Skip to main content

The Black Hole Of Ireland...Irish Economy...Recession Looms...

The Irish Examiner mentions in a report today:

SURGING unemployment and sliding tax returns helped blow a €5.6bn black hole in Government finances last night...

The opposition’s ire focused on Mr Cowen, who had been Finance Minister up to May, rather than Mr Lenihan.

Labour leader Eamon Gilmore accused Mr Cowen of “walking the country into the red”.

Fine Gael finance spokesman Richard Bruton said Mr Cowen had to take personal responsibility for the scale of downturn as he had introduced four inflationary budgets designed to meet the needs of the “electoral cycle, not the economic cycle”.

These budgets had used the unsustainable revenues from the property boom to “ramp up spending increases” at twice the rate of growth of the economy, Mr Bruton said.




The Irish Independent paints a similar gloomy black hole picture...

MINISTERS will have to cut €500m from their spending plans to pay for increased dole payments, as the property slump blows a €3bn black hole in their tax take.

Department of Finance officials now expect the jobless queues to lengthen by an average of 5,000 a month for the rest of the year, bringing the average number on the Live Register to 210,000...

...But that depends on the rest of the economy -- outside of building and property -- holding firm. A string of other bad news yesterday suggested it may not: Stock markets slumped again, with the Dublin market falling to its lowest level in five years.

The falls were led by building companies, as the outlook for property markets worsened in Ireland and Britain.

...With interest rates set to rise today, European Central Bank president Jean-Claude Trichet seemed to warn that more may follow, saying inflation could "explode" without decisive action by central banks...

...The Exchequer returns show tax revenues were €1.45bn short of expectations in the first six months of the year. Taxes from property and construction were almost entirely to blame...

...Fine Gael said the mid-term Exchequer figures "show conclusively" that the Taoiseach had blown the boom and brought about "the worst deterioration in our public finances in the history of the State". Labour said the figures "paint a sorry picture of Brian Cowen's stewardship of the economy."

Popular posts from this blog

Ireland's Celtic Tiger Excesses...

'Bang twins' may never get to run a business again... POST-boom Ireland is awash with cautionary tales of Celtic Tiger excesses, as a rattle around the carcasses of fallen property developers and entrepreneurs will show. Few can compete with the so-called Bang twins for youth, glamour and tasteful extravagance. Simon and Christian Stokes, the 35-year-old identical twins behind Bang Cafe and exclusive private members club, Residence, saw their entire business go bust with debts of €9m, €3m of which is owed to the tax man. The debt may be in the ha'penny place compared with the eye-watering billions owed by some of their former customers. But their fall has been arguably steeper and more damning than some of the country's richest tycoons. Last week, further humiliation was heaped on them with revelations that even as their businesses were going under, the twins spent €146,000 of company money in 18 months on designer shopping sprees, five star holidays and sumptu...

As Featured On Dublin Postcards, Ad's, U2 Video...

I see in the Irish Independent today an item concerning a favourite, Dublin landmark, of mine... "THEY have featured in numerous postcards and a very famous Guinness ad, but perhaps their most important cameo appearance came when they featured in U2s 'Pride (In The Name Of Love)' video. However, Dublin City Council does not believe the Poolbeg chimneys are iconic enough to place on their Record of Protected Structures. Following a request from Cllr Dermot Lacey (Lab) to have the landmark ESB chimneys placed on the protected record, city councillors heard that city planners had conducted a survey, history and full assessment of the chimneys. They concluded from this that while the Poolbeg chimneys were considered to be of a certain level of architectural, social and historical significance, they were not of sufficient value within the meaning of the Planning and Development Act, 2000. Complex The twin red and white chimney stacks measure 680 feet in height and were construc...

Developers Cut New Home Prices In Dublin...

Developers cut prices of new homes in Dublin... Developers have sharply reduced prices at some of Dublin’s bigger housing schemes this weekend, in a bid to stimulate sales of vacant units and entice first-time buyers into the market. Price reductions of up to €150,000 are being offered at the latest releases of apartments and houses for sale. P Elliott & Co has put a total of 80 units at four of its apartment schemes, on to the market through Hooke & MacDonald, at substantially reduced prices. Prices now start at €169,000 for a one-bedroom apartment at Arena in west Dublin, while a two-bedroom apartments at Mellowes Quay in Dublin 8 now costs €269,000, down from a high of €415,000 in spring 2007. Jackson Homes, Kingscroft Developments and Durkan New Homes have also reduced prices at their schemes by about €100,000, or up to 30 per cent on peak levels. Estate agents reported strong enquiries ahead of this weekend’s releases. ‘‘Based on the level of enquiries we’ve had, we expect...