Dubs have plenty of cash to flash, says survey

DUBLIN people have more money to spend on holidays, leisure and savings than residents of almost any other EU city.

Far from being oppressed by high rents, property prices and traffic congestion, a report claims Dublin citizens, along with those in Luxembourg, have the highest purchasing power in the EU.

This means it takes a Dubliner 15 minutes to earn the price of a Big Mac while in Barcelona, a worker must spend 22 minutes on the job. The disparities are even more stark when the purchasing power of Dublin people is compared to people in developing countries.

It takes three hours of work to buy a Big Mac in Nairobi, Kenya. Purchasing a kilo of rice requires 96 minutes of work in Mumbai (formerly Bombay), India, while in Dublin, it takes 14 minutes of work.

The report by financial services firm UBS surveyed prices and earnings in 70 cities to calculate the purchasing power of their citizens. The most expensive cities in the world are Oslo, Hong Kong, Tokyo, New York and Copenhagen.

Although Dublin fares well in purchasing power terms 11th overall and the highest in the EU after Luxembourg the report makes clear that the city is still one of the costliest in the EU. "We did not include rents because they are difficult to compare accurately between cities. But if they are added, Dublin moves much further up the table in prices," UBS researcher Simone Hofer said.

She added purchasing power in Dublin was also higher because of the low rate of tax and social security contributions. For example, gross pay per hour in Frankfurt is $18 and $11.60 after deductions. In Dublin, the gross pay per hour is lower, at $16.30 but the net pay is higher at $12.70.

The report's conclusions were seized on by the Government. "This confirms the moaning and whingeing that we are subjected to from the opposition parties in relation to Fianna Fáil's handling of the economy does not stand up to scrutiny," Fianna Fáil TD John Curran said.

However, Fine Gael finance spokesman Richard Bruton said: "Whatever spin Fianna Fáil try to put on these reports, the man in the street sees they have failed to deliver public services like hospital beds and emergency services."