5% inflation sparks SIPTU pay call

More trouble brewing:
rte.ie/business/2007/0607/inflation.html?rss

Ye have woken up to this far too late lads - proper gombeens.There is no point squealing about it now cos the damage is already done.

Some shambles :unamused:

here we go the first of many. Blue flus, Choo Choo flus you name it.

I assume that SIPTU is willing to tell its members that a freeze on pay increases and a capping on the minimum wage is necessary to stop inflationary price rises? Or will they try and convince the gullible fools in the populace that inflation and wage rises are not linked?

Roll on benchmarking #2

rte.ie/news/2007/0607/inflation.html

Wasn’t he telling us two weeks ago what a great economy he has left and not to throw it all away?

Don’t look at me, I always vote against partnership. :wink:

A SIPTU representative was talking on the 1 o’clock radio news and was demanding that mortgage interest relief should be stepped up.
He said that he can’t go back to his members and recommend wage restraint as the 3% increase already negotiated has been eroded by inflation running at 5% for the last six months.

This is going to be the first big test for the incoming gov.

Wouldn’t it be peachy if benchmarking #2 actually brought the public sector pay-rises to a halt in line with the private sector they’re supposed to be benchmarked against?

The irony of SIPTU criticising the government for inflation figures that they actually ask for by way of payrises and increased government expenditure on services.

In fairness to SIPTU they’re only trying to look after what they see as the best interests of their members. Number one priority of the average Joe over the past few years has been to get a place to live. And as we all know the price of housing has been fuelled by many other factors well documented on this site. Much of the salary inflation has been agreed to based on this very fact. Id doubt theres too many SIPTU members with multiple investment properties but then again…
Still average Joe (and Josephine) will have to take their share of the blame when it all goes belly up due to their eagerness to jump headlong into longterm debt for short term gain. There have been recent newspaper reports which have said that Irish people in their early twenties regularly borrow a few grand to go on holidays. Thats the mentality thats out there.
We’re looking at a case of the ultimate consumer society meets reality with a thump.

For all the doom and gloom (could yesterday turn into Ireland’s ‘black wednesday’?) new car sales are booming away mostly fuelled by SSIA I expect. Sales of BMW and Merc are flying year to date.

Exactly.
And wasn’t it only last year that he was telling us that anybody that hadn’t bought a house already was foolish indeed.
What he’s now doing is preparing the ground for all the belt tightening that’s up ahead.Who’s looking foolish now?

Yeah and the people buying these cars seem to be oblivious to the fact that all their gains and then some on the SSIA are being surrendered back to the gov. in the form of VRT. :open_mouth:

Ah, but to have the highest VRT bill on the street, now that’s something to rub the neighbours noses in it!!! :laughing:

Well they’ll need every red cent of the VRT 'cause their stamp and Vat on property receipts can’t be healthy in April/May.

Norman Beggs said on six one that he wants mortgage interest relief at the higher tax rate :open_mouth:
Minister Martin claims that the high services inflation is not the gov. fault and that it’s all down to our over dependence on fossil fuels :open_mouth:
If that really is the case then we’re totally screwed as oil is projected to go to 80 dollars/barrel by the end of this year and may hit 100 dollars in 2008.It’s currently almost 72 dollars.

It appears that as a country we’ll all have to pay higher taxes to bail out those who overpaid for houses and now find themselves unable to make ends meet. I expected this although it is grossly unfair on the financially prudent amongst us.

That gombeen Micheal Martin also said that the increase in interest rates was driving inflation.

If taxes are raised at a time when interest rates/inflation is increasing then the game really is up and it doesn’t look as if there’s any way out of this.
Time to move offshore :unamused:

The increase in interest rates is driving inflation - in ireland. Mortgage repayments make up a significant part of the basket that makes up the CPI and as a result, rises in interest rates have the paradoxical effect of increasing inflation here. ON the EU-wide measure of inflation, Ireland doesn’t score too badly.

To an extent that is correct, however, however don’t foreget that;

  1. We’re a little island, off an island off the European mainland.
  2. We import a huge amount of what we consume.
  3. Oil (and thus both transport and energy) prices continue to remain high and edge higher
  4. We continue to consume
  5. Inflation in Government services is (according to George Lee) running at 9% y/y.
  6. We continue to consume.
  7. Did I mention the consumer consumption?

The property bubble and to an extent, our high inflation are both symptoms of the credit bubble that the country is experiencing. As rates increase and repayments get harder, leading to more, shall we say, less customer friendly action from the lenders … then we’re in for a big shock, double whammy for our open, market driven economy … a cocktail of propety slow down with a twist of consumer ‘cold feet’ … leading to one hell of a debt hang over.

Ouch :frowning:

Blue Horseshoe

The average amount borrowed in top-up mortgages continued to rise though the number of people taking out these mortages is continuing to fall, this is money that tends to go into funding peoples lifestyle. (i.e credit card debts, new cars/SUV’s, new kitchen, extensions to add an en-suite)

Q1 2007 - 99,228
Q4 2006 - 98,624
Q3 2006 - 92,071
Q2 2006 - 89,018
Q1 2006 - 83,504
Q4 2005 - 84,825
Q3 2005 - 73,110
Q2 2005 - 67,777
Q1 2005 - 63,852