Daft Property - Irish Property News

THE country is facing crippling interest payments of €10 billion a year after the European Union and IMF agreed to an €85bn rescue package to fund the economy for the next three years. The bulk of the money, €50bn, will be used to pay for the day-to-day running of the country. The banks will receive €8bn immediately to restore their cash reserves; €2bn will be on standby and a further €25bn will be available if and when they need it. The money will come from the IMF, our Euro area partners and loans from Britain, Denmark and Sweden. In addition, the country has been told to take €12.5bn from the National Pension Reserve Fund and use €5bn the NTMA had already borrowed to pay for early 2011. The expected average interest rate for the bailout will be 5.83%. By 2013 the national debt is expected to rise above €200bn and by then almost a quarter of all taxes raised will be used to pay interest service costs. At the end of the term this is expected to have climbed to €9.66bn a year if the ba...

Householder to carry heavy can for errant banks... HOUSEHOLDERS will be hammered. That is the clear message from the four-year austerity plan issued yesterday by the Government. In plain language, if you own a home, have a pension and a son or daughter in college, you will end up more than €4,600 a year worse off by the time all of the changes in this plan have been implemented. Many of the changes will impact early on in the four-year plan, putting additional pain on family budgets. Middle Ireland is set to pay an extortionate price for the failures of our banks, our regulators and the Government. And significantly, there are no measures in the four-year plan to levy the errant banks. Instead, homeowners will bear the brunt. Personal finance experts last night warned the taxes, levies and charges would push many families over the edge financially. The downturn has left many consumers just one bill away from financial collapse. The severe measures in the four-year plan could be enough ...

Cowen accepts the bailout but not the responsibility... As a result of an ill-judged edit, viewers of the national broadcaster missed the liveliest and most telling part of the press conference held tonight at Government Buildings by the current Taoiseach Brian Cowen and the current Minister for Finance Brian Lenihan. TV3 host and Irish Times columnist Vincent Browne asked Cowen if he accepted that he was to blame for “screwing up the country”; that he more than anyone else was responsible for Ireland’s economic catastrophe and that his continued presence in office was “a liability” to the nation. “I don’t accept that at all,” replied Cowen, grumpily. “I don’t accept your contention [or] the premise to your question that I’m the bogeyman you’re looking for.” Minutes earlier, a Bloomberg television journalist who asked if Cowen had ever thought of packing it in was told that the process of electing a Taoiseach was a parliamentary matter… mumble, jargon, mumble. As for whether or not he ...

A nation's outrage to drive Cowen out... Poll: public welcomes the IMF but roundly furious at government ‘lies’ THE Taoiseach, Brian Cowen, and his Government are at risk of being ignominiously driven from office, such is the level of anger sweeping the country this weekend. The people have broadly welcomed the arrival of the IMF, are largely indifferent to emotive sentiment associated with a perceived loss of national sovereignty, but are roundly furious at the manner in which the Government has “lied” about the unprecedented events of last week. As the Government now strives to further “spin” itself out of what is, by any measure, a glaringly obvious credibility deficit, its efforts to do so will be hampered by a disintegration of cohesion within its own ranks. This weekend, the Taoiseach is at odds with the governor of the Central Bank; the Minister for Finance is in agreement with the governor and, therefore, at odds with the Taoiseach; and at least two senior Cabinet ministers...

We need to re-trace our steps and go over what a complete mess has been made of this country.. . IS sovereignty of so little account that two senior cabinet members can consider throwing it away while the rest of the Government don't even know their leaders are doing this? What is being done to our country? Who will buy us, or sell us, next? What has really been going on since Brian Cowen concluded his disastrous occupation of the Finance Ministry and graduated to his even more disastrous holding of the job of Taoiseach? We need to re-trace our steps and go over again what a complete mess has been made of this country's governance, bringing us the acute embarrassments of this week. It began with Anglo, followed by all the other banks. It then proceeded to the Lisbon Treaty vote, enhancing Europe's powers over our sovereignty. Then it floundered into the disaster called NAMA and ended with debts that needed international rescue. It concludes with loss of sovereignty. Anglo f...

Labour leader Eamon Gilmore today demanded the Taoiseach resign in the national interest claiming Ireland had suffered its blackest week since the Civil War. As formal talks begin in Dublin with the International Monetary Fund (IMF) and European officials, Mr Gilmore said the Government has no authority to strike a deal on a bailout loan. "(Taoiseach) Brian Cowen continues to cling to power and his attitude seems to be that if Fianna Fail is going down, the country is going down with it," the Labour chief said. Mr Gilmore accused Mr Cowen and his coalition Government of laying waste to the economy. "If he will do the honourable thing, an election could be held by the second week in December. A new government, with a fresh mandate, would be in place before Christmas," he said. "In the meantime, discussions or negotiations with the EU and the IMF could continue with their preliminary work, but any final agreement would be a matter for a new government. "Apar...

DAIL SKETCH: THE PATIENT is a basket case and refusing treatment. “This country has not applied to enter a facility,” insisted the Taoiseach, defiant to the last. He is not going to commit poor Mother Ireland into some sort of economic Shady Pines, to be prodded at by bespectacled eurocrats before being released into the real world with a healthy spending plan and an ankle tag. We’re fine. There is nothing wrong with us. It’s our enemies in the international media and other sinister factions who have it in for us. At least that was Brian Cowen’s belief yesterday afternoon. But as he spoke in the Dáil, the men in the white coats circled ever closer in Brussels, syringes at the ready. “Come, come, Ireland, take your fiscal medicine!” Still, the Taoiseach protested. “We are pre-funded up to mid-2011,” he argued, pleading for more time. Wait until the Ecofin meeting is over, he asked. The Opposition listened to him in the Dáil, looking scared, unanimous in their opinion that the Taoiseach ...

'FOR God's sake, Sarge, say something, even if it's only goodbye!" The old joke about the platoon of soldiers about to march over a cliff carries relevance for a Taoiseach and a Government out of step with everybody else and refusing to acknowledge the proximity of the cliff. For much of the last week, the story of Ireland's trouble has jostled for prominence in the headlines with massive world events. It has preoccupied leaders at international conferences. It has filled the pages of the 'Financial Times' and attracted the attention of the media in Europe and the United States. It has provoked comment, almost unanimously gloomy, from leading economists. But "Sarge" has had nothing to say beyond a reassurance that we have enough money in the kitty to last us until the middle of next year. After that, who knows? At any rate, Sarge thinks the cliff is a long way off. Brian Cowen is reportedly "furious" about the reports that we may seek to...

HOMEOWNERS face paying an €80-a-month property tax under a plan drawn up by the country's top economic think-tank. The charge would be based on the value of homes, and middle-income earners would end up providing most of the tax generated, the study by the Economic and Social Research Institute says. Homeowners who bought their house and paid stamp duty in recent years would be given a waiver, as they would be regarded as having already paid a property tax. Those on low incomes and people getting social welfare benefits would be exempted from the payment. Even with these exemptions, a property tax could still bring in close to €1bn a year, as the Government draws up plans for a €15bn package of cuts and taxes over the next four years. There are 1.7 million households in the country, but the exemption scheme would mean up to 235,000 householders would not have to pay the tax, the ESRI says. But the study, which sets out how a property tax would work, warns that exempting those with ...

"If you thought the bank bailout was bad, wait until the mortgage defaults hit home." THE BIG PICTURE: Ireland is effectively insolvent – the next crisis will be mass home mortgage default, writes MORGAN KELLY ... SAD NEWS just in from Our Lady of the Eurozone Hospital: After a sudden worsening in her condition, the Irish Patient, formerly known as the Irish Republic, has been moved into intensive care and put on artificial ventilation. While a hospital spokesman, Jean-Claude Trichet, tried to sound upbeat, there is no prospect that the Patient will recover. It will be remembered that, after a lengthy period of poverty following her acrimonious divorce from her English partner, in the 1990s Ireland succeeded in turning her life around, educating herself, and holding down a steady job. Although her increasingly riotous lifestyle over the last decade had raised some concerns, the Irish Patient’s fate was sealed by a botched emergency intervention on September 29th, 2008 followe...

1 If €6bn seems like a huge number, it's because it is. The equivalent of more than €1,300 for every man, woman and child in the country, it works out at an average of €4,000 for each one of our 1.5 million households. 2 The Government says the Budget "adjustments" will be split 3:1 between spending cuts and tax increases, ie €4.5bn of cuts and "only" €1.5bn of tax rises. That still means that each of the 1.8 million people still working will each be paying an average of over €800 more tax in 2011. 3 For lower income earners, December 7 is likely to bring a shock. After the Budget, most if not all workers will be paying income tax. For someone on the minimum wage even a 10pc tax rate could cost them up to €1,800 a year. 4 Middle income earners are also going to find themselves squeezed. The Government is likely to hike all of the tax rates. 5 Homeowners are going to remember December 7 for decades to come as the Government finally imposes a property tax and wate...

LOW-paid workers will be dragged into the taxation net and middle-income earners also face a wide range of tax hikes in the most draconian Budget in the State's history. Taoiseach Brian Cowen yesterday quelled pressure from within Fianna Fail to call an election and will push ahead with plans to cut €6bn in the 2011 Budget on December 7. After being forced to call a by-election in Donegal South-West, the embattled Coalition is now facing the prospect of its majority being reduced to just two for the crucial Budget votes. But Mr Cowen is adamant the Government will stay the course and see through the €6bn austerity package for next year, consisting of spending cuts of €4.5bn and €1.5bn in increased taxes. The Coalition also expects 45,000 workers to emigrate from the country in 2011, leading to just a small rise in unemployment as those who can't get jobs will opt to leave the country instead. For those in the workforce, the prospect of a wide range of tax hikes is on the cards,...

Another 50,000 building jobs set to go next year... Another 52,000 construction and related jobs are expected to be lost next year, according to an unpublished report. The cost of the job losses will add an additional €1 billion to exchequer spending in unemployment payments, benefits and training, according to a report prepared for the environment department. The report, by DMK Economic Consultants, predicts that the numbers employed both directly and indirectly in construction would reach a floor of 126,000 by the end of next year. At one time, there were 380,000 people employed in construction and related jobs. Up to the end of June this year, there were 127,000 people working in construction and a further 58,000 employed in construction-related work such as civil engineering, architecture, legal conveyancing and specific manufacturing for the sector. This does not include an estimated 8,000 apprentices doing training. The report estimates that as may as 7,700 apprentices and traine...