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THE FIANNA FAIL LEGACY: 12.6% Unemployment, €90Billion Toxic Debt, €300M in Tax Breaks, 3Rd Level Fees and Social Welfare Cuts En Route

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THE FIANNA FAIL LEGACY: 12.6% Unemployment, €90Billion Toxic Debt, €300M in Tax Breaks, 3Rd Level Fees and Social Welfare Cuts En Route RRP: €0.00 Volume 4 Issue 1 - September 2009 UNITEs Michael NAMA isnt the Why the Poor www.labouryouth.ie Taft on: Taking answer, so why cant continue www.facebook.com/ labouryouth Back the Debate arent the Gov- to Pay for this for the Left ernment listen- ing? Crisis! www.twitter.com/ labouryouth Page 4 Page 6 Page 8 www.flickr.com/ labouryouth THE FIANNA FAIL LEGACY: 12.6% Unemployment, €90billion toxic debt, €300m in Tax Breaks, 3rd Level fees and Social Welfare Cuts en route In the last year the Irish economy and ios, an L-shape recovery, is the reality, instead society has undergone the greatest con- of a nice V-shaped bounce. The IMF and the traction in its history. Unemployment is OECD are in rare unison that the best case set to reach 16% in 2010 according to scenario for dealing with the banks is tempo- the ESRI, the IMF and OECD estimate a rary nationalization for cost, effectiveness, minimum of 14% contraction in the Irish transparency, and restructuring. Not NAMA Economy from 2008-2010, and the Irish about which they share reservations with many deficit stands at €16.4 billion with a guar- economists and even the NTMA on how it will antee to the banks of 200% GDP (or even work effectively, and the legal quagmire it €400billion). Falling Exchequer returns entails. We are set to incur €35billion losses in exacerbate the problem and cause the the banks, or all of the GDP for 2009. government to look for more cuts. Yet there is no concerted stimulus package for Taoiseach Brian Cowen sets his face firmly at news of the latest reports According to many economic and political job creation, no investment in education for the commentators this is exactly what the fabled knowledge economy, and with a Green government should not be doing . Fianna Party in coalition is fair to say that there is a Fáil’s pro-deflationary ‘do nothing, or cut void unfilled in the creation of ‘Green-Collar’ more’ approach is not simply pro-cyclical jobs. Borrowing as an option is becoming in- in returning to a ‘boom and bust’ cycle, it creasingly less attractive, as international is actually causing a economic implosion credit agencies are charging a higher interest out of the rapid expansion that was the rate because of a lack of confidence in the property asset bubble. This ‘heating-up’ of governments economic handling. Yet we are the economy is generally ’cooled-off’ by one of the lowest debt:GDP countries in the EU increasing taxation or reducing depend- and if we borrow now and invest in the me- ency on the asset bubble. Instead Fianna dium-long term we can retrain some economic Fáil’s policies intentionally and liberally and social cohesion. threw fuel on the pyre that is now our Social welfare cuts of 3%, indeed any percent, economy so they and the rest of the Gal- are not the answer. Taking more money out of way tent could warm themselves. Across the hands of those most likely to spend it fully the world that is one thing all bodies are is deflationary economics at its most basic, and agreed upon- from the International yet misunderstood by this government. Monetary Fund, to the OECD and the EU Commission, who stated the structural If we are to get serious we need to end the deficit of the country was mostly caused €300million tax breaks, nationalize the banks by Fianna Fáil’s mismanagement. and invest in the future. And for confidence at Irish Congress of Trade Unions poster at home and abroad, we need Fianna Fail out. protest in February And where is the economy going now? It seems that one of the worst case scenar- Our Children deserve better. Also: Third Level Fees IsraelIsrael----PalestinePalestine Greens Wilting in Government LisbonLisbon! Who are the National Youth Executive? Page 222 www.labouryouth.ie Table of Contents Dear Comrades, 2 --- Labour Youth NYE Profile What a year it has been since the last Tribune. A govern- ment on the cusp of calling a General election, massive 3 --- Table of Contents // Editorial increases in the amount of progressive and left council- 4 --- Taking Back the Debate for the Left lors in Ireland leaving the Greens with just 3, Finglas a socialist Utopia, and Labour in majority in Dublin. If only 6 --- There is a better way than NAMA... the news for the ordinary private and public workers of Ireland was as good. They have endured income levies, 8 --- The Poor Can’t Pay for this Crisis pension levies, and cuts in child benefit and supple- ments despite Ireland having one of the highest child- 10 --- Education Cutbacks = Economic Illiteracy care costs in Europe. Fianna Fáil has yet to implement a series of cuts recommended in An Board Snip Nua’s Black Bible. A 3% cut in Social Welfare rates, a cutting of 12 --- Labour Youth Campaigns ‘08 -’09 the HE Maintenance Grant, a return of 3rd Level Fees, water rates & property taxes... 13 --- Pictures from Events ’09 And still the tax loopholes remain to the tune of €300million. There is no sign of a Wealth Tax on the as- sets of Ireland’s most wealthy. No sign of a realistic Job 14 --- The Green Party: Wilting in Government Stimulus Package, or directed investment. No sign of increasing funding to capital infrastructural projects. 15 --- Tesco– a Change for Good, or Worse? And then there is NAMA, the ‘Great Generational Gamble’ 16 --- Israel-Palestine Conflict: Europe and Our as I like to call it. Who will end up footing the Bill; us or our grandchildren? It is rare to see many of the Right and Role the Left agree on one thing, and that is the nationalisa- tion of the banks in Ireland. Why waste money when it is cheaper and more efficient to nationalise them, clean 19 --- Lisbon: Not Perfect, but a good start! them up, and in 10 years or so sell them off again at a profit. 202020-20 --- Lisbon: Everything has changed.. Read on and fight with us in demanding a better future. Keith O’ Brien 22 --- A light-hearted look back on Political Editor: Keith O’ Brien Ireland 2009 Deputy Editor: Kirsten Gordon 23 --- Some successful Labour Youth Candi- dates in the 2009 Locals Contributors: Rory Geraghty, Hazel Nolan, Pe- ter Kelleher, Dr. Mary Murphy, Michael Taft (UNITE), Holly Kilroy, Jerry Larkin, Keith O’ Brien, Kirsten Gordon & the Union of Stu- dents in Ireland. This edition is made from 50% recycled paper and 50% from sustainable forests Thanks to: Neil Ward, Youth Development Of- ficer Interested in writing an article? Email: [email protected] Page 333 Taking Back the Debate have to cut spending? Therefore, omy losing money. That’s why busi- ‘painful’ as it is, we have to accept, if nesses close, people stop spending, not all the proposals, then at least and dole queues lengthen. During the premise of the McCarthy Commit- this cycle, you don’t take even more tee. money out of the economy through spending cuts and general tax in- This is wrong on so many levels its creases. Instead, you put money hard to know where to start. But let’s back in – by increasing public expen- try, starting with the McCarthy Com- diture and investment, by increasing mittee’s centre-piece proposal – lay- people’s disposable income; by pur- ing off 17,000 public servants. Never suing counter-cyclical policies. This is mind the effect on public services not some radical formula. It’s pretty (the OECD claims Ireland has one of standard fare, pursued in most other By Michael Taft the smallest public sectors in the in- industrialised economies in one form Michael is an economic researcher and dustrialised world) – the McCarthy or another. Except here. advisor for the UNITE trade union, is a Committee claimed this proposal noted commentator on the economic crisis would save €700 million. Would it? Of This leads us to the second main and has a popular blog @ http:// course not. fallacy of this debate – that there is notesonthefront.typepad.com/ no alternative to the deflationary Back in April the ESRI conducted an measures being pursued (though we We have to be honest with ourselves. economic impact assessment of re- are allowed to debate the balance The Left is losing the economic de- ducing public sector employment by between cuts and taxes). We can’t bate. Indeed, we are not even at the 17,000. They found that this would afford to pursue counter-cyclical debate. drive down the GNP by nearly 1 per- policies, the type of measures that cent, would reduce consumer spend- other countries have adopted. Why? The Right has successfully reduced ing by half-a-percent (resulting in Because our borrowing is too high the debate over the economic crisis more businesses being pushed to the to the fiscal deficit. With the economy wall) while unemployment would in- “the McCarthy Commit- expected to continuing declining well crease by nearly 20,000. And what into next year, consumer spending tee claimed [laying off would the effect be on the borrowing collapsing, investment falling to pre- requirement? Negligible. It would be 17,000 public servants] 2000 levels, and society verging on reduced by 0.2 percent. What would proposal would save mass unemployment – all we get is be the real savings to the Exchequer € an obsession over how much public 700 million. Would it? of the McCarthy Committee’s pro- expenditure we have to cut, how may Of course not.” posal? Less than half of their head- public servants we have to lay off, line €700 million.
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