Taoiseach describes budget meeting with Tánaiste and ministers Donohoe and Chambers as ‘sobering'
Speaking in Tokyo where Mr Martin is currently on a trade mission, the Taoiseach said that 'challenges lay ahead' as the budget negotiations begin as the international trade outlook remains uncertain.
'Public expenditure has risen on average, 8pc to 9pc over the last number of years. Such high levels of expenditure are not sustainable on the current basis,' Mr Martin said.
Mr Martin said the meeting last Saturday between the senior ministers also included discussions on the National Development Plan, budgetary matters and the median term financial framework.
'It was a sobering enough meeting, to be frank, in terms of the challenges that lie ahead, given the backdrop of tariffs and uncertainty in trade, and also the warnings we've received in terms of the once-off nature, or the temporary nature, perhaps, of certain corporation tax revenues,' the Taoiseach said.
Meanwhile, the Government remains committed to reducing the student contribution fees at third level, but this will happen over the lifetime of the Government, Mr Martin said.
It comes as Higher Education Minister James Lawless confirmed over the weekend that the fee would revert back to the amount owed before the €1,000 reduction was introduced as a cost of living measure.
He added that supports and other commitments would have to be included in mainstream measures, which created difficulty for the Government in the first year.
'Last year and the year before, we got a lot done through the cost of living packages, which were once-off packages, and they were not in the mainstream budget. So therein lies difficulty,' Mr Martin said.
'What we're going to try and do is mainstream forms and commitments in the Programme for Government into the budget that will be sustained in over a period of time. But that will create challenges for us in the first year,' he added.
Mr Martin added that the Government had other commitments in the Programme for Government aside from reducing student contribution fees, including the carer's allowance commitment, and the income disregard.
On the US trade tariffs due to be announced next week, Mr Martin said 'we are in more uncertain waters' and that it was now about damage limitation.
'I think the EU is basically saying, and I think President von der Leyen said we're not going to go back to where we were. We are in a changed environment. The issue is, can we limit the damage?'
On the upcoming presidential election, Mr Martin said Fianna Fáil would take a decision 'in due course' on whether to run a candidate but seemed to indicate there would be no announcement until the end of the summer.
'We didn't run a candidate last time and we didn't run a candidate before that. But of course, we're examining the situation. We're taking soundings,' Mr Martin said.
'I think John Burton said recently, I believe she said it that if she was any candidate or any party she wouldn't announce anything until August 28, from previous experiences,' Mr Martin said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Independent
an hour ago
- Irish Independent
Potential job losses in Leitrim if heavy tariffs imposed on alcohol says councillor
An escalation of tariffs on alcohol products produced in Ireland could severely impact producers in counties like Leitrim, Donegal, and Sligo where multiple distilleries are operating. The EU and the United States are currently in talks in relation to trade and tariffs. The talks are due to conclude before next Wednesday, July 9, at which point the US president Donald Trump, had threatened tariffs of 50pc will be imposed if agreement is not reached. Earlier this year, large rate tariffs were paused for 90 days but there is currently a 10pc tariff on EU goods going into the United States. Leitrim Councillor Enda McGloin said the potential tariffs on alcohol would not only impact the sale of the products but also affect the growth and expansion of businesses. He said distilleries such as Drumshanbo Gun Power Gin in Co Leitrim need their product to be exempt from the tariffs or there is a risk of job losses. 'At Drumshanbo Gun Power Gin, 35% to 40% of product produced is currently going to the United States. 'My concern is if the trade agreement was to fall away and the American government proceed to impose a very serious level of tariffs on whiskey or other spirits produced here. 'Another concern is that in order to have a negative impact against Donegal Trump and the Republican party, that the EU would target Bourbon. 'This would trigger further reprisals which could then impact the sale of Irish Whiskey, French wines and numerous other goods. ADVERTISEMENT 'That would trigger a trade war which could add tariffs of up to 25% to 30% or more and that would have a dramatic impact on the future growth of enterprises here. 'It would also have a negative impact on long term growth and it may even result in job layoffs as there is a significant amount of people employed in the sector. 'Any sort of a scenario where the drinks industry within the European Union is targeted, it transfers itself down to the ground here in Leitrim and the Northwest,' said Cllr McGloin. Cllr McGloin added that Tánaiste Simon Harris has been in negotiations with Europe and it is hoped there will be no reprisals against Bourbon. 'He is hopeful that a coercive trade agreement between the European Union and the United States could be reached and would negate the need for any major tariffs. "We have to see what the outcome will be on the talks. "The drinks industry has asked the Irish government to support non retaliatory tariffs against Bourbon and the government has agreed on that and have let their views known to the European Union. "We have support in countries like France, Holland and other major producers in the EU. "I am glad to see the Minister for Trade clearly supporting Irish Whiskey and drinks companies in this difficult time and I hope this will pay dividends during the negotiations,' said Cllr McGloin. Despite the uncertainty, the distillery in Drumshanbo is operating at full production and is planning a €1.6 million expansion. Cllr McGloin believes a successful agreement could unlock major opportunities for the Northwest. 'If we can get over this and successfully agree, we could be in a position of a positive outcome. 'We could see dramatic growth and locally, long term strategic growth in the Drumshanbo production facility which could mean more jobs and more opportunities for the county and also for the Northwest,' said Cllr McGloin.
Irish Daily Mirror
an hour ago
- Irish Daily Mirror
Tanaiste 'not convinced' that pension and dole Budget increases should equal
Tánaiste Simon Harris has suggested that the rate for those receiving Jobseeker's Benefit should not increase as much as the pension rate in the budget. It comes as Finance Minister Paschal Donohoe warned that choices will have to be made in Budget 2026 as he remained non-committal on the prospect of tax cuts for workers. In the last budget, Fine Gael and then social protection minister Heather Humphreys had sought to increase the Jobseekers' payment and the pension by different amounts. At one point, it was suggested that the dole could rise by €10 a week and the pension could go up by €15. However, there was pushback by the Green Party, who said that they were 'uncomfortable' at the idea of making a distinction. There was a smaller level of resistance from Fianna Fáil. Senior Government sources told the Irish Mirror that it is too early to make any decisions on any budget matter, noting that the Summer Economic Statement has yet to be published to set out the parameters of Budget 2026. Speaking to reporters after a meeting of the Government Trade Form, the Tánaiste opened the door to a distinction being made between pension increases and Jobseeker increases in Budget 2026. Mr Harris told reporters that he did not want to 'open another budget line' at the press conference. He continued: 'Other than to say I do always think there's merit in not looking at social welfare payments with uniformity across the board. 'We've been talking a lot about college fees in the last couple of days, unexpectedly, perhaps. 'But, roughly speaking, the equivalent of €1.20, €1.25 on every social welfare payment is roughly the equivalent of reducing college fees by €1,000. 'Budgets are all about choice and they're all about balance and there's only so much money in the pot. 'So I'd keep an open mind on that. I'm not convinced that you need to see as significant a rise in the dole as you do on the pension, for example, at the time when our country's in full employment and there's lots of supports out there for people getting into work. 'There's other supports out there for people who can't work for very many good reasons. 'That's my view. We'll thrash all this out in the budget. We've quite a way to go.' At the same press conference, Finance Minister Paschal Donohoe warned that the impact of tariffs will have an impact on the growth of the Irish economy. He suggested that while there will still be budget surpluses, the surplus amount will be revised. He also repeated that while new jobs will still be created, they are likely to be created at a lower level because of the potential impact of tariffs. Minister Donohoe also warned that choices will have to be made as part of Budget 2026 and would not commit to changes to tax rates and bands for workers. He stated that the Programme for Government stated that these things will be reviewed in case of an economic shock and that people's take home pay should increase as a result of actual wages going up. He said: 'In relation to Budget 2026 it is a budget that is going to prioritise the creation and the retention of jobs and keeping our public finances safe while investing in our future. 'We will make decisions closer to the time regarding what is the way in which we will do that. 'Clearly, if the government does decide to make investments and decisions in particular areas, we will then decide there are other things that we cannot do. 'That's the right thing to do and we'll make the case for that on Budget Day. 'But this will be a budget that will contain important measures with regard to investment in our country's future and in terms of people's appetite.' The row over college fees and whether or not they will return to €3,000 following Budget 2026 continued to dominate Dáil proceedings on Wednesdays. In response to Sinn Féin leader Mary Lou McDonald, Higher Education Minister James Lawless noted that it is July and the budget will be announced in October.
Irish Independent
an hour ago
- Irish Independent
Galway Students' Union says Government's student fees decision will ‘price people out of education'
Minister Lawless has recently announced that from September college students will have their fees revert to the amount owed before the Government began introducing cost-of-living reductions three years ago. The last three budgets reduced student fees by €1,000 as part of wider 'once-off' cost-of-living packages that, he said, will not be repeated this year. Newly elected Students' Union President at University of Galway Maise Hall firmly criticised the decision. She said: 'University of Galway Students' Union believe this is a retrograde step that will price people out of education. Students are already struggling to make ends meet with the ongoing cost of living crisis and ever increasing rent costs. Should this shameful decision come to fruition it will further add to existing financial pressures on students and their families.' Shortly after the announcement, Minister Lawless appeared to backtrack as he explained to RTÉ's Drivetime programme that he is working on measures for this October's Budget 'which will kick in at the start of next year'. However, Ms Hall argued the Minister's comment sounds like an empty promise. 'It sounds like an empty promise. It was something that was outlined in the programme for Government when they were running at the elections so it's very disappointing,' she told the Irish Independent. Ms Hall added the announcement over college fees comes despite 'long overdue reforms to the SUSI grant system not yet being enacted'. The SU President also mentioned that 49pc of University of Galway students have said they struggle to pay rent. Half of students reported working part-time to afford college, and 56pc reported that working has had a negative impact on their education. Ms Hall said: 'Even if you're working full time over the summer and every weekend through collage, you're still scraping through. ADVERTISEMENT Learn more 'For people in the Government it might not seem like a lot of money, but for students who are already struggling with the cost of living, it's a big jump. 'That's a month of rent gone, three or four months' worth of food that they have already budgeted for and planned for. This is not good enough. She added: 'An increase in fees will simply make this bad situation worse. We urge the Government to decide not to increase fees and instead take the appropriate measures to decrease and eventually abolish fees.' The decision on students' fees was also criticised by many elected members and different parties. Sinn Féin TD for Galway East Louis O'Hara labelled the €1,000 hike as 'outrageous and a slap in the face for students and families who are already struggling to keep their heads above water with the spiralling cost of living.' While Labour Party Councillor in Galway City Níall McNelis shared: 'This government doesn't know what they're doing. Hiking student fees one minute, backtracking the next. Students and working families deserve better.'
