No harmony as Micheál and Simon express differing views on next budget
Taoiseach Micheál Martin has said economic forecasts the Government received last weekend were 'sobering' – but Tánaiste Simon Harris told reporters he wanted an 'expansionary' Budget.
A row between the two Government parties over the student contribution charge blew up over the weekend after Higher Education Minister James Lawless appeared to confirm the charge would revert to €3,000 this year once cost-of-living measures ended.
This led Fine Gael to launch an attack on Minister Lawless and say they wanted to continue to reduce the cost of the student contribution charge over the lifetime of this Government. Speaking in Tokyo yesterday, Mr Martin moved to dampen expectations ahead of the October Budget. James Lawless. Pic: Gareth Chaney/Collins Photos
Mr Martin said he had received stark warnings about the state of Ireland's macroeconomic factors, including the potential impact of tariffs from the US. Mr Martin met with Mr Harris, Finance Minister Paschal Donohoe and Minister for Public Expenditure Jack Chambers about Budget 2026 and the National Development Plan over the weekend.
He said: 'It was a sobering enough meeting to be frank in terms of the challenges that lie ahead, given the backdrop of [US] tariffs and uncertainty in trade.' Mr Martin added that another factor of concern related to 'warnings we have received' in relation to 'certain corporation tax revenues.'
'It's challenging, and expenditure has been rising very significantly in Ireland, and that has to be factored into the equation.' However, Mr Harris appeared to have a different approach. Simon Harris. Pic: Stephen Collins/Collins Photos
Asked about Mr Martin's comments, the Tánaiste said: 'Our Budget in Ireland will be expansionary… will have an ability to do more, and we'll be doing more to actually to invest in our economy and our society, to reduce the cost of running the cafe, to reduce the cost of running the restaurant, to reduce the cost of education, because we know the security of our economy depends on investing in the ingenuity of our people.'
Asked how he squared the political circle of global economic headwinds with an expansionary Budget, Mr Harris said they were not contradictory objectives.
'It's all about balance and context. We will continue to put money aside in the funds for the future of our country, both in the Nature and Climate Fund and in the Future Ireland fund.'
He said the Government would run budget surpluses, adding: 'But we will also be working our way through our Programme for Government. I don't think that's a shock.'
He said both Fine Gael and Fianna Fáil had flagged economic headwinds during the general election, adding: 'We're not going to not try to help people where we can, but we're going to do it in a balanced way.' Jack Chambers. Pic: Sam Boal/Collins Photos
Mr Harris also played down a rift over the student contribution charges. He and Jack Chambers warned that the threat of US tariffs has brought uncertainty to the economy which would be taken into account in Budget negotiations.
Controversy over future student contribution fees began last Sunday after Mr Lawless said fees would 'reset' to €3,000 – what they were three years ago. On Monday he said he currently does not have the funds to reduce fees but would 'fight' his case as part of budgetary negotiations.
Asked if there was a rift in Cabinet, Mr Harris said 'certainly there is not'. He said fees would not go up in September as those fees are covered under Budget 2025.
He said most families pay the fee in instalments, in September and the new year, so the second instalment of the upcoming academic year would come under Budget 2026. Minister of State Thomas Byrne said: 'I think we are at one on this.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Times
2 hours ago
- Irish Times
The Irish Times view on plans for the GPO: a terrible idea is born
The GPO occupies a space in Irish life that transcends bricks and mortar. More than a functioning post office or architectural anchor of O'Connell Street, it is the most resonant physical symbol of the struggle for Irish independence. It is no surprise, then, that the Government's vague and ill-defined outline for its redevelopment, framed in response to the Dublin City Taskforce report, has drawn such emotional and at times overheated criticism. Sinn Féin and Aontú have accused the Government of plotting to turn the GPO into 'a shopping centre'. While this charge is more rhetorical than realistic – the proposals include 're-imagined retail components' in the existing shops on Henry Street and the GPO Arcade – it reflects an understandable fear that the site's dignity might be compromised in the name of commercial convenience. The idea of a Starbucks beneath the watchful gaze of Cúchulainn rightly causes discomfort, however improbable it may be. Still, the reaction should not obscure the need for careful scrutiny of what is being proposed. Among the Government's stated intentions are to retain a post office function, enhance the public realm, integrate retail elements and introduce 'significant cultural uses'. Thus far, so good. But it also includes a plan to install a 'high-quality office element on the upper floors to meet ongoing and additional Government requirements'. This is where the proposal veers off course. READ MORE At a time when central Dublin is not short of modern office space – much of it lying vacant – it is difficult to comprehend why the State would invest in converting a historic and architecturally sensitive complex from the 1920s into more civil service workspace. Such a move appears not only unnecessary but tone-deaf to the symbolic role of the building and the opportunity it presents. The north inner city, and O'Connell Street in particular, have suffered decades of neglect and decline. The GPO, if imaginatively and respectfully revitalised, could be a cornerstone in the area's cultural and civic renewal. That opportunity must not be squandered. A successful redevelopment should put heritage and public engagement at its core. It must help residents and visitors alike understand the GPO's extraordinary role in Ireland's history, something the current museum on the premises only begins to do. It should also include new public cultural venues: not just one, but several, ensuring that this central, national site is animated with meaning and public value. As Labour's Marie Sherlock and An Post CEO David McRedmond (who chaired the original taskforce and knows the building as well as anyone) have rightly pointed out, there are better options for additional office space elsewhere. The GPO deserves more than functional repurposing. It deserves vision, respect and ambition.
RTÉ News
2 hours ago
- RTÉ News
Small number of Irish-based jobs to go at TikTok
A small number of Irish-based roles are expected to be cut at TikTok's global e-commerce division. It is understood that less than ten staff will be impacted and that there may be redeployment opportunities within the company for affected workers. Earlier this week, news site Business Insider reported that TikTok had begun notifying some e-commerce workers that their roles were being cut as part of organisational and personnel changes. A TikTok spokesperson declined to comment on the job cuts. In March, TikTok informed the Government that around 300 Irish-based jobs were under threat as part of global cuts. It was part of plans to lay off staff at its trust and safety unit which handles content moderation, as part of a restructuring. Almost 3,000 staff are employed at TikTok's Irish operation.
Irish Examiner
3 hours ago
- Irish Examiner
Palestine Action to make Court of Appeal bid at evening hearing over terror ban
Palestine Action will head to the Court of Appeal to ask for permission to challenge a High Court judge's refusal to temporarily block it from being designated as a terror group. Huda Ammori, the co-founder of Palestine Action, asked the High Court to temporarily block the Government from banning the group as a terrorist organisation before a potential legal challenge against the decision to proscribe it under the Terrorism Act 2000. The move was to come into force at midnight after High Court judge Mr Justice Chamberlain refused Ms Ammori's bid for a temporary block. However, the PA news agency understands that lawyers on behalf of the group will ask appeal judges for the go-ahead to challenge the decision in a hearing due to begin at about 7pm on Friday. In his decision refusing the temporary block, Mr Justice Chamberlain said: 'I have concluded that the harm which would ensue if interim relief is refused but the claim later succeeds is insufficient to outweigh the strong public interest in maintaining the order in force.' Shortly after the decision was handed down, Ms Ammori said that she would be 'seeking an urgent appeal to try to prevent a dystopian nightmare of the Government's making'. She added: 'The Home Secretary is rushing through the implementation of the proscription at midnight tonight despite the fact that our legal challenge is ongoing and that she has been completely unclear about how it will be enforced, leaving the public in the dark about their rights to free speech and expression after midnight tonight when this proscription comes into effect. 'Hundreds of thousands of people across the country have expressed support for Palestine Action by joining our mailing list, following and sharing our social media content and signing petitions, and many, including iconic figures like Sally Rooney, say they will continue to declare 'we are all Palestine Action' and speak out against this preposterous proscription, demonstrating how utterly unworkable it will be.' Read More Young Europeans losing faith in democracy, poll finds
