VAT rate for small businesses to be permanently cut in Budget, Harris tells meeting
Tánaiste Simon Harris has told the Fine Gael parliamentary party meeting that the VAT rate for small businesses will be cut permanently in the Budget.
The party has previously signalled that VAT cuts were on the way for food and entertainment businesses as well as hairdressers.
A party spokesperson said tonight that the detail of any cuts still need to be "teased out".
Simon Harris told colleagues that the Budget will be "an expansionary package" and most of the measures will take effect next January.
He said childcare fees for many families are like a second mortgage and these costs must be permanently reduced over the lifetime of this Government.
He added that the cost of education must be cut along with healthcare costs, and significant progress needs to be made in children's disability services and special education.
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Irish Times
an hour ago
- Irish Times
Letters to the Editor, June 26th: On Israel's relationship with Ireland, Donald Trump and food labels
Sir, – Recent debate within Ireland regarding the Middle East has been reductive and almost exclusively unipolar, led by Tánaiste Simon Harris, whose rhetoric has at times been ugly. Indeed the entire political establishment, along with mainstream social media, backed up by the @X brigade and the unions, have contributed to the toxic, hostile environment in Ireland towards Israel. It is impossible to know exactly to what extent this mirrors public opinion. While there are many critical voices in Europe, some justified for sure, about aspects of Israel's war against Hamas, Hizbullah and now their paymaster, Iran itself, in no other European country has this been as openly and aggressively venomous towards the Jewish state as in Ireland. This antagonism resulted in the withdrawal of the Israeli embassy from Ireland. READ MORE Ireland has taken this path while at the same time fetishising over Palestine and Iran, the latter being the West's largest terror threat. Most countries – some silently – are cheering Israel for having the guts to dismantle the nuclear threat. The war will eventually end. The deep freeze between Ireland and Israel might never do so. Does this matter? Israel has one of the most sophisticated global industrial, technological and scientific reach of any country. The compound fracture with Israel may damage not just the Irish economy but also, for example, the welfare of patients in hospital beds, deprived of the latest medical advances. Maybe Ireland will be judged as the champion of the oppressed, a success story hailed by the more radical pro-Palestinian and pro-Iranian movement; but if so, what are the long-term implications? Will its long-held reputation as a country of a céad mile fáilte for all visitors regardless of race, religion or nationality be forever tarnished? – Yours, etc, Dr ED ABRAHAMSON, Cornwall, England. Sir, – Watching desperate men, women and children in Gaza scrambling with their containers towards food relief trucks daily on our television screens is very distressing. Then you hear many of these desperate people have been shot at by the Israeli army. When asked why, the army's comment is always: 'We are looking into it.' As yet I still have to hear the results of their investigations. – Yours, etc, EILEEN BANNAN, Letterkenny, Co Donegal . Sir, – Referring to Israel's breaches of the obligation to respect human rights enshrined in Article 2 of its free trade agreement with the European Union, Kajia Kallas, the EU High Representative for Foreign Affairs, is apparently prepared to consider 'a proposal' to restrict trade between EU states and 'violent settlers' in occupied Palestine. However, she stresses that the idea is not to 'punish' Israel, but pressure it to 'change course' (' Spain's foreign minister renews call for EU to suspend Israel trade deal ,' June 24th). Two anomalies strike me here. Firstly, under the Fourth Geneva Convention, all settlers in occupied Palestine are illegal, and not just violent ones. When the trade agreement with Israel was signed in 1995, Israel had already built numerous illegal settlements in the Occupied Palestinian Territory and many of the settlers were violent – hence the agreement itself was arguably illegal from the start. Secondly, the International Holocaust Remembrance Alliance's (IHRA) definition of anti-Semitism, endorsed by the Irish Government, condemns 'applying double standards [to Israel] by requiring of it a behaviour not expected or demanded of any other democratic nation'. Would any other state violating the terms of a trade agreement with the EU be told nicely that the idea is not to 'punish' it, but pressure it to 'change course'? If not, is this not a serious example of double standards? – Yours, etc, RAYMOND DEANE, Broadstone, Dublin 7. Trump and the ceasefire Sir, – Your correspondent, Keith Duggan, is to be commended for at least trying to report on US president Donald Trump's leadership style in an objective manner. He has broken with the anti-Trump consensus in the Irish media without becoming a Trump supporter. Referring to the ceasefire between Israel and Iran, he says: 'But the radical switch of fortunes suggested that Trump's uncanny instinct for whom to back, and when, had served him well again. 'The ceasefire declaration was arguably the most statesmanlike delivery of Trump's political life – he didn't feel the need to mention himself even once.' (' Israel-Iran ceasefire announcement shows Trump's uncanny ability to shape the narrative ,' June 24th). I believe Trump was wrong to authorise the US intervention in Israel's war on Iran while his efforts to end the aggression are to be welcomed. But whatever about that, reporting that pulls us back from simplistic group-think deserves support, especially in the context of current politics in the US. – Yours, etc, DAVID ALVEY, Daingean, Co Offaly. Sir, – Does the US president's use of the expletive legitimise it? It looked like a Father Jack moment to me. – Yours, etc, CORMAC MEEHAN, Bundoran, Co Donegal. Sir, –When recently referring to the actions of Israel and Iran, Donald Trump said that 'they don't know what the f**k they are doing'. Coming from him that is quite a statement. –Yours etc BRIAN CULLEN , Rathfarnham, Dublin 16. A beef over food labelling Sir, – Regarding Conor Pope's article on the farmers' campaign to stop plant-based producers from using terms like 'sausage' and 'burger' (' Farmers accuse vegan food makers of hijacking sausages ,' June 25th), the logic, it seems, is to save the public from the shock of discovering a vegan sausage contains – heaven forbid –no pig. If we're to pursue such linguistic purity, surely the dead animal industry should embrace radical honesty too. After all, 'pork' and 'beef' are just euphemisms that soften the reality of what's on our plates. Let's police food language with gusto and transparency for all – so everyone knows exactly what they're eating, whether it once oinked, mooed, or sprouted in a field. Imagine a burger packet simply declaring: 'Contains connective tissue mechanically extracted from the dead body of a slaughtered cow. Producing this burger generated about 9.7 kg of CO2 emissions – over 20 times more than a plant-based patty – and contributed to deforestation and climate change. Regular consumption of red and processed meat is also linked to higher risks of heart disease and cancer. Now that's labelling you can't misunderstand. – Yours, etc, LOUISA MOSS, Annamoe Road, Dublin 7. Sir, – My understanding is that sausages and other such food products were traditionally made with whatever was to hand and often what might otherwise have been unusable – a great diversity. They might include non-meat products such as oatmeal. The shape of the product – sausage, burger or whatever – was what defined the product. It therefore seems the real cynicism is for meat producers to seek to ban vegan and veggie products which use such labels. A pork sausage has pork in it, a veggie sausage has vegetable and presumably grain products, both with flavourings. There is no need to be silly about sausages. – Yours, etc, ROB FAIRMICHAEL, Ballynafeigh, Belfast. An egregious solution Sir, – Thank you to Cathy Dillon for her well-crafted piece in An Irishwoman's Diary (June 23d), and for helping me find the solution to 13 across in Simplex, with her use of the word 'egregious'. – Yours, etc, JOE CARROLL, Bellurgan Point, Dundalk. Putting the cart before the horse Sir, –The Taoiseach has brought a 10- year plan, costing multi millions, to Cabinet to develop the GPO and O'Connell Street. No modern city can properly function without key frontline workers such as gardaí, teachers, nurses, firefighters etc. Dublin rents are now among the highest in the world and are not affordable for these workers. The result is long, stressful and expensive commutes. These vital people are voting with their feet and are choosing to work anywhere but Dublin, with large numbers emigrating or leaving their chosen profession. What a complete waste of talent and money. Surely it is a case of putting the cart before the horse? Start with a viable solution to the accommodation crisis for key workers to live near their place of work. A 24/7 Garda presence on O'Connell Street and neighbouring streets is surely the first step to bringing O'Connell Street back to its former glory. – Yours, etc, PASCHAL TAGGART, Rathgar, Dublin 6. Sir, – The comments from the Dublin City Council project manager are frustrating but, sadly, no longer surprising ('College Green plaza redevelopment budget soars to €80 million,'June 24th). A 700 per cent increase in the budget for the long-promised College Green pedestrianisation, and completion now unlikely before 2030? It is hard to see this as anything other than a failure of basic project management, leadership and accountability. To make matters worse, 40 per cent of the current budget is being classified as 'contingency' – which reads less like prudent planning and more like an admission that those in charge have little to no confidence in their own financial planning. Thirteen-plus years to pedestrianise a city street is not just an embarrassment – it reflects the broader inefficiency and dysfunction that increasingly characterise how we approach public projects in this country. Our city and our citizens deserve much better. – Yours, etc, PETER LYNN, Sandymount, Dublin 4. Sir, – Your editorial (' Creating a new city centre space ,' June 24th) on the escalating cost of the College Green Plaza redevelopment misses the real crisis: stalling projects like this has stifled cycling, robbing citizens of health benefits. Cycling slashes risk of death from heart disease and dementia by 30-40 per cent, yet delays keep our streets unsafe and lacking a joined-up network of protected bike lanes. Plans like this will change hostile environments into ones that are safe, enabling Dubliners to choose healthy mobility. As cycle infrastructure projects wallow in planning purgatory, every year lost costs lives, not just euro. – Yours, etc, Dr SHANE O'HANLON, Terenure, Dublin 6. Electric cars in the slow lane Sir, – Bernard Farrelly (Letters, June 25th) is so right to point out the lack of high-speed chargers available around the national road network. Not only do the drivers of electric vehicles have to wait to fill up while their fellow petrol and diesel road users are done and dusted in two or three minutes, but they must also grapple with very rigid and heavy charging cables which are sometimes too short, a different machine and app for every service station and the inability to just pay by tap and go. When encountering yet another new EV charging provider on your journey you have to register online, verify by email and figure out what code on the charger may or may not need to be scanned. All this in the furthest flung corner of the service station and fully open to the elements. If the Government wishes to ramp up the number of electric cars on the road at pace, they might want to make sure filling up with electricity is at least as easy as filling up with liquid fuel. – Yours, etc, JOE FAHY, Dangan, Galway. Alcohol and labelling Sir, – Regarding the labelling of alcohol products in Ireland, I suggest using a similar strategy to that employed by Norway with regards to its oil industry. Norway exports oil products all over the world, while at the same time protecting its citizens from local pollution from those oil products by subsidising one of the most widespread electric vehicle systems in the world. Ireland could do similar with alcohol labelling. Produce a special label specifically for the Irish market, while exporting without our specific labelling to the rest of the world. The cost of Irish-specific labelling can be paid for by the enormous volume of export product currently going all over the world. Would it cost 1/2 cent extra on an export bottle to pay for the Irish labelling? An Irish solution to an Irish problem. – Yours, etc, DAVID DORAN, Co Carlow. Supporting the Civil Service Sir, – Eddie Molloy, (Letters, June 21st) emerged from his redoubt to fire off a virtual scattergun criticism of the entire Civil Service administration. He says with admirable confidence that the service suffers 'administrative incompetence and inertia', segueing effortlessly into the 'fact' that the Civil Service is not up to the job. As a former civil servant, there was a recognition that there tended to be a cyclical attack on the public service, akin to the life cycle of cicadas, ie about every 15 years. Does Mr Molloy not recall any or all of the incredible private sector fails by banks, building societies and other financial institutions in the relatively recent past, that almost brought the country to its knees, beholden to the International Monetary Fund? On another front, the Department of Health and the Health Service Executive, during the Covid pandemic, steadied the nation's nerve and brought us through an unprecedented crisis. Later on, certain individuals and groups, who should have known better, began a campaign to denigrate those who had worked tirelessly until the serious threat had receded, suggesting that the essential restrictions had been largely unnecessary. I am all for valid criticism, but generalised 'certainties' are never sustainable. – Yours, etc, PATRICK JUDGE, Dún Laoghaire, Co Dublin. Short letters Sir, – Regarding the letter about The Irish Times publishing longer letters as opposed to shorter ones: Short letters rule, OK. – Yours, etc, JOHN ROGERS, Rathowen, Co Westmeath.
The Journal
2 hours ago
- The Journal
Contactless on Dublin public transport? 'It's happening,' says Transport Minister... in 2029
CONTACTLESS PAYMENTS ON Dublin's rail, bus, and tram routes are not expected to be fully operational until 2029, Transport Minister Darragh O'Brien told the Oireachtas Committee on Transport today. The Minister appeared to give an update on transport estimates for this year. The contactless payments would allow those using public transport in Dublin to reduce their reliance on Leap cards and cash. Contactless payments are to come into operation on a phased basis, O'Brien said, beginning with phase one in summer to autumn 2027. Phase one is an in-use testing phase, followed by three other phases 'dependant on the success of that roll-out'. The in-use testing phase will be in a control area within Dublin, across rail, bus, and tram routes, O'Brien said in response to questioning from Green Party leader Roderick O'Gorman. That would be across a period of months, he said. Phase two would be a 'further expansion' on the first phase which would run into summer 2028, and the third phase would follow on into the following year – 2029. 'How we roll it out would be dependent on the first phase. If that goes well and the testing of that is robust, and we don't require many system changes, be that on the ICT side or the contactless side… the next phase after that is scheduled for the following year. So by 2027 to '29, you would have the system full operational,' O'Brien told O'Gorman. Advertisement 'It will be something that is with us a long time, so we don't want to rush it.' O'Brien said that he would like to see the system operational sooner, but that it can't be predicted how the rollout will go. Fine Gael TD Grace Boland questioned the minister on the crawling pace of the introduction of a system that is a mainstay in many European cities. 'Tourists that come here can't believe we don't have a tap-on, tap-off system,' she said. In a statement released following the Committee meeting, Boland said: ''Why the delay, what is the issue here? Other cities have it. Greece defaulted on a debt repayment ten years ago and they have it rolled out now. 'This is simply not good enough. Contactless payments must be introduced across Dublin far quicker than 2029.' Labour's transport spokesperson Ciaran Ahern pointed out that vending machines and churches use contactless card machines in Ireland. 'Not only has cash become less frequently used across society, even the use of physical cards is on the decline given that most smartphones have a payment function. Carrying around a LEAP card is really a thing of the past,' he said. He added that it was particularly inconvenient for people who don't live in Dublin but who want to use public transport when in the city. The system is estimated to cost €165m to the Exchequer. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Times
4 hours ago
- Irish Times
VAT rate for small businesses will be reduced permanently, Tánaiste tells party colleagues
The next Budget will be an 'expansionary package' with plans to permanently reduce the VAT rate for small businesses, the Tánaiste has said. Simon Harris told the Fine Gael parliamentary party meeting on Wednesday that Budget 2026 would be 'responsible and responsive', according to a source present. The Tánaiste is understood to have told those present that he and his party colleagues remembered 'very well' what the party canvassed on in the lead up to the general election. Among the measures discussed was a permanent reduction in the VAT rate for small businesses. READ MORE This was alongside remarks by Mr Harris that childcare fees for many families are 'like a second mortgage'. He told colleagues these costs must be 'permanently reduced' over the lifetime of the Government. He added that the cost of education, across all levels, must be reduced alongside healthcare costs, while 'significant progress' must be made in children's disability services and special education. Separately, the Fine Gael leader said he supported calls for post offices to receive €15 million per year in funding for the next five years. A report earlier this year from Grant Thornton found that the post office network requires this level of funding per year until 2030, without which the State faces the prospect of 'rapid, unrestrained closures', which would risk 'irreparable financial, economic and social harm'. Direct funding of €10 million annually from the State is due to expire at the end of this year. An Oireachtas committee on Wednesday heard that up to 400 post offices could close if the State does not increase aid.
