Minister for Finance, Public Expenditure and Reform, Paschal Donohoe TD has said that Budget 2020 has been developed in the shadow of Brexit.
He stated that the context for Brexit has now shifted to no-deal as a "central assumption". “This does not mean that no-deal is inevitable, but equally, we stand ready if it does happen.” he outlined.
In the event of no-deal, €650m will be made available to support the agriculture, enterprise and tourism sectors and to assist the most affected citizens and regions, with support to be by ways of "grants, loans and equity" - see point one below.
- €110m will be available for the agri-food sector in the first tranche, to be supplement by any exceptional aid provided from the EU, according to Michael Creed. "The provision of immediate supports for our beef sector will be a first priority, as will support for our fishing fleet." Donohoe TD explained.
- "We also want to support food companies to re-orient towards new products and markets" he added.
- €85m for beef farmers - first phase of a "market support an adjustment aid supports for farmers finishing cattle for slaughter";
- €6m for other livestock farmers and mushroom sector for additional investment aid to "improve competitiveness and increase environmental efficiency" for these primary sectors;
- €14m for fisheries – first phase of a "tie-up scheme for the most affected vessels";
- €5m for food and drinks processing industry in the first phase of a Food Transformation capital investment scheme for large & SME food companies for product and market innovation; and additional supports for innovation in the prepared consumer foods and drinks sectors.
- Intends to increase carbon tax from €20-€90/tonne by 2030 - €6 increase to apply from midnight tonight to auto fuels, bringing the price to €26/t;
- €5m for peatland rehabilitation;
- Extension of farm restructuring relief until the end of December 31st, 2022 with no change to conditions;
- Additional €51m in funding for DAFM (Department of Agriculture, Food and the Marine);
- €3m to pilot new agri-environmental schemes in 2020 to help reduce emissions whilst improving biodiversity and water quality and supporting farm incomes;
- 1% diesel surcharge to be replaced with a nitrogen oxide emissions-based charge which will apply to all passenger cars registering for the first time in the state from January 1st, 2020;
- Excise duty on a packet of 20 cigarettes to increase by 50c, bringing the price of “the most popular price category” to €13.50 with a pro-rate increase on other tobacco products;
- Stamp duty applicable to non-residential property transactions to increase by 1.5% to 7.5% with effect from tonight;
- Increase in fuel allowance by €2/week;
- €13m warmer home scheme;
- A 100% Christmas bonus to all social welfare recipients;
- Increase to the earned income credit by €150 for the self-employed, bringing the value to €1,500;
- The current Group A tax-free threshold - which applies primarily to gifts and inheritances from parents to their children - is being increased from €320,000 to €335,000;
- Doubling the fund available to €1m to support measures to protect biodiversity and assist farmers with lands designated as Special Areas of Conservation;
- Increase of €121m in TAMS.
Further information to follow