billion was removed from the country's national deficit. It was characterised by pay cuts for
The post-budget debate was interrupted by a famous use of unparliamentary language by Green Party TD Paul Gogarty, an example which attracted international attention.[1][2][3]
Background
The budget for 2010 occurred in the context of a major recession, which followed the
Budget summary
The following are the main points of Budget 2010.[4]
- 4% cut in social welfare payments, excluding the state old age pension
- Child benefit decreased by €16 each month, although welfare-dependent families remain unchanged
- 20–21 year-olds Jobseekers' Allowance decreased to €100 per week in the event of these not having any dependents, 22–24 year-olds Jobseekers' Allowance decreased to €150 per week, the latter point also applying to anyone who does not take a job when offered
- 5–10% cut in public sector pay
- Carbon tax introduced
- High end VATreduced from 21.5% to 21%
- Each item on medical card prescription to cost 50c after April 2010
- Higher income tax for PAYE earners (Due to tax credits being cut)
- A new Universal Social Charge (USC) to replace the Health levy portion of PRSI
- At least €70 million towards those affected by recent flooding and to the prevention of similar disasters in future
Excise duties on beer and cider were decreased by 12 cent, excise duties on a half-glass of spirits were decreased by 14 cent and a bottle of wine was decreased by 60 cent, with a warning from the Finance Minister that these reductions were open to being recalled if consumers did not benefit.[5] Due to an increase in the smuggling of tobacco into Ireland, prices of tobacco remained unaltered.[5]
A year-long car scrappage scheme was unveiled targeting vehicles which had been in use for more than a decade, with a €1,500 reduction in vehicle registration tax relief available for those who availed of this scheme (but only "under certain conditions").[5]
The salary of the Taoiseach was decreased by 20 per cent on a permanent basis.[6]
Arts
The arts budget decreased by 6 per cent to €166 million from the previous year's €178 million.[7]
Sport
The Government allocated €115 million for sport, a decrease from the previous year's €127 million.[7]
The
Tourism
The Government allocated more than €155 million for tourism, an increase of 2 per cent from the previous year's Budget.[8] €22 million of this was dedicated to tourist attractions.[8] "Imaginative initiatives", including rail discounts for senior visiting citizens, were announced.[8]
Reaction
Taoiseach Brian Cowen said the Government would "do whatever was necessary to stabilise the deficit" and that "a job needed to be done", whilst maintaining that the Budget was "well received".[9] Fine Gael's Richard Bruton responded to Brian Lenihan's claim that "the worst is over" by comparing the statement to former U.S. President George W. Bush declaring "mission accomplished" on the Iraq War in 2003.[10] His colleague Alan Shatter accused the Government of buying off children with alcohol: "Forget the food and milk — let them drink beer", describing it as being from "the Marie Antoinette school of politics" and asking "which comedian was employed to author this bizarre document".[11] The Labour Party's Joan Burton described it as "a sort of Top Gear lads Budget" with cheaper alcohol and cars being made available.[11] Sinn Féin's leader in the Dáil Caoimhghín Ó Caoláin described anyone who had constructed Budget 2010 as "economically illiterate".[11] His colleague Arthur Morgan bemoaned how the Budget benefited "the corrupt banker".[11]
The
The National Campaign for the Arts expressed relief and pleasure that it had not been affected very much by the Budget. Youth Work Ireland described the targeting of young people as "pure cynicism [...] a cynical move when contrasted with the 30,000 young people turned away from education courses last October".[12] Drinks Industry Group of Ireland Chairman Kieran Tobin said reductions on the cost of alcohol would be "a great relief" and would "repatriate some of the revenue currently being lost to cross-border trade".[12] Anti-smoking lobbyists ASH Ireland criticised the lack of increase in the price of tobacco.[12] Friends of the Earth described the carbon tax being implemented as "an important piece of the jigsaw in tackling climate change".[12] Oxfam Ireland CEO Jim Clarken spoke of being "extremely disappointed that the Government have piled further cuts on the massive 24% cut applied earlier this year" and accused the Irish government having "yet again, broken a promise to the world's poor".[12]
Political Correspondent for The Irish Times Harry McGee dubbed it "the most austere Budget in the history of the State".[10] The Irish Examiner said it "can only be described as one of the toughest Budgets in the history of the State".[15] The BBC called it "one of the most severe budgets in the Republic's history".[16] The New York Times referred to it as the "harshest budget in generations".[17]
Global investors approved the measures introduced by Brian Lenihan, with Irish government bonds receiving a boost following the Budget.[18] Former President of Ireland Mary Robinson announced two days after the delivery of Budget 2010 that she would be happy to take a 10 per cent reduction in her pension, a further 10 per cent added to what she had previously offered earlier that year.[6]
Former RTÉ Economics Correspondent turned
Social Welfare Bill and "unparliamentary language" controversy
Attempts by the government to quickly legalise the Social Welfare Bill proposed in the Budget before the weekend were met with disapproval from the Opposition.
Labour Party deputy Róisín Shortall suggested that "there is no obligation on them [backbenchers and Independents] to support this. They are not under a whip. It's their choice. If they vote for these (measures), well then they have to face the consequences in their constituency".[24] Green Party deputy Paul Gogarty said, "It's regrettable but necessargy [sic]. And everyone on this side of the house is going to stand by it, because it has to be done".[24]
"It [the expletive] was a genuine emotive response to someone questioning your integrity. I said it. I apologised for it [...] it’s probably too much to ask for, but I do hope that what I said in my speech will be covered, rather than just the lyrics of a Lily Allen song".
Paul Gogarty tries to explain the reasons behind his use of expletives in the Dáil Chamber.[25]
Gogarty was later condemned and forced to apologise for his use of "
Green Party deputies were described as "less than pleased" at Gogarty's conduct.[22] Green Party leader John Gormley later commented on the incident: "It was unacceptable language. He should not have said it. He has apologised and withdrawn the remarks. I have not had an opportunity to speak to him as yet. It is over. He has apologised now."[23] Stagg was not bothered, citing "a thick skin" and the "development of a hide".[25] Gogarty received a positive response from his constituents and went on to feature on Operation Transformation the following month.[31]
The Social Welfare Bill passed by 81 to 75 votes on the evening of 11 December.[23] Government deputies who missed the vote included former Taoiseach Bertie Ahern, former Ceann Comhairle John O'Donoghue and Donegal North-East deputies Jim McDaid and Niall Blaney.[23]
Estimated total receipts
Estimated tax receipts
Estimated of tax receipts for fiscal year 2010 are €31.930 billion (−1.9%).[32]
Rank | Category | € millions |
---|---|---|
1 | Total | 31,930 |
2 | Income tax | 11,979 |
3 | Value added tax |
10,460 |
4 | Excise | 4,525 |
5 | Stamp duties |
975 |
6 | Capital gains tax | 340 |
7 | Capital Acquisitions Tax | 240 |
8 | Customs | 200 |
Non-tax revenue
Estimated of non-tax revenue for fiscal year 2010 are €2.355 billion (+182.4%).[32]
Rank | Category | € millions |
---|---|---|
1 | Total | 2,355 |
2 | Credit Institutions Scheme | 1,000 |
3 | Central Bank Surplus Scheme | 640 |
4 | National Lottery Surplus | 272 |
5 | Dividends | 176 |
6 | Winding up of Ulysses Securitisation | 140 |
7 | Other Receipts | 127 |
See also
- 2009 Irish emergency budget – an earlier Budget delivered by the Irish Government in 2009
References
- ^ a b "Irish MP's F-word outburst sparks parliament review". BBC. 15 December 2009. Retrieved 15 December 2009.
- ^ a b Katie Cassidy (15 December 2009). "MP's F-Bomb Prompts Banned Words Review". Sky News. Archived from the original on 2 February 2013. Retrieved 16 December 2009.
- ^ a b Henry McDonald in Dublin and Larry Elliott (11 December 2009). "Ireland faces bitterness over public sector pay cuts". The Guardian. Retrieved 12 December 2009.
- ^ "Budget 2010 cuts €4bn in public spending". RTÉ. 9 December 2009. Archived from the original on 14 December 2009. Retrieved 11 December 2009.
- ^ a b c "Drink duties fall, scrappage scheme for cars". RTÉ. 9 December 2009. Retrieved 12 December 2009.
- ^ a b "Robinson to take reduction in State pension". RTÉ. 11 December 2009. Retrieved 12 December 2009.
- ^ a b c d e f g h i j k l "In short". The Irish Times. 10 December 2009. Retrieved 11 December 2009.
- ^ a b c "More tourism money to promote Ireland". RTÉ. 9 December 2009. Retrieved 12 December 2009.
- ^ "Budget 'well received' insists Taoiseach". RTÉ. 10 December 2009. Retrieved 12 December 2009.
- ^ a b Harry McGee (9 December 2009). "Few surprises in much-leaked Budget". The Irish Times. Retrieved 11 December 2009.
It may have been the most austere Budget in the history of the State. The arithmetic may have been brutally stark. [...] Fine Gael's Richard Bruton quickly spotted the potential hubris inherent in that claim. In the best line of his response, he said that Lenihan claiming the worst was over was like George W Bush declaring "mission accomplished" on the Iraq war in the early summer of 2003.
- ^ a b c d "Opposition mourns 'missed opportunity'". RTÉ. 9 December 2009. Retrieved 12 December 2009.
- ^ a b c d e f g h i j k l m "Budget 'does nothing to create employment'". RTÉ. 9 December 2009. Retrieved 11 December 2009.
- ^ "IBEC lauds Budget as 'turning point' in economy". Irish Examiner. 9 December 2009. Retrieved 11 December 2009.
- ^ "Consultants will accept 15% pay cut". RTÉ. 12 December 2009. Retrieved 12 December 2009.
- ^ "Lenihan delivers toughest Budget in years". Irish Examiner. 9 December 2009. Retrieved 27 December 2009.
- ^ "Tough 2010 Irish budget unveiled". BBC. 9 December 2009. Retrieved 11 December 2009.
- ^ Sarah Lyall (9 December 2009). "Irish Wince as a Budget Proposal Cuts to the Bone". The New York Times. Retrieved 11 December 2009.
- ^ Pat Boyle (11 December 2009). "Backing for Budget as spread on Irish bonds narrows". Irish Independent. Retrieved 11 December 2009.
- ^ Galway Independent. Retrieved 16 December 2009.[permanent dead link]
- ^ "Lee slams tax measures in Budget". Irish Examiner. 11 December 2009. Retrieved 27 December 2009.
- ^ a b c Michael O'Regan (12 December 2009). "Stunning outburst shakes the House as Gogarty undone by his tormentors". The Irish Times. Retrieved 12 December 2009.
- ^ a b c d Mary Minihan (12 December 2009). "Expletive a 'genuine emotive response' to questioning of sincerity, TD insists". The Irish Times. Retrieved 12 December 2009.
- ^ Michael O'Regan and Marie O'Halloran (11 December 2009). "Gogarty apologises for Dáil expletive". The Irish Times. Retrieved 12 December 2009.
- ^ "Gogarty sorry for 'unparliamentary language'". RTÉ. 11 December 2009. Retrieved 11 December 2009.
- ^ Shaun Connolly (12 December 2009). "Green TD sees red and turns Dáil blue". Irish Examiner. Retrieved 12 December 2009.
- TV3. 11 December 2009. Archived from the originalon 13 December 2009. Retrieved 12 December 2009.
- ^ Michael Brennan (12 December 2009). "Opposition lit his short fuse 24 hours before explosion". Irish Independent. Retrieved 12 December 2009.
- Evening Herald. Archived from the originalon 18 February 2013. Retrieved 15 January 2010.
- ^ a b Department of Finance: Estimates of Receipts and Expenditure for the Year ending 31 December 2010