Did the Budget have something for everyone?

Last Friday night, I caught a few minutes of the Late Late Show—just enough to remind me why I rarely tune in anymore. Some argue it’s no longer a part of Irish culture, while others believe it will always hold a special place in our hearts. Its impact is undeniable, as is the legacy of its first presenter, the late Gay Byrne. His trademark phrases, like “roll it there, Colette” and “one for everyone in the audience,” still resonate with many. Yes, Gay will never truly be forgotten.

This reflection struck me as the Budget was announced. Across various media outlets, a consensus emerged: this was a giveaway budget, with something “for everyone in the audience.” However, the ghosts of 1977 and 2004 continue to haunt. Those infamous giveaway budgets are still blamed for the economic turmoil that followed. Even today, the decision to remove domestic rates is viewed by many as the death knell for local authority funding. I’m not so sure about that.

Ireland faces several pressing issues, the most critical being our overreliance on foreign companies, particularly US multinationals. We depend heavily on giants like Microsoft, Amazon, and Apple to keep our coffers full, spending corporation tax revenues, while putting little aside for the impending downturn. Meanwhile, we wave goodbye to potential investments due to infrastructural deficits.

Take Amazon Web Services, which is celebrating 20 years in Ireland and employs over 6,500 people. Data centres, essential for cloud storage, require significant power. While Ireland’s temperate climate is ideal for efficiency, our electricity situation is problematic. Despite our abundant wind and sunlight for renewable energy, we struggle to supply adequate power. Consequently, a decision has been made to restrict the establishment of new data centres due to their high energy consumption. Could we generate more electricity?

This is troubling, especially given Amazon's recent announcements of substantial investments: £8 billion in the UK, €15.7 billion in Spain, and €10 billion in Germany—with no mention of Ireland. Are we still an attractive destination for foreign investors in 2024? Is there enough water for industry needs? What about travel to and from Ireland? Dublin's travel limits are affecting businesses, while airports like Knock, Shannon, and Cork seem to be overlooked. Leinster rugby is even using Belfast as their preferred travel hub due to Dublin's overcapacity.

Now, about that Budget. It genuinely seemed to offer something for everyone. Employees received tax breaks, social welfare beneficiaries saw increases and double payments, and parents were delighted with two double children's allowance payments. Was this a clever ploy to win over voters ahead of the upcoming election? It certainly feels that way. While it's nice to receive back our own money, it also raises questions: were we really surprised?

Since late June, I've been predicting that the election will be on November 15th. Will I be proven correct?

The issue of means testing has  sparked considerable debate. Joe Duffy, always vocal about these matters, has criticised the means test for the carers allowance, suggesting everyone should receive something. While this is a fair point, we must also ensure that our system is equitable—a challenge that remains unresolved.

Duffy argues for a means test for the children's allowance, contending that not everyone needs it. Perhaps he has a point, but raising children is expensive, and families on the edge of qualification often suffer the most. What if we retained a universal children’s allowance for all, with additional support for those with greater needs?

Personally, I’m sceptical about means testing. It can lead to unintended consequences, such as discouraging hard work or encouraging people to hide assets to qualify for benefits. Cash hoarding leads to violent robberies! There are many perspectives on this, and it's essential that we engage in a robust discussion to find the best solutions for our society.

In conclusion, as we look at these complex challenges, we have to remember the lessons of the past while trying for a sustainable future. The upcoming election will result in a decision on the route we’re going, and it’s crucial for all voices to be heard. We need to consider not only the immediate financial implications of our decisions but also the long-term effects on families and society as a whole. We are at a crossroads and sadly need to plan for the absence of some of the multinationals.

*I lost a reader this week, John Naughten the Fine Gael councillor from Drum sadly passed to another life on Friday last. John was a sincere gentleman whom I knew for the last 20 years. In recent years he’d often refer to something I’d written and tell me he enjoyed my musings. We had a great long chat in the stand at the Roscommon races back in early July, just a few weeks after the local elections, all was good, he hadn’t made up his mind about running but there was something in the way he spoke that suggested he was running. To his wife Breda, their three children, mother Mary and his brothers and sisters I, like all others in Roscommon, extend my sincerest sympathies.