Industry groups and voluntary sector react to 2019 Budget

Restaurants Association of Ireland

The Restaurants Association of Ireland has described Budget 2019 a "thoughtless budget with zero regard for the restaurant sector particularly rural and borders SMEs and said the government has turned its back on tourism.

Speaking about the VAT increase, Adrian Cummins, chief executive of the Restaurants Association of Ireland said: “This was the incorrect decision by Government and had little economic intelligence behind the decision to increase the VAT, as did the report by the Department in July which didn’t take consideration of Brexit or revenue generated by overseas tourists to Ireland. VAT at 13.5% reduces Irish Tourism’s competitiveness, resulting in less appeal to overseas visitors and, most worryingly, impacts the value for money offering which discourages people to spend their money in Ireland on Irish goods and services. With Brexit on the horizon and the as yet unknown implications it may have on our sector, this decision has put the Irish Restaurant Industry in jeopardy. This was an election Budget paid for by the Restaurant and Tourism Industry.”
By increasing the VAT to 13.5% the Government is negatively impacting the Irish Tourism sector and dismissing a positive job creation initiative. The sector accounted for 7.7% of total employment in the economy in the first quarter of 2018. With an increase to 13.5%, it is expected that 27,000 jobs will be put at risk based on calculations by economist Jim Power.
Since the reduction in VAT in 2011, the number of people working in the Accommodation & Food Services Sector increased by 79,424 in Direct and Indirect Employment. The payroll taxes accruing to the Exchequer from this extra employment from Q2 2011 to Q1 2018 was €278 million and yet Ireland’s tourism sector has seen a 25% decrease in investment since 2008.
This 13.5% Vat rate for Tourism is now higher than 26 other countries in Europe including; Spain, France, Italy, Cyprus, Netherlands, Austria and Portugal. It has created a massive challenge for an industry who operates on low margins and relies upon tourists.
After months of lobbying through the ‘Keep VAT at 9%’ campaign, the pleas of the Restaurants Association of Ireland, its members and wider reach of interest groups have fallen on deaf ears. Restauranteurs, many of whom are owner-operators, and the main employers within their communities will be hit hard by this 4.5% increase. It only adds to the ever-growing costs of doing business in Ireland, along with high rent and inflated insurance premiums and for many, the additional challenge of operating in a rural or border county given the uncertainty of Brexit.
 

National Off-Licence Association

The National Off-Licence Association (NOffLA) has today criticised the Government’s decision not to decrease excise duty on alcohol in Budget 2019. The decision locks the independent off-licence sector out of the economic recovery and will leave members exposed to Brexit-related cross-border trade. 
Commenting on today’s announcement, the final Budget before the UK leaves the European Union in March 2019, Evelyn Jones, Government Affairs Director of NOffLA stated; “NOffLA acknowledges the Government’s decision to retain the current level of excise on alcohol but is disappointed that the Government has failed to recognise the commercial realities for the independent off-licence sector, and the Brexit-related threats that our members are facing.”
“Increases in excise duty were emergency measures, implemented in times of economic need. Ireland’s economy is now the fastest growing in Europe, and so like USC and other emergency measures, these must be rolled back.” 
 “Ireland’s punitive excise rates mean that NOffLA members are being locked out of the economic recovery by the Government, given as much as 50% of the cost of a bottle of wine is Excise & VAT. 81% of surveyed off-licence retailers in Ireland believe that a 15% reduction in excise on alcohol would mitigate against the likely impacts of Brexit, and boost employment and salaries in our trade”.

“NOffLA members are under serious threat due to cross-border trade following on from the 15% reduction in the value of the Sterling since the Brexit referendum in 2016, and there is now a 25% difference in the cost of alcohol between Ireland and the UK.” 

“Since 2008 some 3,000 jobs – 34% of the sector – have been lost, and 554 off-licences have closed. NOffLA members across Ireland continue to face significant commercial challenges due to our excise regime and will now be exposed to unprecedented cross-border trade should the Pound Sterling continue to depreciate throughout Brexit negotiations.” 

 

Department of Culture, Heritage and the Gaeltacht

The Minister for Culture, Heritage and the Gaeltacht, Josepha Madigan TD, today (Tuesday) announced additional funding of over €36 million for her Department in 2019, an increase of 12% on 2018 allocations.  
The increase in funding is comprised of €21 million in capital expenditure, an increase of 39% on 2018 funding and €15 million in current expenditure (6% increase) and will allow for total expenditure of some €339 million towards our culture, our language and our heritage in 2019. 
Key highlights of Budget 2019:
•    Arts and culture funding up by €22.6m or 13.5% - comprising €10.6m (7.7%) increase in current funding and €12m (or 14%) in capital;
•    Arts Council funding is up by 10% to €75m, including over €6m in current funding, more than double the increase of 2018;
•    Built and Natural Heritage funding up by over €7.1m or nearly 15% - of this increase €5.2m is capital; and
•    Gaeltacht, Irish language and the Islands funding increased by €5m (8%) on 2018 allocations.  This includes an additional €2m in funding for Údarás na Gaeltachta to support the maintenance and creation of jobs in Gaeltacht areas and increase supports for Gaeltacht co-operatives, and an additional €600k to continue the implementation phase of the language planning process.
Speaking after the Budget 2019 announcement, Minister Madigan said: “This increased funding is tangible evidence of the importance attached to our cultural and creative heritage under Project Ireland 2040 and clearly demonstrates this Government's commitment to increase spending in the arts and culture sector on a trajectory that will see funding doubled by 2025.” 
Minister Madigan added: “The increased funding will facilitate further work in terms of the planning and early stage implementation of the Department's 10 year Capital Plan ‘Investing in our Culture, Language & Heritage 2018-2027’ across all programme areas – together with increased support for arts and artists via the Arts Council and Creative Ireland; the film industry and this  Government’s ambitions under Global Ireland 2025; and additional restoration and development works across our built and natural heritage portfolios.” 
Minister of State for the Irish Language, the Gaeltacht and the Islands, Joe McHugh TD, said:  “The €5 million increase which has been allocated in Budget 2019 for the Irish language, the Gaeltacht and the Islands will cement the success of Bliain na Gaeilge 2018 and build on the impetus that has grown around language planning over the course of the last year. "

Irish Universities Association

The government has done very little to address the growing crisis in third level funding in Budget 2019. The allocation of €57m million in ‘extra’ funding on top of existing commitments on national pay increases, while welcome, only allows the system to tread water. The bulk of the money is ring-fenced for specific purposes and does not deal with the core funding gap. The promise of a Human Capital Initiative Fund in two years’ time does nothing to address the current funding shortfall.

State funding per student remains virtually unchanged as the small allocation of extra funds is mopped up by increasing student numbers. State funding per third level student in Ireland at €5,000 is a fraction of that in Germany, Norway, the Netherlands, Sweden and Finland, countries with whom we are in competition for investment.   

Jim Miley, Director General of the Irish Universities Association said: “It is a serious cause of concern that the government has not prioritised the education of the future workforce of the country. Third level funding is critical to generating the talent pool for the economy. Our future economic competitiveness will be eroded if the public funding deficit is not addressed.

It’s patent nonsense for the Minister to continue to talk about having the ‘best education system in Europe by 2026’ while presiding over a funding regime that only provides a fraction of the funding per student of those best countries in Europe.”

There’s nothing in the Budget to address the major facilities upgrade that’s required in Irish universities. A funding requirement of at least €104 million in 2019 was proposed by the Irish Universities Association as part of a five-year University Capital Refurbishment Programme after a decade of neglect. Students cannot be expected to perform at their best in sub-standard facilities. 

The idea of a skills and talent-focused initiative such as the Human Capital Fund announced in the Budget is welcomed by universities. However, this amounts to no more than a future promise and does nothing to address the needs of the quarter of a million strong student population in our third level system.

The Budget represents a missed opportunity to deal with the long-accepted crisis in third level funding and to act on the recommendations of the Cassells Report for meaningful funding reform.
 

CarsIreland.ie
 
According to CarsIreland.ie, tthe increase in the diesel price has been a long time coming and is not entirely surprising. As a country we are missing our carbon emissions targets by a significant margin and the government was always likely to take steps attempting to change behaviour.
 
There has already been a dramatic shift away from diesel over the last few years and this will accelerate that further again.
 
CarsIreland.ie have seen a huge increase in the number of people searching for petrol, hybrid and fully electric cars recently
 
The positive from this is that it might further encourage people into zero emission vehicles, which needs to happen if we are to meet our short and long term carbon targets.

 

Mental Health funding 

Fine Gael Minister for European Affairs Helen McEntee has welcomed the additional funding for Mental Health services in 2019.

Minister McEntee said: “Fine Gael committed to this level of funding and we are now delivering on it. Mental health is an issue that impacts every family and every community in Ireland. As a former Minister for Mental Health, I fought every year for budget increases in this area. I am pleased that funding next year will increase by €84 million. This means that mental health services in Meath and around Ireland will be funded at an all-time high next year to the tune of €1 billion.

“This Government is ensuring that Mental Health is treated as a priority by its actions in this budget. This increase in funding will ease the pressures that services in this area have been under for some time. The additional funding will allow for new developments including expansion of access to out-of-hours mental health services.

“I will continue to fight for funding in this area so that we as a country, can deliver the services that are needed to the most vulnerable people in our country.”

Irish Property Owners Association

 The national representative body for private landlords, the Irish Property Owners Association (IPOA) have cautiously welcomed Budget 2019.
In a message to members shortly after the details were announced, IPOA Chairman, Stephen Faughnan, said that the restoration of mortgage interest relief to 100% as of 1st January 2019 was "a small start" on the long road of encouraging private landlords to either stay, or invest further, in the sector. "We have repeatedly told the Government that providing private rental property is a business," says IPOA Chairman, Stephen Faughnan.  "Like every normal business, landlords have to cover costs and make it worthwhile to continue.  I hope this small start will represent a real decision to make it possible for landlords to continue playing a full part in providing quality and affordable accommodation to the 20% of the population living in rental properties."
Mr Faughnan also expressed the hope that the Government will now begin to address other relevant issues including USC charged on gross income, acceptance of the Local Property Tax as an expense for rental properties, the complexity of landlord/tenant legislation, lack of protection during lengthy legal processes, and the inability to write-off other legitimate business costs from gross income. 
"Private landlords are part of the solution to the housing crisis," he said, "and they are willing to play their part as real partners.  But they cannot continue to be the fall guys for inadequate Government action. They want to be in the business for the long haul, but the next step is up to the Government."  

Macra na Feirme 

Macra na Feirme National President James Healy has welcomed Budget 2019 saying: ‘While it is very much a budget that exemplifies thinking within the box, there are some positive developments for young farmers. We welcome the introduction of young trained farmer stamp duty relief and young trained farmer stock relief. In addition, with the challenges of Brexit very much at the forefront of our minds, the additional 60 million euro for Brexit-related supports to improve resilience in the farm sector is very much needed and welcomed. I now call on the Minister for Agriculture Michael Creed to ringfence a percentage of this funding specifically for young farmers, particularly those who may have been unable to avail of the previous low-cost loan scheme.’
President Healy continued, ‘It was essential that the 90 % agricultural relief on Capital Acquisitions Tax was retained and this, along with the €10,000 increase in the Category A threshold are welcome, however a much larger increase must follow next year in order to bring us closer to pre-recession levels.’
He added, ‘The youth services grant within the Department of Children suffered a 35 % cut during the financial crisis, it appears Minister Zappone secured a 1.5 million increase in this vital funding for national youth organisations. While this increase is welcome, we are a long way from restoring the 35 % lost and from meeting the increased cost of legal and governance compliance.’
Mr Healy said, ‘Budget 2019 is a very pragmatic budget while providing an element of benefit for all.’

 

Institute of Professional Auctioneers & Valuers

IPAV, the Institute of Professional Auctioneers & Valuers, has welcomed the bringing forward of 100% mortgage interest relief for private landlords to January in respect of loans used to purchase, improve or repair properties.
Pat Davitt, IPAV CEO said his organisation, in a survey of members, found that high taxes is one of the primary reasons why private landlords are leaving the market.
“Private landlords are treated substantially less favourably by the State than commercial landlords. Today’s announcement, which we have long sought from the Government, is welcome in this regard, although more is needed.”
IPAV also welcomed Budget measures to improve the availability of serviced sites, and the availability of social homes but said more needs to be done to get Local Authorities building homes.
“Very specific targets need to be set for each Local Authority,” Mr Davitt said.

Irish Creamery and Milk Suppliers Association

Following the announcement of Budget 2019 today, the President of ICMSA, Pat McCormack said that it is quite clear now – if it wasn’t before -  that the current Government simply does not understand the scale of the challenges being faced by the farming sector, either in terms of the 50% fall in income predicted for this current year or the transformational challenges that could follow Brexit next March.    Mr McCormack said that farm families can only conclude that the Government has decided that it doesn’t want to support farm families and the agenda now seems to be about enhancing the position of corporate structures and big business over family farms.   The ICMSA President said he was reluctant to come to this position, but it was the only logical conclusion to arrive at based on today’s Budget. Introducing new schemes with more conditions and more inspections along with tweaks of existing schemes won’t solve the massive underlying problems and is simply ‘throwing shapes’ rather than providing real solutions for the farming community.

“The biggest single-issue facing family farms is income volatility and, as sole traders, the taxation system absolutely hammers farmers trying to make a living in an extremely volatile global food market.  ICMSA and others have consistently highlighted this fact and the Government has acknowledged the problem. As a matter of fact, Minister Creed acknowledged this following the last two Budgets and it is extremely disappointing that he has failed yet again to deliver for farm families on this matter.  We have corporate structures in Ireland and ‘Big Business’ paying effective tax rates of 1% and yet our Government cannot bring in a simple measure to assist farm families to establish a volatility fund under the supervision of the Revenue Commissioners that could be utilised for difficult years.   One would now have to question at this stage the level of priority that agriculture is getting around the Cabinet table and this should be a matter of concern for everyone in rural Ireland”, said the ICMSA president.

“The Government has a choice, either support the family farm structure or, in all honesty, tell these farm families that it is going in a different direction.  In not introducing an income volatility measure in the Budget, the Government has actually given its answer to that choice, but, out of courtesy if nothing else, they should announce it as Government policy”, concluded Mr McCormack.

 

Irish Farm Accountants Co-operative

 John Donoghue, CEO of ifac (www.ifac.ie) the professional services firm for the Irish farming, food and agribusiness sector said: “Budget 2019 is in many ways a missed opportunity for to the Irish farming sector. While there are some measures announced today that are welcome such as the extension of income averaging, overall there is a strong sense in the sector of an opportunity missed.  2018 was an enormously challenging year for farmers. With the combination of severe weather conditions, the fodder crisis, price and income volatility, spiralling costs and a major cash-flow squeeze across the board, farmers have had a very difficult year. There had been some optimism that a significant package of supports would be announced in the budget today to help the sector face into 2019, a year many anticipate will be one of the most challenging yet with Brexit and CAP reform on the horizon. No such package was delivered and farmers are understandably concerned about the future.” 
 
Walter Fox, partner in ifac’s Meath office said “At ifac we have been providing financial advice to farming families for over 40 years.  We know exactly how difficult 2018 has been for them because we are working with farmers every day, providing sound advice and guiding financial decision making. For the sake of the many farm families who are struggling to keep their businesses afloat in the current climate, we hope some additional pro farm measures will be included in the Finance Bill later this month. With an estimated 1 in every 7 jobs outside of Dublin supported by the farming sector this is a part of the economy that now more than ever deserves special attention and should be robustly supported to ensure that it remains resilient in the face of significant economic uncertainty.”
 
IFAC has identified the following shortcomings in Budget 2019:
The low interest loan scheme announced for farmers will only apply to capital projects and cannot be used for working capital and yet it is in the area of working capital where farmers need the most help having just endured one of the most challenging year’s on record.
No de-stocking tax relief measure announced to help farmers who were hoping for some targeted support to help them face into another winter of feed shortages and rising costs.
The much anticipated PRSI measures to help address the chronic labour shortage in the farming sector failed to materialise and so farmers will again struggle this year to attract labour into the sector.

 

Irish Cattle and Sheep Farmers Association

ICSA president Patrick Kent has welcomed the €40 for weighing calves announced in today’s budget. “ICSA asked Minister Creed for this in 2016 as a means of making the BDGP more accurate and rewarding farmers for putting real information into the ICBF database. An accurate calf weight is a real measure of how a cow is performing because it captures genetic potential for growth as well as milk.”
Mr Kent also welcomed the full restoration of the ANC payment which was slashed during the downturn. “This has been a real loss of income to our most disadvantaged farmers and it is high time it was restored.”
He also welcomed the extension of stock reliefs for another three years and the three year extension of stamp duty exemption for young farmers.
However, Mr Kent was more critical of other taxation measures. “The minor level of improvement on earned income tax credits and on the Category A thresholds for Capital Acquisitions Tax represent at best a begrudging admission that they are worthwhile and at worst a rowing back of the ambition set out in previous budgets. The earned income tax credit was only increased by €200 to €1,350 as happened last year as well.  
But the various reports on taxation have highlighted that there is a serious inequality with PAYE workers who qualify for a credit of €1,650. When Minister Noonan began the process of rectifying this blatant unfairness for self-employed workers it was indicated that it would be done over three budgets with an increase of €550 each time. We are now looking at this process being dragged out over seven years. There is no justification for this.  Similarly, the increase in the Group A threshold for CAT covering gifts and inheritances has to be seen in the context that the thresholds were cut severely in the past and that there is an acceptance that the current level exposes many people to heavy tax burdens on taking over the family business.” 
Mr Kent said that many farmers would be amazed at the substantial increase in afforestation money compared to what is being directed at livestock farming. “There is a serious question over blanket sitka spruce plantations both in terms of climate change and impact on rural communities.”
However, Mr Kent welcomed no increase in carbon taxes on fuel which he said did nothing to change behaviour for rural motorists who no option except to use diesel for transport. “Diesel fuels the rural economy and there is no realistic alternative for agricultural machinery or for haulage of inputs and outputs in rural areas.”

 

Family Carers Ireland 

Family Carers Ireland is challenging the Finance Minister’s claim that Budget 2019 is a “caring budget”. We are bitterly disappointed that Government has ignored the current crisis in homecare with no significant changes announced to address this major issue amongst family carers in Ireland. 

In his Budget 2019 speech, Minister Paschal Donohoe spoke of the steps the Government is taking action to increase the State’s “resilience” to economic shocks. Family Carers Ireland is questioning what the Government is doing to boost the resilience of struggling family carers. 

Many carers in Ireland have reached breaking point because of the lack of supports available to them and their relentless battle with the system. They are overwhelmed by the isolation, ill-health, exhaustion and financial strain that caring for a loved one can bring. 

Last week, a group of Ireland’s leading not for profit organisations and campaigners, including Family Carers Ireland, came together to highlight the urgent need for investment in homecare services pending the introduction of a statutory homecare scheme, calling for an additional €100 million investment in homecare in Budget 2019. 

While Family Carers Ireland acknowledges the modest €5 increase in weekly social welfare payments to some carers, a €300 increase in the Home Carer Tax Credit, reduced prescription charges for over 70s, a €150 million increase in funding for disability services, €84 million in additional funding for mental health and an extra €20 million for the National Treatment Purchase Fund, there are many family carers who may not have seen any benefit from this budget. This is especially true for families juggling paid employment and a caring role, young carers and full time carers that are not in receipt of Carer’s Allowance due to means testing. 

The organisation hears daily from carers who are housebound due to a lack of support, as well as carers who have collapsed due to exhaustion or who have had to refuse essential medical treatment for themselves because they can’t find replacement care for loved ones. 

Catherine Cox, Head of Communications and Carer Engagement with Family Carers Ireland, said: 

“We are bitterly disappointed that the Government has ignored the most important issues in our pre-budget submission focusing on carers in crisis. It is evident that carers are under-supported and have difficulty accessing the services they desperately need, in particular respite care to give them a much-needed break. A post-code lottery of services exists whereby where you live determines whether you will receive supports or not. To add to this, we have seen home supports cut significantly over the last nine years alongside a greater number of people requiring care.”

 

Department of Agriculture and Food

 
Minister for Agriculture, Food and the Marine, Michael Creed T.D., today announced details of his Department’s 2019 Budget. Speaking this afternoon, the Minister said: “Against the background of the overarching requirement for a balanced budget in 2019, my priority has been to deliver measures designed to help farmers, fishermen and food SME’s to navigate the challenges of Brexit. I also wanted to support those in the most disadvantaged areas, while maintaining the ambition for the development of the food industry”. 
 
Today’s Estimates provide for a gross Vote of €1.596 billion for the Department. In addition, the Minister said that he would be seeking sanction from the Minister for Public Expenditure and Reform to carry over an additional €20 million in capital funding, to bring the total provision for 2019 to €1,616m, including €275m for capital and €1,341m for current expenditure. This is in addition to approximately €1.2 billion in direct EU payments administered by the Department. 
 
Referring to Brexit, the Minister said: 
 “I have made provision for a Brexit Resilience Package of €78 million for the Agri Food sector for 2019.  This includes a range of measures to support farmers and industry, against the background of the challenges that lie ahead. “
 
The measures announced by the Minister include €44m of direct aid for farmers, comprising:   
•    An additional €23m for farmers in Areas of Natural Constraint (ANC),   allocation for 2019, bringing the allocation for 2019 to €250 million.   This is a 24% increase over the last two years and essentially restores ANC payments to the level prior to the economic downturn.  
•    The introduction of a €20m Beef Environmental Efficiency Pilot scheme. (BEEP) This is a new pilot scheme targeted at Suckler farmers, and  aimed at further improving the economic and carbon efficiency of Irish beef production. 
•    An additional €1m in funding for the horticulture sector, bringing the total provision for a sector particularly challenged by Brexit to €6 million. 
 
Minister Creed has also provided capital €27 million in Brexit related supports for the food industry comprising: 

•    €13 million in supports for food industry competitiveness and innovation; 
•    €3 million for Artisan and Micro food and beverage programmes through the Leader Programme and for LEAN manufacturing initiatives designed to improve competitiveness
•    an additional €5 million for Bord Bia, bringing the total Grant in Aid to €46.6 million. This is a 60% increase in funding for marketing and promotion of our food offering since 2014;
•    €6m in funding to progress an €8 million Food Innovation Hub in Teagasc Moorepark, of which €2 million was provided in 2018. 
 
 
Referring to work on Brexit preparedness within his Department, the Minister said that he had provided €7m for staff and IT costs arising from additional import control and export certification requirements arising as a result of Brexit.

In addition to the Brexit Resilience package, the Minister acknowledged the announcement in the Budget by his colleague Minister Donohoe of a key Government Brexit response, the “Future Growth Loan Scheme”, which will be rolled out in 2019 and for which he had made provision of €25m in 2018. The scheme will provide long term, unsecured investment finance for farmers and small scale companies in the food and seafood sectors. 
 
 
The provision for the Department’s Seafood Programme has been increased by €6 million, to a total of €133.8 million, and this will help fund vital investment in Castletownbere and Killybegs fishery harbours. The budget provision will also allow the Marine Institute to commence the planned replacement of the 21 year old Celtic Voyager with a new 50m modern research vessel that will provide critical national infrastructure to enable Ireland to address the considerable challenges of Brexit and the Common Fisheries Policy as well as climate induced impacts on our oceans. 

Referring to continued investment in the rural economy and in on farm schemes the Minister continued; “Our commitment under the Rural Development Programme (RDP) for 2019 is €638m. This includes a commitment under the Agri Environmental measures of €203m and €70m for the Targeted Agricultural Measures (TAMS).  
An increased allocation of €4m for 2019 has also been provided to assist with the strategic development of the Horse and Greyhound sector
Minister Creed welcomed the publication by the Minister for Finance of the “Progress Implementation Update of the Agri-taxation Review 2014”: “This shows the excellent progress made between our two Departments over recent Budgets with the implementation of almost all of the 25 recommendations, which has resulted in positive changes for Irish agriculture, especially in the areas of land mobility and succession”.
 
Against the background of this Review, Minister Creed had sought a number of agri taxation measures, which he welcomed today:
•    The lifting of the restriction under Income Averaging whereby farmers with additional self-employed income (for either themselves or their spouses) could not participate. The Minister said; “One of my highest priorities has been to develop an effective response to income volatility. Income Averaging is a useful tool in successfully managing volatility and I am particularly pleased with the announcement that it will be available to more farmers”.
•    Important reliefs for the sector have been renewed for a further three years:
o    Stamp Duty Exemption on Transfers of Land to Young Trained Farmers
o    25% General Stock Relief on Income Tax 
o    100% Stock Relief on Income Tax for Certain Young Trained Farmers
o    50% Stock Relief on Income Tax for Registered Farm Partnerships.
Minister Creed commented; “These reliefs enable investment and the young trained farmer measures are especially important in supporting young farmers and generational renewal”.
 
Minister Creed also welcomed:
•    The increase in the Earned Income Tax Credit by €200 to €1,350 and increased supports for the self-employed. Most farmers, foresters, fishermen and small food processors are self-employed and will see their tax liability fall with the increase in the tax credit.
•    The Minister for Finance’s decision to maintain the VAT flat rate addition for unregistered farmers at 5.4%.
The Minister concluded; “I believe that the package of measures announced today will support the agri-food sector and assist us focussing on competitiveness, innovation, new market development and environmental sustainability – all key themes of the Food Wise strategy, and the best response we can make to the uncertainty and challenge posed by Brexit.”

 

ALONE

 ALONE, the charity that supports older people to age at home, has welcomed the increase to the state pension announced this afternoon as part of Budget 2019, but has stated that further Government action is needed to support Ireland’s older people.

Following today’s Budget 2019 announcement, Seán Moynihan, CEO of ALONE, commented, “Today’s Budget shows some promise for older people. However, it does not go far enough, particularly concerning housing and homecare issues.”

Considering measures to combat the housing crisis for older people, Seán Moynihan said, “The focus should be on providing housing with supports for older people and further funding to the Housing Aid for Older People Scheme, in order to prevent a larger crisis to come. The increase in funding for Housing Adaptation Grants to €57 million, from €53 million, will enable up to 11,800 adaptations to better facilitate older people to age in their own homes.”

“However, from our assessment in our housing report, ‘Housing Choices for Older People in Ireland – Time for Action,’ we identified demand for grants for older people of €84.5 million per year, and we had hoped for a larger increase in funding for that scheme,” he continued.“We hope that our report will influence the housing investment announced by the Minister for Finance today.”

While an increased homecarers’ credit of €300 to €1,500 per year was welcomed, ALONE are also disappointed that no increase to homecare was included in Budget 2019. This follows a pre-budget submission by the charity calling for an increase of €102 million in Home Support Hours. ALONE was one of more than 20 organisations which came together last week to call for an additional €100 million investment in homecare.  

The charity welcomed the Government’s investment of €84 million to mental health funding. Having established the Loneliness Taskforce in collaboration with Senator Keith Swanick earlier this year, the charity is working to highlight the impact loneliness can have towards the health and well-bring of older people throughout Ireland. The Loneliness Taskforce is calling for €3 million of this new funding to be assigned to loneliness and social isolation. 

ALONE welcomed the increase to the pension, but also called for further action. “While we welcome the €5 increase to the pension, this is below the National Pensions Framework target of 35% of average earnings, which would require a €13 increase to the state pension. For pensioners living alone in rural areas, the income from a contributory pension will only meet the cost of 85% of their expenses. We had hoped that this year’s budget would reach the halfway point of an increase of €6.50 and are disappointed to note that the €5 increase is delayed until March 2019,” Moynihan said. 

In terms of social benefits announced for older people,Moynihan commented, “The restoration of the Christmas bonus will be a welcome relief for many older people in the run-up to the holidays. The extension of the fuel allowance to 28 weeks is also encouraging, but as one in ten older people are unable to keep their home adequately warm, we believe that this should have been restored to 32 weeks. Similarly, the Living Alone allowance directly impacts the living conditions of older people across the country and we had hoped that an increase to €14 per week might be introduced.“

In response to the 50c reduction in prescription charges for over-70s and updated health care costs, Seán Moynihan commented, “The reduction is a move in the right direction as the prescription charge has had serious health implications for older people over the last number of years. Likewise, the reduced threshold for the Drug Payment Scheme by €10 and the increase of income thresholds by €25 for GP visit cards will hopefully lighten the financial burden when an older person’s health requires attention.” 

Services Industrial Professional and Technical Union

SIPTU Sector Organiser, Darragh O’Connor, said: “The Government claims it wants a high quality, affordable and professional Early Years’ Sector but fails to deliver on this aspiration. While some measures announced today slightly reduce the cost of childcare for some parents it is merely a token gesture. Our members believe that Budget 2019 is ultimately a missed opportunity to deliver for educators and providers.
 
“The childcare sector is in the middle of a staffing crisis. This budget fails to recognise and reward workers in the sector and will do nothing to alleviate this crisis. Low levels of government investment mean that qualified Early Years educators earn just €10.88 per hour. Many workers are also on precarious 15 hour a week, 38 week a year contracts. This is unsustainable.”
 
He added: “Unsurprisingly, this has resulted in a staff turnover rate of 28% per year as educators struggle to make ends meet. The crisis has undermined the drive to improve quality in the sector. Ireland spends just 0.2% of its GDP on Early Years education. This compares to an EU average of 0.7% and 1% in Sweden. This low level of funding is compounded by a competitive ‘market model’ approach which is unfit to deliver such a vital public service.”