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Is Ireland really 'the best small country in the world in which to do business'?

These are the bills which are making it hard for owner-operators to compete in the global market.

WE’VE SEEN THE slogans and heard it from the Taoiseach himself - Ireland is the best small country in the world in which to do business, right?

But does that only apply to the big end of town and what costs are dragging down the owner-operators who keep the economy ticking over?

This month as part of TheJournal.ie’s coverage of the small- and medium-enterprise (SME) sector, we are looking at important money matters for these businesses – which together put nearly 70% of private-sector workers in a job and account for about half the nation’s commercial output.

Here’s a handy graph to start with as we look at where most of that money goes:

Costs Forfás Forfás

This year’s Forfás report into the cost of doing business in Ireland showed that across all business sizes and sectors, labour expenses were easily the number-one drain on the company purse.

When “location-insensitive costs”, or materials and equipment which had prices set by the global market, are taken out of the equation, businesses on average spent between 54% and 87% of their total costs on staff depending on the industry.

Irish Small and Medium Enterprises Association (ISME) chief executive Mark Fielding said wages were easily the number-one cost for businesses and the government could cut taxes to lift workers take-home pay and reduce the pressure on SMEs from wage rises.

There is much too much emphasis on foreign direct investment in Ireland – I’m not against it, but there needs to be the same amount of interest show to the SME sector now as there is to the multinational sector,” he said.

Despite workers taking a big hit during the  recession, the figures show Irish workers’ average hourly costs remain above the eurozone average – €29 per hour last year, compared to €28.20 across the region and €20.90 in the UK.

Wage Costs Hourly labour costs, 2013 Eurostat Eurostat

The average worker was still earning less last year than they did in 2007, although there have been marked differences between industries.

Here’s a comparison of how the average cost for workers in construction, whose pay packets have shrunk the most since 2009, have fared compared to those for staff in IT and communications, who have had the biggest increases:

image (1) TheJournal.ie TheJournal.ie

Property costs are the next-biggest expenses for businesses in most industries, except for manufacturing where transport is the big drain on the company purse.

And when it comes to bricks and mortar, Ireland scores surprisingly low on a global scale – especially when compared to property prices from the boom era, when Ireland ranked among the most expensive places in the world to secure real estate.

Rents for both prime office and retail spaces came in below the eurozone averages last year, although analysts have noted prices ramping up again - as much as 28% in the capital over 12 months as companies starting to be pushed to the city fringes to cut costs.

Transport fuel and utility costs both rate as expensive by European standards with Ireland having the third-highest retail electricity prices for SMEs out of the major EU countries.

Electricity Industrial electricity prices for SMES excluding VAT Forfás Forfás

Chambers Ireland policy director Mark O’Mahoney, whose organisation this week headed to Brussels for a EU-wide business conference, said Irish and other European SMEs were feeling the pinch from the higher costs of regulation in the region when compared to many of their Asian and North American competitors.

“I think Ireland is potentially a very competitive place to do business – it is a good example of how a country can turn itself around and we are looking into 2015 pretty positively,” he said.

“But Ireland is still a high-cost economy so it is something we need to be mindful of if we want to keep up. We are a small country and we are competing with the rest of Europe and the world these days.”

READ: Poll: Is your business really any better off after Budget day? >

READ: ‘Uninspiring’ budget continues tax discrimination against self-starters >

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35 Comments
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    Mute Tom Newell
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    Sep 26th 2024, 8:06 PM

    Wonderful so no extra gardai to patrol the street’s or cars to help response times for actual crimes

    Instead buying something to clean up a large mess created by the mob in the dail, NGO’s and fat cat developers who tried to make human trafficking for a profit a legal business and stirred up the race hating nutters…..

    The irony is we probably won’t have enough gardai to man these yokes like we don’t have enough manpower for all the new weapons they wanna buy for the defence forces and our little attempt to play NATO call of duty

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    Mute Jacintha Dumbrell
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    Sep 26th 2024, 9:42 PM

    @Tom Newell: If far-right racists stopped burning down buildings and murdering tourists we wouldn’t need them.

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    Mute Tom Newell
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    Sep 26th 2024, 9:46 PM

    @Jacintha Dumbrell: the far right didn’t cause garda response times and answer 999 calls to go to crap the past few years……

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    Mute Mr “JonnieBoy” Johnson
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    Sep 26th 2024, 10:19 PM

    @Jacintha Dumbrell: look to why riots are happening and fix that instead. A watercannon doesn’t fix problems.

    141
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    Mute Longlin
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    Sep 26th 2024, 10:59 PM

    @Jacintha Dumbrell: Murdering tourists? Of the top of my head I can think of the recent murder by two Romanians of a Canadian tourist and the one in West Cork allegedly by an English migrant years ago. Are these the far right racists you’re talking about?

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    Mute sean weir
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    Sep 26th 2024, 11:03 PM

    @Tom Newell: good job ,put dye in the water so they can arrest them later ,about time the guards had a decent bit of equipment .

    35
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    Mute sean weir
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    Sep 26th 2024, 11:03 PM

    @Mr “JonnieBoy” Johnson: yes it does

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    Mute H Woo
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    Sep 26th 2024, 11:41 PM

    @Tom Newell:
    Alot going on there son
    Maybe limit your exposure on the Internet to Marxist st1t.

    11
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    Mute Tom L
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    Sep 27th 2024, 7:34 AM

    @Jacintha Dumbrell: Wasn’t Irish who killed the yank

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    Mute Mr “JonnieBoy” Johnson
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    Sep 27th 2024, 8:17 AM

    @sean weir: eh , wrong.

    3
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    Mute Ivor Sweeney
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    Sep 27th 2024, 10:05 AM

    @Jacintha Dumbrell: NPC – non player character pre programmed response

    4
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    Mute John Mulligan
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    Sep 27th 2024, 10:22 AM

    @Mr “JonnieBoy” Johnson: no, but it gives the dole-suckers and assorted farage puppets a good wash.

    9
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    Mute Alex
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    Sep 27th 2024, 12:27 PM

    @Jacintha Dumbrell: bury your head in the sand even more.

    5
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    Mute donal finn
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    Sep 27th 2024, 12:33 PM

    @Jacintha Dumbrell:

    1
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    Mute donal finn
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    Sep 27th 2024, 12:34 PM

    @Jacintha Dumbrell: Bet you lead a comfortable and cosseted life?

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    Mute Colette Byrne
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    Sep 27th 2024, 12:54 PM

    @Jacintha Dumbrell: look at the problem, not the solution.!
    This is happening because marginalised people have been let down by fgff. easy prey for far right agenda. It won’t be the big guns getting water cannon but the nieve people who follow them. This lies with minister for justice, and drew Harris. Blame the actual people who are responsible. I also thought an all black security at the site might have been a bit of a mistake, many of them older was very unfair on them, put a load of eastern Europeans on it, and trouble wouldn’t have escalated. They would be afraid to tackle a few of them.

    8
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    Mute common sense
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    Sep 26th 2024, 8:24 PM

    How about listening to communities who don’t want more people in their area. Disgraceful government

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    Mute Jacintha Dumbrell
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    Sep 26th 2024, 9:42 PM

    @common sense: I don’t want you in my area, pack your bags.

    103
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    Mute mark sheehan
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    Sep 26th 2024, 10:12 PM

    @common sense: If it’s not immigration then it will be something else. A very small minority use social issues to behave like thugs.

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    Mute sean weir
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    Sep 26th 2024, 11:05 PM

    @common sense: how about they get a job

    28
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    Mute POC
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    Sep 27th 2024, 4:26 AM

    @mark sheehan: They are thugs Mark. Vermin. Gurriers. No respect for law, their neighbours. Nothing. They’ve always been around. Let them have it..

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    Mute Pat Hazzard
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    Sep 27th 2024, 9:57 AM

    @common sense: listening? The two main Govt parties got the most votes in the Local Elections in June, and all the racist candidates got less than 1%.

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    Mute chris gaffney
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    Sep 26th 2024, 8:44 PM

    Just spent a few days in Valencia, Spain. I would like to see Gardai and County Council officials be brought out there to see how things are done. The streets are clean, no graffiti, no valdalism, no menacing drug addicts and a general feeling of safeness and wellbeing. Fountains and sculptures treated with the respect they deserve. And, they manage this without a strong visible Police presence!!! Comparing Valencia to any of our major cities just shoes up how badly we manage our streets!!

    277
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    Mute Oh Mammy
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    Sep 26th 2024, 8:49 PM

    @chris gaffney: by God, they must have brilliant, ev water cannons that shoot recycled rain water, when available.

    60
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    Mute Ich
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    Sep 26th 2024, 9:08 PM

    @Oh Mammy: Liquid manure ;-)

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    Mute Peter Byrne
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    Sep 26th 2024, 10:16 PM

    @chris gaffney: yes well Spanish peop is e have pride where they live , dont litter the streets, drink very little beer and can enjoy themselves without getting drunk or doing drugs

    32
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    Mute Dvsespaña
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    Sep 26th 2024, 11:36 PM

    @chris gaffney: The lack of a lot of the things you identified in Valencia and elsewhere in Spain, for that matter, stem from cultural differences more than anything else.

    Acting like a scümb*g in Spain is socially unacceptable, but in many parts of Ireland, especially in Dublin, it is not only viewed as socially acceptable, it is also embraced as a group identity.

    The vast majority of the people engaging in the aggressive and often violent anti-immigrant protests in Ireland that prompted this purchase of water cannons, not only don’t have jobs to go to, they wouldn’t work if their lives depended on it.

    47
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    Mute H Woo
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    Sep 26th 2024, 11:57 PM

    @chris gaffney:
    Spanish cops are allowed to give you a few slaps if you need them.

    34
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    Mute Michale Kane
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    Sep 26th 2024, 8:10 PM

    Wonder how much these will cost the taxpayers?

    178
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    Mute Marcus Connolly
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    Sep 26th 2024, 9:36 PM

    @Michale Kane: OPW Rumours have it. Each vehicle is apparently costing the taxpayer between 336k and 1.4 million. Personally, I don’t know where they are getting those figures from.

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    Mute Pat Barry
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    Sep 26th 2024, 10:20 PM

    @Michale Kane: They cost half a million a piece.

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    Mute Pat Barry
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    Sep 26th 2024, 10:29 PM

    @Pat Barry: Think it’s for the pair actually, Boris Johnson got better value when he bought 3 from the German Police for £300,000.

    11
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    Mute POC
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    Sep 27th 2024, 4:28 AM

    @Michale Kane: A lot less than replacing buses, trams and everything they louts burn or destroy. What’s your opinion?

    15
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    Mute Tom L
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    Sep 27th 2024, 7:38 AM

    @POC: What have they burned and destroyed recently?

    3
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    Mute Gerry Lamont
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    Sep 26th 2024, 8:11 PM

    If this shower of piigs in government would do the right thing by the people who elected them there would be no need for the stasi..sorry I meant gardai to need water cannons.

    327
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    Mute sean weir
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    Sep 26th 2024, 11:07 PM

    @Gerry Lamont: shut up Gerry and go get your umbrella,I think you may need it

    27
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    Mute Freda Peeple
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    Sep 26th 2024, 11:51 PM

    @sean weir: I bring my brolly every time I visit your sister

    46
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    Mute POC
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    Sep 27th 2024, 4:29 AM

    @Freda Peeple: I thought you liked golden showers?

    9
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    Mute sean weir
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    Sep 27th 2024, 9:14 AM

    @Freda Peeple: my sister is dead buddy ,hope you bring flowers

    4
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    Mute James McCarthy
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    Sep 26th 2024, 8:14 PM

    Gardaí need to purchase more gardaí. They won’t be allowed use them cannons in case they hurt some young hooligan, like they’re not allowed intercept bike thieves. The powers that be actively ignoring crime.

    168
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    Mute Thesaltyurchin
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    Sep 27th 2024, 9:38 AM

    @James McCarthy: The ‘athletes’ in the photo look like the could use a clean in fairness

    5
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    Mute Pat Hazzard
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    Sep 26th 2024, 8:00 PM

    Long overdue, as the thugs and racists needed to be cleaned off our streets.

    211
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    Mute Alex
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    Sep 26th 2024, 8:01 PM

    @Pat Hazzard: as well as the tents in the city center. A water canon would do very well against the illegals. Maybe they won’t stay?

    430
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    Mute Oh Mammy
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    Sep 26th 2024, 8:18 PM

    @Pat Hazzard: what’s a racist Pat? Your definition please. Take your time.

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    Mute Shane Kinsella (Kinsey)
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    Sep 26th 2024, 8:30 PM

    @Oh Mammy: anyone who doesn’t agree with him

    166
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    Mute chris gaffney
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    Sep 26th 2024, 8:45 PM

    @Oh Mammy: Well, if you have to ask…….!

    25
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    Mute Oh Mammy
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    Sep 26th 2024, 8:45 PM

    @Shane Kinsella (Kinsey): that was my thought. I should probably get a wet suit…….

    30
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    Mute Oh Mammy
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    Sep 26th 2024, 8:46 PM

    @chris gaffney: why not give me your definition?

    42
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    Mute John Mulligan
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    Sep 26th 2024, 9:24 PM

    @Pat Hazzard: they need to add indelible dye to the water to help identify the agitators when they try to slip away, having incited the gullible mob and the assorted dole-suckers to cause damage.

    36
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    Mute ItWasLikeThatWhenIGotHere
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    Sep 26th 2024, 10:18 PM

    @Oh Mammy: What’s your definition of a racist then?

    10
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    Mute Oh Mammy
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    Sep 26th 2024, 10:58 PM

    @ItWasLikeThatWhenIGotHere: I asked first. When I get an answer I will give mine

    18
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    Mute Ivor Sweeney
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    Sep 27th 2024, 10:07 AM

    @Pat Hazzard: oh … you mean ‘the racists’ you’ve been preprogrammed to talk about

    9
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    Mute Trump23
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    Sep 26th 2024, 8:27 PM

    Absolutely fantastic news hopefully they use them on the dole merchant anti migration protestors.

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    Mute sakk sa
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    Sep 26th 2024, 8:30 PM

    Porsche or ferrari brand ? Should be match bike shelter High design.

    62
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    Mute Eamon
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    Sep 26th 2024, 8:10 PM

    Real cannons would be better.

    64
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    Mute John Flanagan
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    Sep 26th 2024, 8:15 PM

    Not before time. Need to purchase new judges as well. Too much kid gloves with these thugs.

    114
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    Mute Alan d
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    Sep 27th 2024, 8:39 AM

    @John Flanagan: We just need Garda to allowed Police like in other countries . Too much red tape . Example a person is driving a scrambler bike around a housing estate at speed with no helmet and kids present the Garda cannot touch him . In other countries the police would ram him off the bike , the consequences of that is the Garda would face charges . It’s madness .

    27
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    Mute John Flanagan
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    Sep 27th 2024, 9:07 AM

    @Alan d: yea Alan and when garda bring them to court. They are slapped on the hand and told don’t do it again.

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    Mute Colette Byrne
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    Sep 27th 2024, 1:34 PM

    @John Flanagan: law needs changing, if 13 year old is caught in a stolen car, they should be tried in adult court. If convicted before 18, it should carry over to adulthood. They need to learn their crimes will be punished.

    11
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    Mute P. V. Aglue
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    Sep 26th 2024, 8:22 PM

    What’s the budget? 150 k, 336k,1.4milliion each. It will a be a rushed purchase because they’ll need them for Halloween

    59
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    Mute P. V. Aglue
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    Sep 26th 2024, 8:27 PM

    @P. V. Aglue: 150k for transit van with the mesh over the front window.

    46
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    Mute Sean Parker
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    Sep 26th 2024, 9:37 PM

    @P. V. Aglue: don’t think the plan is to put out bonfires.

    10
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    Mute Aidan Boland
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    Sep 26th 2024, 8:48 PM

    Fill them full of slurry.

    60
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    Mute Oh Mammy
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    Sep 26th 2024, 8:52 PM

    @Aidan Boland: i like that idea

    34
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    Mute Toyo Ke
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    Sep 26th 2024, 9:03 PM

    @Oh Mammy: Love it. The headline should read “Gardaí purchase 2 new slurry tanks”

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    Mute Oh Mammy
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    Sep 26th 2024, 9:08 PM

    @Toyo Ke: the fella that sold the rubberbandits the horse for a bag of yokes sold the slurry tanks to the gardai for 13.3457b euro.

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    Mute Alan Kennedy
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    Sep 26th 2024, 9:02 PM

    1 for Coolock the other down in Tipp! That should clean them up!

    35
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    Mute SV3tN8M4
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    Sep 27th 2024, 6:59 AM

    Slipping further & further into an Authoritarian State under this Govt. Drew Harris & Helen Mc Entee lost control of Law & Order, instead of having active policing on the ground, it’s all about hammering people into submission with batons & water cannons. I wonder how many people out protesting peacefully will be hit & injured by these water cannons. Mc Entee is intent on destroying free speech & the right to protest, meanwhile Law & Order under her watch has broken down in every city, town & village across the country.

    39
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    Mute MIchael Costello
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    Sep 26th 2024, 9:55 PM

    So they are in the process of purchasing 2 water canon vehicles from an overseas Police force for around €500,000 for the pair…. cheap at the price when you compare it to bike shelters

    31
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    Mute H Woo
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    Sep 26th 2024, 11:48 PM

    @MIchael Costello:
    Now if only Shin Fein bring that money they laundered to the UK back to Ireland pay there tax on it just like the little people do, and that will cover the cost of the Gardas Mobile power washers

    15
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    Mute Phillip Smyth
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    Sep 26th 2024, 8:02 PM

    Two little two late.

    28
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    Mute Alan Moloney
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    Sep 26th 2024, 8:36 PM

    Our full garda team should be armed full stop ✋️

    30
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    Mute Alan Moloney
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    Sep 26th 2024, 9:22 PM

    @Alan Moloney: as far as we know there 2nd hand not new

    4
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    Mute ItWasLikeThatWhenIGotHere
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    Sep 26th 2024, 10:22 PM

    @Alan Moloney: Why would you want to give these thugs any firearms?

    Look at the murders by US cops. Let’s not degenerate to that level.

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    Mute sean weir
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    Sep 26th 2024, 11:10 PM

    @ItWasLikeThatWhenIGotHere: ” these thugs”
    I bet you are one of those that stand with your phone out while you hurl abuse at them .

    15
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    Mute Pat Barry
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    Sep 26th 2024, 10:31 PM

    Interestingly these aren’t approved for use in the UK outside of NI.

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    Mute sean weir
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    Sep 26th 2024, 11:14 PM

    @Pat Barry: yes they are, were used during the miners strike,and in the Croydon roots

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    Mute Pat Barry
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    Sep 27th 2024, 7:52 AM

    @sean weir: That may be the case but they’re certainly banned there now and have been for years.

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    Mute sean weir
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    Sep 27th 2024, 9:20 AM

    @Pat Barry: not banned pat but can only be used if signed of by the home secretary

    4
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    Mute Peter Byrne
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    Sep 26th 2024, 10:18 PM

    Why dont all the smart people on here who have all the answers run in the next general election, of course that actually means doing something

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    Mute Freda Peeple
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    Sep 26th 2024, 11:54 PM

    @Peter Byrne:the old “why don’t you run” generic blah blah comment… how far will you get in politics if you upset the gravy train? Not far is your answer

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    Mute Ronan Mc
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    Sep 26th 2024, 9:17 PM

    Didn’t they buy 2 after the ‘Reclaim the streets’ protest/riot? They sold them due to lack use then. Or did I just imagine all that?

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    Mute John Mulligan
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    Sep 26th 2024, 9:27 PM

    @Ronan Mc: they borrowed those from the PSNI. They haven’t as much use for them now that the IRA are doing less wrecking for unity.

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    Mute Anthony Curran
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    Sep 26th 2024, 10:08 PM

    @John Mulligan: Nice bit of “but the ra”-ing but it’s actually loyalists who carry out most of the rioting these days.

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    Mute sean weir
    Favourite sean weir
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    Sep 26th 2024, 11:13 PM

    @John Mulligan: since the GFA we only have riots from the loyalists,and the PSNI would never water cannon their neighbours .

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    Mute Tom L
    Favourite Tom L
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    Sep 27th 2024, 7:43 AM

    It’s not the Gardai anymore, they’re PSNI shoe in’s, the RIC is back and paddy is again the target. Fudge all you west brits cheering this on from the sidelines, same people whos ancestors sat by in their proddy towns while the paddy starved to death during the famine. You don’t even know who you truly are do ya’s?

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    Mute Pj Browne
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    Sep 26th 2024, 10:22 PM

    They will never be used absolute waste of money again

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    Mute H Woo
    Favourite H Woo
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    Sep 26th 2024, 11:42 PM

    @Pj Browne:
    You’d be moaning if they did not have them.

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    Mute Rab.c.nesbitt
    Favourite Rab.c.nesbitt
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    Sep 26th 2024, 9:21 PM

    They’re just two power washers for the tidy towns competition, gotta keep the place looking squeaky clean

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    Mute did you every wonder
    Favourite did you every wonder
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    Sep 27th 2024, 6:06 AM

    Probably in storage 95% of the time. I’m not sure if they can be used for anything else. They could park them in the bike shed or the security hut, I suppose, to save storage costs. No extra garda or nurses, doctors, etc, but we will have these essentials.

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    Mute Tommy
    Favourite Tommy
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    Sep 26th 2024, 11:15 PM

    Yet again the uncivilised people cannot behave themselves and cost the taxpayers money.

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    Mute Freda Peeple
    Favourite Freda Peeple
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    Sep 26th 2024, 11:56 PM

    @Tommy: In ten years time you will wish you were one of “them” people. Mark my words

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    Mute Tommy
    Favourite Tommy
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    Sep 27th 2024, 4:48 AM

    @Freda Peeple: Very True, I personally blame the Greedy Greens and Helen McEntee for their incompetence at leaving the gate open and flooding the country with undocumented males.
    My question is Where’s all their wives and children?

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    Mute peter willekens
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    Sep 27th 2024, 9:18 AM

    @Tommy: on their way as soon as the males are cleared. Then the parents and any other relative.

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    Mute ian
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    Sep 27th 2024, 3:24 AM

    About time.

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    Mute karen delaney
    Favourite karen delaney
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    Sep 27th 2024, 1:39 AM

    The Minister for Justice said on RTE Radio last week that they had been purchased and would be delivered early next year. So what’s the truth?

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    Mute Pat Hazzard
    Favourite Pat Hazzard
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    Sep 27th 2024, 9:58 AM

    @karen delaney: she didn’t she said they had gone out to tender and so would be delivered next year.

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    Mute Michal Rozanski
    Favourite Michal Rozanski
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    Sep 27th 2024, 1:30 PM

    As an 80s kid who grew up in communist Poland, I feel like I’m travelling back in time. Slowly but surely.

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    Mute higgy636
    Favourite higgy636
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    Sep 27th 2024, 7:05 AM

    A couple of billion euros should do it.

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    Mute donal finn
    Favourite donal finn
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    Sep 27th 2024, 12:36 PM

    More tools for the new Tans. They have lost much of the public over their thuggish behaviour recently.

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    Mute Paul Whitehead
    Favourite Paul Whitehead
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    Sep 27th 2024, 4:17 PM

    @donal finn: not really. Only the thugs who disrespect our beloved flag and share space with some thugs from the north carrying the Union Jack.

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    Mute Colette Byrne
    Favourite Colette Byrne
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    Sep 27th 2024, 12:46 PM

    While everyone gets excited another deflection, for drew Harris, and helen mc entee,
    Doing his dirty work, the riot would have even started, if he hadn’t taken guards off the site, leaving workers with no protection.
    Where are the guards on the street doing half-hour checks that lasted about a week.
    Drew needs to go. The guards that were there stood idly by watching,or moving a few barriers instead of crowd control.

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    Mute Paul
    Favourite Paul
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    Sep 27th 2024, 8:15 AM

    About the only shower these lazy doleheads would ever see

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    Mute Paul Whitehead
    Favourite Paul Whitehead
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    Sep 27th 2024, 4:15 PM

    Fill them with poo-pee water and make sure the guys carrying our beloved flag, and their mates with the Union Jack beside them, are first to have a wash.

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    Mute Nuala Ryan
    Favourite Nuala Ryan
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    Sep 27th 2024, 3:43 PM

    About time. I hope the Government have the legislation in place to use it

    1
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