News Archives - Page 3 of 598 - Pat Carroll PCCO - Chartered Accountants & Tax Advisors

Inflation in Ireland is continuing to ease, according to the latest figures from the Central Statistics Office.

The EU Harmonised Index of Consumer Prices (HIPC) is estimated to have increased by 1.1% in the 12 months to August and is up 0.1% since July.

This compared to 1.5% in the 12 months to July when the figures for other countries using the euro were 2.6% and is the lowest rate since April 2021.

A drop in energy prices has helped lower Ireland’s inflation as costs fell 9.5% in the 12 months to August and 0.6% in the month.

However, food prices are rising – they are up 0.1% last month and 2% in the past year.

The HIPC, excluding energy and unprocessed food, is estimated to have gone up by 2.3% since August 2023.

Transport costs have decreased by 0.9% in the month and risen by 4.3% in the 12 months to August 2024.

Commenting on today’s CSO figures, the Minister for Finance Jack Chambers said the period of elevated inflation now appears to have passed and we are now back on a more stable trajectory.

“This easing in inflation will support an improvement in real wages which should help drive growth in our domestic economy over the remainder of this year,” Mr Chambers said.

“However, pockets of inflation remain with core inflation still in excess of 2% and I am acutely aware that many households and businesses are still struggling as price levels throughout the economy remain elevated,” he said.

The Finance Minister said that despite the strong position of the economy at present we are living in an era of great uncertainty, geopolitical tensions and a changing economic landscape.

Article Source – Annual inflation falls to 3-year low of 1.1% – flash data – RTE

Copyright and Related Rights Act, 2000

The Wage Subsidy Scheme, which offers private sector employers a subsidy to provide employment to people with disabilities, is to be expanded.

A number of changes to the scheme have been announced following a review of the initiative.

The scheme pays a minimum subsidy rate of €6.30 an hour to the employer, which can increase to €9.45 per hour depending on the number of people employed under the scheme.

The employment contract being offered must be of at least 15 hours per week and a subsidy can be claimed for a maximum of 39 hours per week.

The review of the scheme recommended that it be expanded to the community and voluntary sector, and commercial state-sponsored sector.

It called for the subsidy rate to be reviewed on a regular basis and recommended steps to promote and improve knowledge of the scheme.

The review found that the terms “productivity deficit” and “productivity shortfall” should be removed from the scheme.

It also called for the programme to be expanded to employers who employ people returning to work in receipt of Partial Capacity Benefit.

The Department of Social Protection said it would work over the coming months to implement the recommendations with an updated scheme expected to be in place from January 2025.

An additional €3.7m was allocated in Budget 2024 to implement some of the review’s recommendations.

“The Wage Subsidy Scheme is a key support for employers to hire people with disabilities, and I commissioned this timely review to find ways to expand and improve it,” said Minister for Social Protection, Heather Humphreys.

“It is so important that we support people with disabilities to take up employment if they are able to work. Having a job has many social, economic and health benefits,” Ms Humphreys said.

Article Source – Wage Subsidy Scheme set to be expanded – RTE

Copyright and Related Rights Act, 2000

Changes to employment permits, designed to make the system more flexible, will come into force from Monday 2 September.

Regulations giving effect to the Employment Permits Act were signed today.

Under the new rules, certain categories of permit holders will be able to change employer after a nine month period.

A new seasonal employment permit will be introduced to support the seasonal needs of certain sectors such as fruit picking.

Subcontractors will be given access to the employment permit system.

There will be a requirement for additional conditions such as training and accommodation support for employment permit holders.

The new regulations will allow for non-consultant hospital doctors to have a permit which will allow them to work at multiple sites.

The changes will also allow permit holders to be promoted within their roles without the need for a new permit.

Today’s regulations also extend employment permit quotas for two key roles.

A new quota of 500 permits will be granted to the home care sector, while a further quota of 250 permits will be issued to lineworkers to help relieve the pressure on the ESB Networks’ overhead line framework contractors.

The Employment Permits Act 2024 applies to people from outside the European Economic Area (EEA) who wish to take up eligible employment and residence in Ireland.

The Government said the changes to the permit system will make it more easily adaptable, allowing it to respond quickly to changes in the labour market and business needs.

“The improvements in the new Act will allow for a more modern, flexible employment permits system as well as ensuring employee rights are maintained,” said Minister for Enterprise, Trade and Employment Peter Burke.

“It will greatly benefit employers and permit holders alike,” Mr Burke said.

Minister of State for Business, Employment and Retail, Emer Higgins said Ireland needs to attract more international talent.

“This new law, along with recent measures like the granting of work rights to the eligible spouses and partners of certain employment permit holders and the roll out of a single permission to both work and live in Ireland – will massively help to achieve this goal,” Ms Higgins said.

Article Source – Changes to work permits to come into force next week – RTE

Copyright and Related Rights Act, 2000

Consumer confidence dropped slightly in August, according to the latest Credit Union consumer sentiment index.

Concerns about household finances in the months ahead and a renewed nervousness about the economy weighed on consumer thinking, the survey states.

It suggests that the looming seasonal increase in spending pressures is adding to the lower consumer mood.

“The slight drop in sentiment in August chimes with the anxiety facing many parents in relation to back-to-school costs,” said David Malone, CEO of the Irish League of Credit Union.

“It’s likely that consumers also have an eye towards higher energy usage costs in the months ahead as well as extra spending pressures in the lead in to Christmas,” he added.

The index reading of 72.0 for August was down slightly from 74.9 in July.

The August reading marks the first monthly decline since May and follows significant improvements in June and July.

“Importantly, the 2.9-point drop in the sentiment index in August is less than a third of the cumulative gain seen in the previous two months,” said economist Austin Hughes, author of the report.

“As such, it doesn’t suggest a major setback in consumer sentiment.

“Instead, it emphasises that many Irish consumers continue to be under significant financial pressure and risks to the economic outlook remain substantial,” he added.

Mr Hughes said all five elements of the survey weakened month-on-month in August, suggesting a generalised shift in thinking rather than one driven by a specific development during the survey period.

A special question in the survey asks whether, so far, 2024 has been better or worse than Irish consumers expected.

One in five consumers said their household finances were better than they expected at the start of the year, while one in three said they are worse than expected.

Those aged 45-64, those on lower incomes and female respondents were more likely to be disappointed.

Meanwhile, 10% of consumers said their household incomes rose more than expected, while 17% said it has risen less than expected and 42% said their household income hasn’t risen this year.

22% of consumers said their household living costs have risen less than expected or not all this year, while 44% said they have risen more than expected.

Article Source – Consumer confidence falls slightly in August – RTE

Copyright and Related Rights Act, 2000

Consumer confidence dropped slightly in August, according to the latest Credit Union consumer sentiment index.

Concerns about household finances in the months ahead and a renewed nervousness about the economy weighed on consumer thinking, the survey states.

It suggests that the looming seasonal increase in spending pressures is adding to the lower consumer mood.

“The slight drop in sentiment in August chimes with the anxiety facing many parents in relation to back-to-school costs,” said David Malone, CEO of the Irish League of Credit Union.

“It’s likely that consumers also have an eye towards higher energy usage costs in the months ahead as well as extra spending pressures in the lead in to Christmas,” he added.

The index reading of 72.0 for August was down slightly from 74.9 in July.

The August reading marks the first monthly decline since May and follows significant improvements in June and July.

“Importantly, the 2.9-point drop in the sentiment index in August is less than a third of the cumulative gain seen in the previous two months,” said economist Austin Hughes, author of the report.

“As such, it doesn’t suggest a major setback in consumer sentiment.

“Instead, it emphasises that many Irish consumers continue to be under significant financial pressure and risks to the economic outlook remain substantial,” he added.

Mr Hughes said all five elements of the survey weakened month-on-month in August, suggesting a generalised shift in thinking rather than one driven by a specific development during the survey period.

A special question in the survey asks whether, so far, 2024 has been better or worse than Irish consumers expected.

One in five consumers said their household finances were better than they expected at the start of the year, while one in three said they are worse than expected.

Those aged 45-64, those on lower incomes and female respondents were more likely to be disappointed.

Meanwhile, 10% of consumers said their household incomes rose more than expected, while 17% said it has risen less than expected and 42% said their household income hasn’t risen this year.

22% of consumers said their household living costs have risen less than expected or not all this year, while 44% said they have risen more than expected.

Article Source – Consumer confidence falls slightly in August – RTE

Copyright and Related Rights Act, 2000

Preliminary figures from the Central Statistics Office show that average weekly earnings for the second quarter of 2024 reached €963.17, an increase of 5.6% or €51.43 compared with the same time last year.

The CSO said that average weekly earnings rose across all 13 sectors in the year to the second quarter, with the largest annual percentage increase of 11.8% reported in the Construction sector.

Today’s figures show that average hourly earnings grew on an annual basis by 5.4% to €29.71, while average weekly paid hours increased by 0.3% to 32.4 in the second quarter of 2024 from 32.3 in the second quarter of 2023.

The CSO noted that over the five years from the second quarter of 2019 to the second quarter of 2024, average hourly earnings went up by 25.4% from €23.69 to €29.71.

Meanwhile, average hourly other labour costs rose by 10.1% across all economic sectors to €5.22 from €4.74, while average hourly total labour costs grew by 6.1%.

The sector with the highest average hourly total labour costs in the second quarter of this year was the Information & Communication sector at €59.64, followed by the €50.10 in Financial & Real Estate sector.

The lowest average total labour costs were in the Accommodation & Food Service Activities sector, which recorded a rate of €18.76.

Today’s CSO figures also show that the job vacancy rate in the three months from April to June was 1.1%, which was unchanged from the end of March and down from 1.3% at the end of the same time last year.

Article Source – Average weekly earnings up 5.6% in second quarter – CSO – RTE

Copyright and Related Rights Act, 2000

Household electricity bills could be set to rise by up to €8.42 a month over the coming year.

The increase is the result of the energy regulator setting network charges for the period.

The Commission for the Regulation of Utilities (CRU) said network charges are needed to enable ongoing investment to take place in the electricity system.

There are two charges – one for the cost of building, maintaining and operating the transmission network operated by Eirgrid, and the other for the distribution system run by ESB Networks.

Each year both organisations make requests to the regulator which are then reviewed, before a decision is made on whether or not to approve additional allowances.

“EirGrid submitted a number of revenue adjustment requests for 2025 some of which the CRU approved, partially approved, and did not approve,” the CRU said in a statement.

The regulator said today that it had set the revenue requirement for the transmission system at €1.4 billion for the coming year, an increase of 38% on this year.

While for the distribution system the revenue requirement has been set at €1.1 billion, down 4.9% on this year.

When the network charge requirements and other adjustments are taken into account, the net increase being faced by domestic customers per month is €8.42.

Suppliers decide themselves as to whether to past on these charges in part, in full or not at all through standing charge on bills.

“The CRU continue to encourage customers to either renegotiate or switch supplier to find the most suitable tariffs for their needs which may minimise the impact of any charges that suppliers may pass onto their customers,” it said.

This time last year the CRU cut network charges by €6 as part of a balancing exercise resulting from the undercharging of large energy users and the resultant overcharging of domestic customers over a ten year period, to a total of €100m.

Jim Gannon, Chairperson of the Commission for Regulation of Utilities, said that Ireland is going through an unprecedented change in use and demand for electricity across all sectors.

Investment is also required to support the growth and increase in decarbonisation and measures to move away from fossil fuels.

Traditional investment and maintenance is also need to make sure that the network is resilient and ensuring an efficient supply for consumers

He said that network charges formed an element of the annual standing charge and suppliers decide the level of charges are passed on or absorbed.

On an annual basis, network companies will request investment in new wires and infrastructure, new system processes and investment in for example smart meters.

The regulator must review this with an aim to either allow, disallow or partially allow the investment.

“While there will be an increase in the annual bill, there is still significant value in the market place. If consumers do switch to smarter tariffs, they can see that reduce. We would suggest and encourage people to go to the accredited price comparison websites,” Mr Gannon said.

He added that on an annual basis, the Commission will review the performance of the organisations as well as forthcoming investment requirements, and all must be up to scratch to get approval.

He added that the Commission was acutely aware of the challenges that face consumers in recent years.

The Commission is due tomorrow to publish measures for consumers for the winter period, such as a disconnection moratorium, debt repayment for those on pay-as-you-go meters and discounted tariffs for those on hardship meters timelines for debt repayment.

He said companies were committing to the engage code, which was about making sure an actively engaging consumer will not be disconnected.

Article Source – Domestic electricity bills to rise by up to €100 a year to cover network charges – RTE

Copyright and Related Rights Act, 2000

Just over 5,300 mortgages were approved in July, the latest figures from Banking and Payments Federation Ireland show.

First time buyers continue to drive the bulk of the activity, accounting for almost two thirds – 61.9% – of all approvals in the month.

Just under a quarter of approvals were granted to those looking to move house.

Remortgaging and switching activity increased significantly in the month, both in volume and value terms, albeit from very low levels.

The rates of switching and remortgaging dropped substantially in the last year following a surge in activity as the European Central Bank moved to raise interest rates in mid-2022.

The total mortgages of mortgages approved in July amounted to €1.61 billion of which first time buyers accounted for just over €1 billion.

That was an increase of just over 20% month on month and around 19% on the same month last year.

“First-time buyers approval volumes and values reached their highest levels since the series began in 2014, up 12.8% and 21% respectively,” Brian Hayes, CEO of the Banking and Payments Federation said.

“Values topped €1 billion (€1,012 million) for the first time in a one-month period,” he noted.

Mr Hayes said the report pointed to robust mortgage activity overall.

49,384 mortgage approvals were granted in the twelve months ending July 2024, of which 30,550 were first time mortgages.

“Furthermore, applications to the Revenue Commissioners for the Help to Buy scheme increased by 45% year on year in the first seven months of 2024 to almost 24,000 (23,902),” he pointed out.

Article Source – First time buyers continue to drive mortgage approvals – RTE

Copyright and Related Rights Act, 2000

More than four out of ten people did not make full use of their full holiday entitlements last year, according to new research on annual leave.

The survey undertaken by FRS Recruitment shows that almost one in five people did not take five days of annual leave or more, which in business terms represents a week of leave.

Around 15% of people said they did not take four days, 17% had three days which went unused, 19% did not use two days of leave and 3% had one day’s holidays remaining.

The FRS Recruitment Annual Leave Report found that almost half of those surveyed said they used their annual leave for domestic travel last year, the most common reason cited.

Around 46% used it for foreign travel, 15% for family reasons, 9% for personal reasons and 4% due to illness.

Almost a quarter of workers said the longest period of annual leave they took was less than a week, while 38% said their longest break was two weeks.

Around 31% of respondents said their annual leave is lost if it goes unused, while a similar number said it is carried over into the following year.

More than a quarter of workers said they receive payment in lieu of unused leave.

Almost six out of ten people said they would be in favour of their employer introducing unlimited annual leave, while 56% said they would be in favour of a four-day working week, even if it impacted on their salary.

A total of 1,886 people took part in the survey used to compile the report.

“After salaries, holidays and annual leave entitlements are arguably one of the main points of negotiation between employees and employers,” said General Manager with FRS Recruitment Lynne McCormack.

“Yet despite their importance, an increasing number of these sought after days of leave are going unused by employees. Of even greater note is the number of holidays that people are not taking,” she said.

“One in five of us say they did not take five days or more leave last year. Effectively that’s a week of holidays going unused,” Ms McCormack said.

Article Source – Over 40% of workers did not use full holiday entitlements last year – survey – RTE

Copyright and Related Rights Act, 2000

Green party leader Roderic O’Gorman has said that the Residential Zoned Land Tax will go ahead in the upcoming Budget.

The Minister for Children and Integration said that he had spoken to his Cabinet colleague Minister for Finance Jack Chambers about the matter, and that there will now be a “carve out” for farmers.

Minster O’Gorman said that work on that provision is ongoing.

The tax, which is intended to target people who are hoarding land, had provoked disagreement between the Green Party and its coalition partners.

Last week, Minister Chambers had expressed concern that active farmers could be affected.

Both he and Taoiseach Simon Harris had indicated that the tax was set to be deferred.

The led to a public row, with a number of Green Party TDs objecting to the deferral, claiming that it would be like “hiding food in the famine” amid the housing crisis.

One Green TD, Minister of State at the Department of Public Expenditure Ossian Smyth responded to Minister Chamber’s remarks by insisting that the deferral was “not going to happen”.

Speaking at a media event at Government Buildings today, Minister O’Gorman said that he had held “a good discussion” with Minister Chambers about what had transpired.

He said that he had raised the issue at a coalition leaders meeting when he became Green Party leader at the start of July, as his party wanted “to seek clarity” on the tax.

Minister O’Gorman said that the coalition parties are agreed that “the purpose of the tax was never to hit farmers”, and he is “confident we will see this implemented in this year’s Budget”.

Article Source – Zoned Land Tax to go ahead in Budget, O’Gorman says – RTE

Copyright and Related Rights Act, 2000