Showing posts with label Irish Government. Show all posts
Showing posts with label Irish Government. Show all posts

Monday, March 7, 2011

Public Outrage at Bank of Ireland extravagant bonuses

Last Saturday I spent a pleasant few hours with fellow hill walkers strolling along the 14KM stretch along the banks of the River Dodder. The controversial topic of Bank of Ireland bonus payments got an airing. These men and women of the world walking with me were aghast at what emerged in a Department of Finance Report on the matter as this Bank gave the Irish public the V sign.

A parliamentary question sought information in November 2010 on bonus payments to staff made by banks since the commencement of the Irish Government guarantee in September 2008. The Bank of Ireland advised the Department of Finance that “no performance-related bonuses were paid with respect to the financial year to March 2009 and December 2009”.

The statement added “a small number of people at middle management level received payments which reflected either guarantees which were agreed on their joining the Group or deferred payments where the historic performance criteria had been achieved and the payment was deferred over several years. For commercial reasons Bank of Ireland do not disclose the amount of such payments. The Bank advises that it had not legal discretion in these matters”

The loss at Bank of Ireland for the 9 months ended 31 December 2009 had risen to €1,813 million compared to €23 million for the year ended 31 March 2008. Impairment charges in this period reached €4,055 million compared to €1,435 in the year ended 31 March 2009. The Irish Government was forced to invest €3.5 billion in preference stock so as to bolster its capital base.

It transpired that the information provided by Bank of Ireland was incorrect and that bonus and quasi bonus payments from September 2008 to December 2010 amounted to a staggering €66.37 million – all linked to performance.

A patina of legal legitimacy is not an indication that any transaction is ethical, moral or affordable.

The hill walkers are utterly mesmerised that Bank of Ireland could be so utterly undermined in the Bank by duplicity, betrayal, self-serving slovenliness and skulduggery. These characteristics are evident not just in grotesque scale of bonus payments, which the Bank (and the public) cannot afford and untruthful answers to parliamentary questions, but there is now also evidence of incomplete and misleading information in the due diligence process prior to the public subscription for shares, in the attempted enhancement of the Group Chief Executives pension terms last year and the tardiness by the Bank in relation to the subsequent impeded and delayed investigation into the November 2010 misrepresentations to Dáil Éireann.

  1. These bonuses, especially in the prevailing circumstances, amount to the barefaced looting of society – on a scale commonly seen in Russia, Africa and Asia.
  2. The explanation that bonuses are ‘open to different interpretations’ and the comment by Arthur Cox that Bank of Ireland “used a restrictive and uncommon interpretation of what constituted a performance bonus” describes a crazy mentality of a type not untypical of occupants of padded cells in a lunatic asylum, whose capacity to communicate in vernacular English is very limited; who have ‘no intention to mislead’ and are likely to recognise this in lucid moments to avoid personal embarrassment.
  3. The implication that the Irish people, who have been fleeced of €3.5 billion by Bank of Ireland, can now be bought for €2 million paid by Bank of Ireland to the Exchequer ‘to recognise the difficulties cased by the way the Bank handled the matter’  will simply  create a veneer of indulgence and camouflage to enable them to be further fleeced of, not just €66.37 million, but an additional €21 million in respect of bonuses and commissions in 2011 and other amounts in 2012 is outrageous and abominable.
  4. The suggestion that any future parliamentary questions in relation to personnel or other important matters be authorised by the Group Chief Executive beggars belief on grounds of credibility. The Report indicates that overall payments totalling €1.2 million were not disclosed in the due diligence process prior to the public bailout.
  5. The Sunday Tribune on 30 January 2011 that the Group Chief Executive of Bank of Ireland directly intervened with the planning authorities in October 2007 in connection with the proposed Sean Dunne development that would have cloned Jurys/Berkeley Court Ballsbridge hotel sites with Calcutta, had it been heeded?

The text of the letter from Richie Boucher to Dublin City Council planning authorities read:

“Dear Sir

Re Jurys / Berkeley Court Site

I refer to the above and write to confirm my strong support for this landmark proposal which I believe will significantly benefit the City of Dublin and its citizens through helping enhance the concept of a living city and providing buildings of significant architectural merit befitting Ireland of the 21st century. Yours faithfully, Richie Boucher, Chief Executive Retail Financial Services Ireland.”

Dublin City Council granted partial permission for the Ballsbridge development but it disallowed Dunne’s application to build a 37-floor skyscraper.

Saturday, June 6, 2009

Ireland’s contrasting economic spectrum

bank of ireland The Bank of Ireland has published its annual report for the year ended 31 March 2009.  This shows that while the Bank lost €7 million and has impaired loans of over €1.51 billion, that directors’ emoluments exceeded €8.68 million, split between 7 executive directors and 10 non-executive directors. 

The report advises that these emoluments are calculated using a ‘suite of tools’.  Directors’ emoluments in 2008, when the Bank made a profit of €1.84 billion and had an impaired loan charge of a mere €232 million, were €10.73 million. The share price and market capitalisation of Bank of Ireland on 31 March 2008, was €9.42 and €942 million and it had a 12.6% ISEQ weighting.   Brian Goggin was CEO since 2005

The share price and market capitalisation of Bank of Ireland on 31 March 2009 was €0.50 and €502 million and it had a1.8% ISEQ weighting.  Richie Boucher was recently appointed CEO then and his tenure continues. His very own Retail Division is responsible for €708 million of the group impairment charge.  The total value of impaired loans has increased from €1,062 million to €5,322 million, of which €3,538 million is attributable to property and construction.

This outcome is the culmination of an orgy of lending by the Bank to the property development sector.  The head of the Retail Division, African-born Boucher, sought to emulate the sure-footed, inspired ‘golden touch’ and prowess of Anglo Irish Bank and its then Chairman, Sean FitzPatrick in the jungle of the property sector, a jungle that was based on young, working people buying modest homes in distant locations for up to 15 times their household income.

The people of Ireland, through the Government, invested €3.5 billion last February to shore up the Tier 1 capital at Bank of Ireland, a decision that was overwhelmingly approved by the dividend-deprived  stockholders last March.

YE 31 March

2008

2009

Staff costs

€1,235.000,000

€1,181,000,000

Staff numbers

16,026

15,968

Average pay

€77,062

€73,960

 

The current Governor, Richard Burrow, a man of impeccable sense, is to vacate this role and acknowledges that “accountability for these losses must be taken at the top”.  But since Bank of Ireland is not a one-man show, who else comprises “the top”? 

Burrows advises that Bank of Ireland is working to restore the trust of customers, stockholders and the public in general.  The votes are being counted today in the nation’s local, European and by-elections after which a new panel of politicians will have received a mandate from voters.  There is no comparable scope for society to confer a mandate on institutions and individuals’ in charge of them whose decisions have an enormous bearing the lives and wellbeing of thousands of citizens.  Perhaps there is scope for a doctoral thesis to analyse and explain this.

Taxpayers’ need look back no further than the consequences of the half-year results announcement at Anglo Irish Bank -  and an immediate requirement for €4.5 billion for an illustration of this.  It will be interesting to observe the progress of the ‘trust restoration process’ in the country’s ‘systemically important banks’ and what ‘suite of tools’ and ‘suite of clichés’ will be deployed by these people with the strange sounding accents and ‘scared rabbit staring vacantly at the headlights’ demeanour.

The consequences of the lousy management of the appalling management and this bank and all of the other covered institutions (that is, Irish banks eligible for a State bail out because the Government deems them to be of systemic importance) has resulted in record numbers entering the Live Register.

 

  Live Register Seasonally Adjusted < 25 years old
May 2008 201,756 207,000 42,730 (21%)
May 2009 396,871 402,100 84,488 (21%)
YOY Increase +195,115 (96%) +195,100 41,758

 

The loss of 58 jobs in the Bank cannot blamed for the record increase in the numbers on the Live Register.  This is not a measure of unemployment because it includes individuals working a 3-day week and casual and part-timer workers who are eligible for welfare benefits.

Wednesday, June 3, 2009

Ireland’s Fiscal Tightrope

brian-boru-celtic-harp The Irish Exchequer Statement for the five months ending 31 May 2009 show that the Government has spent €25.6 billion and had an income, from tax and other sources of €15 billion.  This leaves an Exchequer deficit of €10.5 billion, financed by borrowings of €8.9 billion and other deposits of €1.6 billion.  Interest paid on Government debt amounts to €1.58 billion.

The table below summarises the profile of tax receipts and compares these to Profile of Exchequer Tax Revenue Receipts 2009.  The State is €37.2 million ahead of projections in the aftermath of the April 2009 Budget.

Tax Receipts for 5 months to 31 MAY 2009

€ Million

Projected

Actual

+ / -

Customs

92,000

88,280

-3,720

Excise

1,655,000

1,753,832

98,832

Capital Gains

202,000

189,226

-12,774

Capital Acquisitions Tax

116,000

105,890

-10,110

Stamps

315,000

294,370

-20,630

Income tax

4,589,000

4,634,263

45,263

Corporation Tax

1,012,000

1,138,985

126,985

VAT

5,511,000

5,305,559

-205,441

Training and Employment Levy

831

Unallocated

0

18,046

18,046

TOTAL 

€13,492,000

€13,529,282

37,282

Spending at the Department of Agriculture & Food is €248 million more than this time last year and should be considered in the context of the output of agriculture and fisheries is a mere €3.88 billion, having dropped from €4 billion in 2005.

Health expenditure is €200 million ahead of last year and welfare spending is , predictably, €457 million ahead of this time last year, following steep increases in the Live Register.

One item of expenditure that is noteworthy is the €6.33 million paid to the Leaders of the political parties, pruned by 10% but this is partially offset by the overhead to run the Leinster House enterprise - €367,000 more expensive than last year.

The cost of the local and European elections amount to €8.5 million.

Cumulative Fiscal Progress – 2009

 

Month

Total Receipts

Total Expenditure

Exchequer Deficit

Borrowing

Dec 2008
(Year)

43,021,778

55,735,598

-12,713,820

30,310,525

Jan

4,281,998

5,029,215

-747,217

6,674,212

Feb

6,577,074

8,661,834

-2,084,760

6,398,172

Mar

9,433,404

13,154,149

-3,720,745

10,234,357

Apr

11,645,341

18,961,729

-7,316,388

6,579,469

May

15,090,952

25,678,595

-10,587,643

8,987,279

Tuesday, May 26, 2009

Irish Catholic Church Abuse – second thoughts, at last, on more compensation

cori The Ryan Report was published on Wednesday, May 20th and the silence that ensued from the religious congregations for days afterwards was deafening, given their typical passion for public profile when the issue involves spending somebody else’s money on their pet objectives e.g. ‘the vulnerable’, ‘the isolated’ etc. Sadly, too many of ‘the vulnerable’ are by-products of their own gulags.

When they eventually emerged from their closet on Wednesday, May 27th, their message was ‘no money’, but we wish to interface privately and directly with victims of decades of abuse to provide a form of assistance that was neither ascertained, or possibly ascertainable. Their spokesman sounded like someone from the car park clampers advising that the clamps on the victims would be removed forthwith! I should emphasize that money alone will not recreate the public trust and esteem that these congregations have lost.

The Government had been hiding resolutely behind what were supposed to be the legal impediments to changing the 2002 deal – a contribution of €127 million and an absolute indemnity against further claims.

However, public opinion and sentiment moved briskly ahead of Government statements and the sense of outrage amongst the public was, and is, incandescent. There is a deep sense of public trust being grossly violated.

The religious congregations say they will now provide more resources which the Government, quite rightly, insist will be allocated by the State. An assistant commissioner of the Garda Siochána (police) has been mandated to look into the possibility of bringing forward criminal charges.

Pres McAleese The President of Ireland, Mary McAleese, has been on a 1-week visit to Massachusetts and, given the worldwide publicity attaching to derring-do of the cited religious congregations, she must have been clearly embarrassed, humiliated as horrified as the rest of us. I’ve lived in Boston for 5 years and I can intimately empathise with the social predicament she faced as a consequence of this Report’s findings.

She is a president that the nation is truly and deeply proud of, an incumbent who has the measure of the office she holds and is always tempered in her public remarks and very adept at reaching a diversified audience. But she also stated clearly that if there is evidence of criminal wrongdoing perpetrators must answer. The President is usually closer to public opinion that the Government. She has been in office for 12 years and sustains an approval rating in the mid 90’s.

A Reputation in Shreds

Most adults in Ireland were aware of the harshness and austerity of the religious controlled gulags but the evidence of The Ryan Report brought everything into focus and exposed the unabated horror that was perpetuated in the name of Christ. Several of the victims were interviewed on radio this week and it was heart-rending to hear their stories. Thankfully, some of those who spoke enjoyed some stability in their lives and the security of a happy family. But all of them had to conceal their true background and identity from spouses that whose love, loyalty and friendship they have enjoyed for decades. There is not a single individual who has been abused that does not feel an enduring sense of shame that can be so deep rooted that it is actually hard to recognise for what it is.

The reputation of religious congregations has sunk so low that people now ask what possible function in society can untrustworthy organizations have? Their advocates, over the years, would remind people about the ‘good works’ and selfless priest, brothers and nuns’ whose basis sense of vocation and goodness should not be tarnished. But the reality is that all congregations have been holed beneath the water line.

The Report only dealt with a segment of the institutions they controlled – industrial schools and reformatories. But there are considerable number of religious personnel who held positions of trust in schools and boarding schools, such as the Franciscan-run Gormanston College and the Dominican-run Newbridge College who have been convicted of child sex abuse. We have reached the stage in Ireland, sadly, where the absence of this type of abuse is the exception rather than the rule.

The 2002 deal involved a contribution by the 18 religious congregations of €128 million that was capped and an indemnity against further claims was agreed with the Irish Government. The devious, duplicitous nature of these people is marked by the report that they have not even fulfilled their obligation under the terms of the 2002 agreement. They're are ripe with an abundance of fatuous excuses.

The efforts of the Conference of Religious of Ireland CORI in response to this Report will provide scholarly material on how not to respond to a major crisis for decades to come. Their initial response was to stonewall; to circle the wagons and to close ranks. But if they are now deciding to provide additional resources it is not motivated by spontaneous generosity. It is a consequence of them being publicly humiliated and seen as hypocrites and parasites. I don’t use these terms lightly. A hypocrite is a person who pretends to have virtues, moral or religious beliefs, or principles that he, or she, does not actually posses, or a person who feigns some desirable, or publicly approved attitude? A parasite is a person that derives support or advantage through association from another person or institution, without giving any useful or proper return.

Their statement issued on May 25th, refers to the “vast scale” of the abuse they perpetrated as being “horrendous” – not the abuse, merely the scale. Their initial reluctance to provide more money for compensation was stated to be based on any additional money “would only go to the Government!

They were also quick to advise that “the recommendations and conclusions of the Ryan Report are imperative (that is, unavoidable) for all those involved in the care of vulnerable people” . But their gulags’ closed some years ago so this statement so this admonishment does not refer to themselves but to third parties.

They were also scared at the prospect of a civil court action as the explanations below for their stated reason in 2002 for contributing to the Redress Fund reveals. Now, it is likely that the criminal courts may intruded into their tranquil lives either on indictment or as witnesses.

Finally, I found it interesting to reflect on where and why did these religious congregations become established. Nine of the 18 have a French origin and the French Revolution was a catalyst in some of them being established. All, but one, was established before the middle of the nineteenth century. The following milestones impacted on Irish society in their formative years:

1800: Act of Union, which shuttered the Anglo-Irish parliament in College Green, Dublin

1829: Catholic Emancipation: but the right to vote was restricted to holders of freehold property worth £10, not £2 as had been the case. This meant that the Catholics were emancipated and could become and MP, but the right to vote was not so widespread.

1845-1850: Irish potato Famine, which saw the population drop from 8 million to 6 million, of which one million starved to death and one million emigrated.

1868: Industrial Schools Act – which created the gulags that are the subject of The Ryan report

1869: Irish Church Act, which meant that the Anglican Church was no longer the official church of the Kingdom of Britain and Ireland, as it was then known.

This self-explanatory table lists the congregations cited, the year and place of their founding; whether they proffered a public apology; the number of schools they were in charge of which are pertinent to the Report and why the contributed to the Redress Fund set up in 2002. It is important to bear in mind that even though this Fund was to provide €128 million, that the religious congregations concerned have not even met that obligation. When ranks close and wagons circle – inertia is never far away!

Name of Congregation

Founded

Apology / Operations / Reason for contributing to Redress Fund

Rosminian Institute of Charity

1838
Italy

1999: Deep regrets

Operated two industrial schools in Upton, Co Cork and Ferryhouse, Co Tipperary

Contributed to Redress Fund because ‘it was the right thing to do’ and that the litigation route would be disastrous for all concerned.

The Dominican Order

1214
France

No apology

Operated one orphanage in Dublin until 1993

Contributed to Redress Fund

The Sisters of Mercy

1831
Dublin

1996: Apology, following broadcast of ‘Dear Daughter’

2004: Second apology

Operated 26 industrial schools

Contributed to Redress Fund to avoid litigation and to facilitate closure

Our Lady of Charity of the Good Shepherd

1641
France

No Apology

Operated 4 industrial schools in Cork, Waterford, Limerick and Wexford

Contributed to Redress Fund for pastoral and practical considerations – e.g. financial restraints, to avoid the huge cost of litigation and to avoid confrontation with ex residents.

The Presentation Brothers

1808
Waterford
Ireland

No apology

Operated industrial school at Greenmount, Cork

Contributed to Redress Fund to avoid being sued

The Religious Sisters of Charity

1807
Dublin
Ireland

No general apology, but concerned and sad about children in Madonna House; that the conviction of a male childcare worker for sex abuse made the issue ‘real’ for them and when another childcare worker was convicted they were appalled and the abuse by the accused caused ‘untold misery’, which they ‘regret’.

Operated five industrial schools in Dublin and Kilkenny; 19 primary schools and eight post-primary schools

Three staff convicted for child sex abuse for which apologies were tendered

Contributed to Redress Fund for strong pastoral reasons and to avoid the rigour of litigation. Definition of abuse considered ‘so broad’.

The Christian Brothers

1802
Waterford
Ireland

Deep regrets

Operated six industrial schools and one residential school for deaf boys and numerous post-primary schools

Contributed to Redress Fund because the Fund would not ‘make a judgement’ on complaints and to avoid protracted litigation.

The Daughters of Charity of St Vincent de Paul

1642
France

No apology

Operated one industrial school, four orphanages, five centres for people with intellectual disability, an orthopaedic residential children’s hospital

Contributed to Redress Fund – without hesitation

The Sisters of Our Lady of Charity of Refuge

1641
France

Associated with CORI apology

Operated industrial school in Drumcondra and a reformatory in Kilmacud, Dublin

Contributed to Redress Fund because 5 litigation cases were pending and that there could be others. To also avail of indemnity against litigation and to achieve closure

The Brothers of Charity

1807
Belgium

1995: Public apology

Operated two schools for children with learning difficulties at Lota, Cork and Renmore, Galway; an adult psychiatric hospital in Waterford and a service for adults with learning difficulties at Clarenbridge, Galway and Limerick.

Contributed to Redress Fund followed 50 civil claims. Fund enabled them elude protracted litigation process and consequences, trauma and confrontation. Redress also did not focus on particular episodes of abuse.

The Daughters of the Heart of Mary

1790
France

No apology

Operated orphanage in Dun Laoghaire that cared for over 2,000 children; visiting priest convicted of sex abuse in 1997

Contributed to Redress Fund after one set of allegations was cited. Two other allegations ensured and Redress was deemed the best way to compensate. It would also avoid adversarial or conflict and it would avoid the putting of claims individually

The De La Salle Brothers

1894
France

No apology

Operated industrial school in Finglas, Dublin between 1972 and 1994

Contributed to Redress Fund after eight compensation claims emerged and to achieve some certainty with respect to future litigation.

The Sisters of St Claire
(Poor Claires)

1629
Dublin

No apology

Operated an industrial school in Cavan and orphanage in Harold’s Cross Dublin. 35 children died in a fire in Cavan on 23 February 1943

Contributed to Redress Fund to assist former internees who maybe experiencing difficulties in their lives and to avoid confrontation at all costs and that the attribution of blame would be avoided.

The Presentation Sisters

1725
Cork

Operated industrial schools in Dundrum and Cashel, Co Tipperary

Contributed to Redress Fund to avoid protracted litigation “which isn’t in anybody’s interest”

The Sisters of St Louis

1842
France

No apology

Operates an industrial school at Bundoran, Co Donegal

Contributed to Redress Fund to prevent the ordeal of past residents and the nuns having to go through the courts and long drawn out cases. They would also be indemnified against future claims.

The Hospitaller Order of St John of God

1537
Spain

No apology

Operated a day and residential school at Blackrock, Co Dublin and other institutions.

Contributed to Redress Fund to avoid litigation and indemnity was an attractive proposition

The Sisters of Nazareth

1933
France

No apology

Operated a residential home for boys and girls in Sligo

Contributed to Redress Fund as it offered a non-adversarial and speedy avenue and that Sisters would not have to attend hearings.

The Obates of Mary Immaculate

1826
France

1999: Deep Regrets

Operated Daingean Reformatory, Co Offaly and a detention centre at Lusk, Co Dublin

Contributed to Redress Fund because it was better that money would get to claimants than on legal expenses and their contribution facilitated a ‘pastoral action’; also anxious to act in solidarity with other cited congregations. Surviving Oblates would avoid trauma of litigious lawsuits

These congregations set out to support the poor, vulnerable and isolated. But to understand their origins I have summarised the mission of the order of Our Lady of Charity of the Good Shepherd.


Its mission of one of this congregation was to provide “shelter for girls and women of dissolute habits, who wish to do penance for their inequities and lead a truly Christian life. Not only voluntary penitents, but also those consigned by civil and parental authority are admitted. Many of these penitents desire to remain for life; they are admitted to take vows and form the class of ‘magdalens’ under the direction of Sisters of the Good Shepherd. Many of these magdalens frequently rise to an eminent degree of sanctity. Beside girls and women of this class, the order also admits children who have been secured from danger, before they have fallen or stained by serious crime. They are instructed i habits of industry and self-respect and in all the duties they owe to themselves and society. The penitents, magdalens and preservates form perfectly distinct classes, completely segregated from one another.”

This congregation founded Ruhama, in 1989 to intervene with prostitutes in Dublin prostitution. Their trustees and board of directors includes the Governor of Mountjoy Prison in Dublin.

Sunday, April 26, 2009

The Uninspiring Leadership of Peter McLoone

PETER McLOONE is chairman of the public sector committee of ICTU. He is general secretary of the trade union IMPACT. The Government appointed him chairman of An Foras Áiseanna Sathair, otherwise known as FÁS, where he has oversight of a budget that in 2009 is €1,080,687,000. This money represents an increase in funding of €912,500,000 since McLoone was appointed Chairman of FÁS in 2005. The State provides 99% of FÁS funding, a portion of which finds its way to ICTU and its vested-interest counterpart IBEC. McLoone would have presided over much of the Molloy-Craig controversial era of ‘entitlement’ at FÁS and the expenditure of tens of millions of € that did not comply with standard corporate governance oversight and was subject to a review by the Public Accounts Committee last year. Rody Molloy was director-general until details of his stewardship became publicly know. Craig was an apparatchik who has returned to work following an absence while an investigation concerning him was under way.

Both Molloy and Craig were cited for the extravagance of their expense accounts, which in Craig’s case surpassed €400,000 over an 8-year period. Molloy had a penchant for extensive first-class air travel, usually to exotic, sunny, pleasant destinations that provided very high levels of personal service at very significant cost to the State. When Molloy’s wife accompanied him they opted for slum-class air travel. But McLoone, with the innocence of a 3-month old infant sleeping in its Moses basket, was ignorant of all accusations of malfeasance in the agency.

McLoone is a citizen of a country where 372,800 sign on the Live Register reflecting an unemployment rate of 11% and McLoone forecast that unemployment could reach 580,000 by year-end. He is a citizen of a country that remunerates 370,027 public sector employees, including 90,508 pensioners.

The living standards and job security of the 1,250,000 that comprise the remainder of the labour force are under constant and grave threat. Those aspects of the economy that offer limited, but low-paid, employment prospects are in selling second-hand goods, money lending, fruit and vegetable gardening, door-to-door selling and distribution, green energy and fast food, according to the FÁS survey of the Irish labour market published in March 2009.

McLoone, like the rest of us, is a citizen of a country whose Government intends to spend €63.9 billion to be funded by tax revenue of €34 billion. The gross pay element of government expenditure is 35%, €22,365,000,000 or an average overall cost just north of €61,000. The capacity of the Government to fund this level of expenditure is wholly uncertain and circumstances are likely to seriously worsen. Oireachtas members have also thrown a gauntlet by refusing to immediately abandon long-service increments and pension while serving in public office - the foot soldiers of a government that presided over years of appalling management of public finances.

Last week McLoone spoke at the annual general meeting of the Public Service Executive Union and stated that the national partnership process is fundamentally dependent on existing pay, pension and job levels being guaranteed – as though these are immutable entitlements. McLoone promises union conflict in a society that is going broke and the spirit of many is crestfallen and desolate. This man has been at the centre of economic and social policy development for a long time and all he can inspire his members with in this time of crisis is the threat of chaos.

Professor Paul Krugman, the distinguished American economist, in a recent article about the Irish economy 'Erin Go Broke' published in The New York Times, stated the recovery, when it happens, will be based on ‘export-led growth’. One of advantages that Ireland could cite as an advantage was its agile, can-do labour force and there are many illustrations of this among the largely non-unionised private sector workforce.

One of the few multinationals that is unionised in Ireland is the Lufthansa Technik Airmotive plant at Rathcoole. It, like SR Technics in Dublin is in the aircraft engine maintenance business. It has been one of the few major businesses in Ireland with significant current investment plans. That is until the zombie unions have virtually caused the doors of the business to be slammed shut for good. Turkeys voting for Christmas!

This idiocy is only surpassed by the award of tens of thousands of € by an Employment Appeals Tribunal to employees of Munster Carpets last December in a dismissal case where all sides acknowledged that those concerned routinely slept on the job during working hours!

This raises some basic questions. The Government is, at last, being forced to show form in the management of public finances after years of profligacy. Change is the order of the day.

Is it wise for the Government to retain the services of a chairman in a State funded entity who is as blind to malpractice inside that agency as McLoone proved to be? Secondly, is the partnership process capable of igniting economic recovery when the vested interests that participate in it demonstrate the agility and imagination of an elephant suffering from trapped wind?

If Mr McLoone can offer society nothing more inspiring than chaos and hyperbole perhaps it is time for his curtain call.

Tuesday, March 10, 2009

Charity Begins at Home!

The Irish Government may not have anticipated the grave extent of the exchequer deficit at the end of February, but this deficit, the enormous increase in unemployment and the threatened reductions in welfare in the forthcoming budget are all indicators that must surely alert the Government to rising levels of destitution, neediness, distress and desperation in this country. Ireland will no longer be a rich nation and the national economic wellspring is severely weakened.

The Survey on Income and Living Conditions (SILC) 2007 published by the Central Statistics Office indicated that the risk of poverty in Ireland at that time was 16.5% and that 5.1% of the Irish population endured consistent poverty. There is now a compelling need for urgent new thinking, fresh priorities and new practical initiatives, beginning with a separate approach to aid and welfare by the Government.

The Irish Government, through Irish Aid, has spent more than €5.3 billion on overseas development assistance making the nation one of the most generous donor countries in the world. Ireland committed to spend 0.7% of GDP on official overseas development assistance by 2012 at the UN Millennium Summit in 2000. That ambition is laudable and realistic when the resources to achieve it are ample but this is not the case in the foreseeable future and the Government needs to pardon itself from fully meeting this objective within that timescale. Charity begins at home and a portion of these resources are now badly needed to provide aid at home.

This arises in the context of the number unemployed in Ireland escalating from 165,000 to 365,000 requiring a further €200 million in welfare support and with singificant further increases anticipated. There has been a 19% drop in tax revenues in January and a 20% drop in retail sales in 2008.

A significant amount of FÁS resources are distributed to community related initiatives at least some of which, like meals-on-wheels in provincial areas, have essentially a charitable purpose and need to be realigned and accounted for as such.


The Government could begin by diverting at least €100 million to augment the diminishing resources of credible long-established voluntary charities, such as The Society of St Vincent de Paul, The Simon Community and others that directly alleviate dire need and galvanise their voluntary efforts. Their reputation is impeccable and their integrity above challenge. Their overheads are modest. Their modus operandi is focused, practical, widely understood and readily acclaimed. Their reach is extensive and their impact is mighty.


The Department of Community Rural & Gaelteacht Affairs could be augmented to act as overseer of such an initiative and create inspired guidelines and policies. The distributions of funds to the charities could be controlled by an independent commissioner operating to specific guidelines and accountable to the Public Accounts Committee.


There is a well developed and experienced set of voluntary agencies in this country that operate overseas and which demonstrate great flair in fund raising and promoting their work. The Irish people are deeply compassionate and demonstrate enormous generosity in their support of these, particularly at Christmas, Lent and in response to catastrophes’, strife and famine. There is no reason to believe that this spirit will abate and Ireland should continue to be a prominent donor to the relief of distress throughout the world while the Government is not ignoring the consequences of imminent poverty at home.