Budgetary blues?

Minister for Finance, Michael Noonan, at a press conference after the announcement of Budget 2014

With the Budget being brought forward this year with the intended goal of not dampening consumer spend during the crucial festive months, Gillian Hamill and David Corscadden spoke to a cross-section of Irish society to learn how they’ve been affected by the new measures and what knock-on effect, if any, this will have on their grocery shopping habits

News

15 November 2013

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Minister for Finance, Michael Noonan, at a press conference after the announcement of Budget 2014

Senior citizen

Margaret O’Neill, Kilcock, Co. Kildare

For many senior citizens Budget 2014 has caused controversy but Margaret O’Neill has been very realistic about it. For her it was not as bad as it could have been, as she says: "There were a lot of people it wouldn’t have suited, it is alright when you don’t have a mortgage or that to pay it is alright then, as long as you have enough to buy food for yourself it is okay." However she, like a lot of Ireland, has an issue with the removal of the telephone allowance from senior citizens. She says: "I thought that shouldn’t have happened. I think that was the worst thing that happened because there are so many people, including myself, that depend on it."

Like many senior citizens O’Neill finds the cut to the phone allowance a terrible idea

Supporting increases

The increases in the price of cigarettes and alcohol, a move condemned by many consumers and industry bodies, is one that O’Neill fully supports. "It is only right because there is so much of it at the moment. I mean it is ridiculous," she says. One of the main reasons she feels it is a good idea is that it may deter younger members of society starting to smoke. She added: "I mean if you see the children that go down here smoking, you’d wonder where they already get the money for them. I think they should have upped it more to stop people from buying them."

When it comes to alcohol O’Neill again thinks the increase will work towards deterring consumers away from it as she believes it has become far too easy for people to buy alcohol in recent years. "I think those supermarkets, when they got a licence, were the worst thing ever. At least pubs closed at a certain time in the night and a young person couldn’t go in and buy any kind of drink. Now they can get it after 10am in the morning," she says.

Buying the essentials

While O’Neill doesn’t buy much food in the run-up to Christmas, as she goes to family over the festive period, the weekly shop is focused on buying the basics. While her daughter Kathleen does the weekly shop in supermarkets, O’Neill often goes to the Centra across the road to buy "the odd missing item for dinner". She adds that luxuries aren’t bought: "We have apples out in the garden and use them ourselves; we would make a tart or stew with them. You wouldn’t be buying any luxuries like cakes or that."

For Stephen and Bethann Rust no increase to class sizes in Budget 2014 was a no brainer: "You simply can’t fit anyone else in there"

Parents with young family

Stephen and Bethann Rust,Clane, Co. Kildare

Average shopping spend €175

Parents around the country were happy with the introduction of free GP visits for under-fives but for Bethann and Stephen Rust it does not really affect them with only one child falling under the scheme. Bethann expresses slight hesitation with the scheme saying: "Certain people will be bringing their kids in more often; I would double question whether I have to bring them to the GP or not." While she felt it was a good idea she thinks more should have been put in place for those who are sick and need the help. As for the no increases in school class sizes Bethann believes it is a no brainer saying: "Sure you can’t fit them in the classes, there is no more room."

Hitting customers hard

Bethann, the manager of a family run pub, says the increase in alcohol prices has hit customers hard and many were angered by the hike. She explains they feel they are "being hit from all angles with the budget with groceries, tax and then alcohol increases".

Stephen who works in telecommunications and marketing and is about to start his own business, i4P Consulting, says while it is great universal social charges have not been hit, he does fear an increase in interest: "My concern would be that if the interest rate does go up, that is when the mortgage gets heavy." On the budget being earlier this year he adds: "I think it does help, I think if you go closer to Christmas, it does make people tighten [their purse strings] just as they are coming in to a time when they might splash out a bit more."

Shopping across the stores

Bethann explains that their shopping habits have changed greatly over the past few years as things became tighter financially. While the main shop is done in Dunnes Stores every three weeks to stock up on staples, she says that while she doesn’t enjoy the "warehouse style of the store" she does go to Lidl for fresh fruit and vegetables. For Stephen lunch is now homemade which cuts costs greatly as he says: "What I buy for one lunch in a deli, you could get for the whole week."

For two working parents, budgeting has become very important and as Bethann says the one thing you can’t scrimp on is the kids’ lunches "You will pay at 7.30 in the morning if you are missing part of the lunch!"

Parent with grown-up family

Samantha Gill, Myshall, Co. Carlow

Average shopping spend €160

Budgeting is key says Samantha Gill when it comes to making sure money goes far enough. Having already been conscientious about spending money, she says the budget did not affect her too badly this year. "I am one of those people who is very good at budgeting so I am always juggling so I keep things to a minimum anyway," she says. While she is a smoker the increase in cigarettes has not affected her greatly as she explains: "I would only buy a pack every three days, I would only smoke a few a day. So it hasn’t really hit me, if you were buying 20 every day you would notice the difference."

She does believe the price increase will have a positive effect on some people, saying: "I have a lot of friends who would have been buying packs every day but they have switched to electronic cigarettes." This is a move she thinks will become more popular.

A tough call

While her own son Daniel is working, Gill explains that the cuts to dole payments for under 26s would be of great concern to many people that she knows. It is a very tough call she says although she believes it could act as a motivator for those who have become dependent on it, to search for employment. She also says it can be very tough for parents with grown children who can’t support themselves. She says: "I don’t think they should be getting a whole lot because I think it would make them get up and look for work. It’s very hard for parents too though, who have them at home when there is no motivation; there is no work or else they are not getting it."

Better value for the same quality

For Gill, Aldi is the best place to do the weekly shop. She explains that it offers simply the best value while still offering great quality and a wide selection. When it comes to meat though she prefers to go to her local butcher saying: "I would spend more there but there is something about going to your local butchers and the meat you get there." In the run-up to Christmas, budgeting and planning will be key for Gill, who notes: "From now on I am always picking up that bit extra to be organised."

Martha Dalton

Under 26-years-old

Martha Dalton

Average grocery spend per week: €40

Budget 2014 did not deliver good news for those aged under 26. For young jobseekers, a lower €100 dole rate will be extended to new entrants aged under 25 from next January. The rate previously applied only to those aged under 22. In addition, those aged 25 will receive a reduced rate of €144. Only those aged 26 and upwards will get the full jobseekers’ rate of €188.

For Martha Dalton, a 24-year-old who is originally from Waterford, but who has been living in Dublin for the past six years, this stance is patently unfair. "The biggest issue I have with the budget was the inequality in it. I’m personally 24; I’m in a lucky-ish position at the moment in that I’m working part-time but it just really frustrated me that I would be treated differently to a peer of mine who’s 27. If I had been unemployed or if I become unemployed, it’s basically forcing you back to living with your parents and it’s raising that threshold of independence from 18 up to 24 or 26 in some cases, depending on what bracket you fall into."

Significant portion of weekly income

Dalton currently has a part-time job at a library where she works ten hours a week for €108. Subsequently, grocery shopping forms a "significant portion" of her weekly income. She explains she "wouldn’t really do one big weekly shop" although she buys most items in her nearby Lidl store. She also purchases some top-up "bits and pieces in Spar or Tesco Express. Myself and my boyfriend would probably spend between us, about €40, maybe a little more than that when you count in buying milk on the way home and that kind of thing." Purchasing own-brand ranges for essentials such as pasta and rice is an obvious choice for Dalton although she would pay a little more for branded items such as chocolate and cheese.

Frustrating job search

The masters graduate applies for jobs every day and finds it "very frustrating" that so far this has yielded no success. "I’m finding it a lot worse than I actually expected it to be because I have a degree and a masters. Admittedly, they’re in medieval history which isn’t the most applicable degree to lots of stuff. I have also been working either part-time or full-time since I was 15 so I have nine years of experience. I’ve been a cleaner, I’ve been a supermarket worker and [worked in] admin and I thought that would stand to me in applying for jobs. I’m applying to positions in New Zealand that would relate to my degree but I’m also applying to shops, both supermarkets and department stores. I’m getting just as many rejections from them."

Raising threshold of independence

Dalton adds that while, "the vast majority of my friends, particularly at graduate level have emigrated", that she would consider emigration "a worst case scenario". She feels the cuts are forcing young people to be dependent on their parents; a move that is particularly detrimental to those whose parents don’t live in the same place. "I have one friend in particular, she has a masters and she’s highly intelligent and she’s had to move back to Sligo just because the dole can’t keep her in Dublin. It’s just upsetting really."

Seamus Rooney

Single person household

Seamus Rooney,Donabate, Dublin

Average grocery spend per week: €50

Seamus Rooney (53) who lives by himself in Donabate, north county Dublin has been largely unaffected by the measures contained within Budget 2014. "The way I look at is I’m single, I don’t have a mortgage. I pay the property tax; I can afford to pay it so there’s no big deal. With regards to increases, I don’t smoke so it’ll not affect me cigarettes wise. Public transport; I have an annual ticket for the year so that won’t affect me. It goes up every year but that’s to be expected."

Grocery shop not a priority

"I don’t do an awful lot of grocery shopping because I live on my own. I think it’s just as cheap to go to eat out. I go to the pub to buy my dinner. It costs me €11.50 for a Sunday carvery dinner but if I went out grocery shopping, I’d probably end up throwing half the food in the bin in a couple of days later."

He reckons that he spends €50 or less on groceries a week to stock up on essentials like milk and cereal. He also spends between €10 – €15 a day "between going into cafes and paying for a meal in town".

Preferring quality

He shops in his local SuperValu in Donabate where he finds, "the prices are quite reasonable; I think competition from Lidl has brought prices down." He adds: "I don’t look for bargains. When I had a young family and money was tight, I’d shop around but I prefer to buy quality now and spend a bit extra. I’d nearly buy the [branded] water over the own-brand, but then again, water is water."

He prefers to buy his meat from his local butchers because he prefers "fresh over packaged food" and says the horsemeat saga reinforced this preference. His neighbour works in the local butcher which is another reason why he’s keen to support the store.

Supporting local retailers

Rooney was previously involved in fundraising for charities and says: "We went round all the businesses looking for them to sponsor prizes. [Bigger companies] refused, mainly because they had to ask permission from a higher authority. But local businesses have no problem helping out their customers or sponsoring them. For example, the local Chinese restaurant provided a €50 voucher." This type of community support has encouraged him to shop locally.

Sandra Foley is a fan of her local butchers

Mother on maternity leave

Sandra Foley, Ardmore, Co. Waterford

Average grocery spend per week: €130

Budget 2014 introduced a cut to the higher rate of maternity benefit, from €262 to €230 per week – a measure which will affect 90% of women claiming maternity benefits.

Sandra Foley, who lives with her husband and baby son in Ardmore, Co Waterford, says she won’t be affected because her maternity payments end in December.

Paying attention to special offers

However if she were to be affected, she says the cut would definitely have an impact on her shopping habits.

"I already try as much as possible to catch special offers in stores whenever I see them," she explains. "I would assume I’d be more vigilant on things like that and also would probably end up buying more own-branded products at supermarkets rather than the more expensive options.

Unpaid maternity leave

"The other way it would affect me is having the option of taking unpaid leave after maternity benefits are finished. I think it would impact on the length of time I would take and it’s very hard to put a price on that time in terms of money when it’s a very special and important time for a mother and her child to be able to take."

Currently, Foley says the "majority of the household’s shopping is done at Dunnes Stores and also a local butcher for meat. For myself, husband and baby, we average approx. €130 per week. The majority of things I buy on special offer would be nappies, any toiletries, sauces and confectionery goods."

Sticking to favourite brands

However, the mother of one has yet to be converted to the merits of own-brand goods. "I currently don’t buy many own-branded goods, although I get things like cleaning utensils (cloths, bleach) which are own-branded. These certainly help to make savings.

"There are certain things I wouldn’t buy that would be own-branded, biscuits, tea bags, sauces, beans, peas, frozen foods, drinks (fizzy or still). I can’t base this either on any bad experience I must add; we never tried these goods to be able to judge them negatively. It’s just habit and not changing that habit results in us getting the same goods as we always have."

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