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15/10/2008
Border Budget Bonanza
There's been more pain than gain down south, as smokers and wine drinkers, as well as those on higher incomes are hit by the Irish Budget.
However, while the 2009 Budget has seen a modest rise in personal taxation, there's likely to be a bonanza for border businesses as NI traders get ready for a run on cigarettes (up 50 cents a packet) and wine (also up 50 cents) as well as many other goods as the strong Euro combines with price differences to increase an already healthy trade from Irish shoppers this Christmas.
Although Finance Minister Lenihan was widely expected to hit tobacco products hardest, his Budget speech put the cost of a smoke marginally, but enough to make a difference to shoppers.
Even more people may now be tempted to make a cross-border shopping trip.
Alcohol, sweets and furniture are already particularly popular with the day-trippers. Many just come to do their weekly grocery shop, from nearby Dundalk or Drogheda and at The Quays Shopping Centre in Newry, Sainsbury's say 30% of its trading is in Euros.
Cathal Austin, Centre Manager said: "We have noticed that despite the credit crunch, footfall is up on average each month compared to last year.
"We have worked extremely hard to attract quality retailers and well-known high street brands to the centre."
As well as that NI trade fillip an increase of eight cents on a litre of petrol in the Irish Republic will bring near parity on fuel prices and end a run from NI motorists to Irish border filling stations.
However, on the negative side again, it also emerged that people from NI (and others) who own holiday homes in the Republic will have to pay a tax of €200 per year to the local authority.
But, more positively for those living in the Irish Republic, there will be no excise increase at all on beer, cider, spirits or on diesel - perhaps leaving them more to spend on cross-broder shopping expeditions.
However, it will have to be balanced against the Minister also announcing his new levy of 1% on all income below €100,000, and of 2% on income over that.
"We realise the solidarity of demands of all tax payers, but there is too much at stake - we all have too much to lose by not taking action now," the Minister said.
"This levy will allow all income earners to contribute in a proportionate manner to the restoration of order and stability for the public finances.
"This will enable Ireland to return as soon as possible to a natural level of economic growth."
However, the Minister also said the Government was committed to protecting the most vulnerable in society with an increase in pensions.
"I am happy to announce the full personal rate of the state pension will be increased by €7 per week for all pensioners," he said.
"This will bring the state contributory pension to €230.30, and the state non-contributory pension to €219 per week."
Conversely, Minister Lenihan announced cuts in child benefit payments.
However, while the 2009 Budget has seen a modest rise in personal taxation, there's likely to be a bonanza for border businesses as NI traders get ready for a run on cigarettes (up 50 cents a packet) and wine (also up 50 cents) as well as many other goods as the strong Euro combines with price differences to increase an already healthy trade from Irish shoppers this Christmas.
Although Finance Minister Lenihan was widely expected to hit tobacco products hardest, his Budget speech put the cost of a smoke marginally, but enough to make a difference to shoppers.
Even more people may now be tempted to make a cross-border shopping trip.
Alcohol, sweets and furniture are already particularly popular with the day-trippers. Many just come to do their weekly grocery shop, from nearby Dundalk or Drogheda and at The Quays Shopping Centre in Newry, Sainsbury's say 30% of its trading is in Euros.
Cathal Austin, Centre Manager said: "We have noticed that despite the credit crunch, footfall is up on average each month compared to last year.
"We have worked extremely hard to attract quality retailers and well-known high street brands to the centre."
As well as that NI trade fillip an increase of eight cents on a litre of petrol in the Irish Republic will bring near parity on fuel prices and end a run from NI motorists to Irish border filling stations.
However, on the negative side again, it also emerged that people from NI (and others) who own holiday homes in the Republic will have to pay a tax of €200 per year to the local authority.
But, more positively for those living in the Irish Republic, there will be no excise increase at all on beer, cider, spirits or on diesel - perhaps leaving them more to spend on cross-broder shopping expeditions.
However, it will have to be balanced against the Minister also announcing his new levy of 1% on all income below €100,000, and of 2% on income over that.
"We realise the solidarity of demands of all tax payers, but there is too much at stake - we all have too much to lose by not taking action now," the Minister said.
"This levy will allow all income earners to contribute in a proportionate manner to the restoration of order and stability for the public finances.
"This will enable Ireland to return as soon as possible to a natural level of economic growth."
However, the Minister also said the Government was committed to protecting the most vulnerable in society with an increase in pensions.
"I am happy to announce the full personal rate of the state pension will be increased by €7 per week for all pensioners," he said.
"This will bring the state contributory pension to €230.30, and the state non-contributory pension to €219 per week."
Conversely, Minister Lenihan announced cuts in child benefit payments.
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Northern Ireland WeatherThis Evening and Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
