News from Ireland

NEWS SNAPS FROM IRELAND

ROAD DEATHS CAMPAIGN FOCUSES ON NON-NATIONALS

The increase in non-nationals working in the
Irish economy has had an adverse effect on the
road traffic accident statistics.

Despite representing only 9% of the workforce
deaths of non-nationals represents 25% of the
total number who have lost their lives on Irish
roads in 2006. Many of these were uninsured,
untaxed and possibly unlicensed. A recent
drink-driving blitz by Gardai revealed that a
third of those arrested over a particular weekend
were non-nationals.

New laws have been announced that will make it
compulsory for motor-cycle drivers to undergo
training, thus removing the ridiculous situation
whereby any untrained 16-year old could buy a
motor-cycle and take it out onto the road
without any training whatsoever.

The laws for 'provisional' driving licence holders
is to be changed also. The current situation
allows for drivers to drive their car while
waiting for a driving test when they can become
fully licensed. Some Irish drivers continue to
hold a 'provisional' driving licence for decades,
never having passed the driving test. The new law
will prevent the 'failed' driver from leaving the
test centre in their car and will make it illegal
for them to drive while unlicensed.

DEBATE ON NUCLEAR ENERGY IN IRELAND HEATS UP

The recent focus on high oil prices has prompted
the debate on nuclear energy to be revisited. The
island nature of the Irish economy has meant that
energy prices are even higher in Ireland than in
other EU economies. Some commentators have
suggested that nuclear energy is the only viable
medium-term solution, especially while alternative
energy supplies continue to be either too
expensive or low-yielding. Irish Taoiseach Bertie
Ahearn has ruled out any immediate investment in
nuclear energy.

GROCERIES ORDER ABOLISHED

The controversial Groceries Order has been
abolished. This law forbade the selling of grocery
items at below-cost prices as it was seen to give
an advantage to larger supermarkets who could
purchase in bulk. While this helped out smaller
retailers it did little to help put consumers who
could not benefit from the buying power of the
larger shops. it has been estimated that the
lifting of the ban could save as much as EURO 100
per month on the household shopping bill. Irish
grocery prices continue to be among the highest
in Europe.

IRISH INCOME TAX AMONG WORLDS LOWEST

A report by the Organisation for Economic
Co-Operation and Development (OECD) has stated
that Ireland has one of the lowest rates of
income tax in the developed world. Only 8% of
gross earnings of a one-income family with 2
children is taxed, when state benefits are
added back. Critics of the Irish taxation
regime point out that the exorbitant 21% value
added tax (sales tax) on most goods more than
makes up for the relatively benign income tax
regime. Unmarried workers earning the average
industrial wage face income taxation of 26%.

IRISH HOUSE PRICES CONTINUE TO DEFY EXPECTATIONS

The Irish property market continues to appreciate
at record levels. A slowdown in the rate of
growth in the last part of 2005 has been shaken
off as the market for new and second-hand houses
continues to boom. The average price of a
second-hand house in Dublin increased by
EURO 40,000 in the first 3 months of 2006 - a 10.4%
increase! Some real estate estimates put the
annual increase of Dublin houses at 25% in the
12 months up to March 2006.

Recent interest rate hikes by the European Central
bank have had little effect on the Irish market
where demand continues to exceed supply. Some
banks are now offering 40-year and 'interest-only'
mortgages.

IRISH DOCTORS UNDER FIRE

The problems of over-crowding in Irish accident
and emergency wards continues unabated. The
Irish Health Minister Mary Harney has criticised
local doctors for failing to provide out-of hours
service. Most Irish General Practioneers close
their surgeries at 5pm, Monday to Friday. This
has resulted in patients turning to Public
Hospitals as their preferred local doctor is
unavailable, claimed the Minister.

ICE CREAM MANUFACTURER APOLOGIES

Ice-cream manufacturer 'Ben & Jerrys' has issued
an apology for the insensitive naming of a recent
flavour of their ice cream. The 'Black & Tan'
flavour is thus far only available in the US and
is based on the drink of the same name. The Black
and Tans were a notorious and vicious British
militia employed during the 1919-1921 Irish war of
independence, led by Michael Collins.


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