Ireland endured the consequences of an impaired reputation in the global financial markets since September 2008 but this has now morphed into serious doubts about its credibility and the credibility of its Central Bank Commission. The market will not trust its numbers.
Financial markets are spooked by the losses in Irish banks. These had been estimated at €11.2 billion but have risen to €45.55 billion, mainly as a consequence of the toxic cess pit – Anglo Irish Bank.
Will the Central Bank Commission survive the scrutiny of the IMF and the EU? Its principal role is to oversee standards of corporate governance in Irish banks and to vet incumbents appointed to senior roles in the banks. Will an umbilical link between the disgraced board of FÁS, the State training agency, which has been stood down for grievous failure of corporate governance enhance the credibility of this Commission as an umpire of corporate governance standards?
National Irish Bank, a wholly-owned subsidiary of National Australia Bank engaged in a decade long episode of untrustworthy behaviour which not just undermined the Central Bank from 1988 to 1998 but also undermined the integrity of the national tax system which led to 9 senior managers of National Irish Bank being disqualified to act as an officer of any company. How can this Commission demonstrate credibility in overseeing the calibre of senior appointments in Irish banks against this background?
Foreign borrowing as a percentage of the Irish net national debt has increased from 28.5% in 2001 to 80.6%. The underlying foreign debt has increased from €10.3 billion to €72 billion. The Irish State deficit from January 2001 to October 2010 has risen to €51.92 billion. This reflects Government expenditure in the decade of €376.85 billion while corresponding tax revenue was €324.9 billion. Retail savings in State institutions account for 13% of the national debt.
The sooner this jaded, depraved, incompetent, lame-duck government of no standards and no class and their administrative peasants and toadies are out of existence the better.