I've been asking the same question. I know people in the South and can understand how they feel, also Greece and Spain are in trouble too, but the UK cannot afford to keep handing out money cos all it's doing is robbing Peter to pay Paul. This country owes enough as it is, with the interest piling up. Sometimes I think it'd be better if this planet just exploded and we all went in one go tbh

Quite agree karma, I've patiently tolerated the cutbacks cos how else are we supposed to pay off the debt, but this news has wound me up a bit today, who's gonna give us a big handout if the uk goes t1ts up?!

From what I understand it's because our two Countries are intrinsically linked.  Ireland is the UK's biggest export market.  If no one in Ireland can afford British products, then that will have a knock on effect over here.  The UK also has a lot of money tied up in Irish banking so if they go bump, a substantial amount of money will be lost by the UK - probably far more than the £7 billion being loaned.

I have to say I wonder if it's such a good idea to lend so much money to a country that is already struggling with debt???  Especially as it looks like Spain and Portugal could be the next countries in trouble.

I did also wonder at why the UK is giving so much money to Euro Zone countries considering we're not in it but someone on the news said today it's because there's an agreement somewhere in the EU constitution that neighbour countries help irrespective of what money is given via the IMF  as it's in their interest to do so.

I really worry for my family in Eire as my niece has already lost her job as has her fiancé.  My sister's doesn't look good and the benefits available are shockingly low 

IMF - the UK has already had loans from here in recent history.

Hope ya family's gonna be ok pengy, I think next year is gonna be tough for many, worrying times ahead

We're lending them this money, so that our banks can survive their stupid lending, from the sounds of it.


So, really, we're bailing out the banks, again!

*loving the name change - but are you Blizz'ard as in well'ard like the Dog from EE?* 
Pps.  I'm not calling you a dog btw 

Simply put: We depend a lot on Ireland's economy. What's bad for them is bad for us. Therefore, keeping Ireland afloat helps our situation.

Thank you, but I have to thanks Supes for the idea.


And, yeah, I is like Well'ard, innit!

I remember an Irish produced TV prog a couple of years ago. It described the mechanism whereby a retired businessman in Hamburg invested his money in the banks whcich would then lend the money to emerging states such as Ireland. Alas! Rather like the tasteless English the Irish borrowed and wasted a great deal of cash on worthless junk such as unrequired property, racehorses, and tittie jobs.
When it turns to shieght it's not just the Irish who are involved, but due to the incestuous nature of finance, everyone is.
Remember what your economics professor said all those  years ago, "If Joe Soap is in debt he is in trouble, if Poland goes bankrupt the banks and all of Europe are in trouble!"

We cant afford to be giving out £7 billion to any country when we have to face the wrath of this government with their spending cuts on us,there will be lots of families in this country who will lose their jobs/ houses etc there will be no handouts for them or special treatment.

Yet on the other hand, if we don't bail Ireland out, our future would become even more bleak, with even harsher cuts. This is what people have to realise. We can't live for today when our future is at stake. 

I can see your point nothing is clear cut it is a hard one ..

I think it's worth a punt.

a lot of this stuff goes right over my head . . or I tune it out cos it is just never ending.. or bung my Ostrich head on.. 

but I am sure I heard on the news last week that if the UK did not come to a separate agreement about support for Eire they would be forced to pay via being part of the EU community anyway and it was expected to be more in the region of 20 billion if done that way and no control on usage or summat like that..

I may be entirely wrong.. or dreamt it or something.. the way my brain is nowadays who knows

that's what I was trying to say in my post Olly but you've said it much better  

Completely off topic  but kinda not. .

Does the UK ever publish its accounts. .do we every see exactly how much they get in each year and exactly where they spend it?

all we ever hear is a billion or so spent  here... a billion or so spent  there etc.. never seen a P&L or Income and Expenditure  statement from them..

that was probably more by luck than anything else

I do see the reasoning behind it, I really do, but 7 billion sounds like such a huge amount, we're def stuck either way!

I don't think Santa can get us out of this one either :-(

It's a little more than the sum involved in the alleged Vodaphone tax scandal

Vodaphone been on the fiddle?!

Unfortunately we have to give our hard earned money to Ireland because if it went bits up we'd suffer more here.....although it does seem cackhanded

I can't paste but you know that friendly website ? Ask 'em "Vodaphone tax?"

http://www.bbc.co.uk/news/business-11658950

0 October 2010 Last updated at 21:01 GMT

Vodafone shops blockaded in tax protest

Campaigners claiming Vodafone has been let off an unpaid tax bill of £6bn spent the day blockading several shops.

Campaigner Ed Brompton said: "This money - £6bn - could be spent on schools, housing and hospitals."

But a Vodafone spokesman denied the tax bill reports, adding: "We pay our taxes in the UK and all of the other countries in which we operate."

A spokesman for HM Revenue and Customs said of the £6bn: "That number is an urban myth."

Four shops in central London were forced to close on Saturday because of the demonstrations, sparked by a campaign on Twitter and Facebook.

Other shops were closed by demos in Brighton, Bristol, Edinburgh, Glasgow, Hastings, Liverpool, Manchester, Oxford and York.

One of the protesters, Deborah Lee, said: "The cuts are not fair; we're not all in this together, and there are alternatives. Why not start by collecting the tens of billions owed in taxes by wealthy corporations? The government is writing off the taxes from big business while treating normal people on benefits like criminals."

Another protester, Ben Olabayi, said: "We will not pay for their crisis! The public need to join together and hit the streets to take concerted action to fight these cuts."

A Vodafone spokesman said there had been protests outside a small number of UK stores and added: "We temporarily closed some of them and diverted customers to other locations so they were not inconvenienced."

He said: "We pay our taxes in the UK and all of the other countries in which we operate.

"Reports suggesting that we have an outstanding tax bill for £6bn are incorrect, as this was never the case."

The HMRC spokesman said: "We can't comment on the details of the settlement but we can confirm that it was reached by HMRC following a rigorous examination of the facts. It was agreed that Vodafone's liability was £1.25bn and at no point was the liability greater than that.

"There is no question of Vodafone having a tax liability of £6bn. That number is an urban myth."

The campaigners cite an investigation by Private Eye magazine which they said showed the taxman had dropped an attempt to reclaim £6bn in taxes.

The sum purportedly stems from Vodafone's purchase of the German telecoms firm Mannesmann, which was supposedly bought through a Luxembourg subsidiary to avoid paying tax in Britain.

The campaigners have also set up an online petition calling on the government to insist Vodafone pay the money.

The world's largest mobile operator measured by revenue saw "organic service revenue" rise 1.1% to £10.6bn in the April to June quarter.

Last week Vodafone was told to pay a 112bn rupee (£1.6bn) tax bill in India.

Vodafone has been given 30 days to cough up the £1.6bn the Indian government claims it owes following the 2007 purchase of the Indian telephone assets of Hong Kong conglomerate Hutchison Whampoa.

Vodafone claimed the $11bn transaction was exempt from tax because it took place between two offshore entities.

:-o

Old news! See the latest Private Eye! Not an urban myth at all.

Lol Pretty_P's views


"We are cutting jobs and coughing up £7bil for Ireland.... we have never had it so good"

Well it seems if we don't it will cost us more if the Irish economy collapses.The banks are like dominos if one topples etc, a lot more fall along with it.

Cameron and Co..."Let's just chuck everyone out of council houses!" That will save us all.

Ireland gave the UK Government 7 billion (that we know of) to build a road in the Northern Ireland around the time of the Good Friday Agreement.   Payback time.

Exactly.  People's understanding of national and international economics really is woeful sometimes.  Plus, as has already been said, it's a loan.

A load of government accounts were published last week.  I'm not sure exactly what was in them though.

My question would be, if the situation were reversed would the Irish or any of our other European "friends" help us out??   NOPE.

Guff.

7 Billion?? If we have that much to hand out, why are we all suffering ? Dont really understand finance, but isnt that like us scrimping and saving then giving it to the next door neighbour?

No.  We're borrowing it.  Has no overall effect on the UK economy whatsoever except if Ireland default.  Which is highly highly unlikely to happen.

Oh ok

Since May we've been preached the gospel according to the coalition.

There is no money left, we're skint! Tony, Gordon and New Labour spent all the money!  People will have leave their homes.  The unemployed will have to work for their dole etc.  The mess the last lot left us in!  blah blah blah ad nausium,

Yet it now seems we can find seven billion - just like that to pay for an Irish property/credit boom that made our own crazy property/credit boom look like a model of sober restraint.

Which is all very jolly except for the fact we're 'finding' nothing.  We are borrowing it.  And we won't even be borrowing the full amount.  A significant amount will not be being passed from UK plc to Ireland at all.

And if Ireland goes tits up we will suffer. 

What is it that is difficult to understand?