TACKLING THE
CRISIS
300,000 jobs were lost in the 3 years before this Government took office. In the past year private sector employment increased by 20,000. IDA supported jobs increased by 12,000 since 2011 and exports are now 10% higher than 2007. 100,000 people left the live register into jobs in 2012 yet others are still losing theirs – but we are acting to fix these problems.
SUPPORTING SMALL AND MEDIUM ENTERPRISES
RESTORING OUR ECONOMIC SOVEREIGNTY ■ We met all our targets as part of the EU/IMF Programme of Financial Support meaning we are on track to regain our financial independence.
■ The bond rates on our sovereign debt fell by over half in 2012. ■ Over €7 billion was raised by the Government on bond markets last year – a positive message that the world is ready to invest in Ireland. The Bank of Ireland, ESB, Bord Gais and AIB have all raised funds in their own names for the first time in years.
SMEs make up 99% of businesses in Ireland and account for almost 70% of people employed. A range of measures were announced in Budget 2013 to support this critical sector including:
■ The economy was forecast to grow by 0.9% in 2012 with investment up, and consumer demand
■ 10 Point Tax Reform Plan that includes an improved Research &
■ In June we secured a breakthrough with European agreement, in principle, to break the link
Development Tax Credit, an increase in VAT cash receipts threshold to €1.25 million, and extension of Employment and Investment Incentive scheme to 2020.
■ Rebate on Diesel for licensed hauliers from 1 July 2013. ■ The National Pension Reserve Fund will develop a range of support funds for the SME sector, and a new network of Local Enterprise Offices has been set up.
■ The €90 million Micro Finance Loan Scheme is targeted at small enterprises with less than €2 million turnover, and €225 million is dedicated to the Development Capital Scheme.
■ The Credit Guarantee Scheme of €450 million is now in place. AIB and Bank of Ireland also have lending targets of €4 billion in 2013 and will meet their 2012 targets of €3.5 billion.
■ Supporting the Tourism sector with 9% VAT rate and The Gathering 2013.
2013 Kevin Humphreys TD
PROGRESS MADE IN 2012
stabilising.
BUDGET GUIDE 2013
between bank and national debt.
■ Unemployment levels remain too high but latest figures show a fall on an annual basis for first
nt this year was The task facing the Governme Budget had to find harder than ever before. The providing essential still le whi savings of €3.5 billion welfare payments public services, funding social wth. and investing in jobs and gro ke the budget as fair ma to The Labour Party set out no good or easy is re the w kno as possible but we trying to balance way to reduce spending while Ireland’s books.
time since 2005.
■ 2012 was a record year for Foreign Direct Investment in Ireland with the IDA announcing 84 projects set to create some 8,650 jobs.
■ In 2012 our exports reached an all-time high of €171 billion.
REFORMING POLITICS ■ No more un-vouched expenses for TDs and Senators, with 20% reduction. ■ Abolished severance payments for Ministers. ■ Halved Oireachtas Envelope provision and reduced number of TDs by 8 from 166 to 158. ■ 10% cut in Party Leader’s allowance and statement of expenditure must be given.
INVESTING IN IRELAND’S FUTURE
■ Travel and Accommodation allowance reduced by up to 25%.
■ €2.25 billion stimulus package announced last summer will invest in shovel ready projects such as the Grangegorman campus and 20 primary care centres creating up to 13,000 jobs.
■ Ambitious programme of local government reform announced.
■ 10 year €175 million Venture Capital Fund to fund new and expanding Irish companies, and €35 million of seed capital committed to retrofit industry for Energy Efficiency Fund.
■ €3.5 billion allocated in 2013 for capital investment all over Ireland in infrastructure such as the LUAS, school buildings, water schemes & the National Children’s Hospital.
■ Enterprise Ireland will invest €127 million, supporting 95 new High Potential Start-Ups and creating over 1,000 jobs. Science Foundation Ireland will support 3,000 researchers in 2013.
■ The IDA has been allocated €86 million for capital spending supporting R&D, employment and capital grants, and is targeting 12,000 new FDI jobs next year.
making progress and 85% been made.
have to pay back. If we are now is money our children will row bor we o eur ra ext ry eve Still, ween what we spend and in, we have to close the gap bet to stand on our own feet aga what we take in. ernment has: we had to take, Labour in Gov Despite the tough decisions
■ Constitutional Convention set up and Ireland will join the global Open Government Partnership. ■ Freedom of Information being extended to more State bodies, Whistleblowing laws being reformed, and the Ombudsman has been given more powers.
■ Stronger Ethics legislation, transparency in lobbying, and a revised budgetary process.
■ Protected core social
GOVERNMENT OBJECTIVES IN 2013
welfare payments, including jobseekers allowance and state pensions. ■ Increased taxes on wealth including a mansion tax. ■ Provided increased training and education places for the unemployed ■ Retained the pupil teacher ratio in public primary and secondary schools ■ Maintained funding for disabilities and special needs education.
■ Achieving a deal on the Toxic Bank Debt, including a restructuring of the Promissory Notes. ■ Continue to create jobs and growth. ■ Use our Presidency of the European Union to tackle unemployment and youth unemployment. ■ Continue to repair our national finances in as fair a way as possible.
■ NAMA is making €2 billion available for completing building projects in Ireland.
■ Move towards exiting the troika programme to regain our economic independence.
■ Package of measures to attract international aviation services to Ireland and Shannon.
■ Further help those in mortgage difficulty – Personal Insolvency Bill will come into force next year. ■ Continue to grow our exports, support SMEs, and attract even more Foreign Direct Investment.
BUDGET CHANGES IN HEALTH Over €13.6 billion will be spent in Health next year and it is a tough area to make savings in.
■ Prescription Charges have been raised to €1.50 up to a maximum of €19.50 per family per month, and the monthly threshold for the Drugs Payment Scheme is now €144.
, we will still have to Even after this difficult budget to run the country. 3 borrow over €12 billion in 201 billion, but we are 15 € row Last year, we had to bor send the Troika home have now of the adjustments needed to
■ Use The Gathering to increase tourism, income and jobs.
Working with your Local Labour Team
ment is to get Ireland back to challenge for Labour in Govern This work continues and the ensure the mistakes of the and egotiate our bank debt ren ble, era vuln the t tec pro work, past are never repeated. and how they affect you. If isions made in Budget 2013 dec ny ma the out sets let This leaf in touch. on any aspect, please do get you have a specific question
■ Income limits for medical cards for those over 70 have been changed. Asset contribution for Fair Deal to increase to 22.5%. Full details are available on www.citizensinformation.ie
■ Public in-patients charge now €80 per day (€5 increase) subject to a cap of €800 in a year. Medical card holders still exempt.
■ ‘€200 million will be saved on consultants contracts in 2013 and €160 million will be saved on drugs.
■ €35 million has been allocated for new mental health services in 2013 as part of a Vision for Change.
Ruairi Quinn TD 01 618 3434 minister@education.gov.ie
Dáil Éireann, Kildare Street, Dublin 2 Phone: 01 618 3224 Mobile: 087 2989103 Email: kevin.humphreys@oir.ie Web: www.kevinhumphreys.ie
Leinster House, Kildare St, Dublin 2 Emer Costello MEP Tel: 01 618 3224 01 874 6109 Mobile 087 298 9103 emer.costello@europarl.europa.eu Email: kevin.humphreys@oireachtas.ie 0612
The first people from this will be those with certain long term illnesses.
Contact Kevin
Kevin Humphreys TD
■ €15 million has been set aside for the phased roll out of free GP care.
Kevin Humphreys @KHumphreysTD
Protecting education ■ Maintained pupil-teacher ratio for public primary & secondary schools. ■ €414 million to be invested in school building programme during 2013 with 50 new schools
TAX CHANGES - BUDGET 2013 The amount to be raised in new tax measures increased from €1.25 billion to €1.43 billion. This meant social welfare and health were subject to less spending reductions.
and major extensions and work continues on 44 other projects.
■ 6,500 new places through MOMENTUM offering free, targeted training and education courses to long term unemployed in key growth sectors.
■ No cuts in Special Needs Assistants, funding 10,575 positions in 2013.
In Budget 2012 we raised over €250 million through increased taxes on wealth. This year we introduced measures to raise over €500 million from those who can afford it most.
WEALTH TAX PACKAGE – RAISING €500 MILLION
■ Resource Teacher numbers have been protected at 9,950.
■ Mansion Tax of 0.25% on houses worth over €1 million.
■ Maintained funding & teacher numbers in DEIS schools in disadvantaged areas.
■ USC applies now to pensions worth over €60,000 a year for over 70’s.
■ 900 new teachers will be recruited this year. (450 each for primary & secondary)
■ €6.5 million is committed to the Literacy and ■ High Speed broadband for all post-primary
2012
2013
Under age 80*
€230.30
€230.30
Aged 80 and over
€240.30
€240.30
Weekly Personal Rate
STATE PENSION (NON-CONTRIBUTORY) Under age 80*
€230.30
€230.30
Aged 80 and over
€240.30
€240.30
■ Increased rate of Capital Gains Tax and Capital Acquisition Tax by 3% to 33%.
*There was no change on the applicable qualified adult or child rates FUEL ALLOWANCE – continues to be paid at a weekly rate of €20 for 26 weeks (6 months). Fuel Season for 2012/13 will end on 5th April 2013.
2014.
■ €3 million for reform of the Junior Cycle.
■ Reduction of tax free thresholds for Capital Acquisitions.
Labour is committed to protecting and investing in education, tackling educational disadvantage and catering for the rising numbers of school children. New savings of €91 million out of the €8.9 billion budget had to be made for 2013 that include measures such as:
■ End to top slicing relief for lump sum and severance payments worth over €200,000.
■ Rates of excise duty have increased on all alcohol and tobacco products. This is first major
■ Increase in pupil teacher ratio in private secondary schools. ■ Standardised sick leave and maternity leave with civil service, reducing substitution costs. ■ Income threshold for student maintenance grants reduced by 3%. For families with less than four children, the income limit for full grant is now €39,875.
■ Pupil Teacher Ratio for PLC courses will be same as in post-primary schools.
LOCAL PROPERTY TAX
increase on beer since 1994.
A half year charge will apply in 2013 and the tax comes into effect from the 1st July. Value is assessed at the midpoint of a band, which start at (€0 to €100,000), and each band after that increases by €50,000. The valuation will depend on the market value of your property on 1st May 2013 and will apply at that value until 2016. The table below shows some examples. Full details are available at www.revenue.ie
now €500.
■ Tax relief on charitable donations now at blended rate of 31%.
CARER’S ALLOWANCE UNCHANGED
■ VRT and motor tax increased, and carbon tax extended to solid fuels.
Nearly €800 million will be spent in 2013 on payments supporting Carers.
Social Protection accounts for 40% of Government spending, and has been allocated €20 billion in 2013. Originally, €540 million was to be taken from Social Welfare in 2013 but Labour successfully fought to reduce this to €390 million by increasing taxes on wealth. This allowed us to protect core, weekly payments. JOBSEEKERS BENEFIT
2012
2013
Personal Rate*
€188
€188
Midpoint
LPT 2013 (½ YR)
LPT 2014 (FULL YR)
Over 25 years*
€188
€188
50,000
€45
€90
22 - 24 years of age
€144
€144
100,001 – 150,000
125,000
€112
€225
18 - 21 years of age
€100
€100
150,001 – 200,000
175,000
€157
€315
*No change on increase for qualified adult (€124.80) or qualified child (€29.80)
200,001 – 250,000
225,000
€202
€405
250,001 – 300,000
275,000
€247
€495
300,001 – 350,000
325,000
€292
€585
for older homeowners.
■ The Revenue will engage in an extensive public information campaign, and will write to homeowners in March 2013.
■ New first time buyers will be exempt from the property tax from 2013 up to 2016.
■ 2,000 new Community Employment Places (total 25,300)
USEFUL CONTACTS/WEBSITES www.revenue.ie www.citizensinformation.ie www.keepingyourhome.ie www.mabs.ie
■ 2,500 new Tús places - Now 7,500 on community work
2012
2013
Caring for 1 person up to 2 years
€205
€205 Maximum weekly rate
CARER’S ALLOWANCE (Means tested) Under 66, caring for 1 person
€204
€204
Under 66, caring for 2 or more
€306
€306
66 or over, caring for 1 person
€239
€239
Aged 80 and over
€358.50
€358.50
Half-Rate Carer’s Allowance paid at 50% of above rates. There was no change on the applicable qualified adult or child rates.
■ Weekly payment rates to carers maintained in Budget 2013, and full time carers in receipt of ■ The Annual Respite Care Grant has been reduced to €1,375 from €1,700 but is still higher than it was in 2006 (€1,200).
■ Carers who live with the person they care for continue to be eligible for the Household benefits package and free travel pass. The payment is not taken into account in the assessment for a medical card.
CHILD BENEFIT 2013 Child benefit is now payable at €130 per month for each of the first three children and €140 for the 4th and each subsequent child. The monthly payment was reduced by €10 in Budget 2013 for the first and second child, and will standardise at €130 for each child from 1st January 2014. Additional payments for twins and multiple births remain at 1.5 and 2 times respectively, the appropriate rate. Family Size
1 Child
2 Children
3 Children
4 Children
Monthly Rate
€130
€260
€390
€530
placement scheme
■ The second home charge will apply in 2013 but no longer after that.
Revenue Commissioners Citizens Information Mortgage Arrears Advice Money Advice and Budgeting Service
From April 3rd new claimants with 260 or more contributions will be paid Jobseekers Benefit for 9 months. Those with less than 260 contributions will be eligible for 6 months payment. The means test for Jobseekers Allowance has not been changed. However the rate of assessment of means for Farm Assist has been increased to align it with Jobseekers Allowance.
FUNDING PROVIDED FOR 10,000 NEW PLACES ON EMPLOYMENT PROGRAMMES
CARER’S BENEFIT (PRSI based)
another welfare payment are still eligible for half rate Carer’s Allowance.
Maximum Weekly Rate
JOBSEEKERS ALLOWANCE
0 – 100,000
■ There are several deferral options for those on low incomes, those with large mortgages and
HOUSEHOLD BENEFITS PACKAGE From January 2013, the Electricity and Gas allowance will have a monthly value of €35. It has been restructured this year to apply an unchanged 150 units per month on the average best rate available from suppliers. It will no longer include the PSO contribution. This is to encourage recipients to seek the best market price available. The monthly telephone allowance will now be €9.50, reduced from €22.60 giving a saving of €61 million.
■ The weekly PRSI allowance has been removed; minimum PRSI contribution for self-employed
SOCIAL WELFARE - CORE WEEKLY PAYMENTS PROTECTED
This new tax is a requirement of the EU-IMF bailout and will fund local services. It will replace the Household Charge. The Local Property Tax (LPT) will be levied at a rate of 0.18% of value up to €1 million. The mansion tax of 0.25% is applied to the balance over €1 million. The Revenue Commissioners will collect the tax.
STATE PENSION (CONTRIBUTORY) RATES – the full breakdown of personal rates applicable to your yearly average PRSI contributions is available on www.welfare.ie or from any Citizens Information Office.
■ Reform of Film Relief and preferential loans now taxed as Benefit in Kind.
OTHER TAX MEASURES
■ €250 increase in the Student Registration Fee to €2,500.
Valuation Band
STATE PENSION (CONTRIBUTORY)
■ Reduction in tax relief for mega-pension pots worth over €60,000 a year from 2014.
■ PRSI will apply to all income from a trade or profession in 2013, and all unearned income from
schools by September 2014.
There will be no change in the rates of the weekly state pensions or other payments for those aged over 66 such as the living alone allowance, fuel allowance, free travel and TV allowance.
Other Social Insurance and Assistance payments for widows, widowers, surviving civil partners, deserted wife’s benefit and the blind pension are unchanged.
■ Increased rate of Deposit Interest Retention Tax to 33%.
Numeracy Strategy for 2013.
PROTECTING OLDER PEOPLE
■ 3,000 new Local Authority Social Employment Scheme Places LoCall 1890 333 425 0761 07 4000 0761 07 4050 0761 07 2000
■ 2,500 new JobBridge places – Now 8,500 places. 52% of JobBridge finishers are in paid employment following their internship.
The Back to School Clothing and Footwear Allowance for qualified recipients is now payable at €100 for children aged 4 to 11, and €200 for children aged 12-17 in full time education. The reduction means the payment is still above 2005 rates. Savings have been made in the Back to Education allowance by discontinuing the €300 cost of education payment and paying a maximum rate of €160 per week to participants in receipt of agerelated jobseekers payments. Spending on Back to Education allowance has increased to €200M in 2012 from €77M in 2008.