Boost for pensioners and home-buyers hailed

Shoppers on Ireland’s most famous street browsed blissfully unaware that the animal most closely associated with the Budget was watching their every move.

Grafton Street’s very own Celtic Tiger stared from a circus-themed window display as the passing public digested the details of Brian Cowen’s give-away Budget.

The window of Brown Thomas was the purrfect location for the iconic feline - the country’s most exclusive store, set on one of the world’s most affluent streets, where retail rent is the fifth most expensive around the globe.

In a nearby coffee shop Dubliners took a break from their hectic lives and welcomed news of an increase in pensions, extra mortgage relief for first time buyers and changes in income tax levels to suit both low and high income earners.

“I think it is important to widen the tax bands and to get as many people out of the top level of tax as possible, particularly younger people, particularly on the house front,” said Larry Donald, 57, from Glasnevin.

“My sympathies are really towards younger people buying houses,” said the management consultant. “Interest rates have been increasing quite significantly, even if they are traditionally low. The mortgage relief is an important incentive for them.”

A smoker, he admitted a taxation increase on cigarettes will not cut his habit and stressed any expectation that it will stop others smoking is a myth.

“Tax on cigarettes will just take more from those on lower incomes,” he added. “It will have no impact on me and I am not going to stop smoking.”

Despite the Government pushing for the grey vote for the General Election next year, pensioner Maebh Foy seemed to be one of the few content with her current income.

“People give out about the pension and say they can’t live on it, but I think if you already own your home the pension can be lived on,” said the Rathfarnham woman.

“I hear people saying they can’t afford things, and obviously you can’t live the high life, but it meets your everyday needs.”

A non-smoker Aoife Todd, a second year Trinity student from Howth, was happy with an increase on cigarettes but had fears over escalating house prices.

“Everybody I know is still living at home so the mortgage relief is great,” said the 19-year-old. “People can’t afford to rent and are finding it really hard to move out or even consider buying. It’s not an option anymore until your late 20s.”

Fellow student Caragh McKierman from Scotland said the cost of living in Ireland is putting her off staying after her studies.

“I would like to stay but realistically it probably isn’t an option,” said the 20-year-old.

“The cost of living and cost of housing here is far more than at home, but if the mortgage relief keeps coming down in future years then I could consider buying here.”

But while the country is said to be awash with cash, warnings have also been delivered on the dangers of personal debt at this time of the year.

The Financial Regulator urged people to think carefully when borrowing money, taking the overall cost of any loan into account before signing up.

A loan, it seems, is not just for Christmas.