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Internet will contribute €11.3bn annually to the Irish economy by 2016 - report

The boost to the economy will be underpinned by 2.6 million online shoppers in 2012, according to new report from UPC.

A REPORT BY cable company UPC has suggested that the internet will contribute €11.3 billion to the Irish economy on an annual basis by 2016.

The report, commissioned by UPC carried out Amárach Research, shows that despite the recession Irish people are forward-looking ‘digital optimists’ who are anticipating a host of new services that will enable them to work, shop, study and share from the comfort of their home in future.

Launched today by Communications, Energy and Natural Resources Minister Pat Rabbitte TD, the report says the Internet will contribute €11.3 billion annually to the Irish economy in 2016 – rising from €4.7 billion in 2010 – providing that current trends are maintained.

This projected increase will be underpinned by 2.6 million online shoppers who are expected to spend €3.7 billion in 2012, rising to €5.7 billion (7 per cent of all consumer spending) in 2016, according to the findings of survey.

At present, the internet economy accounts for roughly 3 per cent of Irish GDP and this is set to double to 6 per cent over the next four years.

Rabbitte welcomed the research, saying it provided further insights into the potential of the internet to contribute to economic renewal and recovery in Ireland:

We know that key ingredients in achieving our potential are high speed broadband and digital participation – by citizens and businesses. As a progressive knowledge economy, trading goods and services globally, we need to be better connected than most in the world and we need to embrace the opportunities the Internet makes possible.

The UPC Report estimates that employment can be increased of 18,000, or more, so long as Irish society and industry can “keep pace” with the digitisation levels of areas like the UK and Scandinavia.

The reported noted that internet usage in Ireland is growing exponentially, with an 800 per cent increase in total Internet traffic recorded per month since 2009.

Requirements ‘growing constantly’

UPC Ireland CEO Dana Strong said the company had noted that customers’ bandwidth and content requirements were “growing constantly” – a factor she says is driven by an explosion in video content available online.

“We were surprised to discover that people are spending 2.6 hours online every day, and that nearly 70 per cent of us frequently shop online. This indicates that the size of digital spend is large and is going to be enormous in years to come. We must ensure that these developments are met by Irish based productivity and innovation in the future,” Strong commented.

She noted that 55 per cent of businesses surveyed indicated they plan to hire new staff in the coming two years. “Businesses clearly recognise the opportunity that broadband represents – in fact one in four businesses think they could achieve an extra 5 per cent growth on top of their current prospects with the right online strategy. If we can achieve a digital economy equal to that in the UK, we stand to gain 18,000 jobs,” she said.

The UPC/Amárach research involved conducting two parallel surveys in August 2012: the first was an online survey comprising 1,000 adults aged 16 and over, representative of Ireland’s population; and the second comprised a telephone and web survey of 201 IT decision-makers in Irish SMEs and larger corporations, with quotas to ensure a cross-section of companies by size.

Key findings

Life Online

  • 80 per cent of adults use the Internet in Ireland, up from less than 50 per cent in 2007
  • Broadband take-up in Ireland matches the EU average at two thirds of homes
  • Internet users spend an average of 2.6 hours online on a typical weekday, rising higher at the weekend.
  • 69 per cent of people say their broadband speed is sufficient for current needs, however 44 per cent say it is not sufficient for their future likely needs
  • On average there are two or more people using broadband in every home, with two or more devices connected at the same time.
  • Shopping and social networks are the most popular online activities.
  • There are 2.6 million online shoppers in Ireland, who are expected to spend €3.7bn in 2012. Some 15 per cent of the population (15s-24s) represent almost 20 per cent of online shoppers.
  • On average Irish adults who shop online are spending €116 per month online (15-24s €61); (Over 55s €168).
  • Over 60 per cent of online shoppers would buy from an Irish website if they knew about one that matched equivalent offers from international sites.
  • 30 per cent of people use a laptop / tablet / smartphone at the same time while watching TV

Buisness

  • 80 per cent of businesses are optimistic about their growth prospects in the coming two years
  • 55 per cent of Irish businesses say they intend hiring in the next 12 – 24 months.
  • Over 75 per cent of companies supply smart phones and laptops to about a third or more of their staff.
  • A third of adults already use the Internet at home for work purposes
  • Six in 10 workers are expected to work from home some or all of the time by 2016
  • Half of all adults would be interested in running their own business from home at some stage, facilitated by digital technologies
  • Nearly half of all businesses have observed an increase in online feedback from customers in recent years
  • 1 in 4 businesses think they could have an extra 5 per cent growth on top of their current prospects with the right online strategy

When asked what is the one service in their homes that they couldn’t live without, the number one choice for over a third of Irish adults in 2012, is broadband – over electricity, television, phone and water (at just 6 per cent) in that order.

Read the full UPC report: Driving Economic Recovery

Read: Dublin Web Summit: Credit and debit cards could become a thing of the past>
Read: Smartphones the future of internet – and 10 other predictions>

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15 Comments
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    Mute Aideen Pollard
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    Dec 19th 2018, 7:40 PM

    €30 for a haircut!

    444
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    Mute Mr Wilde
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    Dec 19th 2018, 7:42 PM

    @Aideen Pollard: how much do women spend on haircuts?

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    Mute sequoia
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    Dec 19th 2018, 7:44 PM

    @Aideen Pollard:

    It IS a southside haircut.

    Mine costs a tenner

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    Mute Ciarán Mac Cormaic
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    Dec 19th 2018, 8:59 PM

    @Aideen Pollard: and €20 for a puncture!

    48
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    Mute RogerRamjet
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    Dec 19th 2018, 9:11 PM

    @Aideen Pollard: €100 on gloves…..GLOVES!!

    136
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    Mute Caitriona Smith
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    Dec 19th 2018, 10:14 PM

    @RogerRamjet: and 10 euro for a taxi when he lives in rathmines which is less than a 20min walk from town.

    26
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    Mute brian oconnell
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    Dec 20th 2018, 12:19 AM

    @Aideen Pollard: Must have been at Sams, only place that charges 30!

    6
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    Mute Desmond Lyons
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    Dec 20th 2018, 6:55 AM

    @brian oconnell: G.Male!

    11
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    Mute sequoia
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    Dec 19th 2018, 7:46 PM

    You’ll learn lad. You’re spending too much money and not planning for the future.

    You’ve an excellent salary & you’re blowing a huge percentage of it.

    You should be able to cut your discretionary spending In half without noticing at your rate and be able to save that balance.

    Saving €800 a month on €75k a year is pitiful.

    502
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    Mute Micko
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    Dec 19th 2018, 8:49 PM

    @sequoia: god your a dry shape

    164
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    Mute Micko
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    Dec 19th 2018, 8:49 PM

    @sequoia: god your a dull motherfupper

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    Mute Micko
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    Dec 19th 2018, 8:49 PM

    @sequoia: god your a dull

    25
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    Mute Micko
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    Dec 19th 2018, 8:50 PM

    @sequoia: god, hate to be married or end up married to you.

    27
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    Mute Micko
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    Dec 19th 2018, 8:50 PM

    @sequoia: for the love of god, there is a thing called FUN!

    33
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    Mute Catalanista
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    Dec 19th 2018, 8:53 PM

    @Micko: Come back when you’re sober

    221
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    Mute Sean Murphy
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    Dec 19th 2018, 9:07 PM

    @Micko: you alright there pal? Few valium wouldn’t go astray.

    111
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    Mute Niallers
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    Dec 19th 2018, 9:09 PM

    @sequoia: He doesn’t realise he could be set for life if he managed his money right. As in multi millionaire come retirement.

    If you could put an old head on young shoulders.

    Check out a guy called Dave Ramsey on you tube. Take his advice .

    52
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    Mute sequoia
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    Dec 19th 2018, 9:32 PM

    @Micko:

    Sure kid. Whatever gets you through the night.

    29
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    Mute Shane Doherty
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    Dec 20th 2018, 12:14 AM

    @Micko: well Micko, you must be exhausted from delivering all his food. Bless.

    32
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    Mute John Horan
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    Dec 19th 2018, 8:02 PM

    I wish I got as much sleep as this lad

    329
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    Mute iohanx
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    Dec 19th 2018, 7:54 PM

    Not a penny into your pension looking at your numbers. Deferred income buddy, worth it’s weight if done right. You should rethink your strategy, being a data analyst and all.

    276
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    Mute Ali Ní Dhomhnaill
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    Dec 19th 2018, 10:01 PM

    @iohanx: have you seen what his job gives him. They definitely have a decent pension there.

    108
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    Mute Dave Ringer
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    Dec 20th 2018, 5:31 PM

    @Ali Ní Dhomhnaill: more likely no pension

    4
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    Mute Kevin
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    Dec 19th 2018, 8:24 PM

    You sound like good craic I have to say, and don’t take things seriously.
    Nothing at all wrong with it, you seem happy out – best of luck

    305
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    Mute Ronan fowley
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    Dec 19th 2018, 8:21 PM

    How about doing a story about someone living on the minimum wage or someone living in the west of Ireland that’s not galway that would be great

    263
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    Mute Tweety McTweeter
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    Dec 19th 2018, 8:26 PM

    @Ronan fowley: I live in Mayo, I’m on the dole and I’m stone broke. Ask me anything…

    405
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    Mute John Horan
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    Dec 19th 2018, 8:36 PM

    @Tweety McTweeter: Question 1. How come you are on the dole? What sort of job have you tried to look for?

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    Mute Jim Buckley Barrett
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    Dec 19th 2018, 8:43 PM

    @Tweety McTweeter: Question 2. What retraining have you taken to obtain a job?

    68
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    Mute Tweety McTweeter
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    Dec 19th 2018, 8:58 PM

    @John Horan: Ahh forget it. Didn’t realise it would be like the Spanish Inquisition

    262
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    Mute ooh ahh
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    Dec 19th 2018, 8:58 PM

    @Tweety McTweeter: Q3. Is there still people in mayo thinking this could be their year.

    216
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    Mute John Horan
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    Dec 19th 2018, 10:46 PM

    @ooh ahh: Reckon they have more chance of Sam 2018 than 2019 ;-)

    13
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    Mute Bruce van der Gutschmitzer
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    Dec 19th 2018, 11:10 PM

    @Tweety McTweeter: Leo still has his stooges about from his time in Social ‘Protection’ out looking to rat ppl out Tweety. Say nothin!

    15
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    Mute Rob Cahill
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    Dec 20th 2018, 1:47 PM

    @Tweety McTweeter: you said ask me anything?!?!?!

    5
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    Mute Jumperoo
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    Dec 19th 2018, 8:40 PM

    Fair play to this lad in many ways, but as a data analyst, he could analyse his own data a bit more. He says transport costs are zero since work pays for public transport, but yet he owns a car too…And even put 20 quid petrol into it in the week he’s writing about? So why isn’t there a figure for car running costs and maintenance in his monthly outgoings?

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    Mute Laura Byrne
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    Dec 19th 2018, 11:15 PM

    After reading these diaries for weeks now, I have come to the conclusion that the sole purpose of 50% of them is marketing orientated. 50% seem to plug products/apps/whatever else they may throw in and the rest just seems unrealistic to me. Disappointing.

    113
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    Mute Peter Heylin
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    Dec 20th 2018, 7:25 AM

    @Laura Byrne: What products have you seen being plugged in this series? Any examples…

    15
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    Mute Ronan McKeon
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    Dec 20th 2018, 8:48 AM

    @Peter Heylin: I got the useful advice to boil eggs in the kettle at work at least…

    34
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    Mute Niall McNamara
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    Dec 19th 2018, 8:19 PM

    Long hours, take aways and pints. I wouldn’t worry about having to pay back the mortgage!

    93
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    Mute Lee Mac Eoghain
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    Dec 19th 2018, 9:47 PM

    This lad lives in D6 has all his transport paid off and has a car.

    Get rid of the car and you will save thousands per year.

    Your welcome

    91
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    Mute Nicholas Kelly
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    Dec 19th 2018, 9:43 PM

    It’s a 100 euro on the joint account so nothing from me
    You do remember you pay into the joint account?
    Makes the analysis pointless, pretending your not spending as much as you are

    97
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    Mute Phil Quinn
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    Dec 20th 2018, 4:09 AM

    @Nicholas Kelly: joint account payment is a seperate bank account so hes not including it in his personal deductions…..not exactly rocket science

    19
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    Mute Colm Naylor
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    Dec 20th 2018, 12:13 AM

    Sounds like an ad for deliveroo

    73
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    Mute Locojoe
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    Dec 19th 2018, 10:29 PM

    Two free tickets for the Ireland v New Zealand match. It is good for some!

    48
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    Mute Angus Stening
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    Dec 19th 2018, 8:31 PM

    Sure glad I’m not employing you

    47
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    Mute Mr Wilde
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    Dec 19th 2018, 8:44 PM

    @Angus Stening: why? Horrible thing to say.

    96
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    Mute Mr Wilde
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    Dec 19th 2018, 8:46 PM

    @Angus Stening: why?

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    Mute Sos
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    Dec 19th 2018, 9:36 PM

    @Angus Stening: it’s the most interesting account I’ve read so far. He sounds like a great asset to an office, can’t understand your comment ?

    64
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    Mute Padraic McDonagh
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    Dec 19th 2018, 11:49 PM

    Nice gig, plenty of perks, decent social life.
    Crikey this could be me if I didn’t have 4 kids!!

    49
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    Mute Cathal Kelly
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    Dec 19th 2018, 10:30 PM

    Absolutely f@@king love this guy!

    54
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    Mute Joe Knows
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    Dec 19th 2018, 11:20 PM

    “It’s €16.30 on the joint account, so €0 from me” haha… Interesting scheme, incredible what else could be saved with a few tweaks here and there, however I guess different strokes for different folks.
    =)

    26
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    Mute Jumperoo
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    Dec 19th 2018, 11:34 PM

    @Joe Knows: think I’ll start throwing €500 a week into the joint account here. Then I’ll get nearly everything for ‘free’.

    40
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    Mute Seaniecp
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    Dec 20th 2018, 1:22 AM

    I loved that read . Gew on ya good thing. 2400 a year on gym. Brilliant. Mans gotta do ………

    25
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    Mute Shane Murphy
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    Dec 19th 2018, 10:21 PM

    This is laughable. I accept his point about not stopping life to save. Fine. Two hundred a month for CrossFit ? Join a gym for forty. Ditch the coffees at three euro a pop, another joke. Taxis instead of a few minute walk! Unless your parents have money to throw you for a deposit , you’re going to be in the f*cked position a lot of people are now !

    61
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    Mute John Mc
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    Dec 23rd 2018, 9:31 PM

    @Shane Murphy: one of my luxuries is spending similar amount on crossfit style program. Commercial gyms are boring and unsimulating so I eventually pack in in. You can’t put a price on your health.

    3
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    Mute ross mcgee
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    Dec 20th 2018, 7:49 AM

    “30 from the joint account, so that’s nothing from me” … (“.
    Sounds like a terrible data analyst with a drink problem.

    24
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    Mute Amanda Baker
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    Dec 20th 2018, 8:56 AM

    Is it just me or does he sound like a real peach of a boyfriend

    21
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    Mute Rob Cahill
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    Dec 20th 2018, 9:06 AM

    @Amanda Baker: Sounds like a Fionn to me. I bet he wears shoes with no socks and rolls up his jeans.

    28
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    Mute Eimear Cooney
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    Dec 20th 2018, 11:35 AM

    Amanda, you seem keen!

    11
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    Mute Rob Cahill
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    Dec 20th 2018, 9:07 AM

    30 quid for a haircut is outrageous. If I want a decent one its 17, if I just want it cut it’s 13.

    9
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    Mute trebloc01
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    Dec 21st 2018, 7:21 PM

    29 on 74,000 is this for real

    7
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    Mute Amanda Baker
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    Dec 20th 2018, 8:56 AM

    Is it just me or does he sound like a real peach of a boyfriend

    6
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    Mute Amanda Baker
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    Dec 20th 2018, 8:58 AM

    Is it just me or is this guy a reall peach of a boyfriend

    3
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    Mute Eimear Cooney
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    Dec 20th 2018, 12:08 PM

    @Amanda Baker: You’re keen

    21
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    Mute Amanda Baker
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    Dec 20th 2018, 8:58 AM

    Is it just me or is this guy a reall peach of a boyfriend

    2
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    Mute Peter Heylin
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    Dec 20th 2018, 7:30 AM

    I bet Friday felt a bit like this: https://youtu.be/kfchvCyHmsc

    I wouldn’t worry though, it was Friday after all

    1
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