The Celtic Phoenix - A thread to list the economic miracles of Michael Noonan & Fine Gael


#1804

Problem is casualisation. If a full time post (22 hrs) comes available, a lot of school managements break post into 2 or sometimes 3 posts. It gives them greater flexibility with respect to substitution, extra curricular etc.

Next to no one starts off on 22 hour contract. Many young teachers will be hopping from one short contract to another until they get a break. Can be demoralising from a financial and emotional perspective.

Most young treachers are now taking up opportu ities abroad. There is a real shortage of teachers across abroad range of subjects. Irish and home ec are the main ones but maths, physics etc are not too far behind. We had a maths teacher out for 5 weeks this year and no sub could be found.

Irish will become optional in not too distant future as a result of shotages.


#1805

Informative,

Surely the unions have a role in trying to match the needs of the school in terms of that flexibility to the working conditions. At a simple suggestion, could teachers be full-time with the associated benefits but used across 2 or 3 schools as a specialist in a particular area.

It strikes me a similar to the situation in countries like France where the legislation protecting employees has become so strong and inflexible that ironically employers are very wary about offering full-time thereby resulting in fewer jobs/worse conditions.


#1806

Very difficult to do that as timetables are not generic and school managers want control over all staff.


#1807

That makes sense. It would seem to me that this “gig economisation” of the teaching posts is a far bigger issue than the actual salary scale for both the teachers and the overall system? Maybe the union should focus on this as their main issue - I think they’d get a far more sympathetic response from the public …


#1808

Maybe you should focus more on the failings of management?


#1809

Do you mean management or the government? What would you consider the failings to be?

If you mean management, then based upon @fenwaypark posts, I can see why they spread around the full-time posts. Their responsibility is primarily to the schools, not the individual staff and they’re making best use of resources as they can. Hardly a failing?

If you mean the government, I think that the pay-deal done last year used up 1/3rd of the “fiscal space” or extra money available. I would think 1/3rd is a fairly generous amount of the money to allocate to one sector of the economy as it is so I would think there is limited room to change that. As for how that 1/3rd was allocated within the public sector - well that was my original post that it seems that the unions were happy to continue pulling up the ladder on the newer entrants/younger cohort …


#1810

Full time is 22hrs ? @fenwaypark.WTF


#1811

I thought that, but I suspect its 22 hours of actual classroom time.


#1812

This thing will sort itself out in time. As the older teachers retire, the younger, less paid will eventually equal or outnumber the higher paid, this will lead to the union executive being ordered by the majority ( less paid staff) to pursue their equal pay claim.
The executive is caught right now. Ballot for industrial action - older members won’t vote for strike, why should they, they’re paid enough, until the younger members have the majority they’re tied.


#1813

Michael Noonan was warned multinationals tax break would ‘backfire’
Peter O’Dwyer, Senior Ireland Business Reporter
June 5 2018, 12:01am, The Times

A tax break for multinationals, estimated to have cost the state billions of euros in recent years, was introduced by the government despite concerns from officials, The Times can reveal.

Michael Noonan, the former finance minister, raised the level of capital allowances on intellectual property (IP) assets from 80 per cent to 100 per cent at the end of 2014. The move allowed companies to shield more of their profits from corporation tax using capital allowances — tax savings on the purchase of assets.

Documents, obtained by The Times using freedom of information rules show that a senior official warned that a more modest proposal than the one ultimately introduced by the minister would reduce the tax bills of companies on IP assets to unacceptably low levels.

Paul Kealy, a policy adviser at the Department of Business’s tax policy unit, warned of the reputational damage to Ireland that could result from the change.

His comments concerned a suggestion to increase the cap on capital allowances from 80 per cent to 90 per cent. Mr Noonan went even further by raising the cap to 100 per cent.

“I disagree [with the proposal] on reputation grounds, this would reduce the potential minimum effective tax rate from 2.5 per cent to 1.25 per cent, as 1.25 per cent is too low and such a change could backfire,” Mr Kealy wrote.

The increase in the cap on capital allowances was highlighted late last year after the Paradise Papers leak showed how Apple moved large amounts of its IP assets to Ireland in 2015. As a result of Mr Noonan’s change in October 2014, the tech giant reduced its corporate tax rate to a nominal amount.

After the leak, politicians raised concerns that Mr Noonan’s decision could have cost the state billions of euros over three years, while Seamus Coffey, the Irish Fiscal Advisory Council chairman, estimated that Ireland was missing out on up to €850 million of tax revenue a year as a result of the higher cap.

Leo Varadkar said that the lost tax revenue was an “unintended consequence” of the government’s decision. Paschal Donohoe, the finance minister, reversed the change last year, taking the cap back to 80 per cent.

The tax revenue should be available to the state at a later date once the capital allowances expire. However, concerns have been raised about the potential for firms to leave Ireland or rearrange their corporate structure before the tax becomes payable. Politicians have also argued that the tax revenue is needed by the state as of now.

Separate documents obtained from the Department of Finance cast doubt over Mr Noonan’s decision to increase the cap to 100 per cent. However, in one draft submission finance officials warned: “Given the international tax environment, any overt accentuation of the tax treatment that applies to what is often highly valuable IP may attract international attention.”

The documents show that department officials asked Revenue to estimate the cost of increasing the cap to 85 per cent, 90 per cent, 95 per cent and 100 per cent respectively. The records also show that the minister was lobbied by a number of bodies, including the American Chamber of Commerce, to increase the cap to 90 per cent or 95 per cent.

Mr Noonan ultimately chose 100 per cent despite the records showing no evidence of this policy being suggested by outside bodies. The proposal was included in a draft policy document for the minister but the records do not show any evidence of it being suggested by department officials prior to its inclusion.

Pearse Doherty, the Sinn Féin finance spokesman, said the government must clarify the rationale for the decision and outline whether Mr Noonan was aware of the concerns of one of his senior policy advisers. “The FoI documents shed light on the motivations behind a move costing the state €850 million every year but it leaves many questions unanswered. Where did the idea to move to 100 per cent come from, even though it seems there was no demand for it from any side?” he said. A Department of Jobs spokesman said Mr Kealy’s comments were part of discussions during which different views were aired before a decision was taken. He added that the department’s policy suggestions were designed to increase Ireland’s competitiveness.

Mr Noonan did not respond to a request for comment when contacted.

In response to a query as to why the cap was raised to 100 per cent as opposed to the initial recommendation that it be raised to 85 per cent, a spokesman for the Department of Finance said the initial proposal was made “at the early stage of the decision-making process when a number of options were being considered”.

Apple did not respond to a request for comment.


#1814

May he die roaring.


#1815

The next step is to check what Noonan’s been at since he retired from politics. Has he taken up any directorships or advisory roles with any companies? Maybe ones with a shitload of intellectual property assets?


#1816

No need to go to J School for you, you’re on the ball.


#1817

Pascal Donohoe showing that he’s a safe pair of hands by announcing he won’t be using all the fiscal space available to him in the coming budget. This was recommended by a long list of economists and think tanks as the prudent action to prevent overheating the economy.


#1818

He is very impressive, smart guy with a good handle on his brief. An outlier.


#1819

Yeah - I’d agree. I’m surprised he’s taken this stance because the typical Irish politician thing to do would be “if I have money I spend it”. Maybe we did learn something from the last crash …


#1820

The McCreevy philosophy. I don’t agree with Donoghue on everything but I have a lot of respect for him, more than I can say for most of them.


#1821

This is a sensible idea and all but after the bones of a decade propping up the government coffers, isn’t it about time for USC to fuck right off.


#1822

To be fair to McCreevy he was the only who tried to put the brakes on in any shape or form.


#1823

:rollseyes:
Yeah or maybe squirrel it away until election year in 2020 and go on a big election year splurge.