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http://features.csmonitor.com/globalnews/2009/03/12/northern-ireland-tense-as-officials-hunt-for-smuggled-bomb/
Ireland unites in protest against violence as police begin crackdown on dissident groups.
By Jason Walsh | 03.12.09
DUBLIN, Ireland – A security alert has been issued today in the Northern Ireland town of Ballykinler, the site of a British Army base.
The Ballykinler base in County Down is one of several feared targets of dissident republicans intent on reigniting Northern Ireland’s “Troubles” – a three-decade long conflict between Irish republicans and Britain. Despite widespread condemnation of the dissident activity, many fear the attacks are being stepped-up in order to destabilize Northern Irish society.
A joint operation now underway by the Police Service of Northern Ireland (PSNI) and the Garda Síochána, the Republic of Ireland’s police, seeks to uncover a bomb believed to have been smuggled into Northern Ireland by a dissident republican group calling itself the Real Irish Republican Army (RIRA), which claimed responsibility for killing two British soldiers Saturday.
The bomb alert follows a report in London’s Guardian newspaper that stated security forces are scouring the country after receiving intelligence reports that the RIRA has smuggled a large bomb into Northern Ireland from the Republic of Ireland.
Guardian correspondent Henry MacDonald says the alert has been at “red light level” since Monday. “The evidence is on the streets and roads – there are checkpoints in South Down and South Armagh.”
Security has been tightened on the largely open and unpatrolled 224-mile border between the Republic of Ireland and Northern Ireland, according to media reports.
A PSNI spokesperson said that they do not discuss operational matters. The Garda Síochána also declined to comment.
The bomb scare comes as heads of Ireland’s two police forces are set to meet in Belfast today to discuss the recent violence by dissidents. Police chiefs Hugh Orde and Fachtna Murphy will assess the security threat posed by the emboldened groups still opposed to the 1998 Good Friday Peace Accord.
Northern Ireland remains tense after a recent spate of shootings in which three people – two soldiers and a police officer – were killed. The soldiers were shot by the RIRA in Antrim on on March 7, the Monitor reported here. Two days later, we reported on the killing of a police officer by another breakaway group called the Continuity IRA. The two attacks are being treated as unrelated by the authorities. Mr. Orde said reports of a connection were “speculation.”
Four people were also injured in the Antrim attack, including two pizza delivery men. Two men were arrested in connection with the shooting of Constable Carroll in Craigavon on Tuesday.
The surge in violence follows more than a decade of relative calm on the streets of Northern Ireland.
Police have denied there are plans to release security camera footage of the attacks on Massarene barracks in Antrim.
An interview with the family of murdered PSNI officer, Constable Stephen Paul Carroll, was carried out by local television on Wednesday evening and will be released to the media Thursday night. Constable Carroll will be buried tomorrow in his hometown of Banbridge in County Down.
The sudden outbreak of violence has been met with widespread revulsion across Northern Ireland’s divided Roman Catholic and Protestant communities. Political leaders from all sides have condemned the attacks, including Sinn Féin, the party linked to the now disarmed Provisional IRA, the main republican player in Northern Ireland’s 30-year “Troubles.”
As the Monitor reported Thursday, more than 10,000 people gathered in Belfast Wednesday to hold a rally demanding an end to dissident violence.
http://www2.96fm.ie/news/detail.asp?type=news&article_id=94586&pt=n
The Northern Ireland Bill, which paves the way for Stormont to take over the running of policing and justice, is expected to become law on Thursday.
The bill passed through its final stages in the Lords on Wednesday night.
The measure was rushed through all its Commons stages in one day last week, despite protests from Opposition parties. It cleared the Lords in two days.
The Bill is a consequence of the Belfast Agreement of 1998 and the St Andrew`s Agreement 2006.
Moving third reading, Lords Leader and Northern Ireland spokesman Baroness Royall of Blaisdon said: "It is fitting and proper that we pass this Bill on a day when thousands of men and women are peacefully demonstrating on the streets of Northern Ireland.
This is demonstrable proof that they are determined to hold on to the peace. I believe the Bill reflects our common desire for a peaceful future in Northern Ireland."
For the Consevatives, Lord Glentoran said: "I sincerely hope this Bill will perform the duty we all expect it to, and that we will have an opportunity very soon to see the Assembly returning it to us to rubber-stamp it and put it into place."
The legislation follows a deal struck by the DUP and Sinn Fein last November which brought an end to five months of deadlock at Stormont over the transfer of the powers.
It agreed that neither party would hold the new justice ministry, which instead would be decided on a cross-community vote of politicians at the Assembly.
http://www.irishtimes.com/newspaper/ireland/2009/0312/1224242740488.html?via=rel
CONOR LALLY, Crime Correspondent
Thu, Mar 12, 2009
SECURITY: BORDER SECURITY has been increased following the attacks by dissident republicans of the past week in Antrim and Armagh which claimed the lives of two British soldiers and a PSNI officer.
Garda Commissioner Fachtna Murphy and senior Garda officers are meeting PSNI chief constable Sir Hugh Orde in Belfast today to discuss developments in the North since the weekend. The talks, which were scheduled to take place before the killings, will cover continued sharing of intelligence and co-ordination of anti-terrorist operations on both sides of the Border.
Gardaí have responded to the greater threat level by increasing policing along the Border and intensifying intelligence-gathering operations against known and suspect dissidents in the area.
Surveillance is also being increased in Dublin and elsewhere on suspected members of the Real IRA and Continuity IRA.
Border security was stepped up in the early hours of Tuesday after the fatal shooting of PSNI constable Stephen Carroll.
Assistant Commissioner Mick Feehan instructed all chief superintendents in the northern region to mount operations in their areas of responsibility. Mr Feehan, based in Sligo, is responsible for policing in the Garda’s northern division.
Since changes last year to Garda division boundaries, Mr Feehan is responsible for policing right along the Border.
Checkpoints with unarmed uniformed officers have been put in place on Border roads and motorists are being stopped and questioned as to their movements. The checkpoints are being supported by local armed detectives.
The armed personnel have stepped up Border patrols in an effort to deter any groups who may seek to transport vehicles, weapons or explosives into the North for the purposes of a terrorist attack.
Members of a number of specialist Garda units will support the increased operations along the Border. These include the Special Detective Unit, National Surveillance Unit and Emergency Response Unit.
Garda sources said while known CIRA and RIRA members have long been subjected to surveillance in the Republic, this is now being intensified. The sources said that while it was difficult to estimate the number of active dissidents living in the Republic, the number was very small.
Minister for Justice Dermot Ahern said the groups had an “absolutely tiny” presence in the Republic.
The Defence Forces’ elite Army Ranger Wing is on standby to assist gardaí along the Border if needed. Military and Garda sources said while it was vital that vigilance was maintained at this time, it was equally important not to overreact and create an oppressive security regime.
© 2009 The Irish Times
http://www.irishtimes.com/newspaper/ireland/2009/0312/1224242739026.html
MARIE O'HALLORAN
Thu, Mar 12, 2009
THE MURDERS by dissident republicans of two British soldiers and a police officer “serve only to delay the ongoing process of demilitarisation”, according to Sinn Féin Dáil leader Caoimhghín Ó Caoláin.
In the first Dáil comment by a Sinn Féin TD, Mr Ó Caoláin said he unreservedly condemned the killings “by the so-called Real IRA and the so-called Continuity IRA ”.
He was speaking during the Dáil all-party motion condemning the murders of Sapper Mark Quinsey and Sapper Cengiz Azimkar in Antrim, and of Constable Stephen Carroll in Craigavon, and of the injury of a number of others in the attacks.
The motion also “affirms that the groups responsible for these atrocities have no mandate or support whatsoever from the Irish people” and it “reaffirms its unequivocal support for the Police Service of Northern Ireland and the Garda Síochána in their efforts to apprehend the perpetrators of these evil crimes and to combat the groups who organised them”.
Mr Ó Caolain said “there may be some who, while not supporting the groups who carried out the killings, may baulk at the condemnation of the killings, in particular the killings of members of the British army”.
But the murders “were wrong because they were in breach of a peace process entered into in good faith by Irish republicans”.
The IRA “leadership and volunteers have long since declared that the war is over. The unrepresentative factions, who do not deserve the name republican, are engaged in a futile effort to reignite conflict and resume war.”
Opening the debate Taoiseach Brian Cowen said the Irish people were united and “our peace process and our democracy are unshakeable”.
The Garda Commissioner and Chief Constable of the PSNI meet today and the Taoiseach said the co-operation between the police forces on the island of Ireland “has never been closer”.
British Ambassador David Reddaway sat in the VIP gallery for the debate. Mr Cowen said “if anyone hopes to drag us back to a time of hatred and division they should hear the clear message given by the First Minister and the Deputy First Minister” which was “a message of hope and determination.
It was a message of support for our democratic institutions and for the forces of law and order. It was proof, if proof were needed, that we are not going back to the bad old days.”
Minister for Foreign Affairs Micheál Martin said a majority of the population in the North “wishes to remain in union with Britain. That majority, and not the British army, comprises the British presence in Ireland. The people who make up this majority are not aliens. They are Irishmen and women who, like all of us on this island, are immigrants by descent or birth.”
Fine Gael leader Enda Kenny said “the media reports today that a large bomb has been prepared by the Real IRA for an attack in Britain underline the need for a strong security response. The murders are appalling but this business of preparing bombs for use in Britain just cannot be contemplated”.
Labour leader Eamon Gilmore said the attacks were “nothing short of acts of treason against the Irish nation”, and were “anti-national, anti-patriotic and anti-republican”.
He added that “there is nothing noble or patriotic about these groups”, who were “simply criminal gangs who wrap the national flag around themselves . . .”
© 2009 The Irish Times
http://www.irishtimes.com/newspaper/breaking/2009/0312/breaking4.htm
Thu, Mar 12, 2009
Garda commissioner Fachtna Murphy and PSNI chief constable Sir Hugh Orde have met in Belfast and have vowed to work closely in the wake of the dissident republican murders of two British soldiers and a police officer in the North.
The talks between the two men were originally planned for Dublin, but were changed to police headquarters at Knock in Belfast because of the pressures on the chief constable.
Constable Stephen Carroll was shot dead by the Continuity IRA in Craigavon, Co Armagh, on Monday night and soldiers Mark Quinsey (23) and Patrick Azimkar (21) were shot by the Real IRA at Massereene army barracks in Antrim on Saturday night.
In a statement released after the meeting today Sir Hugh said the relationship between both police forces was “excellent”.
“The Police Service of Northern Ireland working alongside our colleagues in An Garda Síochána and the Security Services is determined to bring those responsible for these despicable murders over the last week to justice,” he said.
Commissioner Murphy was accompanied by Deputy Commissioner Operations Martin Callinan. He said an attack on any police officer was “an attack on the whole of society.
“Co-operation between both police forces on this island has been growing steadily and surely over recent years,” he added.
“Operationally both uniformed officers and detectives meet regularly to address a range of criminal activity and community safety issues. That determination extends into dealing with the current threat from terrorist criminals. We will continue to work closely with our colleagues in the PSNI.”
While the Continuity IRA said it was responsible for killing Constable Carroll, there were some reports last night of a possible link between the Antrim and Craigavon attacks.
However, Sir Hugh said the two shootings were being treated as “separate incidents”, and reports of a connection were “speculation”. The two men arrested in Craigavon on Tuesday remained in custody last night.
The bodies of the two British soldiers are due to be flown back to England today, while Constable Carroll will be buried in his home town of Banbridge, Co Down tomorrow.
Meanwhile, Sinn Féin President Gerry Adams is to hold talks today with Taoiseach Brian Cowen in Dublin this afternoon.
The leaders of Northern Ireland’s four main churches are to meet today as senior figures ontinue to heap scorn on the dissident republicans responsible for murdering three security force members.
The meeting comes after thousands took to the streets yesterday at trade union rallies held at a string of towns and cities in the region to show revulsion at the return of paramilitary violence.
Northern Ireland’s First Minister Peter Robinson and Deputy First Minister Martin McGuinness are in the United States to begin a round of meetings with business figures and senior politicians, including President Barack Obama.
Meanwhile, roads in the Ballykinler area of Co Down were closed today amid a security alert. Police check points were set up and the PSNI are advising motorists to avoid the area. Ballykinler is the site of a large British Army base.
It is understood a 300lb bomb left near a primary school in Castlewellan last month was destined for Ballykinler.
© 2009 irishtimes.com
http://www.irishtimes.com/newspaper/ireland/2009/0312/1224242740463.html
GERRY MORIARTY, CONOR LALLY and NEIL CARNDUFF
Thu, Mar 12, 2009
THE BODY of Constable Stephen Carroll was returned to his family in Banbridge yesterday evening as two men aged 37 and 17 continued to be questioned by PSNI detectives in connection with his murder.
It is also understood progress is being made in the investigation into Saturday night’s murders of British soldiers Mark Quinsey and Patrick Azimkar at Massereene British army base in Antrim town, killings that were claimed by the Real IRA.
While the Continuity IRA said it was responsible for killing Constable Carroll in Craigavon on Monday night, there were some reports last night of a possible link between the Antrim and Craigavon attacks.
However, PSNI chief constable Sir Hugh Orde said the two shootings were being treated as “separate incidents”, and reports of a connection were “speculation”.
The two men arrested in Craigavon on Tuesday remained in custody last night.
Sir Hugh and Garda Commissioner Fachtna Murphy are this morning scheduled to meet in Belfast for talks on the recent killings and the cross-Border response to the changed security situation.
The talks were originally planned for Dublin, but were changed to police headquarters at Knock in Belfast because of the pressures on the chief constable.
DUP First Minister Peter Robinson and Sinn Féin Deputy First Minister Martin McGuinness continued to win plaudits yesterday for the manner in which they united with Sir Hugh to condemn the killings and to call for public support in apprehending the killers.
After twice delaying their trip, Mr Robinson and Mr McGuinness flew out to the US yesterday for their investment/political visit that culminates with a meeting with President Barack Obama on St Patrick’s Day in Washington.
Sinn Féin president Gerry Adams is leading a party delegation in talks about the recent killings with Taoiseach Brian Cowen in Government Buildings today.
Some family members and friends of the two soldiers killed in Antrim travelled to the scene of the shooting at Massereene barracks yesterday.
And as Constable Carroll’s widow Kate made final preparations for his funeral this week, thousands of people gathered at peace protests in different parts of Northern Ireland yesterday.
Demonstrators observed minutes of silence at rallies in Belfast, Derry, Newry, Lisburn and Downpatrick in memory of the dead, in sympathy with the injured and the bereaved, and to express their revulsion at the attacks.
Irish Congress of Trade Unions (Ictu) president Patricia McKeown said unions stood “united with our political leaders to say to those who would derail a process that we have fought so hard for, and sacrificed so long for, that there is no space in this society for you”.
Ictu assistant general secretary Peter Bunting thanked those present, and told them their attendance made clear their “abhorrence at these murders . . .”
John Corey, chairman of the Ictu Northern Ireland Committee, said the demonstration showed the rest of the world “that the people of Northern Ireland absolutely and totally reject those who carried out those brutal crimes against humanity”.
Members of the Northern Ireland Assembly were also present to lend their support.
Alliance party leader David Ford said the high turnout at such short notice illustrated the widespread “determination that we will not be peeled back”.
Dawn Purvis, leader of the Progressive Unionist Party (PUP) which is linked to the UVF, said the demonstration showed how the condemnation stretched right across the community.
© 2009 The Irish Times
http://www.irishtimes.com/newspaper/ireland/2009/0312/1224242736753.html
ANTON McNULTY
Thu, Mar 12, 2009
A PROMINENT Shell to Sea activist was directed to undergo psychiatric assessment by a District Court judge after she was sentenced to 28 days’ imprisonment for assaulting a garda.
At yesterday’s sitting of Belmullet District Court, Judge Mary Devins sentenced Maura Harrington, Tullaghanbawn, Geeala, Co Mayo, to jail for the assault on Garda Eamon Berry, which she described as a “despicable show of utter contempt”.
When Harrington was led away from the court, her supporters in the body of the court gave her a round of applause.
Harrington, a retired primary school principal, had denied the assault, which took place during a protest when Shell personnel attempted to erect a portacabin at Pollathomas pier in north Mayo on June 11th, 2007.
Last night, as Harrington arrived at Dublin’s Mountjoy Prison to serve her sentence, a group of her supporters, protesting outside to coincide with her arrival at the jail, clashed with gardaí.
Harrington, a retired primary school principal, had denied the assault, which took place during a protest when Shell personnel attempted to erect a portacabin at Pollathomas pier in north Mayo on June 11th, 2007.
At a previous sitting Garda Berry, who is now retired, said he felt humiliated when Harrington slapped him across the face, when he was policing the protest.
“I felt it was totally unnecessary and I feel it was designed to humiliate me. It showed the contempt towards me as a garda for her to walk up and slap me.”
At yesterday’s sitting Judge Devins said she was satisfied beyond all doubt that the prosecution had proved its case and convicted Harrington.
In sentencing her, Judge Devins told Ms Harrington she was less inclined to believe in her passion for her cause having “witnessed the enjoyment she seems to get in being in the public limelight”.
Judge Devins also fined her €1,000 and ordered her to pay €1,000 to the Garda benevolent fund. Harrington was also found guilty of a separate public order charge, which occurred on April 21st, 2007, when President Mary McAleese visited Belmullet.
She was fined €500 and bound to the peace for 12 months. After refusing to sign the bond, Harrington was found in contempt of court and sentenced to two days’ imprisonment to run concurrent with the 28-day sentence.
© 2009 The Irish Times
http://www.irishtimes.com/newspaper/ireland/2009/0312/1224242735488.html
PADDY CLANCY
Thu, Mar 12, 2009
A DISPUTE over public access to the grounds of the ancestral home of 1916 leader Constance Markievicz has escalated.
The owners of Lissadell House in Co Sligo have accused Sligo county council of taking sides in the dispute over alleged rights of way across the estate.
In an open letter to Sligo county manager Hubert Kearns, lawyers Edward Walsh and his wife Constance Cassidy, who own the house and surrounding grounds, have also accused the local authority and its executive of putting Lissadell “at the bottom of the agenda”.
The couple claim that documents obtained under the Freedom of Information Act revealed secret meetings between the council executive and a lobby organisation in the dispute, the Lissadell Action Group, which insisted that locals had a right of way across the estate for generations. The couple, who say there is no public right of way, claim members of the group are also council employees and thus the meetings compromised the executive’s impartiality.
Lissadell House and its gardens were closed to the public in January, and 11 staff let go when the owners served notice of High Court proceedings on the council in a move to clear up the issue of rights of way. The owners, who bought Lissadell and much of its furniture and fittings for €4.55 million in 2003, said in their letter that it “beggars belief” they cannot get a response from the council to their requests for information on its links to the action group. They also claimed the council’s continued failure to enter a defence to the High Court action, despite being given extra time, was “undermining” the ongoing restoration work at Lissadell.
Estate manager Isobel Cassidy, sister of Constance Cassidy, said yesterday: “Lissadell does not have the luxury of fannying around for the next year because it will be dead by then. The place is on a maintenance-only basis at the moment.”
But Sligo County Council yesterday rejected the claim that it was not treating the matter with urgency. A spokesman said attempts to arrange a meeting with the owners as far back as April last year were unsuccessful. When a meeting was finally held in January, two proposals by the council aimed at resolving the issue were rejected.
The spokesman added that the council was preparing its High Court defence and this will be filed as soon as possible, but “the council remains of the view that a resolution to the issue by agreement is preferable and possible”.
© 2009 The Irish Times
http://www.irishtimes.com/newspaper/ireland/2009/0312/1224242739049.html
MICHAEL O'REGAN
Thu, Mar 12, 2009
THE ECONOMY could contract by up to 6.5 per cent, Taoiseach Brian Cowen told the Dáil.
He said the economic deterioration in the final quarter of last year and the beginning of this year, was a moving target in terms of the problems of predicting the ultimate outcome.
“It was said at budget time it would be in the region of 2 per cent; it was said in January that it would be approximately 4 per cent; and the indications are now that it could be 6 per cent or 6.5 per cent.” This, he said, showed the fragility of the economy and the need for the Government to decide the balance and correct approach leading up to the budget.
Mr Cowen announced that the budget would be brought before the Dáil on Tuesday, April 7th. He suggested that the House return a week earlier from its traditional Easter break to resume the budget debate.
Fine Gael leader Enda Kenny asked if the Taoiseach was prepared to make available to Opposition spokesmen for finance the options and information being presented to the Cabinet by the Department of Finance relating to spending options and raising revenue to deal with the economic crisis.
“If we are to make any constructive suggestions or proposals in the national interest to deal with this financial crisis, then at least we should be made aware of what is on the table.’’ Mr Cowen said this would be a matter for the finance spokesmen and Minister for Finance Brian Lenihan.
“I must say, and Deputy Kenny is aware of this, that budgetary matters are confidential. They are within the Government remit in terms of the budget itself.
“We would welcome any possibility for debate or discussion in the House between now and then in a structured way that would assist the Opposition if it so wishes to contribute to an integrated package of measures that will be necessary.” Mr Cowen suggested that the best way to proceed was to have a pre-budget debate which would enable the Minister for Finance to come into the House and explain the range of possibilities available.
“The one thing we can all say is that the decisions that must be taken will be difficult. There are no easy options here. In fact, we have seen a deterioration taking place as the year has progressed, which has mirrored what is happening in the international economy.”
Labour leader Eamon Gilmore said the Taoiseach and the Minister for Finance had invited the Opposition parties to engage with the budgetary process and put forward proposals. While Labour was very willing to do that, there was a certain amount of basic information required, he added.
He said he supported Mr Kenny’s request for information.
Mr Cowen estimated that the financial “discrepancy” was between €4 billion and €4.5 billion. This related to the Department of Finance’s estimate at the end of February of the deficit on the tax side and what was emerging on the expenditure side.”
Mr Gilmore asked if the Taoiseach would make available information to the Opposition on the impact such “a hit” on the public finances would have on the wider economy.
Mr Cowen said Mr Lenihan would engage with Mr Gilmore and would inform the House of the position.
© 2009 The Irish Times
http://www.irishtimes.com/newspaper/ireland/2009/0312/1224242738457.html
CIARA O'BRIEN
Thu, Mar 12, 2009
EIRCOM IS reviewing its level of investment in its next generation of broadband networks as a result of the economic downturn, it told an Oireachtas committee yesterday.
Appearing before the Joint Oireachtas Committee on Communications, Energy and Natural Resources yesterday, the company said it plans to upgrade its core network from copper wire to fibre at urban centres and regional towns throughout the country by 2011.
It is also upgrading its current network to deliver speeds of 1 Mbit to 24 Mbits per second.
However, the company could not give the committee a definite figure on investment.
Eircom’s head of public policy Pat Galvin said the firm had just come to the end of an investment cycle which saw it put about €1 billion into its infrastructure in the past three years. “Eircom, given the current economic position, has no choice but to review and look at the business and these sort of investments,” he said. “The vision and the aspiration of the investment, the scale of the investment, needs careful consideration.”
The company also said technology limitations would mean there would still be some people too far from the exchanges to avail of Eircom’s broadband service.
Fine Gael’s Neil Coonan asked whether Eircom was abandoning rural customers, a charge the firm denied.
The committee urged Eircom to consult communities before removing more than 2,100 phone boxes around the country. A decision on this is due this month.
Eircom told the Oireachtas committee that the use of public payphones had seriously declined in recent years, with revenues falling more than 70 per cent since 2002.
High mobile phone penetration is blamed in part for the decline, with cuts in roaming charges also having an impact, as tourists previously would have been one of the major markets for Eircom.
Describing payphones as “the telex of our day”, Mr Galvin said the kiosks were no longer relevant to young people.
© 2009 The Irish Times
http://www.irishtimes.com/newspaper/breaking/2009/0312/breaking31.htm
CHARLIE TAYLOR
Thu, Mar 12, 2009
Consumer prices fell by 1.7 per cent in the year to February, according to new figures from the Central Statistics Office, marking the second month in a row of deflation.
Consumer Prices as measured by the CPI, decreased by 0.4 per cent last month compared to an increase of 1.2 per cent in February 2008.
As a result of the decline, prices on average were 1.7 per cent lower in February, the lowest level recorded since the first quarter of 1960.
The most notable changes over the year were in housing, water, and fuel costs which fell by 12.6 per cent primarilty as a result of reductions in average mortgage interest repayments and lower private rents.
The cost of clothing and footwear fell 11.3 per cent due to a recovery in prices following the traditional January Sales.
Transport costs also declined over the year by 4.8 per cent, the figures show.
Over the year to February, clothes and footwear prices rose by 7.5 per cent while the cost of furnishings and household equipment increased 1.7 per cent.
Increases were also recorded in the areas of education, health and alcohol and tobacco.
The EU Harmonised Index of Consumer Prices (HICP), which excludes mortgage payments, increased by 0.2 per cent in February compared to an increase of 1.2 per cent for the same month a year ago. As a result, Consumer Prices, as measured by the HICP, decreased from 1.1 per cent in January to 0.1 per cent in February.
January 2009 marked the first time that the annual rate of inflation in the Republic had fallen in almost 50 years. Prices in were, on average, 0.1 per cent lower in the month than in January 2007.
"While an extended period of deflation would be damaging for the Irish economy, the general feeling among analysts is that the current sharp fall in the consumer price index is primarily a result of unprecedented interest-rate cuts and lower energy prices. Still, it would be wrong to become complacent on the deflation issue," said economist Alan McQuaid from Bloxhams.
"Although deflation has taken hold for the time being, and the headline CPI could fall by as much as 3 per cent on average in 2009, we don’t see it becoming deeply embedded in the financial/economic system as it has done in Japan. The global stimulus packages will in our view eventually be inflationary, pushing up world prices, though that is unlikely to happen until 2010 at the earliest," he added.
Dr Ronnie O'Toole, chief economist with National Irish Bank, said the CPI is likely to fall by 3 per cent by summer, with the average rate of fall for the year of 2.2 per cent.
"The fall in Irish inflation relative to other Euro zone countries should be seen as a welcome correction in cost levels, after a number of years when the booming property sector drove prices up faster than in other European countries," said Dr O'Toole.
"If negative inflation remains located in those economies with the greatest need to adjust right now such as Ireland - and does not became entrenched in the broader European economy - it will be a very positive development, providing a competitiveness fillup for the Irish economy," he added.
© 2009 irishtimes.com
http://www.irishtimes.com/newspaper/breaking/2009/0312/breaking26.htm
PAMELA NEWENHAM
Thu, Mar 12, 2009
The Irish Cancer Society has called for a €2 increase in the price of a packet of cigarettes to be introduced in the forthcoming emergency budget.
The group says the call is supported by anti-tobacco group Ash Ireland and the Irish Heart Foundation.
They say a €2 increase would generate up to €420 million in Government revenue for the State .
Speaking on this issue John McCormack, CEO, Irish Cancer Society said "We are not proposing this price increase without due consideration and would not be asking for it unless it was going to make a real difference in the fight against cancer and all the other smoking related illness".
Dr Angie Brown, Chairperson, ASH echoed Mr McCormack; "Price is widely recognised as the single most important factor in encouraging smokers to quit and discouraging young people from experimenting with tobacco".
It can be estimated that our health services spend well over a billion euro each year on treating tobacco related illness so if we reduce prevalence we not just save lives, we also reduce the massive unnecessary cost of treating all of the varied and related illnesses, she added.
The Slan Survey of Lifestyle, Attitudes & Nutrition in Ireland showed that 29 per cent of the Irish population smoked in 2007, up from 27 per cent in 2002.
© 2009 irishtimes.com
Updated: 8/26/2009
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