Richard O'Donoghue Warns US Tariffs Could Cripple Irish Economy
Richard O'Donoghue warned that US tariffs and global market uncertainty threaten Ireland's economy and said the country cannot withstand such tariffs. He criticised President Donald Trump's view of Ireland, highlighted heavy domestic taxes and regulatory burdens, and warned of wasteful public spending and weak infrastructure.
O'Donoghue argued that tariffs from the US and the uncertainty they cause are already impacting Europe and Ireland. He said President Trump treats Ireland as a tax haven for companies and that the resulting market disruption is damaging to Irish workers and businesses.
He recalled the St Patrick's Day meetings and a publicity moment involving Conor McGregor as symbolic of how Trump views Ireland. O'Donoghue said one in ten people in the US claim Irish ancestry and urged them to make their connections clear to the US president. He also said Europe regards Ireland as "a pimple on their backside," leaving the country vulnerable to external shocks.
O'Donoghue highlighted high taxes and regulatory burdens at home, including agricultural and business regulations, as factors that weaken the economy. He gave a local example of a cup of coffee where roughly 50 cent of the price is VAT, and cited that diesel carries about 50 cent of tax per euro and petrol about 43 cent per euro. He said workers face taxes on wages and purchases that make everyday costs harder to meet.
Quoting the Irish Times, he said past mistakes in the last economic crisis included a lack of infrastructure investment, which raises housing and travel costs. He warned of waste and unaccountability in public sector spending and contrasted eligibility rules for the Fair Deal with the burden on those who have worked and saved. He concluded that tariffs on top of these domestic pressures would put Ireland in "major trouble."
Tariffs and international pressure
O'Donoghue argued that tariffs from the US and the uncertainty they cause are already impacting Europe and Ireland. He said President Trump treats Ireland as a tax haven for companies and that the resulting market disruption is damaging to Irish workers and businesses.
Perception of Ireland in the US and Europe
He recalled the St Patrick's Day meetings and a publicity moment involving Conor McGregor as symbolic of how Trump views Ireland. O'Donoghue said one in ten people in the US claim Irish ancestry and urged them to make their connections clear to the US president. He also said Europe regards Ireland as "a pimple on their backside," leaving the country vulnerable to external shocks.
Domestic tax and cost pressures
O'Donoghue highlighted high taxes and regulatory burdens at home, including agricultural and business regulations, as factors that weaken the economy. He gave a local example of a cup of coffee where roughly 50 cent of the price is VAT, and cited that diesel carries about 50 cent of tax per euro and petrol about 43 cent per euro. He said workers face taxes on wages and purchases that make everyday costs harder to meet.
Infrastructure, public spending and social impact
Quoting the Irish Times, he said past mistakes in the last economic crisis included a lack of infrastructure investment, which raises housing and travel costs. He warned of waste and unaccountability in public sector spending and contrasted eligibility rules for the Fair Deal with the burden on those who have worked and saved. He concluded that tariffs on top of these domestic pressures would put Ireland in "major trouble."
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Transcript
Thank you, Chair. What is our first problem when we see tariffs, Minister, is Trump looks at us and we can see on St Patrick's Day when he looked at our Taoiseach and met him the day before St Patrick's Day and he brought out Conor McGregor on St Patrick's Day to meet him. That's what he thinks of Ireland. Trump looks at Ireland as a tax haven for companies but what Trump needs to realise is a tax nightmare for workers. Trump also needs to realise that one in every ten in the US claims Irish ancestry. And I would ask the people that have the Irish in them in the US to make that quite clear to Trump. Trump also knows that Ireland to Europe is a pimple on their backside and they don't really care what happens to us because we are that minute when it comes to Europe. And the damage that he has done on the world markets at the moment and the uncertainty that he has caused is already wreaking through Europe and wreaking through Ireland and causing a lot of scaring of people. This country as it stands cannot withstand tariffs from the US. We cannot withstand the world economy. Uncertainty because of our size and nature. We can't withstand it because of regulations that have been put in our agri sector. Regulations that have been put in our business sectors which means that we are probably one of the highest in Europe in taxes to try and survive. I went across the road here yesterday to try and support the local business and actually Deputy Colonel Flynn was with me and we went in and we said we get a cup of coffee. And up on the wall shows the breakdown in this country for a cup of coffee. And when you look down through it, 50 cent of it is VAT on a cup of coffee for something small as somebody might want. And that person is probably the cheapest person in Dublin for a cup of coffee straight across the road here from Leinster House. And there is a full breakdown on what it is from the lid all the way to the wages all the way the whole way up along to show how it is to survive in this country. And we are facing tariffs in this country. We are also facing the amount of money that this country has made in taxes and the lack of value for money for what we have done. The Irish Times have put on what happened, what was the mistake made in the last economic crisis in this country. The lack of putting in infrastructure. Because if you put in infrastructure it brings down the price of housing because it is in. If you put in infrastructure it brings down the price of travelling across this country. But in this country at the moment in every euro you spend in fuel going to work you are paying 50 cent in a euro in tax in diesel. And you are paying 43 cent in every euro in a tax in petrol. And you are going to work and then you are paying tax on your wages. You are coming out then and you are paying taxes on every single thing that you buy. And if you never worked a day in this country and you get to a ripe old age age of an old age and you need to go to nursing home, you automatically qualify for everything in a fair deal. But if you work in this country and you have any fuel bob savings and you want to put it to leave it to your grandchildren you have to pay if you are over a certain amount. So what the tariffs are going to mean for this country is we are already exhausted trying to keep going and put food on the table for the people that are here working. and the vulnerable people that we are trying to cater for. And now one person in Ireland that works has any problem with looking after the vulnerable. But we have a massive problem on the wastage of money and the unaccountability of waste of money that if you are in the public sector from the point of view of governments and departments. That is our problem. So the tariffs down on top we have at the moment are going to put this country in major trouble. Thank you.