Money, Money, Money

I work all night, I work all day, to pay the bills I have to pay. Ain't it sad. And still there never seems to be a single penny left for me. That's too bad.

With the Government saying recently saying that three more tough budgets will put Ireland right once and for all, what will this actually mean for the average family by 2014?

The country needs to have saved €15 billion by 2014 and still needs almost €11 billion to find if it is to achieve its target. So what can we do? Here is a potential breakdown for the next three years.

Employment

ISME's Mark Fielding approximates that unemployment will fall from its current rate of 14.4% to somewhere between 11-12%. This will be largely due to positions being created in the green economy, the gaming sector, pharmaceuticals, private healthcare, software and cloud computing.

However, job prospects in tourism, hospitality, banking and construction will remain bad. Emigration to the US, Canada and Australia will remain steady as a result.

Social Welfare

If Ireland was to cut rent allowance by 20%, it could save itself up to €200 million. Forecasts indicate that Children's Allowance could be cut by up to 40%, saving us €1 billion. With further cuts across other sectors of the welfare spectrum, Ireland could potentially save itself up to €3 billion by 2014.

Taxation

Water taxes to be introduced in the near future will net up to €400 million per year based on a charge of €350 per household. Property taxes should generate up to €2 billion while carbon taxes will double to offset a decision not to increase road tolls. Corporation tax of 12.5%, despite pressure from the Franco-German alliance, will remain.

National Debt

The Irish national debt is forecasted to be in or around the €8.7 billion mark by 2014 based on our debt servicing cost.

Property

The only property development will come from foreign investors, possibly buying up sites for future development. The upward-only rent reviews will have to be curtailed.

Regional shopping centres will continue to close, with all the work moving to big cities. Sites will remain empty. There will be a slow but steady slew of NAMA properties on sale a few times a year. House prices in the capital will stop falling by 2014 but continue to fall elsewhere.

Infrastructure

As this does not directly impact on taxpayers' pockets, cuts here are a no-brainer. €1.2 billion will be saved on construction of roads while€200 million can be saved by not building an airport-direct DART line. €860 million can be saved by not committing to land purchase schemes but the quality of roads will suffer due to merging of local councils.

Semi-State Bodies

Billions could be generated from selling off semi-states e.g. Lufthansa buys Aer Lingus (€120 million), Eon buys Bord Gais (€3 billion), Ryanair buying Terminal 1 (€325 million), Siemens buying ESB International (€1 billion) and various other bodies could go by 2014.

Health

From the figures, it would seem that at least another €1.1 billion needs to be shaved off the budget, according to the INMO, but our services already seem to be at crisis point. Beds have been closed, smaller hospitals have closed and nearly 1,500 nurses are expected to retire by the end of this year alone. If trends continue at current pace, 400 patients will be on trolleys every night by 2014.

Education

Half of all college students will be paying €8,000 per annum which will generate nearly €300 million by 2014. Annual fees for all secondary schools, according to Indecon, could be introduced (Students who can afford to pay €500 per year, generating €90 million annually).

Schools will have lost 2 teachers each by 2014 while there will be a critical shortage of Special Needs Assistants, by as much as 1,000.

With public finances set to be hit repeatedly in the next three years, our recovery will come from an export-led drive. However, this drive will be polarised against our public services in perpetual crisis mode, further emigration and increased hardship for many. Regional hubs will diminish as everything moves to the big cities.

It is our job to keep going in these hard times, something easier said than done.

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Loyal credit union members refused cash

Thousands of credit union members, many of which have been loyal customers for decades, have been refused loans under new harsher lending regulations.

Parents are unable to get loans and as a result, their children are being forced to drop out of college. Those parents who wish their children continue in third-level are essentially being compelled to turn to moneylenders, just so their kids can exercise their right to education.

These are good people, with good credit records and ratings over the past number of decades, being told they are not good enough anymore.

"Parents are being left with no option but to go to moneylenders or tell their children they cannot go back to college, as the parents simply do not have the money," said Silena Gilleece of the Credit Union Managers Association.

Members are also left unable to pay other essential utility bills, such as gas and electric bills, due to their local credit union not being allowed to extend customer loans.

A spokesman for the Irish League of Credit Unions said: "The vast majority of credit unions have sufficient funds available to lend to members once an appropriate evaluation of the members' ability to repay has been completed."

However, this seems to be no good to the thousands of honest, hard-working families, who have put in decades of service to the employers, have played everything by the book, who have impeccable credit ratings and still are having the door shut in their face.

We see those who gambled the future of Ireland on ridiculous developments, Messers Quinn, Drumm and Dunne spring to mind, get away with either pensions intact or leaving the ordinary worker to foot the bill. This is not good enough.

We need to stop rewarding the culprits and start protecting the futures of the people who will get the country back on its feet, starting with facilitating our children to stay in college and not punishing them and their parents for the mistakes of others.

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Members Deal of the Week

The Salon IFSC is a hair and beauty salon offering a full range of services from nails and waxing to laser hair removal and our Danne range of paramedical facial and body treatments. We are also the only salon in the country to offer the brand new Reaction cellulite treatment.

Our hair stylists are trained to the highest standard and have a great passion for creating unique styles and colours.

Opening hours are:

• Monday, Tuesday, Friday 10am – 7pm

• Wednesday, Thursday 9am – 9pm

• Saturday 9am – 6pm

The Salon IFSC is happy to offer all QBA members a 10% discount on all hair and beauty services that we provide.

Contact us on 01-6116958, E-mail: info@the-salon.ie or to view our full range of treatments see www.the-salon.ie

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Date for your Diary

The next QBA networking event will take place in Jurys Inn Parnell Street. Thursday October 6th at 10 am.

Speakers:

Michael Kavanagh - Global Reach Securities

Stephen Brack - O'Loughlins Insurance

Please contact the QBA office and book your seat.

We have Moved

The QBA new head office is:

3 Argus House

Greenmount Office Park

Harold''s Cross

Dublin 6W

Ask the Expert

Q. I would like to apply for a small business loan. What would be good steps to follow to maximise my chances of getting it?

A. Firstly, you will need to know your business plan inside-out and backwards. Be fully versed in your financial statements and use any charts/graphs you have to effectively illustrate you need the money you are requesting.

Secondly, be prepared to address the concerns of the lender. Show them that you know you are a risk and prove you are worth said risk. Tell them the collateral you are willing to provide, demonstrate your relevant experience in business and don't be afraid to tell them about your own personal goals.
 
Finally, show that you are fully committed to this idea by investing yourself. If you are willing to put some of your own hard-earned cash behind the project, shows your commitment to its success.