• It has come to our attention that some users may have been "banned" when they tried to change their passwords after the site was hacked due to a glitch in the old vBulletin software. This would have occurred around the end of February and does not apply after the site was converted to Xenforo. If you believe you were affected by this, please contact a staff member or use the Contact us link at the bottom of any forum page.

What keeps Ireland's cost of living stubbornly high?


Disillusioned democrat

Well-known member
Joined
Mar 16, 2010
Messages
15,598
There may be an element of chicken and egg here, but posters here continually use our high cost of living as a reason for high public sector salaries, social welfare, minimum wage, poverty, etc.

Over 5 years the level of private spending has reduced dramatically, and at the start it looked as if prices were falling broadly in line, but this was short-lived and except for property most other costs stabilised and even rose over the past 4 years.

I heard an analysts for the motor industry refer to Ireland as Treasure Island last week because of the margins here, and I know the large foreign multiples had to suppress reporting on profit and margins from Ireland for fear that it would bring too much attention to the fact that we were being fleeced.

Does anyone know why the cost of living remains stubbornly high in Ireland, despite 5 years of recession and more importantly, is there anything we or the government can do about it?

Until our cost of living reduces we will neither be competitive globally or be able to make significant reductions to public costs, so it would seem to be a real priority for the government, but one that doesn't get much attention.
 

Spirit Of Newgrange

Well-known member
Joined
Dec 4, 2010
Messages
4,724
anywhere remote is expensive. Bermuda, Alaska, Iceland, fiji. Its an island thing.
 

Schomberg

Well-known member
Joined
Jul 6, 2009
Messages
12,341
I was thinking of moving home recently. I was adding up all my costs that I don't currently have. Lets say I make around €2,400 after tax each month. One of my kids will need childcare since my wife wants to work (and I want her to work). We're talking most of her paycheck going to that. Then there's cost of school books etc for the oldest fella. I don't have them right now. Then there's dentist costs, GP visits, health insurance (which i doubt I'd actually get). Reality outside Dublin means you need 2 cars because the buses aren't reliable and too sporadic not to mention extremely expensive. Then there's school lunches that'll need packing every day. That's before I've even started to look at how much basic living costs, like heat, electricity etc etc...it turns out that even though I'm making about €300 less a month at the moment here, I'm about €700 better off a month. Go figure.
 

statsman

Well-known member
Joined
Feb 25, 2011
Messages
56,230
The problem with our cost of living is that it disproportionately affects the poorest 20% of the population. As the OECD say,

In Ireland, the average person earns 24 156 USD a year, more than the OECD average of 22 387 USD a year. But there is a considerable gap between the richest and poorest – the top 20% of the population earn more than four times as much as the bottom 20%.
Ireland

Our prices are pitched at the top 20%, and to hell with the bottom 20%.
 
D

Dylan2010

Big government thinking its still 2006. Every time you buy something you are feeding an army of civil servants and lobbies.
 

Disillusioned democrat

Well-known member
Joined
Mar 16, 2010
Messages
15,598
The problem with our cost of living is that it disproportionately affects the poorest 20% of the population. As the OECD say,



Ireland

Our prices are pitched at the top 20%, and to hell with the bottom 20%.
I don't accept that at all - the top 20% don't typically shop in the same places as the bottom 20%, don't compete for houses in the same neighbourhoods, don't drive the same cars, etc., so there should be limited overlap/competition. The must be something more to it than that.
 

statsman

Well-known member
Joined
Feb 25, 2011
Messages
56,230
I don't accept that at all - the top 20% don't typically shop in the same places as the bottom 20%, don't compete for houses in the same neighbourhoods, don't drive the same cars, etc., so there should be limited overlap/competition. The must be something more to it than that.
The top 20% eat meat, veg, bread, etc. They use the same utilities. They buy the same petrol. Their ability and willingness to pay top prices are a definite inflationary pressure. People on the dole or in minimum wage jobs sure as hell aren't driving prices up.
 

eoghanacht

Well-known member
Joined
Apr 18, 2006
Messages
33,340
Upward only rents?
 

tigerben

Well-known member
Joined
Sep 21, 2010
Messages
4,621
Semi State price keep increasing, and multi nationals have too much a strong voice, reduce and we'll leave , shopping centres have closed down competion so can charge what they like. Chemists which are numerous in most towns have a sweet deal with precription medicines.Doctors charge 50/ 60 euro , the dentist 70€ to have a tooth removed. Petrol and cars are very expensive, along with insurance costs. Not only the quinn levy but we"re all paying extras for non insured drivers. Schooling is dear, not only books and crested uniforms which is the norm in most schools big and small, you have voluntary fees( which aren't really voluntary). Fundraising requests for money to keep the schools going, and the new " inrolement fee" of between 70-100 euro for secondary schools. Private healthcare which to be honest without it the government couldn't afford to run any healthcare system is now nearly beyond most peoples pockets.

It seems the more people that leave healthcare, the more people try and reduce electricity use, be care with their gas and oil heating, travel less on public transport, use the car less, shop less, the more price increases they put on to keep the profit level the same or even more.
 

crossman

Well-known member
Joined
Feb 16, 2011
Messages
1,573
Big government thinking its still 2006. Every time you buy something you are feeding an army of civil servants and lobbies.
This thread didn't take long to descend into public service bashing. Food is the most basic purchase and there is NO TAX on food but food prices are still high. The prime culprits are the supermarket chains.
 

statsman

Well-known member
Joined
Feb 25, 2011
Messages
56,230
The culture of the property owner rather than the entrepreneur.
This doesn't help, and I'd argue that it's related to my 80/20 rule. The theory is that if you make the rich richer then they will invest in job creation, but of course they don't. They spend on luxuries first (conspicuous consumption), non-productive assets second, and only in productive assets a distant 3rd.
 
Last edited:

leroy42

Well-known member
Joined
Jan 11, 2007
Messages
692
I think the 1st thing that should be done is that any company that wants to trade in Ireland should be forced to provide Irish accounts. We allow them to gain the advantage of the lower CT rate so the least they should be expected is that they provide some numbers. I can't understand why we allow companies like Tesco etc to trade here but have no idea of the numbers. This allows for the theories about high margins etc to continue.

On the cost of living, on private costs (groceries, clothes, food etc) I think that we actually match quite well with many places. Ever go for a drink in Paris or London? Of course our costs tend to be higher than the UK, but that is a much bigger market, better served. In many cases the UK market is the biggest in Europe so in stands to reason that competition would be tougher and thus prices lower.
I think the main causes of our high cost of living can be tracked back to the high cost of anything to do with the state. Rates, ESB, Gais, Eircom, tax on Petrol etc. The government could do much more to lesson these burdens and still end up with the same revenue.

An example is the recent CIE fare increase. Losing money, the only way the state sees to sort the problem is to raise fares.
 
D

Dylan2010

This thread didn't take long to descend into public service bashing. Food is the most basic purchase and there is NO TAX on food but food prices are still high. The prime culprits are the supermarket chains.
ok so supermarkets dont use electricicty, use fuel to move goods around , pay excessive council charges? Possibly pay higher than they need to because the gubberment forces them to?
 

statsman

Well-known member
Joined
Feb 25, 2011
Messages
56,230
I think the 1st thing that should be done is that any company that wants to trade in Ireland should be forced to provide Irish accounts. We allow them to gain the advantage of the lower CT rate so the least they should be expected is that they provide some numbers. I can't understand why we allow companies like Tesco etc to trade here but have no idea of the numbers. This allows for the theories about high margins etc to continue.

On the cost of living, on private costs (groceries, clothes, food etc) I think that we actually match quite well with many places. Ever go for a drink in Paris or London?
I think the main causes of our high cost of living can be tracked back to the high cost of anything to do with the state. Rates, ESB, Gais, Eircom, tax on Petrol etc. The government could do much more to lesson these burdens and still end up with the same revenue.

An example is the recent CIE fare increase. Losing money, the only way the state sees to sort the problem is to raise fares.
Groceries in Ireland are, on the whole, about 4% dearer than in the UK, eating out in Ireland is roughly comparable to the UK. McDonalds here is more expensive, as is drinking out.

Cost Of Living Comparison Between United Kingdom And Ireland
 
Top