Fianna Fáil Councillor Aengus O'Rourke said he is becoming increasingly concerned at the government's complete indifference to speculation that the banks are planning another round of variable rate mortgage hikes potentially affecting up to 300,000 customers.
Cllr. O'Rourke said, "There is growing speculation that AIB is planning a further hike in variable mortgage rates and that this will spark another round of hikes by the other banks. Variable rate mortgage customers have become the sacrificial lambs as the banks seek to make up for losses elsewhere in their books.
"While the final decision on rates does rest with the banks at present, it is remarkable that the government is unwilling to even express a view on the matter given the impact of rate increases on mortgage arrears and the wider economy. Less than two years ago – fresh in office – the government took a much more hands on approach on at least one occasion when the banks were dragging their feet on passing on an ECB rate increase.
"Many analysts now believe that variable rates could reach 5% in the next year or so. On a €200,000 mortgage over 20 years, the difference in the monthly repayment between a customer on a variable rate of 5% and a customer on a tracker of 1.75% is a staggering almost €400. This pattern is completely unsustainable and is an issue government cannot continue to ignore. It is about time the government stood up for variable rate mortgage customers and made its views known to the banks on the prospect of further rate increases."
Fianna Fáil Councillor Aengus O'Rourke is calling on the Government to reconsider its plan to include farm assets in means testing for Third Level Grants.
Reports in the past week suggest that the Minister for Education will proceed with plans to include farm and business assets as part of their assessment criteria for Third Level Grants.
Cllr O'Rourke commented: “I find it hugely disappointing that the Minister plans to forge ahead with these plans despite huge opposition within and outside the Government. Eligibility for the grant should be solely judged on income and it is discriminatory to use agricultural lands as part of the assessment criteria.
“Under the current grant application system, all farm income is assessed. If the Government goes ahead and assesses the value of farmland as an income source on its own, this would be hugely unfair and amount to double assessment on the same land.
“To proceed with this plan would result in a further cut to student grants targeted at farming and self-employed families. It will put many farming families in a position where they must decide whether or not to sell some of their land, which may not be generating income, in order to fund college for their children.
“Fianna Fail is completely opposed to this as it would act as a further deterrent to third level education at a time when education is so important to our economic recovery.
“There should not be separate rules for farmers and everyone else. The double assessment for farmers is wrong, discriminatory – it must and will be strongly resisted by Fianna Fáil.”
It is absolutely clear the government has no intention of taking 'ability to pay' into account in a meaningful way in the changes being made to the property tax, according to Fianna Fáil Councillor Aengus O'Rourke.
Cllr. O'Rourke stated, “The government is still insisting that a single person earning anything more than €288 gross per week or a family with anything more than €480 gross per week is not even entitled to defer the property tax liability. The government seems to have no concern whatsoever for the thousands of people who are struggling to make ends meet as it is and who simply have no means to pay this property tax.
“I had hoped that the government would address the ability to pay issue in a meaningful way in the amendment bill. Instead the fundamental unfairness of the property tax has been reinforced and no tangible effort has been made to deal with the situation of people on low incomes, those living with mortgage arrears and negative equity, and those who paid large amounts of stamp duty and development levies in recent years. This tax will now disproportionately hit those on low and middle incomes and those experiencing difficulties with their mortgage.
“The original Property Tax bill was rammed through the Dáil before Christmas. The same will be done with the amendment bill. This is being done to allow the Revenue to issue letters to 1.9 million households starting on 11th March, many of whom can ill afford to pay this unfair and penal tax on the family home.”
Fianna Fáil Councillor Aengus O'Rourke has voiced his strong opposition to reports that the Government plans to axe the Rural Transport Network, describing the move as ‘another attack on rural Ireland’.
Cllr. O'Rourke commented, “This has been an extremely successful and cost-effective scheme since its inception in 2002. Why would the Government seek to change something that has been working so well for more than a decade?
“This scheme is evidence of the real benefits of involving the community in local services. It has exceeded expectations in tackling rural isolation and providing valuable transport links to those who would otherwise have been isolated in their homes. It is the community element of this scheme that makes it so successful and in my view the removal of community input will only undermine the service.
“This is yet another example of the Government’s complete insensitivity to the effect that their policy agenda is having on rural communities. So many towns and villages have lost their garda stations, post offices, Town Councils and local bank branches, while at the same time the threat remains over the future of many small rural schools. People in rural areas in particular are despairing about the future of their communities. This latest news about the Rural Transport Network will add to those concerns.
“The Minister needs to get out of Dublin to understand the impact of this particular policy decision. The Government and the Minister must immediately clarify their plans in light of these latest reports.”
This week Cllr. O'Rourke was responding to an answer he received from Minister Alan Shatter
following a question put to the Minister by Cllr. O'Rourke in which he asked the minister what were the cost savings achieved by disbanding the 4th Western Brigade.
"I was not surprised to learn from Minister Shatter this week that he was unable to say what if any savings were achieved. If he were honest he
would admit that his actions have in fact cost the country money. The rationale behind the move to disband the 4th Western Brigade has always
been suspect. I have consistently said that there could be no cost savings in this move and that militarily, logistically and practically disbanding
the brigade was a senseless and reckless move.
"We now have soldiers commuting to various barracks to ply their trade, families discommoded and additional stress piled on young Army families.
Furthermore, the promotional pipe-line for many soldiers has been cut short as their brigade was disbanded. The transition from the three brigade
structure to two has not been smooth and if anything has served to further erode the morale of a force that had already been on the floor since this
Government came in to office.
Local Councillor Aengus O'Rourke this week hits out at what he calls the Governments lack of action on the issue of upward only rents.
“Upward only rents are a serious threat to the survival of businesses and to jobs. The B&Q case is a classic example of what happens when a government ignores the warning signs and ignores calls from the business sector to do something. Interestingly, both parties in Government, Labour and Fine Geal, committed in their Programme for Government to 'legislate for upward only rent reviews to be changed for existing leases'. Today as the staff of B&Q Athlone stare down the barrel of a gun, both Labour & Fine Gael have utterly and disgracefully abandoned yet another important commitment.
“Fianna Fáil published a Bill to ban clauses within business leases which provided exclusively for upward only rent reviews. The Landlord and Tenant (Business Leases Rent Review) Bill 2012 was turned down by the government last year. The government believe that they can not constitutionally deal with this issue as it would be too complex. It is amazing to think that the government are confident they can legislate for abortion but can not legislate to deal with upward only rents.
Cllr. O'Rourke said “Fianna Fáil has sought and received legal advice on banning clauses in business leases providing for upward only rents and there is a way to deal with it. These leases, most of which were negotiated in different economic times, are strangling so many small and medium sized businesses around the country. If we are serious about supporting the SME sector and encouraging growth and job creation, we must free businesses from the strangle-hold of exorbitant rents that have no bearing on market rates.
Retailers are seriously struggling to cope with high operating costs, business commercial rates and excessive rents. Removing the barrier to negotiating more reasonable rents in this market would make an enormous difference to their chance of survival and growth.
In my view, as a minimum, upward only rent reviews should be suspended for a temporary period until the economy has recovered. It is difficult to predict for how long such a suspension should be implemented for, but a five year break should be the minimum.
Cystic Fibrosis drug Kalydeco, also known as Ivacaftor, is currently being assessed in Ireland by the National Centre for Pharmaeconomics (NCPE). This process is known as a ‘Health Technology Assessment’ (HTA). This week Cllr. O’Rourke is calling on the HSE and the Government to get behind those suffering with CF by agreeing to support and fund this ground breaking drug.
Cllr O’Rourke said “The importance of Kalydeco for those with CF should not be under estimated, especially those with CF who have the G551D gene alteration. This drug helps the sufferer in so many ways that a much improved quality of life is now possible for these people. I had the opportunity to meet and discuss the issues with local CF suffers recently, this drug can give them a new lease of life so the government really must take an immediate interest in this issue.
“In recent days the NCPE informed me that the assessment is still in progress but that a decision is due in the coming days. The purpose of their assessment is to determine the following two matters; firstly is Kalydeco an effective drug for its intended use and secondly whether the HSE will pay for Kalydeco based on an assessment of the cost effectiveness of the drug.
“A positive decision is eagerly awaited by CF sufferers, however if the decision goes against them I will be urging CF Ireland to appeal such a decision and lobby government hard on the issue. The cost of this drug is very high at approx. €250,000 per patient per year so whatever the outcome of this assessment the HSE and the Irish Government must do what the British Government did last year and negotiate hard for a significant reduction in the cost.
“Another option open to Ireland in seeking to reduce the costs associated with Kalydeco is to enter into a ‘shared risk’ agreement with the drug provider whereby (for example) the company is only reimbursed for those patients with the G551D alteration that are proven to benefit from the new drug.
Cystic Fibrosis Ireland also calls for their patients to have access to this drug, but also calls for a fair price to be negotiated between the HSE/NCPE and the pharmaceutical company Vertex.
Fianna Fáil Councillor Aengus O'Rourke has said it will come as a relief to older people across the country that the Government has been forced into a u-turn on the ‘incredibly cruel’ cut to the Senior Alert Scheme.
Cllr. Aengus O'Rourke said, “This is an admission by the Government that they made a mistake in slashing funding for a scheme that has helped tens of thousands of older people over the years.
“I very much welcome the fact that Minister Phil Hogan has caved into public and political pressure on this matter. This was an incredibly cruel and potentially dangerous cut, particularly in the context of the Government’s slash and burn of community garda resources and the increase in burglaries and thefts in many parts of the country. It would have been completely wrong to take security supports from older people who are already feeling more vulnerable than ever in their homes.
“It comes as a relief that Minister Hogan has heeded advice on this matter. I hope this marks a change in the Minister’s approach and signals a willingness from him to listen and communicate with people on matters of public concern.”
Fianna Fáil Councillor Aengus O'Rourke expresses shock at what he describes as an ‘extremely dangerous’ cut to funding for personal alarms for the elderly.
“This is arguably the most senseless and dangerous cut in Budget 2013. How can the Government justify putting the safety and security of elderly homeowners at risk as a wave of burglaries sweeps vulnerable communities nationwide?” asks Cllr. O'Rourke.
“It is abundantly clear that we have a serious burglary problem in this country at the moment. Every single week we hear more stories of vulnerable households being targeted by criminal gangs in different communities, and more often than not the victims are older people and those living in rural and remote areas. This crime wave, coupled with the Government’s sustained attack on community garda resources, has left many older people feeling increasingly anxious in their homes.
Cllr. O'Rourke continued “People are genuinely appalled that the Government’s response to all of this is not to address this escalating problem, but to compound it by halving the funding for personal alarms for older people. The Senior Alert Scheme has provided much needed comfort to older people not just for home safety reasons, but also in cases of medical emergencies. It has been their link to the emergency services when they most need it. And still, the Fine Gael and Labour coalition has seen fit to butcher the scheme, bringing funding from €2.5 million provided by the previous Government in 2011 to a paltry €1.1 million today.
He concludes, “The savings from this savage cut are negligible in the overall context of the Budget. But there are enormous consequences for the health and well being of thousands of older people, particularly as the slash and burn of garda resources continues. Minister Hogan should do the honourable thing and reverse this cut immediately.”
Fianna Fáil Councillor Aengus O'Rourke has criticised the Government for not using this year's budget to help those in mortgage arrears.
He commented, "This budget has failed to introduce a single measure to help those in mortgage arrears or caught in the negative equity trap. Instead, struggling homeowners are to be hit with a punitive property tax at a time when they can least afford it.
"While the Government likes to pretend that negative equity isn’t an issue so long as a homeowner is servicing their mortgage, we don’t share this view and see it as a huge millstone around people’s necks, particularly for those in their 30s and 40s who want to move house because of a growing family or to take up employment in another area. For those who do choose to move out and rent their home, they face a range of additional costs as a result of this.
"In yesterday's budget there wasn't a single measure brought forward to help those in arrears or caught in negative equity. All that has been introduced is the option of deferring payment of the property tax for those in extreme cases where they are barely able to service even the interest payments on their mortgage.
"This Government has failed miserably to tackle the mortgage arrears crisis since coming to office and is only going to push people further into arrears with the imposition of the property tax.
"In our budget submission, A Fairer Way to Recovery, we proposed a range of measures in our pre-budget submission to help those in negative equity, including legislation to allow people to retain their tracker mortgages and a revision of the rules in relation to the definition of principal private residence."
