News
Budget 2023 is just plastering over the cracks
By Michael O’Connor
The Irish Budget has never been something I have paid too much attention to.
.
.
My day-to-day focus is predominantly on stock market moves, so it never bears too much relevance, but Budget 2023 certainly caught my attention.
It was set against a backdrop of surging energy prices, inflationary pressures, and a red-hot housing crisis. As one of the few European countries with a budget surplus to dip into, expectations were high.
On the surface, the Budget didn't disappoint. The €11 billion package had a little something for everyone. The massive package of once-off measures will go a long way toward supporting households and businesses this year.
But when you dig a little deeper, many of the measures are simply providing a short-term sugar rush, with little substance once the initial high wears off.
I get it; financial relief is crucial but adding more money into the economy so people can afford to function in a broken system is not a long-term solution.
Tax cuts have been proclaimed as 'counter inflation' measures but are more likely to fan the flames of inflation than eliminate the problem.
Inflation is created when too much money is chasing too few goods. With this in mind, inflation is tackled by reducing the amount of money in the economy or increasing the supply of goods within that economy. Tax cuts do the opposite.
By increasing the amount of money in the system through tax cuts, the government has seemed to double down on the viewpoint that money is both the cause and solution to all of life's problems.
Fuel to the fire
Sure, these tax cuts will help to curry favour from a political perspective, but from an economic standpoint, you are simply adding fuel to the fire.
Instead of addressing the systemic problems causing the Cost of Living Crisis, they have simply freed up more money so you can tolerate the intolerable price hikes a little longer.
Take housing, for example.
Paschal Donohoe described housing as the "central issue facing the country".
Undoubtedly there are some positives from a housing perspective in the Budget, but as the "central issue facing the country", it falls short.
A band-aid solution
The 'Rent Tax Credit', in particular, highlights the band-aid solution being applied here.
Renters will be entitled to a rental credit of €500 per year from 2022 onwards. On the surface, this is much-needed relief for renters, but in reality, it simply exacerbates the problem.
Without getting too into the weeds, in economics, you have something called the paradox of aggregation. If everyone gets the benefit, then nobody gets to feel the effects of that benefit because nobody is better off from a relative standpoint.
If you won the lotto in the morning, you would be unquestionably better off. However, if we all won the lotto in the morning, we would all be richer on an absolute level, but you would no longer be better off relative to your peers. Prices would simply increase to account for the higher levels of wealth in the system.
The same logic applies to the 'Rent Tax Credit'. Everyone gets it, so nobody benefits. It simply just provides another gear for landlords. You can now 'afford' to pay higher rents, allowing landlords to raise rents even further. This is not relief but a mechanism to support higher rental prices in the future masked as support for those caught in the rental crisis.
Rent control, short-term letting restrictions, widespread public housing initiatives, subsidies to incentive construction development, and removal of the endless planning regulations. These are solutions that alleviate the supply side of the problem over the long term.
Instead, the government continues to throw more money at the problem so we can 'justify' higher and higher prices.
Housing supply
In fact, in a bizarre move, they have now placed a 10% levy on concrete blocks. Environmental concerns aside, at a point where every possible step needs to be taken to incentivise construction development to increase the housing supply in the system, levies are being applied to increase the cost of building even further.
Maybe I'm being overly cynical here. Compared to the UK budget, the Irish offering is a heroic feat of financial prowess, but another short-term response to the newest crisis at our doorstep is not enough.
Long-term allocation of capital and resources to solve the complete supply/demand mismatch in the housing market, nationalisation of energy, and extensive healthcare reform are areas where the bulk of the budgetary surplus needs to be allocated.
Short-sighted
Constantly repeating or extending 'temporary measures' is far too short-sighted. We have already seen an economic contraction in Q1 2022. These contractions may continue as we stare down the barrel of a recession in Europe. The budget surplus won't always be there.
When it is, we must prioritise long-term investments focused on solving systemic issues. Plastering over the cracks and hoping that the foundations stay intact until the next political party takes the wheel just isn't enough.
WEEK 14
Felicity’s Summer in Killarney
Previously: Here on Dundag it was far easier to relax than anywhere else. They had a picnic blanket, some cold drinks and what felt like all the time in the world.
“I can’t believe I leave on Monday” Felicity said tiredly.
“Neither can I. This summer has flown. Tell me you have plans to come back sometime soon though? I don’t think Sheila and I can be as good of a mischief-making duo as me and you.”
Felicity had already spoken with her parents about her return to Killarney. “I’d like to come back for Halloween. Who knows, with my apprenticeship you may be seeing a lot more of me.”
Felicity glanced at Jack, who was looking far out over the lake. “That wouldn’t be so bad.” He paused. “There’s loads of things to do in Kerry around Halloween. There are countless events and festivals in the surrounding towns and parishes.”
“That would be nice. I love Halloween, it would be great to see how ye do it down here.” A few years ago she and her friends had run a school scare event in Dublin, for TYs and above only. It had been some of the best fun they’d had in school together.
“It’s going to be really strange not having you just around the corner anymore. I’ve gotten so used to showing up at Sheila’s and you being there.”
Knowing that her friends were going to miss her so much made Felicity’s chest twist. She knew that Auntie Sheila wasn’t looking forward to her leaving either. “At least I’ll be back soon. You’ll be seeing me off of the train before you can blink.”
“Yeah, I can’t wait.”
A few hours passed before Felicity and Jack returned to Hedgerow Place. Jack dropped her off at the door, promising to meet her at the bus station tomorrow to see her off. Felicity trudged towards the door morosely.
Auntie Sheila met her on the other side with a sad smile. “Hopefully you’ll be back soon poppet. I suppose for now you should probably pack.”
Felicity nodded and made her way upstairs. She entered the spare room , her room now, really. Auntie Sheila had offered her it permanently if she were to get her apprenticeship. That would be a dream come true, to live in Killarney and have something as exciting as an apprenticeship to work on.
Felicity packed slowly. She let herself daydream about what her life could look like, and how easy it would be to sink into it. Thoughts of coming back here, to a room that was fully hers circled around her head. Felicity looked around her room as she slowly progressed towards fitting her whole summer into just the two small suitcases and backpack that she had come to Killarney with.
It felt like her experiences were too big, too meaningful to pack away with her. Too much had happened this summer to pack it all away. The only solace, Felicity thought, was that she had to go so that she could come back again.
The Bus
Now she was standing once more at Killarney Bus Station, waiting to get the Expressway back to Cork before the next leg to Dublin. Auntie Sheila and Jack both stood nearby waiting to see her off.
Felicity had spent the last few days packing, reminiscing on her time in Killarney as if it were years ago, and had not started a mere three months previously. The adventures she’d had and the friends she made were all so different from what she knew in Dublin. It almost felt like going back to the city was going back to a different world, a different life.
“You have to stay in touch,” Jack said with a frown. “And I will hold you to your promise to come back at Halloween. We have to go to some of the Halloween events. I know it’s a trek down but it will be faster by train.”
Felicity didn’t know why her parents had booked her a bus down and back and not the train, but she was almost thankful for the extra travel time on the way back. It would take all of it and more to acclimatise back into her old life.
When the bus arrived, Jack helped her stow her luggage in the undercarriage. It was with a heavy heart and tearful eyes that she hugged them both goodbye. Felicity promised both to them and to herself that she would be back for Halloween, even if she didn’t get her apprenticeship, she would make the time around her college schedule to visit. God, she should have applied for college in Killarney. If only she had known what it was like when she was filling out her CAO.
Felicity trudged up the steps onto the bus. She hadn’t missed how cramped the seats were. The train would undoubtedly be the better option for her return.
She turned and waved at Jack and Auntie Sheila as the bus pulled out of its berth. She could see Auntie Sheila smiling up at her. Something her aunt had told her the night before swirled around in her head. “It doesn’t matter that you’re leaving now,” she had said, “because you’ve been to Killarney once, and now there will always be a home for you here.”
Summer in Killarney had been transformative, to say the least. The bus went around the Daly’s roundabout and travelled down the hill towards Cork. Felicity looked longingly at the turn to Woodlawn Road as they trundled by. Killarney, and Auntie Sheila’s little house on Hedgerow Place, had snuck its way into her heart. Felicity was going to miss it. She couldn’t wait to come back again.
Frustration mounts over morning gridlock at Coolcorcoran
Mounting traffic gridlock at the Coolcorcoran junction onto the N22 Killarney Bypass is causing daily delays for commuters, with local motorists calling on Killarney Municipal District and elected representatives to take immediate action.
Early morning traffic coming from the Tralee side has become severely backed up past BG Motors during the peak 8.15am commute.
Motorists attempting to enter the bypass from the Coolcorcoran side face long queues and increasing frustration as they struggle to join the main road.
Local drivers point to a specific design issue at the exit, where a raised kerb and a section of unused footpath prevent left-turning vehicles from merging smoothly into the traffic flow.
Road users are requesting a simple layout modification to resolve the bottleneck: converting the exit to left-turn only, removing the kerb obstruction, and directing driver traffic to loop via a U-turn at the Killarney Sports and Leisure Centre roundabout. Similar left-turn measures were previously implemented at the nearby Lewis Road junction to improve safety and traffic flow.
The request comes as broader plans for the N22 bypass upgrade and new link road infrastructure remain under progression by Kerry County Council and Transport Infrastructure Ireland.
Motorists wishing to share their views on local road issues can email info@killarneyadvertiser.ie.
WEEK 14: Felicity’s Summer in Killarney
WEEK 14Felicity’s Summer in Killarney Previously: Here on Dundag it was far easier to relax than anywhere else. They had...
Frustration mounts over morning gridlock at Coolcorcoran
Frustration mounts over morning gridlock at Coolcorcoran Mounting traffic gridlock at the Coolcorcoran junction onto the N22 Killarney Bypass is...
Ailbhe Keogan scoops top television writing award
Acclaimed Kerry screenwriter Ailbhe Keogan has won the Best TV Drama Script award at the 19th Writers’ Guild of Ireland...
Strong turnout for St Paul’s Golf Classic at Beaufort
After a recent spell of indifferent weather, glorious sunshine and a gentle breeze greeted 35 teams at Beaufort Golf Course...
€150,000 granted to draft masterplan for St Finan’s site
Kerry County Council has been awarded €150,000 in government funding to progress a Masterplan and Infrastructure Delivery Plan for the...
Fossa Swimmers make a splash at County Finals
The Fossa Swim team pictured at the Tralee Sports Complex following their successful outing at the County Finals of the...
On the Ball Part 2 of the Mikey Daly Interview
Éamonn Fitzgerald EF: Killarney Celtic are invited to participate in an Irish competition. That has big financial implications for travel,...
LUKE MANGAN recently caught up with Kerry FC’s manager, Colin Healy.
He spoke to him about his careers as a player and manager. Here’s how it went: When you began your...
Home cup tie for St Paul’s could be epic
Paudie O’Connor National Cup (Round 1) Utility Trust St Paul’s v GCU Brunell Saturday 7.30pm Killarney Sports and Leisure Centre...
Chances of Kerry v Cork Munster final in 2026 decrease as Munster GAA delay seeding plan
After facing a backlash from Limerick, Clare, Waterford and Tipperary players, Munster GAA have postponed their plan to keep Cork...
