At PAC - Things we just learned about the state of the Economy ..

robut

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Five things we learned about the economy at the PAC

- We're the second most indebted country in the world - in hard cash terms Government debt stands at €201 billion. ( Included in that is €17.5 billion used to bail out stricken banks. )

- There’s no money in the 'rainy day fund' - right now the value of the fund is "zero."

- The Summer Economic Statement is coming - This will provide an update of the state of play in the Irish economy

- We have a new way of measuring economic growth - It's called GNI star (or GNI*) and strips out distortions caused by multinationals.

- Cutting the marginal rate of tax below 50% - would be tax cut for top earners
So PIE'ers, thoughts? Anything there that is a revelation OR is it all "Nothing to see here folks, move along"?

All tickity boo on the good ship Ireland PLC so???

Separate article re the empty rainy day fund - The Dept of Finance are being pretty sharp with the use of the word ZERO when it comes to rainy day fund.

PAC told Government's 'rainy day fund' is empty
 
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JimmyFoley

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Five things we learned about the economy at the PAC



So PIE'ers, thoughts? Anything there that is a revelation OR is it all "Nothing to see here folks, move along"?

All tickity boo on the good ship Ireland PLC so???

Separate article re the empty rainy day fund - The Dept of Finance are being pretty sharp with the use of the word ZERO when it comes to rainy day fund.

PAC told Government's 'rainy day fund' is empty
Cutting the marginal rate of tax would be a tax cut for top earners...wow! Such insight! They've earned their money there
.
 

Burnout

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I have a life.
Makes no difference...GE will just pass the problem onto the people that caused the bailout and round and round it goes.
 

SamsonS

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Five things we learned about the economy at the PAC



So PIE'ers, thoughts? Anything there that is a revelation OR is it all "Nothing to see here folks, move along"?

All tickity boo on the good ship Ireland PLC so???

Separate article re the empty rainy day fund - The Dept of Finance are being pretty sharp with the use of the word ZERO when it comes to rainy day fund.

PAC told Government's 'rainy day fund' is empty
Couple of points alright, and I'm more moaning about the article!

We're the second most indebted country in the world - in hard cash terms Government debt stands at €201 billion. - no argument with this, or with the amount for 2015. But no qualification of it either. That 201b was 203b in 2014 and 2015b in 2013.

- There’s no money in the 'rainy day fund' - right now the value of the fund is "zero." - yes. It was announced in 2016 that for the period from 2019 to 2021 that 1b a year would be put aside for rainy day fund, also to assist us in dealing with brexit. That's why its a bid mad when people are talking about cutting it, or using it for other things!

- The Summer Economic Statement is coming - This will provide an update of the state of play in the Irish economy. So now we have Spring and Summer Economic statement and a budget in October. Why is poor old winter being left out of the party! AFAIK this is not required and not sure what has changed since the one in April.

- We have a new way of measuring economic growth - It's called GNI star (or GNI*) and strips out distortions caused by multinationals. - not finalised, but gather most commentaors favour a move away from the traditional as it doesen't suit our economy.

- Cutting the marginal rate of tax below 50% - would be tax cut for top earners - yes. But I think it also benefits 50% of all workers - but obviously worth more to you the more your earn.
 

PBP voter

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The Ireland Strategic Investment Fund (ISIF), managed and controlled by the National Treasury Management Agency (NTMA) is an €8.0 billion sovereign development fund with a unique mandate. The Fund’s predecessor was the National Pensions Reserve Fund (NPRF).
History

We still have €8billion in this?
 

robut

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We still have €8billion in this?
Will it be so if this kind of carry on is going on ???

How taxpayer-backed fund gave €50m loan to buyer of RTÉ site

An investment fund backed by the taxpayer has stumped up €50m to help finance developer Cairn Homes' €107.5m acquisition of lands at RTÉ's Montrose campus.

Cairn Homes has obtained a €50m loan facility from State-backed lender Activate Capital - a company supported by the State-controlled Irish Strategic Investment Fund and global investment firm KKR. The loan is solely secured by a charge over the RTÉ site.

A spokesman for the Irish Strategic Investment Fund said: "Cairn is a publicly quoted company. Activate Capital is a commercial lender which operates stringent credit procedures.

"The Ireland Strategic Investment Fund has no involvement in Activate's lending decisions."
 
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Mushroom

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We still have €8billion in this?
We do indeed, but it can't really be described as a "rainy day fund" in the State's accounts.

(Although if a financial emergency arose, I'm sure it would be raided, plundered and ransacked by the government without hesitation or compunction!)
 

Clanrickard

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Raising the top tax threshold would be better. Furthermore cut back on tax shelters the likes of pension tax breaks etc. The simpler the tax the harder to dodge. Also I presume the NTMA have plans to roll over the debt over time.
 

SamsonS

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We do indeed, but it can't really be described as a "rainy day fund" in the State's accounts.

(Although if a financial emergency arose, I'm sure it would be raided, plundered and ransacked by the government without hesitation or compunction!)
There's a mathematician, a statistician and a different kind of mathematician..............
 

SamsonS

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Raising the top tax threshold would be better. Furthermore cut back on tax shelters the likes of pension tax breaks etc. The simpler the tax the harder to dodge. Also I presume the NTMA have plans to roll over the debt over time.
Also I presume the NTMA have plans to roll over the debt over time

They have been seriously busy at that for a number of years. What we need to refinance in 18/19/20 is 50b or so, but was 61b at the end of 2014.
 

Mushroom

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There's a mathematician, a statistician and a different kind of mathematician..............
There as almost many branches of mathematics as there are tattoo parlours on Dublin's Northside.
 

Sync

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There's a mathematician, a statistician and a different kind of mathematician..............
Change the channel!! I can't take another boring launch!

It's a good session, and stark messages are what electorates understand and politicians need. There's no money tree. Do you want a) higher public sector wages (Which is pretty much indefensible unless you happen to work for the public services), b) improved standards in the services (more staff, better stuff) or c) infrastructure to last 20 years (Hospitals, roads etc). Can't have all of them and can only have them by making money.

How do you make money? Cuts to less important services? Increase in taxes? Cutting welfare? Borrowing? And borrowing just to do b) partially and a) in particular would be illadvised.

It's honestly a perfect report. A 16 year old can read that and figure out what the story is and come to reasonably informed opinion on what they'd like to happen.

"Magic" is NOT an option.
 

Voluntary

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Yet another reason for Ireland to shift trading focus towards Europe and speed up isolation from UK shocks.

This part is however worrying:
Exposure of Irish banks and pension funds to British property is a concern (Bank of Ireland has more than €5bn, AIB €3bn, in loans tied up in Britain property, and 40 per cent of Bank of Ireland’s assets are British-based).
Irish banks and funds should be offloading UK assets right now before it's too late. There's no reason one like Bank of Ireland would hold 40% of it's assets in UK.
 

im axeled

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Makes no difference...GE will just pass the problem onto the people that caused the bailout and round and round it goes.
i beg to differ, the cost will be passed on to the folks who had to cough up mighty hard to pay for the bailout
 

im axeled

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Also I presume the NTMA have plans to roll over the debt over time

They have been seriously busy at that for a number of years. What we need to refinance in 18/19/20 is 50b or so, but was 61b at the end of 2014.
all nice and dany if intrest rates stay at 0% or thereabouts, in 12 months time it may weel be a harsher senario
 

SamsonS

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all nice and dany if intrest rates stay at 0% or thereabouts, in 12 months time it may weel be a harsher senario
Well taking the positives - we have to borrow 11b less than we thought at the end of 2014, we have 21b of funds now in the NTMA, and every time we borrow at the moment we are replacing expensive debt with cheaper debt.
 


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