News from Ireland

NEWS SNAPS FROM IRELAND



IRISH ARE THE HAPPIEST PEOPLE IN THE EU

A recent report from the European Union (EU) has
revealed that the Irish are among the happiest
people in Europe. The survey found that 92% of
Irish people are happy with their lives, compared
with the EU average of 80%. 50% indicated that
the health-care system was the most worrying
aspect of Irish life with 42% citing crime as
their biggest worry.

In respect of support for the EU Ireland ranks
second only to Luxembourg where 82% are
supportive, 73% being the rating in Ireland.
Austria and Britain are the most skeptical about
the EU, with 32% and 34% support respectively.

BUDGET 2005 IS ANNOUNCED

The annual budget, or allocation of financial
resources, has been announced by the Minister for
Finance. The big winners are families with
children who will receive an extra EURO 30 per
week per child, up until the age of 5 years. Old
age pensions were increased also with the
Government indicating it will reach its target of
a payment of EURO 200 per week before its term in
office expires.

It is expected that extra tax will be put onto the
sale of cigarettes. Alcohol may also be targeted
for extra taxation but the Minister will be
mindful of the delicate balance required in
respect of keeping inflation low while at the same
time pursuing its policy of taxing unhealthy
consumption.

The Irish economy will have grown by 5% in 2005
and is expected to top 6% in 2006. The construction
boom is the main driving force behind the
continuing surge in the economy, allied with a low
corporate taxation regime and record high
employment levels.

EU WORKERS FLOCK INTO IRELAND

Workers from eastern Europe are flocking into
Ireland attracted by high wages and employment
opportunities. In 2004 there were 7000
registrations of workers from the new EU states
who are entitled to work in Ireland. The figure
in 2005 is more than 11,000 per month. Most of
the new workers are from Poland (54%), Lithuania
(19%), Latvia (9%) and Slovakia (8%). Tax
documentation has revealed that the vast majority
take up employment immediately while others work
on short term contracts and return home. Citizens
of the new EU states are not entitled to collect
Social Welfare in Ireland. Non-nationals now
account for 8% of the Irish workforce which is one
of the highest rates in the EU.

HOUSE PRICES CONTINUE TO RISE IN 2005

Despite the now annual event of warnings from
economists of an imminent collapse of the Irish
property market house prices continued to rise in
2005. The average cost of a home in Ireland is now
EURO 275,000. The start of 2005 saw the rate of
increase in house values begin to drop off, but it
soon picked up again in the second half of the
year. House prices increased in Ireland by an
average of 9% in 2005. The increase in 2004 was
over 8%.

The recent one-quarter percent interest rate
increase by the ECB did little to dampen the
market. The huge influx of foreign workers is
regarded as one of the big reasons why the
market is still so buoyant. In order for prices
to decrease then supply would have to exceed
demand and, despite record level of houses being
built, this does not look likely in the short
term.

ABBEY THEATRE MOVE FINALISED

It has been confirmed that the world famous Abbey
Theatre located in the heart of Dublin City is to
be moved a short distance to new premises at
Georges Dock. The Abbey has been under severe
financial pressure in recent years and the move
is intended to revitalize the ailing national
theatre.

AER LINGUS AND RYANAIR SLUG IT OUT

Rival airlines Aer Lingus and Ryanair have stepped
up their battle, with the consumer being the big
winner. Ryanair recently added 18 new routes to
its service with Aer Lingus replying with 6 new
routes of its own, including direct flights from
Dublin to Poznan, Palma and Rennes. Ryanair now
offers a service to Marseilles, Milan, Valencia
and Bratislava.


Voice your opinion on these news issues here:

http://www.ireland-information.com/cgi-bin/newsletterboardindex.cgi


A-O-L USERS GO HERE