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Irish Independent
28-07-2025
- Irish Independent
‘Independence for Clonmel' amid debate to revive borough councils
Speaking to the Irish Independent, Deputy Murphy said that the Clonmel Borough dates back to 1608, and that it should be reestablished under the Government's Local Democracy Taskforce. "There has been some soundings from the Taoiseach in particular, and I know during the General Election back in November when he visited Drogheda, he said on the record that the abolition of borough councils, and indeed many of the town councils, was a mistake,' Deputy Murphy said. "Now that the Government has established this Local Democracy Taskforce that I felt that it's really important to keep this on the agenda … I spent 15 years as a local councillor, I'm a strong advocate for local government,' he added. "I genuinely believe that in terms of many of the challenges we face at a national level, that some of these challenges can only be truly solved with the meaningful involvement of local government and local authorities'. The Local Democracy Taskforce commits to reforming and strengthening local government, as outlined in the programme for Government. According to Deputy Murphy, the abolition of Clonmel Borough Council, as well as the amalgamation of North and South Tipperary County Councils in 2014 had a 'huge' impact on Clonmel. "I felt that the power base switched to Nenagh and I did call for independence for Clonmel,' he said. The restoration of the borough council would allow monies made in Clonmel to be reinvested back into the town, the Fine Gael deputy said, and would ensure that the town could benefit. "Clonmel is really strong, we have a lot of commercial rate payers here and there's a real concern about the lack of transparency in terms of all these monies going into a centralised pot and how much of it is coming back to Clonmel? 'Parking charges is another example, I think in terms of Tipperary, 50% of all parking charges is raised in Clonmel, and I don't think it's sustainable, so that's why I'll continue to champion independence for Clonmel and the restoration of the borough council,' Deputy Murphy said. ADVERTISEMENT 'I have faith in Tipperary County Council and I do have confidence, and I'm a strong advocate for local government, and while we can often be critical of Tipperary County Council, at the same time I think they do get an awful lot right,' he explained. Highlighting the issue of a lack of resources from central Government for local authorities, Deputy Murphy said that's another issue that needs to be addressed. "I think one of the failings of Tipperary County Council is the extent to which we're resourced at the national level and whatever about the reestablishment of the boroughs, which is basically financial independence for towns like Clonmel, there's a separate issue as well and that's the extent to which local authorities are financed at the national level and that more than anything impacts on Tipperary County Council's ability to do its job,' Deputy Murphy added.
RTÉ News
27-07-2025
- RTÉ News
First kite of pre-budget season flew over Leinster House
Bird watchers sometimes herald the sighting of the first swallow of the year as the start of spring. And, not to be outdone, political anoraks have a similar phrase too. The first kite of the pre-budget season flew high and mighty over a quieter than usual Leinster House this week, as the beginning of the Dáil's summer recess was interrupted by a potentially serious political row gliding into view. Not for the first time, it involved a once cast-iron pre-election promise whose carefully choreographed landing now risks becoming a victim of some not exactly unexpected post-election economic turbulence. And, not for the last time, the planned flight trajectory could yet be replaced by an all too public nose dive as the Coalition checks its political radar for signs of how to navigate its way between two competing financial priorities. Hospitality tax cut The reason for the situation is a Programme for Government promise which is now at real risk of being delayed. In the January document, which outlines what Government intends to do in power, the Fianna Fáil-Fine Gael-Independents Coalition confirmed that the existing 13.5% hospitality VAT rate would be reduced. That commitment, which was one of Fine Gael's key commitments in last November's General Election, was widely seen as indicating but did not explicitly point to this October's Budget as the moment the 13.5% rate would be cut to 9%. Such a move would support struggling restaurants, bars, cafes, pubs and hotels, and therefore help protect jobs. "Our Budget decisions could change depending on the economic environment we find ourselves in." But its near €1 billion price tag would mean less financial space for cost of living supports for the wider pubic, an issue that was made crystal clear as Government outlined its immediate economic plans this week. During a press conference at Government Buildings on Tuesday, Taoiseach Micheál Martin, Tánaiste Simon Harris, Minister for Finance Paschal Donohoe and Minister for Public Expenditure Jack Chambers announced the Coalition's National Development Plan and Summer Economic Statement. The former outlined a €275bn capital projects war chest for the coming decade, including aspirational promises and dazzling numbers like €36bn for housing, €22bn for transport infrastructure such as the long-delayed Dublin Metro, and almost €10bn for health. But the latter was more pragmatic, detailing in practical terms how much money Government actually has to play with in its coffers right now - and, specifically, space for €1.5bn worth of tax cuts in Budget 2026. The figure may seem like a lot, and it is, but it still does not pay for everything voters want. And, inevitably, that means difficult choices for the coalition to make, including when it comes to promises previously given. Despite both Mr Martin and Mr Harris saying in recent months that the cut will happen, Mr Donohoe told reporters that the expected hospital VAT reduction from 13.5% to 9% was not as certain as previously indicated. Rarely one to misspeak, Minister Donohoe explained that if the hospitality VAT rate is reduced it is important "to be open" about the fact "trade offs" with other sections of society may be necessary. "I have always made clear my intention with regard to that [the hospitality VAT cut]," he said. His use of the word "intention" rather than anything stronger peaked the interest of attending reporters. "But I have also said there are trade offs, and there are consequences to that," he said. "And there are therefore other things that we are not going to be able to do. "If you were to bring forward a tax package that was to fund a full year measure that was in relation to the VAT, the cost of that would be nearly a €1bn." "And then if I was to add to that other measures we've done in the past, we would have a tax package that is far bigger than what I believe would be safe," he said. He added: "Our Budget decisions could change depending on the economic environment we find ourselves in." A pre-budget kite, in other words. And one that has caused if not a split, then certainly some friction, within the Coalition as competing political priorities have emerged. Internal Coalition friction While Minister Donohoe's comments were likely designed to point out the reality of the dilemma for Government rather than specifically rule out the hospitality tax cuts this year, they did open the door to the prospect within at least some sections of the coalition. By Wednesday, several Government sources had indicated privately that the cut should be delayed until July 2026, with Fianna Fáil members - including the wily long-time Limerick City TD Willie O'Dea - among those to publicly nudge forward the argument. Speaking on Friday on RTÉ's Morning Ireland programme, Deputy O'Dea said given the limited scope for tax reductions in the upcoming budget, he would "like to see it [the €1.5bn in available tax cuts] more equitably divided", with "an increase in tax credits and tax bands in line with inflation" his priority. Asked if this is because it would be difficult to convince voters to support helping the hospitality sector first, given a disputed reputation for price gouging by some businesses in that sector, Deputy O'Dea said: "It's not just a question of would it be hard to sell to the public, it's would it be good for the economy." Responding to suggestions of friction in the Coalition over the situation, he added: "I wouldn't describe it as friction, people have different views and that's what Coalition government is about." "I don't understand what kind of kites the Government are flying in relation to this cut for the hospitality industry, the Government are sewing massive seeds of confusion on this yet again." Deputy O'Dea's view was echoed privately by numerous Fianna Fáil TDs, and a smaller number of Fine Gael colleagues, who questioned how prioritising help for businesses instead of cost of living supports for the wider public might play out. And senior Government sources did little to kill off the suggestion when asked. But Fine Gael TD and Minister for Enterprise and Tourism Peter Burke - the politician responsible for the sector - had a different view during a hastily organised press briefing at Government Buildings on Thursday. Asked if he would acknowledge the hospitality VAT tax rate cut will now be delayed until next summer, Minister Burke responded: "Absolutely not acknowledging that, any negotiations will form part of the budget. "We're now still in July and it's very important to note the Budget will consider all options in every different sector." Opposition criticism The opposition, it is fair to say, were less than impressed over the apparent confusion over whether the hospitality tax cut would still go ahead on 1 January or be delayed until at least next July. Labour TD Duncan Smith said bluntly: "I don't understand what kind of kites the Government are flying in relation to this cut for the hospitality industry, the Government are sewing massive seeds of confusion on this yet again." That view was shared by other opposition TDs, including Sinn Féin's Donnchadh O'Laoghaire who said the Coalition needs to find a way to help both the hospitality sector and the wider public through cost of living supports. And it was echoed too by non-political groups representing those in the sector, which became locked in a war of words over what should happen next. Responding to the watering down of the previous tax cut promise, Restaurants Association of Ireland Chief Executive Adrian Cummins said: "If the VAT rate doesn't reduce to 9% from January 1, you'll see more and more closures" and resulting job losses, noting more than 200 restaurants have already closed this year. However, the view was countered by the Irish Congress of Trade Unions general secretary Owen Reidy. "The proposal to cut the VAT rate at a time of huge economic uncertainty flies in the face of all available evidence, and would amount to nothing less than economic vandalism," he said. "The Government has identified many laudable priorities as part of its programme for Government: housing, reductions in child poverty, and investment in disability services. "Given that ministers have been giving serious warnings about economic uncertainty, why would they prioritise a corporate handout costing almost €1bn?" Government dilemma That latter point goes to the heart of the difficulty now facing Government, and in part helps to explain the early nature of this week's at times contradictory pre-budget kite flying. While there is a strong argument for the need to protect businesses, and therefore jobs, in the hospitality sector during a period of intense global financial uncertainty, few politicians would want to be seen to be doing so at the expense of supports for households during that same economic turbulence. In that context a calculated delay to the hospitality VAT rate cut plans makes some sense, as it would allow Government to continue to argue it will - eventually - keep its promise while giving itself more short-term financial space to protect the wider public. That plan, however, comes with a significant catch, in that the hospitality sector is insistent a delay to the tax cut will see people lose their jobs. But, more than one Government TD has privately noted this week, not delaying the tax cut in order to have more space for wider public cost of living supports would put households at risk and give opposition parties an obvious line of attack the coalition could do without. The first kite of the pre-budget season has now soared into view. Depending on which way the economic and public wind blows, it could yet lead to an unexpectedly bumpy political ride.
RTÉ News
22-07-2025
- RTÉ News
Hospitality boost in Budget to shrink workers' tax cuts
The big winner from next year's Budget is going to be the hospitality industry. That will happen at the expense of income taxpayers. The cost of reducing VAT from 13.5% to 9% for restaurants, bars and cafés is going to be up to €1bn in a full year, Minister for Finance Paschal Donohoe said. That will be out of a package of tax cuts of €1.5bn, according to the Summer Economic Statement, which was published by the Government earlier. In other words, two-thirds of the capacity for reducing taxation could be absorbed by the hospitality industry. Mr Donohoe said when the Coalition made the commitment to cut the rate of VAT it meant there would be "tradeoffs and consequences" and "there are other things we are unable to do". He warned the threat of US tariffs meant that it would "not be right to grow the tax package given all we are confronting". In Budget 2025, the average worker benefited by around €1,000 from reduced taxes. That was based on a package of €1.4bn. When the Government proceeds with the VAT reduction for the hospitality industry, it would leave €500m for tax cuts elsewhere. On that basis, ordinary workers won't enjoy a similar reduction in taxation next year as they did in 2025. Trimming VAT for hospitality was a commitment which was originally made during the General Election in November last year and it was included in the Programme for Government in January this year. It would be difficult to renege on such a clear political promise. Another important element of the Summer Economic Statement is that it is predicated on zero tariffs being imposed on exports from Ireland to the US. Currently many sectors are free from tariffs including pharmaceuticals and computer chips. But other areas such as food and drink exports have been hit with duties of 10%. While the deadline for a deal on tariffs is 1 August, the issue has been long fingered twice by US President Donald Trump who has variously suggested tariffs of 20%, 30% and even 50% on EU goods. There is a very clear caveat in the Summer Economic Statement, that if the trade war between the US and EU worsens, the Government will have to revisit the tax package. It means the coming weeks and possibly months will be critical in determining the shape of the Budget.
