The Minister for Public Expenditure Paschal Donohoe spoke to Alan Corcoran this morning on “Morning Mix” to discuss Budget 2025
Here is a brief summary of what was discussed:
One-Off Measures
The Minister of Finance emphasized that the budget includes various one-off measures aimed at alleviating the cost of living, such as energy credits and welfare payments. While these measures are designed to provide immediate relief, he acknowledged that they are not permanent solutions. The Minister stressed the importance of balancing short-term assistance with long-term financial stability for the country. He also pointed out that the government is cautious about spending temporary funds on permanent measures to avoid future financial crises
.Mental Health Services
In response to concerns about mental health services, the Minister highlighted that funding for these services is increasing in the upcoming budget. He defended the allocation of €9 million for mobile phone pouches in schools, arguing that it addresses the negative impact of social media on young people’s mental health. The Minister reiterated that while this funding may seem misplaced, it complements existing mental health initiatives aimed at supporting youth resilience. He assured listeners that investment in mental health remains a priority for the government.
School Bus Crisis
The Minister acknowledged challenges within the school transport system, admitting that it does not meet everyone’s needs. He stated that while most children can access their local schools through existing services, improvements are still necessary. The government is committed to addressing these gaps year by year to ensure all students can reliably get to school. He emphasized that supporting schools in managing external influences, such as social media, is also part of their strategy
Third Level Education Fees
Regarding third-level education fees, the Minister explained that the recent reduction is a one-off measure aimed at easing financial burdens for students. He acknowledged that while this temporary relief is helpful, other factors like accommodation costs significantly impact students’ overall expenses. The government has allocated over €100 million to create additional student accommodation spaces, aiming to make higher education more accessible. The Minister indicated that while there are no immediate plans to permanently lower fees, ongoing efforts will continue to address affordability in education.
Hospitality Sector
The Minister addressed concerns from the hospitality sector regarding the impact of maintaining a 13.5% VAT rate. He recognized the challenges faced by restaurants and other businesses but stressed that any tax changes must be balanced against other budgetary needs. While he expressed understanding for the plight of local businesses, he reiterated that decisions must consider long-term financial implications for the country. The Minister assured stakeholders that their concerns will be revisited in future discussions as part of a broader strategy to support this vital sector.
Listen back to the full conversation here
