Obama And Ataturk Lord Bew & 1916 Banks & Social Dividend Dr. Pat Walsh Manus O'Riordan Jack O'Connor Labour Comment page 20 page 19 back page IRISH POLITICAL REVIEW May 2009 Vol.24, No.5 ISSN 0790-7672 and Northern Star incorporating Workers' Weekly Vol.23 No.5 ISSN 954-5891

Supplementary Budget Home And Away Facing The Twenty years ago the Irish State appeared on the verge of bankruptcy. Escape seemed Emergency impossible. And then there was the Celtic Tiger—conjured out of thin air by the magic of money under the system of globalist capitalism. The Irish Political Review does not agree with all aspects of the supplementary . The conjurer, of course, was Charles Haughey. Haughey put on a great show in a Europe which had still not submitted to British budget. And, on some of the aspects that pressure for deregulation. The Europe of Kohl and Mitterand was a very different thing it does agree with, it thinks that Lenihan from the Europe of Merkel and Sarkozy and Berlusconi. Merkel was a Christian did not go far enough. But nevertheless, it Democrat in the Communist GDR [German Democratic Republic]. When released into is of the opinion that that the broad thrust the Federal Republic she had no bearings in it and the two forms of substantial of the budget was correct. capitalism—the corporatist European and the laissez-fair Ameranglian, had no tangible As a nation we have been living beyond meaning for her. The British complaint that the socially-engaged capitalism of Europe our means. This is reflected in the was virtually socialist got through to her and she did her best to dismantle and de- deterioration in the public finances and regulate a society which was wedded to the old forms. (The British Minister for Free the deficit in the balance of payments. Capitalism In Europe at one point was Kim Howells who, not long before, had been in The cost of servicing the National Debt the business of overthrowing capitalism as a revolutionary socialist aligned with Arthur has more than doubled from 5% of tax Scargill, the miners' leader.) revenues to 11%. Tax revenues have Sarkozy is a fashion statement. Berlusconi is a skilful trickster, operating amidst the reduced from €47 billion in 2007 to a ruins of Italian Christian Democracy with only the exhausted remnants of a failed predicted €34 billion in 2009 as a result of Socialist Party as Opposition, in a society which in the past has shown it can run its the collapse in the property market. affairs rather well without much in the way of Government. This could not be ignored by any continued on page 2 responsible government, whether of Republican or Socialist hue. The solution is very clear: we must consume less and produce more. A small open economy cannot stimulate production by increasing consumption. Such a policy would exacerbate the crisis by increasing imports. For better or worse the Irish economy has floated its boat on the unpredictable seas of the world economy. When conditions are favourable Ireland benefits disproportionately, but when the seas are rough the light, nimble craft will ship water. The Fianna Fail-led Government has done the only sensible thing that can be done. It has steadied the ship of state and placed it in a position to take advantage of any upturn in the world economy. That is the most that can be done.

WHO PAYS? But who is going to bear the burden of the necessary drop in consumption? The answer is all of us, but in particular high income earners. Accordingly, the Govern- ment has decided to double the rates of the Pat Murphy: Income Levy and to reduce the entry See points for each rate. The new rates will be Obituaries, 2%, 4% and 6%. The new entry points page 13 continued on page 5 in vast quantities began to pour in through C O N T E N T S the Financial Services Centre on the Docks Page in the 1990s, as it has done for centuries into England through the City of London— Home And Away. Editorial 1 and at the expense of the City of London. Facing The Emergency. Editorial on the Irish Supplementary Budget 1 And, under Haughey's influence, corporatist arrangements of the Christian Readers' Letters: Commonwealth. Seán McGouran 3 Democratic kind began to function in Ireland. And it is beside the point to A World Full Of Blind Spots. Jack Lane 8 discuss whether Haughey was either a Christian or a Democrat, or a sceptic and Ireland's Comparatively Healthy Debt/GDP Ratio. Manus O'Riordan 8 an oligarch. He set up the Partnership system, and it worked better than might Shorts from the Long Fellow (The Inevitability Of Socialism; The Financial Crisis; have been expected. The Irish Crisis; Economists' Intervention; Government Performance; NAMA; * Stabilisation Fund; Budget Deficit; A New Nation?; British Commonwealth 10 Some years ago the Northern Bank in Belfast was robbed of about £26 millions. Beware Falling Objects. Feargus O Raghallaigh 11 It was authoritatively stated that the Provos did it. Bertie Ahern said it as Taoiseach. Sheila Kelly. Obituary 12 John Bowman, as Chairman of Questions & Answers, poured scorn on the possibility Pat Murphy Tributes. Tony Monks, Malachi Lawless 1, 13 that they might not have done it. The white van in which the money was taken Biteback: Corporate Crime Measures. Tom Sheridan 17 from the Bank was caught on camera, and was followed on a series of cameras—the Does It Stack Up? Michael Stack (Accountants and Bank-Bailouts) 18 North is covered with them—until it Still Birth. Wilson John Haire (Poems) 18 disappeared somehow. A bank clerk was prosecuted but, in the Lord Bew On 1916 Insurrectionists And Democrats. Manus O'Riordan 19 absence of evidence, the case failed. (Such things still happen in the North.) Obama And Ataturk. Pat Walsh 20 Only one identifiable bit of the stolen money was ever found. The fact that it was found in a Social Club of the Royal Labour Comment, edited by Pat Maloney: Ulster Constabulary was immediately SIPTU Demands "Social Dividend" understood by all right-thinking people to From Banks Bail Out be proof positive that the RUC had NOT Jack O'Connor done the robbery. General President, SIPTU Some weeks ago a Corkman was tried on a charge of receiving some of the stolen money, knowing it to be the proceeds of the Bank Robbery. Judging by newspaper When Europe still had a purpose, it was The English Constitutional ideologue, reports (which were grossly inadequate), convinced by Haughey, when he was Bagehot, said that grand display was a no evidence was presented that the man President of the EU, that Ireland had moved necessary function of state. In very olden had received any of the money taken in the out of Britain's shadow and now counted times—before the 1980s—the Church robbery. He was convicted. (Those things for something in international affairs in its provided impressive displays for the State. are better managed down South.) own right. And Ireland was rewarded for But, since those times, the major impres- The man in question ran a money- the appearance of substance conferred on sive display in secularised Ireland was lending, or mortgage, business in the form it by Haughey with massive subsidies—8 that put on by Haughey. of cash transactions. He did not do this billions, small time now, but vast in those But Government must also be represent- secretly. His disagreement with the bank- olden times of the 1990s. ative of powers in the economy and must ing system was on public record. In the And then Haughey performed the great be able to direct them. And never before days of the Celtic Tiger, property transact- money trick on the Docks. He had been or since have powers in the economy been ions mushroomed. Large numbers of one of the new native business class that so well directed by government as in people who had emigrated to England began to emerge in the 1950s and to erode Haughey's time. immigrated back. Properties had to be the Ascendancy stratum of inherited Garret FitzGerald made a living by bought and sold and money had to be wealth—accumulated under Penal Law writing on the economy in the Irish Times changed. And then people who did well monopoly—that had survived in critical for many years, but his economic acumen out of the Financial Services Centre boom areas until then. (That can be the only as applied to business would have left him began buying second houses in Europe. rational basis for the obsessive hatred of penniless, but for the extraordinary And productive enterprises which had been him by the Irish Times.) kindness of his creditors. He fared no small scale in 1990 expanded and acquired The very modern ideal of having a better as Taoiseach. international ramifications. Government and a Legislature which is Very soon half a million became the disconnected from vested interests in the Haughey used the powers of govern- price of a normal house. economy and in society did not exist then. ment, and his connections with the new A money-lender doing cash transactions If it had, the Celtic Tiger would probably class (his coterie, if you prefer) of wealthy not have been born. The outer world was would need to have millions in hand. We then very effectively represented in the businessmen, of which he was an original were told in sensational newspaper reports Dail, and the possibilities of the current member, to perform the money miracle. at the time of the arrest that this man had economic situation could be seen and could He made Ireland part of the financial millions in wheelie-bins. And we were be seized. heartland of globalist capitalism. Money supposed to conclude that he was up to no 2 good. Some Northern Bank notes were found LETTERS TO THE EDITOR · LETTERS TO THE EDITOR· LETTERS TO THE EDITOR· amidst all the other notes. There was no evidence that they had come from the robbery. It seemed good enough that they Commonwealth had come from the robbed bank, which Nick Folley's letter on rejoining the Commonwealth (IPR 24 / 4, April 2009) was very was 300 miles away. interesting and apposite. One could jib at the use of 'rejoining'. The Free State was not Suddenly we were out of the world of given any alternative to joining the (then) white men only club. the Celtic Tiger, where millions of all It would be interesting to have a closer look at the signatories to the demand for Ireland sorts rolled around everywhere, and we to be in the Commonwealth. Two of them are Party leaders. David Ford MLA (Member were back in the small-time era of Lemass, of the Legislative Assembly) is leader of the Alliance Party of NI. Dawn Purvis MLA when possibly a Northern Bank note was is leader of the PUP (Progressive Unionist Party). never seen in Cork. (In the UK a number This is important because the letter, as published in the Irish Times (23.03.09) came of Belfast Banks were allowed to print from an interesting address, the History Department of UCC (University College, Cork). their own money, while Dublin could The above two mentioned persons have a number of addresses that could have been used. only have Bank of England money. This The Party Headquarters address, their constituency offices, their offices in 'Stormont' the continued after independence, when the seat of the NI Assembly. Their home addresses could have been used. Bank of England printed notes with Irish The Ulster Unionist David Burnside MLA has a similar plethora of addresses. He also pictures for the Irish. "Irish" money was has a number of 'home addresses'. Something similar applies to Senator Eoghan Harris. sterling, and was always treated as such in Lord Rana is an hotelier. He's got dozens of addresses. He is a rampant Union-buster. the North. This was, of course, financially Mr. Burnside (a former employee of British Air) has 'form' in using dirty tricks' against advantageous to Britain. The Richard Branson's Virgin airline. The academic signatories are, surely, in the position establishment of Irish money on its own to use a number of entirely legitimate addresses? Seán McGouran footing began with Haughey.) The running of a mortgage business on a cash basis independently of the banks about way back then. We made theoretical try out ideas which had a chance of bringing must have seemed suspiciously eccentric allowance for national bourgeois about the desired effect. This the Irish a couple of years ago to people who could development. He rejected it. But he was Government is doing with some ability hardly lift a finger without the help of a the one who participated in the national and a great deal of energy. And it can bank. It does not seem so foolish now. bourgeois development. And, unlike many certainly be said that the solutions come The man in question was convicted on others, he did some good in the process. up with in Ireland are far superior to those the strength of a confession which he being introduced in Britain and the US: at * retracted, saying he signed it under duress. the same time it has to be said that the bank It appears from some reports that he was A lot of learned nonsense is spouted crisis is not so severe in Ireland. At least subjected to sleep deprivation—one of about Ireland and the Credit Crunch. There there are assets in existence which the the Five Forbidden Techniques for which is a tendency to take a moralising attitude Irish Government is able to buy from the Barak Obama has apologised. to the role of developers in bringing it banks. Anglo financial innovations His son was also charged, and pleaded about. produced financial instruments with no guilty. Because he pleaded guilty no Ireland grew fat on the crumbs from the corresponding physical assets or, where evidence was presented against him, and Globalist table in the good times. The there are, several competing claims to the he was not brought to the witness box to question was how the money gained was same assets: and these instruments were give evidence against his father. going to be invested. In the national financed by the banking sector with no A persistent theme of the Garda quest- budget, the bulk of it went to paying off adequate collateral. That said, both in ioning was said to be the involvement of the National Debt, which became one of America and Britain Government is Phil Flynn: Implicate Flynn and we will the lowest in Europe. And, even after throwing huge sums of money into a go easy on you. If you fail to implicate present measures have been taken into bottomless pit. The American bail-out him, you will suffer the same fate as the account, the National Debt will be lower scheme has the State taking 100% of the McBreartys in Donegal. than Britain's in years to come. risk and taking 0% of the profit. Back in the 1960s Flynn was a kind of It might have been preferable if some The Irish scheme is to set up a National revolutionary socialist. In the seventies or of the surplus had been put into productive Assets Management Agency which will eighties he became an effective reformist, enterprises, but it was difficult for Ireland compulsorily purchase toxic assets from the leader of the IMPACT Union, and a to stand out against the general EU policy banks, also taking over the collateral. A member of Sinn Fein. In his capacity as a of leaving things to the market. While an mechanism for determining the price to be reformist socialist and Trade Union leader independent country has a certain leeway, paid is still to be established, but the banks he approached Haughey with a proposal there is a limit to what a small economy will not be paid the full value of the loans for what became the National Agreement like that of Ireland can do within the they made that are being taken from them. system and Haughey took it up and made capitalist system. And Britain had If that leaves the banks short of funds with it work. succeeded in making its laissez faire form which to provide loans and working capital It seems that, along with being a Union of capitalism dominant in European to enterprise, the Government proposes to leader with an input into the formation of institutions. The developers did what give them such funds by purchasing shares state policy, Flynn became a businessman came naturally: and some of the things in the banks. There will be losses for the in his own right, with extensive European they built will stand the test of time. The shareholders of these institutions. connections and a prominent position in a improvements in infrastructure will be of The Assets Agency will enforce the major Scottish bank. lasting benefit. repayment terms of the loans it has taken This would be something very extra- The experts write as though there is a over and gradually seek to realise the ordinary in a system of developed capital- perfect solution to the crisis. The fact is value of the assets it has bought. If, in a ism. But Ireland is still essentially in the that there is not. Keynes understood early decade's time, it emerges that the phase of development that used to be on that an economic system was too Government has paid the banks too much called "national bourgeois". This was complex to be guided on the basis of for these loans, a further levy will be taken one of the things we disagreed with Flynn theoretical prescriptions: the thing was to from them. 3 This new proposal is additional to the attitude of the Belfast Telegraph towards that kind of effort for long. Or was it the Bank Guarantee Scheme already operat- the efforts of their Government to solve British who knew that? Or is there a ing, and will probably supersede it in the global economic crisis. If Northern difference in Cork University these days? effect. Ireland is a state—and the academic There was no need for the Foreign The Banks initially financed the loans historians seem to have agreed to pretend Minister to quote Hart. But he does so, they made by borrowings, much of it from that it is—then its its Government should again and again. This can only mean that abroad. It has been suggested that the certainly be criticised for failing to act the new Fianna Fail dynasty in Cork, Banks should renege on those borrowings. decisively in the world crisis. If it is not a being constructed by Mr. Martin, will It is hard to see how Ireland could maintain state—— have Hart's falsified history as part of a the strong position it has established for * new authorised version. itself in international financial circles by The Irish Foreign Minister, Michael Mr. Martin comments on how "national doing this. While providing financial Martin, has published a book about a services is unlikely to be the engine of issues" were kept dominant by Sinn Fein period of history which has not yet become in the 1920 Local Government elections, growth in the future that it has in the past, history in the sense of being over and done in place of municipal issues. But the great Ireland will not benefit by destroying its with. The title is Freedom To Choose: credit-worthiness internationally. municipal issue was whether Local Cork And Party Politics In Ireland 1918- Government bodies would hold allegiance The question arises what will be the 1932. The thing about that period is that and pay dues to the Dail or Dublin Castle. new engine of growth, now that financial Ireland did not have Freedom To Choose. services will play a much diminished role. The British interest hoped that the PR It acted under compulsion from the greatest system would muddy the clear result of In the present financial crisis, the Empire the world had ever seen. It chose the 1918 General Election. It didn't. vigorous financial actions taken by Fianna to part company with that Empire in Fail are reminiscent of the way it acted in The "Treaty" sort of slips in unnoticed, December 1918 but the Empire would not and we are straight into "Civil War". Mr. the protectionist era of the 1930s. Then let it. At the end of that period, 1932, Mr. Martin says that leaders on both sides the Irish economy was protected and Martin's party came to office and took the enabled to grow by the use of tariffs. Now indicated that they did not want it. Why risk of repudiating the enforced subordin- then did they have it? The obvious answer it is to be protected by direct intervention ation to the Empire of 1922, and got away is because Whitehall kept up the pressure in the banking system. The State has with it because the power of the Empire realised that the Banks are incapable of for it. Mr. martin does not show that that had decayed during the intervening years. is the wrong answer. addressing the general problem: that they If Mr. Martin had written a truthful The Labour Part made a big showing in are in denial about the scale of the problem. account of the choices made by Ireland in While formal protectionism is off the the 1922 Elections. Treatyites and Anti- defiance of Imperial compulsion he would Treatyites had made a Pact to field an agenda, de facto protectionism has become risk an international incident. Britain agreed list of candidates so that the balance prevalent in major European countries. does not take kindly to having the truth States have directly aided industries, not in the Dail would be maintained, and it told about what it has done in the world. It was approved by the Dail. But Whitehall by means of tariffs but using other is for it to choose what should be remem- condemned it as undemocratic, saying measures. bered and for others to forget what it did to that the people must be free to choose The Irish State is currently financially them. That is the recipe for harmonious extended with its rescue of the banking between conflicting parties—even though relations. It would have been irresponsible the British Coalition had won the 1918 system. However, there is a lot of capital for an Irish Foreign Minister today to Election with an agreed Tory/Liberal list. at home and abroad which is seeking a publish a truthful account of what Britain safe home. The Government can issue Collins was summoned to London and did to Ireland when Ireland chose to part ordered to break the Pact. He came home targetted Bonds for the public to take up, company with it in 1918. Mr. Martin has and did so on the eve of the Election. The with redemption dates in the future. The not acted irresponsibly in that respect. first bond could be for the purchase of Labour Party, which had not contested the One thing the book does is make clear 1918 or 1921 Elections, contested this Eircom, a failed privatisation. Using that the comprehensive misrepresentation one. In the confused situation it did rather money subscribed for an 'Eircom Bond', of Irish history of that era by the Oxford the State should buy back the telecommun- well. When the Dail elected in June 1922 University Press was not something done eventually met in September, the ications industry and develop its potential. behind the back of Fianna Fail and without Treatyites had started the Civil War under There are many similar investments which its consent. The centrepiece of that mis- could be made. a Whitehall ultimatum, threatening action representation was Peter Hart on by the British Army if it did not do so. At the moment Teagasc is the only Republicanism in Cork in 1918-22. The The Labour Party had been taunted by voice calling for the development of the chicanery of Hart's method has been agricultural sector. In fact, as Charles some Treatyites with having submitted to demonstrated conclusively. Hart was De Valera's "Labour Must Wait" slogan in Haughey realised early on, agriculture acclaimed by the History Department of 1918. It would wait no longer. It contested should be a mainstay of the Irish economy. Cork University at first. A mass meeting There is an untapped demand for organic the 1922 Election and three months later for the purpose of adulation was held, at found itself the official Opposition in a food, raw and processed: and it is which an attempt to enter a note of dissent Dail in the midst of a "Civil War" which ridiculous that Ireland should be importing was howled down. But Cork University food at all. What the present crisis has neither it nor the Dail had had any say in has not recently been defending Hart's starting and facing the most right-wing revealed is that the idea of leaving such academic method, such as interviewing Government there has ever been in matters to the whim of the market, or to the dead and omitting crucial paragraphs the will of external political agencies is independent Ireland. in British documents when reprinting Mr. Martin wonders that Labour untenable. There are still national them. But neither has it been subjecting climaxed in 1922 and then went into economies and the need for strong national them to criticism. What its notion of governments. recession. The reason of course is that it "academic freedom" demands is battening did not wait long enough. Reformist * down the hatches and riding out the storm Labour needs a secure framework of state Peter Robinson and Martin McGuinness so that it will still have Hart there, with his to function within. It jumped the gun in —First Minister and Deputy First Minister systematically falsified history, when the 1922 and paid for it. of Northern Ireland—have protested to fuss dies down. And they trust it will die Sir Anthony O'Reilly about the disparaging down. They know the Irish cannot sustain Mr. Martin's party was formed out of 4 the losing side in the "Civil War". If the that period. It was bound to be either a ABOLITION OF RELIEFS Treaty established an independent, demo- confrontation with Britain or an incoherent Many of the property based tax reliefs cratic state in Ireland—and that is the evasion of confrontation. And there could which benefited the wealthy were abol- consensus of our new history—then De never have been any real doubt which it ished in 2006, Lenihan intends to continue Valera was a terrorist fighting democracy would be. this process by reducing those tax expendi- in 1922-3. Mr. Martin prefers to evade the * tures that can have an impact this year. issue. But it cannot be evaded. Evasion is In mid-April the Irish delegate to the There will be a reduction in the level of concession. UN attended a UN Conference on Racism, tax relief investors can claim on the interest Fianna Fail was formed out of Anti- held in Switzerland. On the instructions for mortgages and loans on residential Treaty Sinn Fein a couple of years after its of the Foreign Minister he walked out rental properties to 75% of the interest military defeat. It said it would not swear during the speech of the Iranian President with immediate effect. Joan Burton of an Oath of Loyalty to the Crown. The when Israel was mentioned. All the Labour thinks the relief should be electorate in the mid-1920s began to revert members of the EU walked out. Only the abolished entirely. However, there is an to the Republican ideal, from which it had delegates of 150 states remained and argument that, since investments were been frightened by British threats in 1922. applauded the Iranian President. The small made on the basis of 100% interest relief, The Treaty Party (called Fine Gael now- minority of a couple of dozen that absented it would be unfair to eliminate the tax adays), victorious in war, might have itself is the International Community. The immediately. However, if this arguable managed the shaping of the Free State into vast majority that stayed is something proposition is accepted, the relief should a stable democracy by removing the Oath else. at least be phased out (e.g. 50% next year, as a precondition of sitting in the Dail. It Incidentally, the 'International Com- 25% the year after followed by abolition chose not to do so, even though the British munity' appears to be white. in the third year). Government in 1926 was a shadow of On the evening of the walk-out the The current special 20% rate applied to what it had been in 1922. It used the Oath British delegate was asked to explain why the trading profits from residential as a device for excluding its defeated Zionism was not racist. He couldn't. development land will be abolished and enemy of the Civil War from the Dail. It there will be restrictions on the treatment became a practical possibility that the * of trading losses. The profits will be party that won the election would be kept charged at the relevant marginal rates of out of the Dail. In that situation Kevin The Iranian President said that Europe income tax or at the 25% rate of corporation O'Higgins was shot. In the ensuing emerg- had absolved itself from guilt for what it tax. This is to be welcomed. ency Fianna Fail entered the Dail. Did its did to the Jews by helping the Zionists to Another welcome change is the termin- break its undertaking not to take the Oath destroy the Palestinian people. If the EU ation of the property-related accelerated to the Crown? Mr. Martin leaves his could have refuted the accusation, we capital allowance schemes in the Health reader to understand that it did. assume it would have done so instead of Sector. This scheme covers private hosp- De Valera described in detail the burying its head in the sand. itals, registered nursing homes, convales- procedure he went through on entering the cent homes and associated residential units Dail. On the way in there was a room with as well as mental health centres. Schemes a book in it. And the clerk indicated that for palliative care units and childcare he should sign the book. There was a facilities will remain in place. Could this Bible in the vicinity of the book. He took be the beginning of the end of Mary the Bible and put it away in a corner. Then Facing The Emergency Harney's co-location schemes? he signed the book. And, if that was what continued The Government has decided that from happened, he did not swear an Oath. the 1st of May, Mortgage Interest Relief Swearing is not signing. It is what one will be €15,028, €75,036 and €174,980 for principal private residences should does holding a Bible and saying, "I swear" per annum. only be available for the first seven tax etc. The great advantage of the levies from years of the mortgage. This move is just- Perhaps the new post-everything Fianna the Government's point of view is that the ified given the significant recent reduction Fail represented by Mr. Martin regards all tax payer cannot use Tax Credits to reduce in interest rates and in house prices. The of that sort of thing as superstitious the amount raised. However, it is very relief will now be targeted on those who nonsense anyway. But is it altogether disappointing that low income earners bought their homes when prices were at prudent for a Government Minister to should be subject to any levy. One of the their peak. gloss over perjury? great achievements of Irish Governments However, Lenihan wants mortgage Mr. Martin suggests a Treatyite/Anti- in the last 20 years has been to take such interest relief to support those who now Treatyite continuum of development: workers out of the tax net. This has enabled wish to move, improve or buy for the first welfare rates to increase without causing time. But why should these people be "Collins's 'stepping stone' idea is of vital supported, given falling house prices? importance with regard to the poverty traps. Lenihan's thinking is a little unclear on development of politics in the 1920s Health Levy rates will also double to and 1930s and in particular to the 4% and 5% and the entry point for the this because later in his speech he says: development of Fianna Fail which higher rate will be reduced to €1,443 per "As house prices fall the provision of later incorporated the idea into its own week which is €75,036 per annum (It was mortgage interest relief will be kept political programme" (p510). formerly 100k). under review with a view to eventual The PRSI [Pay Related Social abolition". The "stepping stone" argument, by Insurance] ceiling will also be raised to In our view such relief should be which many were drawn to the Treaty €1,443 per week or €75,036 per annum (it side, meant accepting what was conceded abolished. The tax system should not was 50k). But why not eliminate the ceiling support housing bubbles. by Britain in the Treaty and using it to take altogether and use the increased revenue what was withheld as the opportunity to give relief to the lower paid? CAPITAL TAXES AND SAVINGS arose. But that is what was not done in the Finally, Lenihan has promised to change The rates of Capital Gains Tax and 1920s. the Pension Levy to benefit the lower Capital Acquisitions Tax will increase to It was extremely ill-advised of the paid. This welcome change will cost €100 25% with immediate effect. In the light of Foreign Minister to publish a book about million. declining asset values, the CAT thresholds 5 are to be reduced by 20%. This is welcome. However, Lenihan halved the Job Seeker intensive projects. It has been pointed out The DIRT rate (interest on deposits Allowance for under 20s to €100 a week. that many of the skills for the Metro North collected by the banks) on ordinary deposit The UK rate is £68, which is about €73, so project will need to be imported. There is accounts will increase to 25% and to 28% the new payment is still higher than the a view that an over-ground solution would on certain other savings products. UK rate: a reflection of how far we have be of greater benefit to the domestic The existing 2% levy on non-life insur- come. economy. However with the decline in ance premiums will increase to 3% and activity in the rest of the economy, it is Lenihan is introducing a new levy of 1% EXCISE DUTIES important that the State presses ahead on life assurance policies. The Irish State has to endure attempts with investment in infrastructure. at fraudulent "welfare shopping" from the The State has also set aside €100 million SOCIAL WELFARE North as well as a loss of tax revenue to help Irish export-orientated companies. The Government resisted pressure to because of cross border shopping. Our There are a lot of such companies that cut social welfare rates. However the politicians are perfectly entitled to criticise have long-term viability but have been Christmas bonus week will not be paid the patriotism of such shoppers. The first brought to the edge of bankruptcy by the (representing a 2% annual cut). This must duty of our politicians is to protect the devaluation of sterling and the credit be seen in the context of a projected interests of the State they serve. crunch. They need long-term low-interest reduction in the Consumer Price index of Lenihan put 25 cent on a packet of State loans to survive the current crisis. 4% (although some of the reduction relates cigarettes but felt unable to impose any to the drop in interest rates and house increase on drink. REFORM OF THE BOURGEOIS STATE prices, which will be of no great benefit to Last month the Irish Political Review people on welfare). VOLUNTARY REDUNDANCY SCHEME remarked that the State had become Lenihan has indicated that the rent The Minister introduced a redundancy "bourgeois" in the last 10 years because of allowance will be reduced reflecting a scheme in those areas of the public service the application of market criteria to senior decrease in rents in the market. There is a where permanent reductions need to be public servants' pay. As a consequence it suspicion that State rent allowances have brought about. Staff aged 50 or over will had subordinated itself to bourgeois been keeping rents at an artificially high be eligible for this scheme. The scheme is interests. Lenihan's proposals are a modest level. Now that the housing market has best explained by an example. step in reversing this trend and returning collapsed the State should consider Most public sector workers are entitled to Republican values. increasing its stock of public housing, to pensions at age 65 equalling 1/80th of Among the measures he announced for rather than relying on private landlords to their final salary multiplied by the number politicians were: supply accommodation for welfare of years service, plus a lump sum of 3/ - 10% reduction in all expenses other recipients. There may be an opportunity 80th multiplied by the number of years than mileage rates where a 25% reduc- to do this following the creation of the service. tion has already taken place. National Asset Management Agency. At 65 someone with 40 years service - Deputies will no longer receive long Lenihan has given notice that in a would be entitled to an annual income of service payments or increments (about future budget Child Benefit will either be half (i.e. 40/80th) of final salary plus a €3k after 10 years service in the Dail). taxed or means tested. In our view it lump sum of 1.5 times salary (i.e. 120/80). - former Ministers will no longer be paid should be taxed. of final salary plus a lump sum of 1.5 Ministerial pensions while they are The Minister announced changes to the times salary (i.e. 120/80). However if the still members of the Oireachtas (in the Early Childcare Supplement. This scheme same person wished to retire at 55 it doesn't case of Bertie Ahern this amounted to was introduced to help people with the follow that the person would be entitled to €164,000 per annum). cost of childcare at the height of the boom. 30/80ths plus a 90/80th lump sum for his - Oireachtas members who are on paid It cost the State €480 million last year. 30 years service. This is because the leave of absence as teachers may no The Programme is now being replaced number of years that the person is being longer claim the difference between by a free Early Childcare & Education paid the pension will be greater. Actuaries their teachers' salary and the cost of year for pre-school children at an estimated would discount the pension entitlement employing a replacement. cost of €170 million. The Minister believes by about 5% a year. So the person retiring - The allowances paid to Oireachtas Com- that Pre-primary Education significantly at 55 would have his annual pension mittee Chairs will be halved (i.e. from enhances the subsequent educational entitlement reduced by 50% (10 x 5%). €20k to €10k and the payments to Whips and Vice-Chairs (formerly achievement of students and in turn However, under the new scheme there €10k) are to be abolished increases the return for State investment will be no actuarial reduction. But only - The Oireachtas Commission has put in education generally. The free pre-school ten per cent of the relevant lump sum will forward its own proposals for a reduc- year will start next January. The existing be payable immediately with the balance tion in the number of Committees. rate of Early Childcare Supplement will paid later at the normal retirement age of be halved with effect from 1st May next 65 without actuarial reduction and subject Lenihan made the point that members and abolished at the end of 2009. to current tax law provisions. of this Government had already reduced The Early Childcare Supplement invol- This scheme is quite generous. A few their salaries by 10% last October. Minis- ved the State just handing money over to years ago when we had full employment ters of State made a similar reduction. The parents, whereas now the State will arrange there is no doubt that it would have been public service Pension Levy was applied for the provision of childcare (albeit availed of. However, it will be interesting to members of the Government and through the private sector). Conservatives what the take up rate will be given the Ministers of State. As a result, Ministers have objected that the State should be current economic environment. have seen a reduction of one fifth in their neutral as between mothers staying at incomes. home to mind their children and working CAPITAL EXPENDITURE Lenihan intends to set up a pay review mothers buying childcare services. The Minister plans to keep capital body for senior levels in the public sector However, the State is in a better position expenditure at about 4% of GNP for the (presumably including politicians). He to negotiate cheap childcare rather than a next five years. As much of the National gave an indication of the criteria that this collection of isolated individuals. Development Plan as possible should be review body would apply: The Government is rightly proud of its retained. However we accept the Minister's "I believe pay at leadership levels in record on protecting the most vulnerable. point that priority should be given to labour the public sector should be more in 6 line with pay in other countries rather ideological considerations to get in the financial institution leaving the dodgy than with top level private sector pay way of ensuring that the State's interests assets in legacy bank owned by original in this country which had become are protected. In particular, Peter Bacon— shareholders. over-inflated in recent years and is a key Government advisor—seems to have This looks like expropriation of the now falling in any event." an ideological aversion to nationalisation. banks' shareholders. When Lenihan All of this is welcome. This person has suggested that if the Banks accused Bruton of advocating a "nuclear obtain too low a price from the State they winter" for investors in this country the CREEPING NATIONALISATION? will require another injection of capital Fine Gael finance spokesman had no reply. The Irish Political Review remains from the State because their assets will During the Celtic Tiger years the Labour sceptical of the Bad Bank solution. We are have diminished. Party had been busy distancing itself from in sympathy with Jack O'Connor's view There are two points that should be its working class base in order to make that the proposal "socialises losses". made about this. Firstly, nobody is sug- inroads into the middle class vote. For However we reserve judgement until we gesting that the State should buy the assets some time it has been attempting to sever see how the plan is implemented. at below their realisable value after links with the Trade Union movement. The State through the National Treasury adjusting for risk. If the banks have not And precisely when there has never been Management Agency will set up a new provided for bad debts, they have been more of a need for strong working class body called the National Asset Manage- overstating their accounts. representation it has been left high and ment Agency which will buy land and Secondly, and much more important, dry. development loans from the banks. The the issue of the value of loans to be In her budget debate with Dan Boyle of book value of the loans—which are assets transferred to the State and the solvency the Green Party, Joan Burton spent a lot of in the hands of the banks—amounts to of the banks are two separate issues. They time discussing the plight of a taxpayer on between €80 and €90 billion. The crucial should not be merged together. If, as a €60,000. Boyle had to point out to her that question is how much the Government result of the due diligence by the State, it someone on €60,000 is not an average tax will buy these assets from the bank for. emerges that the value of the assets is far payer. The average industrial wage is 100% of these loans are not collectable less than the Banks had provided for, that €36,000. but the uncertainty over precisely how is not an effect of this scheme. All that has much is actually collectable is happened is the true financial position of MEDIA REACTION undermining the economy by damaging the bank has emerged. The shareholders Shakespeare (or Francis Bacon) in the Banks' ability to continue providing should not be compensated by the State Coriolanus tells us that in the Roman credit to businesses and householders. because the value of the loans was less Republic the political leaders had to wear Taking these assets off the banks' books than had been previously thought. The the gown of humility before the people. makes sense from a general economic shareholders should take the hit. After a budget the equivalent for the point of view because the State is in a If it emerges that a bank's financial Finance Minister in this Republic is an better position to absorb the risk. The position is worse than had been previously appearance on the Pat Kenny radio show. discount on the book value of the assets thought and as a result of the deterioration But it is not the "people" but some should therefore take account of the risk of the capital ratio the bank becomes examples of the lumpen petty bourgeoisie that the State has undertaken as well as the insolvent, the State should not baulk at that phone in to air their middle class net realisable value of these assets. full nationalisation with no compensation frustration which Pat Kenny was happy to The State will pay for these assets by for shareholders. pander to. The first caller was a teacher issuing Government Bonds to the banks. Recently, an American economist said whose investment in an apartment in This will enable the banks to borrow from that one shouldn't let an economic crisis Croatia hadn't worked out. She was on the European Central Bank using Irish go to waste. That is the attitude of the Irish over €60k a year but there was absolutely Government Bonds as security. Political Review. The lesson of recent no sense of social awareness never mind The transfer of the assets to the State at times is that the banking model is deeply responsibility. Absolutely no appreciation a discount will not mean that the borrowers flawed. Banks in this and other countries that someone like her in a secure job was will be entitled to a discount. They will have been using the savings generated in far better off than most other people in the still be liable for 100% of the loans. Of the productive economy to create asset society. She deeply resented paying any course, in some cases, the borrower will bubbles, which have undermined the increase in tax in this country, which has not have the capacity to repay the loans. productive part of the economy even before one of the lowest tax rates in the OECD. But, unlike with the toxic assets of the the bubbles burst. And now such ir- The second caller was the wife of a civil American and British banks, the loans responsible policies are wreaking havoc. servant whose salary was also €60k plus. will in general be worth much more than The idea that we can return to "business as This income was supplemented by her a zero net realisable value. In the event of usual" if the current crisis is resolved is part time job and yet she considers herself a default, the developer's land will revert simply not acceptable. among the "new poor". to the State. In the case of land in the 26 The views of these women were Counties, the State will be in a position to POLITICAL REACTION recorded approvingly by the print media. take account of the newly-acquired assets In the post-budget debate between Brian If the Finance Minister could tax middle in its national development strategy. Could Lenihan and Richard Bruton, Lenihan was class whinging we would never have any State-owned land in rural Ireland give a much more convincing. Fine Gael has a deficits! renewed impetus to the de-centralisation mish-mash of mainly right-wing policies policy?! sprinkled with some left-wing populism. CONCLUSION If the State does not obtain a value On the one hand it wants 15,000 The Irish Political Review has thought equal to what it paid for from the bank it redundancies in the public sector, a for many years that there is no viable reserves the right to impose a levy on the reduction in the minimum wage and an alternative to a Fianna Fail-led Govern- bank at some future date. emphasis on cut-backs rather than increas- ment. Despite recent opinion polls, we see All of this is reasonable and appears to ed taxation as well as a programme of no reason to change our opinion. Opinion be a far better scheme than the British privatisation. On the other hand its solution polls are practically meaningless outside Government's €600 billion insurance to the banking crisis is to create a "good the context of a General Election. scheme to bail out her banks. However, bank" which would involve transferring At present—despite the ramblings of the Government should not allow the good assets of the banks to a new some representatives of the discredited 7 Standard and Poor ratings agency—there is no necessity for a General Election. The Government has not encountered any Ireland's Comparatively Healthy serious resistance to its policies and is not likely to given the state of the political Debt/GDP Ratio opposition. The following letter was submitted to the Financial Times on 8th April, in response to Fianna Fail remains the responsible its coverage on the previous day's Irish Budget, but the paper did not see fit to party in the State. If the Green Party holds publish it. There has been quite a bit of Schadenfreude in Britain at Irish difficulties, its nerve it will benefit from the experience which have been exaggerated. For instance, the Sunday Times magazine of 29th of Government. March featured a kitten on its cover with the caption: "How The Celtic Tiger Lost Its Roar. Ireland's economy turned the world green with envy. Now the country's having kittens" As I stated on BBC2 Newsnight (April 7), in my capacity as Chief Economist A World Full Of of our largest union SIPTU, the Irish trade union movement is severely critical of Blind Spots both the lack of sufficient progressivity in the taxation measures of Tuesday's Budget, resulting in an undue burden on low to middle incomes, and its paucity of job creation There was a letter in the Irish Times on and upskilling measures. The broad parameters are, however, about right. Despite 31st March on behalf of the European the incessant screaming from more rightwing commentators, who demanded that Council on Foreign Relations signed by a the Government should have imposed even more stringent expenditure cuts in select group of 55 ex-Commissioners, order to reduce this year's borrowing still further to 9.5 per cent of GDP, it has more Ambassadors, Prime Ministers and various sensibly opted for a level of 10.75 per cent. other personages helpfully listed from A— Your own Irish Budget report (April 8) once again referred back to Standard and W. Like so many statements and Poor's frivolous downgrading of Ireland's sovereign debt credit rating. Why? Ireland declarations from such people nowadays starts out from a far healthier debt/GDP ratio than many another EU member state. about the EU they tend to raise many more The European Commission's January estimates for 2008 ratios put the average for the questions than they answer. EU as a whole at 61 per cent, the UK ratio at 50 per cent and the Euro area average They assert that: at 69 per cent. In contrast, Tuesday's Budget statement puts Ireland's 2008 gross debt "Since 1945, Europe has enjoyed ratio at 43 per cent of GDP. But when the assets of the National Treasury Management peace and prosperity as never before. Agency and the National Pension Reserve Fund are further taken into account, the The central reason was the creation of net debt/GDP ratio comes in at a very much lower level of 22 per cent. Europe's internal market which has It is, of course, true that Ireland's gross debt ratio is forecast to peak at 79 per cent locked the economies of different mem- in 2012, before falling back to 77 per cent in 2013. But the net debt ratio will be still ber states together in a legal community kept close to 55 per cent. As I also pointed out on Newsnight, your own Lex column that enjoys the free movement of people, forecasts (April 7) that the UK's public debt/GDP ratio will rise to over 81 per cent capital, goods and services." by 2013-14, with no equivalent asset holdings that might bring about a lower net The internal market was initiated in the outcome similar to that of Ireland. When it comes to the relative health of public mid 1980s and is yet to be completed, so finances, just who's standard and who's poor? how in the world was it a factor since Manus O'Riordan 1945? It is generally accepted that the Member, ETUC Economic and Employment Committee Balkans are in Europe and we have had a SIPTU, Dublin, IRELAND most vicious war there with an estimated 100,000 killed and 2 million The most glaring fact about the for the racist and warmongering state of people displaced. This happened after the 'incomplete' Eurozone is that a major Israel? Or is that another blind spot of internal market was initiated and the war Member State is not a member, has no theirs that that they think everyone else is was the working out of the oft-repeated notion of joining, its deregulation blind to as well? desire of the driving force behind the philosophy caused the current recession Jack Lane internal market, Margaret Thatcher, to and it is using its own currency to play destroy the Federal Republic of havoc with other Member State Yugoslavia [FRY]. The EU carried out economies. But, the UK and its negative her wishes by breaking up the FRY and effect on EU solidarity again becomes causing that war. Some peace and invisible to these luminaries. Will they Look Up prosperity! Some blind spot by these ever see the UK's role in the EU for what people. it really is—a Trojan horse? Athol Books They comment on the Eurozone: They tell us, that "Europe is in a critical on the Internet position. Its member-states are too "The unfolding financial crisis has integrated to be able to develop purely convincingly demonstrated the strengths national responses, but too divided to of Europe's second big project, the cre- decide on a common way forward." That ation of a common currency. Without it, www.atholbooks.org some members of the euro zone might is only partly true. And if they could cast have found themselves in far greater the scales from their eyes they would see difficulty. However, the euro project is that that does not apply to the UK. revealed as incomplete; it has a central But the most significant item from these You will find plenty to read; bank but it does not have a central trea- EU Foreign Relations gurus is that there is you can look over sury and the supervision of the banking no actual mention of foreign relations! the Catalogue, system is left to national authorities. A Could they please start on this issue by lack of solidarity inside the euro zone, or writing another 55 signatory letter and even with new members of Europe's explaining why they refuse to recognise order publications unified market could become a hazard the democratically elected Government for the euro zone." of Palestine and provide special treatment 8 purchasing, production and marketing system to be born again so that it will not decisions. be tainted by original sin. But one area of Capitalism remained For the last number of years billions of Shorts independent. That was the financial sector. Euros have been swirling around the Although integration occurred within that Global system. What could be more natural from sector it became relatively independent of for Irish bankers to access this money? the real economy. Indeed the tendency And at the time it was thought that nothing the Long Fellow was for it to de-couple from the rest of the could be "as safe as houses". Michael economy. And for the last year it has been Soden is generally considered to have THE INEVITABILITY OF SOCIALISM disappearing up its own arse, which would been blameless in all of this. He was the It used to be the case that socialists not be a problem if it were not affecting Chief Executive of Bank of Ireland but believed that the triumph of Socialism the rest of the economy. The greater was forced to resign as a result of a personal was inevitable Communists, in particular, integration of the real economy and con- indiscretion in 2004, a decent period before believed that Marx and Engels had sequent increase in the productive the banks began to look over the precipice. revealed the laws of motion of the resources has made it essential that the He was asked on Eamon Dunphy's radio Capitalist system and that those laws financial sector should be subordinated to show if he would have done anything showed that the system would develop the real economy. differently to his peers had he remained towards its destruction. on as Chief Executive. Soden replied Marx and Engels may not have been THE FINANCIAL CRISIS honestly that he did not trust himself right, but they have not been proved to be Marx and Engels may not have been enough to give himself the benefit of the wrong! right, but they have not been proved to be doubt. About twenty years ago multi-national wrong! It is quite ridiculous to explain the executives were imbued with the idea of The current financial crisis may not banking crisis by an outbreak of competition. Large organisations were presage the dawn of socialism, but it does immorality among Irish Senior Executives. broken up and the individual component signal the end of the financial system as Nor can the crisis be explained by "crony parts were encouraged to compete with we know it. capitalism" (as has been suggested about one another. A subsidiary in a multi- In Volume 3 of Das Kapital Engels Ireland by the Financial Times amongst national had "external suppliers" or puzzled over two related elements of the others). In fact the crisis was caused by the suppliers not owned by the group and current crisis: Finance Capital and Land. very opposite of crony capitalism. Un- "internal suppliers" or suppliers belonging While value was created by Labour in restricted competition forced Irish bankers to the group. In the interests of competition Agriculture and Manufacturing, no value to lend recklessly in order to retain market it was perfectly acceptable for a subsidiary was created in the financial sector or by share. Reckless lending was stimulated— to buy from an external supplier in the ownership of land. And yet bankers as much if not more—by the entrance into preference to the "internal" alternative. are able to charge a rate of interest and the Irish market of Royal Bank of Scotland But all that changed about ten years even virgin land has a price. Engels (2008 loss of £28 billion) and Halifax ago. The new line was that multi-national concluded that the profits of the financial Bank of Scotland (2008 loss of £10 billion) corporations must "leverage their size". sector and rents originated from the as the activities of Seanie FitzPatrick. The Head Office decided that the individ- productive sector of the economy. They The Long Fellow thinks that ual components of the organisation must were distributed from the Agricultural nationalisation is only part of the answer. be integrated. Subsidiaries were not and Industrial Bourgeoisie to Finance In order to guarantee stability in the system allowed compete against each other and Capitalists and the Land owning Classes. the laws of competition must be suspended. under no circumstances were they allowed But the rate of interest, the price of land to buy from external suppliers if there was and rents was not determined by the law of ECONOMISTS' INTERVENTION an internal alternative. Subsidiaries were value or the average rate of profit. It was 20 economists wrote into The Irish not allowed to have their own computer an arbitrary and unstable element within Times (18.4.09) to express their sources and in many cases purchasing the system. reservations about the National Asset decisions were taken away from Franklin D. Roosevelt concluded that Management Agency (NAMA). The subsidiaries. Centralised purchasing in order for capitalism to function this intervention was useful for the following enabled the multi-national to maximise its unstable element needed to be tightly reason. They think that NAMA should buying power. regulated. But that lesson was unlearned under no circumstances buy the €80 to It wasn't much fun being a Managing in the 1980s and led to the collapse of the €90 billion assets from the banks at greater Director of a subsidiary anymore. Before, Savings and Loans institutions in the USA. than their market value. The economists— that person's independence was valued, It has now been unlearned again with which include some right-wing ideologues but now he found himself being slapped catastrophic and global consequences. such as Constantin Gurdgiev—are afraid around the place by Head Office for not that the Government might be tempted to being a "team player". Marx would have THE IRISH CRISIS do this to avoid nationalisation. As the approved or, at least, would not have been The Long Fellow has no interest in Irish Political Review has pointed out in surprised at the new line. He would have whether Sean FitzPatrick is corrupt or not. its editorial, the issues of the purchase seen it as evidence of greater socialisation Morality should have no place in affairs of price of these assets and nationalisation or integration of production even if State. The law should take its course. should be kept separate. ownership remained in private hands. Konrad Adenauer knew that if the Federal The Long Fellow thinks that eventual And the socialisation or integration was Republic of Germany was to consolidate nationalisation is in the best interests of not confined within the multinational itself after the War it would need continuity the taxpayer. However, the 20 economists corporation. Developments in software in personnel. The interests of the State think that nationalisation is a means of facilitated "supply chain management" took precedence over all other consider- rescuing the banks so as to enable them to and "enterprise resource planning". Even ations. But that is not how Vincent Browne be privatised again. They think that in a external suppliers and customers became sees it. He thinks a new nationalised bank few years the banks will make money "business partners". Shared computer must be set up even though we already again and can be sold by the State at a resources between independently-owned have one (Anglo-Irish) and may have more. profit. This reminds the Long Fellow of companies enabled more efficient He has a puritan desire for the banking the definition of a madman: someone who 9 tries the same thing twice and expects a encouraged by two things. Brian Lenihan's fine Budget speech was a different outcome. Why do the economists Firstly, he read that some developers reference at the end to our "short history think that when the banks are privatised are considering legal action to prevent the as a nation". This must be a slip of the again they will behave any differently? transfer of the assets from the banks to the tongue. De Valera's formula was that Do the economists really believe that the National Asset Management Agency. This Ireland was an Ancient Nation but a new failure of the banks was just down to the must mean that they would prefer to deal State. About 20 years ago Brendan Clifford decisions of senior management and was with their buddies in the Banks than the wrote that a rupture had occurred in the not systemic?!!! new State body. nation's development in 1810 during the Veto Controversy which enabled Secondly, he understands that the GOVERNMENT PERFORMANCE Republicanism to be fused with Catholic valuation of the loans and also the land The Long Fellow thinks that the Nationalism. But that is something which that the loans were used to finance will be Government has performed quite Fianna Fail need not concern itself with done by a foreign firm. Ireland is a small competently during the Financial crisis. unduly. The job of the largest party of the country and there are a lot of desperate The only serious mistake was to announce State is to provide ideological coherence men here trying to salvage billions of the 2009 budget before the true depth of and an affirmation of Republican values. euros. The Long Fellow knows a Director the crisis became known. By coincidence Fintan O'Toole in the of one of the largest Estate Agents in the At the end of last year the banking coffee table magazine which The Irish country who has no interest in subjecting system was about to implode. The Times produced on its 150th anniversary himself to the pressure involved in valuing Government introduced the Bank also referred to the newness of the country. these loans. Guarantee System and staved off the He said that the "country did not really sudden flight of capital which was exist" in 1859. It is a great pity that O'Toole imminent. This guarantee was not given STABILISATION FUND did not say when it did come into existence. free to the banks. The banks had to pay a After all the billions that have been Perhaps in the fantasy world of that premium to participate in this insurance channelled to the banks it is good to see newspaper it began with the Freemason- scheme. Anglo-Irish has been nationalised businesses in the real economy receive inspired Irish Times Trust document of and the two largest banks are in the process some help. The €100 million stabilisation 1974! of being re-capitalised and may eventually fund is not enough but it is a start. There is be nationalised. no point in handing over money to THE BRITISH COMMONWEALTH Eamon Ryan of the Green Party has businesses that are not viable. It should be But the newspaper's fantasy world expressed doubts that the Department of restricted to companies that are export- received a nasty jolt with the complete Finance has the expertise to run a orientated. The funds given to these failure of its campaign to return us to the nationalised bank. But there is no companies should be in the form of loans British Commonwealth. The campaign obligation for the State to be involved in rather than grants to protect the interests started with a letter in the newspaper signed the day to day running of the banks. And, of the taxpayer. And the State should use by the usual suspects such as Eoghan despite the moralistic bleating of sections its leverage over the banks to augment this Harris, Bruce Arnold and Ruth Dudley- of the media, there is no necessity to create fund. Edwards etc. The impression was given a nationalised bank from scratch. The that the Department of History in UCC structure is already in place. All that is THE BUDGET DEFICIT had something to do with the letter but that required of the State in the short term is While there has been much talk of the Department quickly disowned any that it provide supervisory oversight and State's budget deficit for 2009 which at connection with the document. decide on general policy. The Central 10.75% is the highest in the Euro Zone The newspaper must have been shocked Bank already does this. The problem was (but lower than the UK's) other statistics at the overwhelming antipathy to the idea that in recent times the Irish Banks could give a more benign picture of Ireland's in its letters pages. What killed the idea safely ignore the Central Bank's warnings ability to pay its way. Our national debt stone dead was the suggestion that instead on the property bubble. Under State (the accumulation of budget deficits) of the Irish joining the Commonwealth ownership this will no longer be possible. remains at only 43%, well below the EU the British should consider being a proper But, as it happens, the State has decided average of 61% of GDP. member of the EU. that it has particular expertise in the most The Irish economy has shown a The problem that the revisionists have problematic area of the Irish banking remarkable ability to adjust to the crisis. is that while there is a significant minority system: loans to developers. While our exports are anticipated to drop of Irish people who are prepared to tolerate by 5.9% in 2009 compared to drops in the denigration of aspects of our history NAMA Germany, France and the UK of 16.5%, and culture, practically no one outside an "…somewhere back in the vast obscurity 11.4% and 9.8%, our imports have dropped ideological clique has any affinity with beyond the city, where the dark fields even further. Our current balance with the British culture. of the Republic rolled on under the rest of the world is likely to return to a The newspaper had to prepare a tactical night" (The Great Gatsby by F. Scott surplus in 2009 according to the OECD. retreat. Its comedian Newton Emerson FitzGerald). This compares to current deficits of 10% suggested that the Commonwealth The Long Fellow does not know any and 14% in Spain and Greece. wouldn't have us anyway. So that's alright more than F. Scott FitzGerald where the What seems to be happening is that the then! Everyone is happy. We don't want to land that the Irish Banks financed is. But increase in the public debt is being join and they don't want to let us in. But it a large portion of it must be in Ireland and compensated for by an increase in private couldn't just leave it at that. On 17th April could be developed for the benefit of this savings. While there are many young it carried an eccentric article by a Julian country. The world economic crisis has people with high mortgages, about 50% Ellison who blames political separation severely affected the private sector in this of households don't have a mortgage at on the British Conservatives, who opposed country. It is likely that the State will have all. The Government should follow the the Home Rule Bill and thereby to take a greater role in the economy. advice of ICTU and issue a recovery bond undermined the Irish Parliamentary Party. The Long Fellow does not know what to access these private savings. This led to the decline of the British Liberal proportion of the €80 to €90 billion is party and the rise of the divisive British realisable, or how much the State is A NEW NATION? Labour Party and Sinn Fein. prepared to pay for these assets. But he is A curious and unremarked aspect of It can be quite pathetic to read history 10 from the perspective of those who wish every likelihood that the market was over- to buy the electorate and bribe it into a that the past was something different to optimistic in its valuation (even at that sense, utterly unsustainable, of permanent what it actually was. Has it ever occurred rock-bottom price), that it was pricing the well-being. Bertie Ahern oversaw all of to these people that the vast majority of share on a going concern and recapital- this as did Brian Cowen, both as Minister people in this country are quite happy isation basis (with the new capital taking for Finance in succession to McCreevy with the way life turned out and don't predominantly the form of redeemable and as successor to Bertie (who by the consider history as being a mistake? fixed dividend preference shares and the way now, in the wake of Tony Gregory's But if the revisionists are pathetic, ordinary shares undisturbed). Anglo has posthumous and clearly calculated they are nothing compared to The Irish apparently recently been suffering a silent testimony in a Hot Press interview, appears Times. The Irish Times has been trying to run on its deposits and the securities on its as a spiteful creature, a jealous creep and revive the spirit of Redmondism in the loan book seem largely to amount to claims deeply vindictive with a very long and Irish people, but in order to do this it must against increasingly worthless develop- unforgiving memory). induce in itself a condition of amnesia. ment land banks given the collapse of the But to return to living politics: Ireland When Redmondism was a living political property bubble. is now in a slump that at best will descend tendency the newspaper opposed it. It The word 'greedy' has been used into a depression of a few years with little could not bring itself to support the Irish incessantly by commentators about Anglo, prospect of rescue unless Obama's 'big Parliamentary Party in the 1918 Election, as has 'reckless'. This is at best to mis- spend' works, which it may not. It is of even when there was no Southern Unionist represent its actions. Anglo was not at all little consequence and no consolation that alternative to Sinn Fein. greedy. It and its borrowers were behaving Britain is in the very same boat—possibly Julian Ellisson and The Irish Times's absolutely normally and entirely rationally even in worse condition, although that is new-found liberalism is a piece of trickery. —as were other banks and their corporate not clear because there is every evidence And The Irish Times let its mask slip when customers—in a context of Government that the Irish establishment including the it revealed that Ellison believes: for years ignoring its regulatory and media, are engaged in a significant "… that accepting a Protestant voice oversight duties in the name of "a light conspiracy of censorship, and not just as back into Ireland's political and social hand on the tiller". Just about the most regards Britain. Only the big and uncensor- culture should be the next phase of the sensible comment, indirectly, on it all was able bad news is being let out. Nonetheless peace process." from Mary O Rourke TD during a Dail everyone knows what is happening, despite Committee meeting to examine the recent the non- and under-reporting. People can Geraldine Kennedy is right when she pig meat crisis: see it in our cities, suburbs, towns and says in the commemoration magazine that "And, as for those who charge 'reckless- villages—cruising the shopping malls is the raison d'etre of The Irish Times has gone, replaced by queuing at the Social not changed in 150 years. But its ideology ness', well not so long ago they were Welfare office. is moribund. silent about any prudential concerns they might have had in the face of fine As to the charge of a conspiracy to The values of the Republic will prevail. dividends and a fat capital gain on the suppress, no doubt people like Colm Keena share price. That is what they bought will point to the likes of colour-piece into. " coverage of the Commercial Court. But But the Anglo story is not simply about what is a daily colour piece tucked away in the financial pages, other than a potential Discussion Article: Readers are invited to local difficulties and native Government comment on this analysis negligence in one relatively small bank. for a journalism award, when it is not The entire Irish banking system is in deep matched on the front page or in the news Beware Falling trouble—for much the same reasons. pages? This is elephant in the room stuff. Further, international investors have On Friday evening the airwaves were full Objects entirely lost belief in the 'Irish story', the of the litany: more closures and layoffs, pitch to them that this was a strong, vibrant more jobs gone, the lives of more indivi- Ralph Nader during the recent US economy, a place to confidently buy into. duals, families and communities blighted. elections had a slogan, summing up as he Well, not any more—and probably not for No censorship—but only because the scale saw it, the present policy of the US a long time again. of it could not be ignored or hidden. All of Government: what he saw was as he put it, Nor does the line that Ireland is simply this contrasts with the veritable cataract of a "nanny state" pursuing a pro-capitalist being hit by a global phenomenon that has news of crisis in the British media—or the policy of nationalising losses and privat- its origins in the American sub-prime German or American or wherever. ising profits. Spot on and not just in relation disaster wash. Yes, that is part of the story Of course the charge is that anything to America: it is a worldwide phenomenon, but only part. In many countries there are, other than the elephant in the room including in Ireland. as in Ireland, domestic dimensions to the approach is 'talking down' the economy, At the time of writing, Anglo Irish more general collapse. And in Ireland the indeed downright unpatriotic. (The Bank has just been nationalised and the domestic dimension was not only the negli- Christmas 'shop for Ireland' campaign was bail-out plan, which would have involved gence of Government in respect of regul- in this regard surreally representative of an investment of €1.5bn by the state in ation and supervision but the very this mindset.) There is another variation Anglo, abandoned. Emergency legislation encouragement of bankers' and developers' on this theme, evident on RTE radio in will be drummed through the Dail in a actions in the name of what in the end John Gormley's plea for all-party support day, an assessor will now be appointed to proved to be utter hubris. This was done in the Dail for the Government in these advise Government on the real worth of knowingly and it was invented as a policy times of crisis. But why? Only a short the shares of the bank, with a view to by the former Minister for Finance and while ago Gormley from the Opposition establishing fair value from the point of current EU commissioner, Charlie Mc benches would in similar circumstances view of compensating shareholders in the Creevy. have been baying for Ministerial blood nationalisation context. Prior to the To be fair, Government and McCreevy and scalps and—and an immediate General Government move, the shares were trad- were nothing nothing if not consistent— Election with a view of replacing the ing at 27 cent but as the Minister for for they behaved in precisely the same Government. Some days earlier his Green Finance pointed out that is simply the manner in respect of their own respon- colleague Senator Dan Boyle came up market's price—and that may be more or sibilities as regards the public finances. with not a bad idea, a hard pruning of the indeed less than true fair value. There is They blatantly used the windfall of growth number of junior ministers. Gormley 11 refused to take the plea to Cabinet, yet Feargus O Raghallaigh owned New Zealand Post Office and operates Martin Mansergh and two of his Fianna The following letter, submitted by Feargus a branch network through more than 300 PostShops (the post office branch network) as Fail junior minister colleagues indicated O Raghallaigh to the Irish Times on 18th December, was not published: well as a national network of ATMs and elec- willingness to take up the idea. Gormley's tronic and phone-based banking services. It is Green colleague, prim little Trevor Might I be allowed to correct one small but profitable and growing, has more than 600,000 Sargent, ensconced as a junior in Agricul- relevant point of detail in Michael Casey's members (out of a population of more than 4 ture, was notable by his deafening silence excellent article 'Double-edged sword for bank million residents) and provides a full range of bosses' (18 December). on the question. Ah well. services, personal, business, international and Mr Casey states that "New Zealand doesn't home-loans. As someone in a small way famil- Why should everyone—political par- have one New Zealand-owned bank." Yes it iar with New Zealand I can vouch for Kiwibank's ties, trade unions and the other elements does, have one and fast-growing, Kiwibank. popularity and availability of service through of civil society—buy into joining hands Established in 2002 Kiwibank was created to the highly service oriented PostShop network with the Government in collective prayers be precisely what it is: it markets to its public and telecommunications networks. to the Lord for salvation? That is not life, under the slogans "it's ours" and an "epic story of resistance" {to the dominance of New By the way, the bank is fully guaranteed by politics or social reality. There is little to Zealand banking system by Australian-owned the government and is chaired by a former suggest that Government has learned banks}. prime minister, the Irish Kiwi Jim Bolger and much, is remotely contrite—or that the Kiwibank is wholly owned by the state- has a staff of just 800 (where are all the fat cats, banks have learned anything at all, other executives and bonus-fleecers?). than that they have a soft touch in this civil service job. As her children grew and outfit. That though, may be slightly unfair Irish Political Review carried an obituary left home, Sheila actively participated in on the Government at this stage: the lesson of Sheila in March 2009. Here is another Bailieborough life. She ran the pub with may be beginning to sink in. This is one which first appeared in the Anglo-Celt Jim and grew to know the many members conclusion that could be drawn from the of the local community, and they would abandonment of the Anglo bail-out (which Sheila Kelly 1932-2009 both fondly recount tales of the Fays, the should never have happened, the bank Originally from Naas, Co Kildare, Mitchells and the escapades of Josie should have been left sink) and the Sheila Kelly, moved to Bailieborough, Duignan, among others. adoption of nationalisation in the way it with her husband, Jim, in the mid 70s, In the early 1980s, Sheila and Jim sold was and when it was. The reality was that where they ran The West End Bar. the pub and moved to Barrack Street, Anglo had called a snap egm to approve Sheila had married Jim in 1956 and where she became involved in the local the bail out and announce a new Chief had settled into a happy marriage and community, including the set-up of the Executive, an insider and head of its UK partnership, following him to Kells, Co Enterprise Centre. Sheila also served on operation (as big a bloodbath as is the Irish Meath, Tiberius in Israel and Damascus the local Chamber of Commerce and spent operation through the bank's engagement in Syria, as Jim advanced his army career. some time as secretary to the local Fianna in the buy-to-rent sector in the UK), with In 1970, in what is historically referred Fail cumann. During this time she still no annual report or audited accounts to as the arms crisis, Jim Kelly, an army completed a diploma in personal develop- for last year to be seen (indeed having Captain, was accused of conspiring with ment and gave workshops to teenagers been delayed). If this signalled anything others to import arms into Ireland for use who had fallen outside mainstream educ- it was 'thanks for your money and now it's in Northern Ireland. Two celebrated cases ation. She was also awarded Cavan Person back to normal)'. If this is a fir read of followed in the High Court where all of of the Year. events then nationalisation—as a precursor the accused were subsequently acquitted. Sheila took an active interest in publish- to liquidation—is surely the correct Jim’s defence that the importation was ing. She worked with Jim to publish and approach. government sanctioned prior to its chang- distribute his books, and co-edited the There is though the question of bank ing its mind, did not endear him to the Cavan Leader during 1990s. She also and other business regulation for the future. politically powerful, as the government wrote and researched many articles, Here we return to Mary O Rourke and a argued that they knew nothing about it. including one on Henry James for a Dublin proposal to her nephew, the present His reputation in tatters, he and his family publication. Minister for Finance. Brian Og [Lenihan], were left in penury to survive political Moving to Cavan strengthened the well suited to his pole position as putative out-casting. family bond with nearby relatives. Sheila leader of the mohairs of FF, would be well Throughout this time, Sheila, stood and Jim were especially close to Jim’s advised to ask his auntie for a lesson in squarely behind him. In 1971, plucked cousin, Donald McCabe and his late wife historic Fianna Fail values (those of the from the shelter-belt of a middle class Kitty, of Tunnyduff. Also, Jim’s sister, old days) and mulling over his notes officer's wife, she was compelled to con- Theresa Connolly of Farnham Street, afterwards. front adversity. With six children, under Cavan, who in her youth picketed the Four Which brings us finally to our Trade the age of fourteen years, and no income Courts, was Sheila’s great friend. Other Unions and working class (do we have (or prospect of income), she and Jim Cavan relatives include Brendan Kelly such?). foraged to provide for their family. Initial- (Virginia), Vera Kelly (Bailieboro) and Congress as much as the Opposition ly even Jim’s small army pension was Lil Carolan (Bailieboro), as well as Jim’s parties have an issue to deal with. It is to denied. Sheila lobbied incessantly on the siblings further afield and her own Kane avoid any embrace of Government in the matter, and with child's buggy in tow, she family, particularly her sister Eithne and name of 'national unity' or any other similar picketed the Dail to highlight the raw her brothers in law, Father Martin Kelly such plea, or indeed 'participative' or political deal meted out to her husband. (Portaferry) and Father Oliver Kelly 'partnership' blandishments and to Eventually, Dick Walsh, a journalist (Manorhamilton), who concelebrated the negotiate hard, extractive terms for work- with the Irish Times, canvassed Minister Requiem mass. ers, their families and the society they Paddy Hillery to intervene and have the Sheila is survived by her six children, inhabit in the face of what is about to be government's veto on his army pension Suzanne—Tax Barrister (Dublin & demanded of them: wage cuts, large-scale Athlone), Jacqueline—Solicitor (Dublin), lifted. redundancies in the civil and public Sylvia—Teacher (England), Peter— In a different life Sheila might have services and in the wider public sector, Greeting Card Manufacturer (Bailie- done many things. She was of that era retrenchment in public service provision borough), Justin—Fund Manager, Harvard when a career was not an option for women (Massachusetts), and Sheila—Business and much more (in areas such as pensions and where marriage ensured an end to a Executive (Dublin) and so on).

12 Pat Murphy Tributes Pat Murphy died on 1st April. His family, friends and comrades gathered to give him a good send-off on Saturday, 4th April. Pat had been ill with cancer for some years, but did not tell anyone until it became unavoidable late in 2008. His friends knew he had heart problems and attributed his growing weakness to that. This was on top of an orthopaedic problem resulting from TB contracted in early childhood. His philosophy was that he would never be crippled in his mind, though crippled in body and he followed it through, right to his lucid end. Below are some extracts from the Funeral Service, which was arranged in consultation with Pat and held in Glasnevin Crematorium. Manus O'Riordan did Pat proud as Master of Ceremonies

Entrance processional music: "Return to were left republican, based on family McCann. The others, including Pat, Fingal" played on uilleann pipes by Noel history and admiration of those who fought Brendan and Angela Clifford, Mick Pocock the War of Independence, and he has Murray and Denis Dennehy became the Manus O'Riordan sings "Roll Away The speculated that if he wasn't so physically Irish Communist Organisation—later the Stone" ("Homage to Jim Larkin") disabled he might have been involved in British & Irish Communist Organisation. Tony Rogers speaks on behalf of Pat's the IRA's 50s campaign. When Pat left It took the Chinese side in the Sino-Soviet family Dublin for England his father, a Civic split and was regarded as "Stalinist". This Mick Murray speaks of Pat's early political Guard in Dublin, advised him to "stay was because it regarded as a fundamental activities away from politics!" error the Trotskyist and Revisionist view Tony Monks speaks on behalf of the Larkin Initially based in Oxford with relatives, that Stalin had destroyed Leninist Unemployed Centre (see below) he soon found that emigrant culture did democracy. The ICO maintained that there Malachi Lawless speaks on behalf of the not appeal to him and he moved to London, was never a Leninist democracy and that Irish Political Review Group (see below) where he attended the Working Men's the state that Stalin ran was the one Annette O'Riordan sings "Pulling Hard College, which he described as "a little deliberately conceived of and constructed Against The Stream" university for the workers" and took by Lenin. Tom Crean and Jimmy Kelly sing "The English literature classes run by an English Anti-revisionists and Maoists began to Parting Glass" Communist, who he said "kind of took me gravitate towards the ICO. It was decided Des Geraghty (flute) plays his composition in hand". He got his GCE 0 levels and a to build a new Communist Party in Ireland, "Caoineadh Mo Mhuintire" ("Lament civil service job with the land registry. It and Pat, Mick and Denis went back to for my People") was in the College in 1959 that he met Dublin with this purpose in 1966. The Manus O'Riordan sings "The Foggy Dew" Brendan Clifford and this meeting began ICO involved itself in the Housing Action (Easter Rising) a lifelong engagement with the politics Committees in Dublin and Cork, where it Announcement that on May Day, Friday, associated with the British and Irish formed an alliance with other Communists, May 1, Pat's family will be holding a Communist Organisation and latterly the left-Republicans and Socialists and found month's mind Mass in his memory in Irish Political Review Group. Pat said he that you no longer risked being thrown Gardiner Street Church decided to go politically with Clifford into the Liffey or the Lee for being a All stand for a minute's silence and private rather than his English communist teacher public Communist. A lot of younger, prayer or reflection because "Clifford would react to your mostly working-class, people were Committal music: Noel Pocock (pipes) mind, which was what I needed". He radicalised by these activities. plays the Jacobite air "Marbhna worked his way around his disability and One of Pat's favourite anecdotes from Luimnighe" ("Limerick's Lamentation") not only became intellectually inspiring, those days was when he and Mick Murray but got himself around to meetings and up were invited to Albania in 1969, as on to platforms. representatives of the Irish anti- PAT MURPHY 1937-2009 The Irish Communist Group was revisionists, where he fell foul of his hosts —AN APPRECIATION Pat Murphy's formative years were formed in 1964 and included Liam Dalton at an official function by only proposing a blighted by illness, which left him with and Noel Jenkinson. A Trotskyist section toast to the Irish and the Albanian Peoples was formed by Gery Lawless and Eamon and omitted to toast Enver Hoxha. This, permanent physical disabilities and an almost complete lack of formal education. Despite these handicaps, Pat carved out a niche for himself in Irish left wing politics and has a record of achievement as a Trade Unionist and grass roots political activist which is in many ways unparalleled. When I asked him, shortly before he died, why he got involved in Politics, he said it was initially just sheer rage at the treatment he and others had received in Cappagh Hospital as children and later on finding that Socialism provides a ready made intellectual context for the expression of that anger and a means to channel it. He was hugely impressed by the post-war British Labour Government and described those involved as one of two exceptional generations, the other one being the Irish generation which fought the War of Independence. Pat went to England at the age of 22 in the late 1950s, at which time his politics Pat Murphy (centre) with his guides in Communist Albania 13 he speculated, resulted in the Irish to transfer where 80% or more voted in became more intractable. This laid the delegation not receiving a follow up favour. Pat never regretted taking this seeds for the heroin problem which became invitation to China, which was extended action, but he did regret that he had had to, the scourge of the area and others like it. to the other groups present. He had no as he always regarded the ITGWU as Having initially been involved in the regrets about this, because, as he said being part of the National Movement and setting up and the management of the about toasting Hoxha, "I just couldn't do disliked the influence which British-based Centre, Pat took voluntary redundancy it" . unions brought to bear on left politics here and began work full time with the Centre By 1969 the ICO was involved in Belfast and especially, later on, their opposition shortly afterwards. Pat was very much where members such as Len Callender, to Social Partnership. swimming against the tide at this time by Tommy Dwyer, Jack Lane and others Pat then began a long campaign, with focusing on job creation as a solution to manned the barricades in West Belfast input from Mick Murray, to achieve a mass unemployment. Much of the against the B-Specials and others. In the worker shareholding in the Company, conventional wisdom in circulation was course of this activity the ICO, with the where he saw the possibilities of trading that unemployment was there to stay; that initial idea coming from Pat and developed new working methods, of self-organised Ireland was the standard-bearer of the by Brendan Clifford, came to the work groups, for a stake in the company. post-industrial society, where the only conclusion that the idea that there was a Pat based his vision of workers' democracy realistic approach to the problem was a single nation in Ireland was a delusion on a study of the Mondragon Co-operative welfarist one. Economists, social which undermined other policies. in the Basque country, where self- commentators and even some community Understanding that the Protestants in the organized work groups were the basis for activists were pushing the line that full North were a real and really different one of the largest and most successful employment was an unattainable, utopian nationality, for whatever reason, was industrial co-operatives in the world. The ideal and the real issue was how society essential to the solving of sectarianism. attempt to introduce worker shareholding was to be organised to accommodate the Pat said he went with the two nations and a level of shop floor democracy in the fact that large numbers of people would theory on the basis that "the Irish national company ultimately failed, mainly because never have paid work again. Indeed I revolution had never tried to engage the Pat was way ahead of his time in putting remember one respected Trades Union Ulster Protestant community and an these proposals forward. Both the worker commentator at the time proclaiming that attempt had to be made to do so". Pat shareholding concept and the work the unemployed were the vanguard of the recalled the first public outing for the two organization methods he proposed have new leisure society which was emerging nations position at a meeting in the come into vogue in the intervening years. in the capitalist world. Pat saw through Mansion House in Dublin, attended by Pat's increasing concern at the level of this humbug for the counsel of despair it Conor Cruise O'Brien, Eamon McCann mass unemployment and emigration was and was regarded as a maverick for and others. Pat asked O'Brien; did he prevalent at the time led to him being one his troubles. However, in his own agree that the Ulster Protestants had the of the founders, in 1986, of the Larkin inimitable way he did not waste his time in right to integrate with the UK, bearing in Centre for the Unemployed, in Dublin's engaging in sterile debates on the subject, mind that in Lenin's definition of self North Strand. Looking back at those times, instead he set about tackling the problem determination, separation, federation, or even in the context of the current recession, head-on—by creating jobs. The focus of integration were all legitimate options? it is hard to credit the scale and depth of Pat's work with the Larkin Centre was O'Brien waffled but didn't give a definitive the unemployment crises then prevalent. initially in trying to develop co-operatives, answer. Pat repeated the question twice It was not uncommon in inner city local which he believed had the potential to more until finally O'Brien simply said authority housing complexes to have levels deliver jobs and progress his long-held "yes". of unemployment of 75% or more, with goal of workers' control. Having been In Britain the ICO got involved in Trade second and third generation involved in the founding of a number of Union politics—especially demands for unemployment emerging as the problem co-operatives, some of which are still Workers' Control. This brought about the undermining of Leninism a bit in the group and along the way the undermining of Pat's work of building a CP. In 1974 Pat split with the BICO and this split lasted for a good few years while Pat involved himself more and more in Trade Union and related matters. Denis and Mick also left the BICO at this time. From the early 70s Pat was an Irish Transport and General Worker's Union shop steward in a Dublin factory producing telecommunications equipment, mainly for the car industry. In the early 1980's, following a bitter 14 week unofficial strike , the membership overwhelmingly voted to seek a transfer to another Union. However there was a hurdle to be overcome. The rules of the Irish Congress of Trades Unions at the time stipulated that such a transfer could only take place provided 100% of the members agreed to transfer. This allowed the transfer to be blocked. Pat initiated a legal challenge which proved ultimately successful and the ICTU's rules were subsequently amended in 1982 to allow union members Pat Murphy (right) with Dennis Dennehy 14 trading today, Pat came to believe that self Fianna Fail politicians—as a deliberate, Only last July[2008], on his stick employment held more potential for job never ending attack on the State itself, because he said, of gout, Pat was protesting creation among those people who were orchestrated by, among others, the Irish against the role of the National Army as coming through the doors of the Larkin Times. full participants in the British Legions Centre. This insight resulted in the creation Pat stood foursquare as an Irish celebration of their Battle of the Somme of the Larkin Centre's Enterprise Unit, Communist behind the State created by at Islandbridge, Kilmainham in Dublin. through which Pat helped many hundreds Éamon De Valera and Sean Lemass and He insisted on spoiling the party and of people to create their own jobs during continued by Haughey latterly. However humbug that suddenly now we are all one. the 1990s and early 2000s. Pat developed on the national question he saw Fianna The only piece of video I have of Pat is systems of mentoring, training, business Fail as having been disorientated by the also from last year when he also insisted plan development, and links to grant- Arms Crisis of 1969-70. To Pat, if a united on making his point at John Martin's making bodies, which effectively made Ireland was to mean Ireland being united booklaunch of "The Irish Times, Past and the Larkin a one stop shop for the again with Britain, then our republic has Present". He wanted to put on record his unemployed who felt they had the reached an unacceptable level of view of the extent of that paper's conspiracy possibility to create their own jobs. disorientation indeed—led by Fianna Fail! against Fianna Fail and by implication, Pat was a source of never-ending In his latter years he railed against those the Irish Government. It is intended to commitment and enthusiasm for the work who denigrated every achievement of the devote a page of the Athol Books website of the Centre and acted as Secretary of the independent Irish state and took great to memories / pix / stories about Pat for Management Committee until recently. pride in showing off the social housing sharing between friends and family. His commitment was so great that at one unit which the State had provided him Details will be in a forthcoming Irish stage, when the Centre could not afford to with in Blackrock. The 12th July last year Political Review magazine. pay his extremely modest wage, he found Pat, despite his obviously failing Pat said he was of the "hard left" : the continued to work for nothing. health, again doing what needed to be soft variety existing in the Labour Party Pat was a vocal supporter of Social done. This time he was defending the and the media. He saw the Irish Left as Partnership. At the local level he saw what separatist Irish State against the official lost, disorientated. Moscow had gone. Che could be achieved through working with humbug of a joint commemoration of the Guevara was now a fashion accessory. the state agencies, such as FAS and the Irish Army and the British Legion at the Even Rome had fallen, yet again. The Department of Social Welfare, to support Battle of the Somme Commemoration. only clockwork colossus left standing and the people he was working with. At the As Pat himself said on the day—only a still chattering were Fintan O Toole and national level he engaged with Social Fianna Fail Government could have gotten The Irish Times-led media, focussed Partnership through the Irish National away with pretending we are now all one loosely on London as its place to plug into Organisation of the Unemployed (INOU), with what the British Legion stands for. for inspiration, God help us all. Pat saw where he represented the Larkin Centre Pat's life and politics were shaped by this as meaning Wars unending all over on the INOU's National Executive the poor quality of care which he received the world, with good Irish boys and girls Committee for over ten years, from his as a child suffering with a debilitating as cannon fodder in the crossfire of cooption in 1996. Pat brought a unique illness and it ended with him extolling the Ameranglia. He wasn't going to have it perspective to the organization, being one quality of state housing provision and the Politics, such as they are behind the of the few people who could bring a focus care he received in the Hospices in Raheny public relations, he saw as a conspiracy. on job creation measures to its agenda and and latterly Blackrock during his final He himself was and still is on this day, a through that to the Community and days. He lived his life through his politics, formidable combination of conspirator, Voluntary Sector Pillar of Social being a man for whom self interest never political agitator, and hard-headed Partnership, after the admission of the seemed to be on the agenda. He said just pragmatist: a holy trinity of political sector to Social Partnership in 1999. Pat a few days before he died "I got a kick out activism at war with the continued rampant saw left opposition to Social Partnership of politics, a kick out of life, although at anglicisation of Ireland, ironically as being little more than wrecking tactics times, when I thought about the physical facilitated enthusiastically now by Fianna and would give short shrift in debate with state I was in, I wondered why that was Fail. oppositionists, liking them to the British so". He was remarkably content at the end As such Pat always insisted on having left of the 1970s, whose only legacy to the of his days, and genuinely surprised at his back well covered in what are in the British working class had been Margaret how people had rallied around him. This first instance, cultural wars. That cover Thatcher. Pat could more than hold his was typical of the intensely private and came from the pages of The Irish Political own in debates and it was a brave, or modest man he was, who perhaps only at Review monthly magazine; the quarterly indeed foolish, individual who would take the end realized the profound impact he Church and State magazine, dealing with him on, for he could be cutting and had had on all who knew him. Irish culture, and last but not least, an remorselessly logical in destroying an Tony Monks occasional magazine coming out of opposing position. Yet what most defined Belfast, inspired and edited by Joe him was that he was a leader, a man of MURPHY'S WARS Keenan,The Heresiarch dealing with action who, once he decided what needed Welcome to old friends, comrades, and numberless heresies and heretics of all to be done, went out and did it, an approach former wives. Also two friends of Pat's, hues and persuasions. best exampled by his time with the Larkin Dermot McKenna, and John White, Chief Like us all, Pat was full of seeming Centre. He had a particular contempt for Executive, Fatima Mansions Renewal contradictions. He was a very private man. those who spent their time criticising from Project and Seamus Murphy, a friend of His nephew, Tony Rodgers, tells me his ivory towers and he respected those who the Larkin Unemployment centre since family knew only hazily of his political did things in the world, such as Charlie the mid 1980's. involvements. Equally, we his long-time Haughey. Pat Murphy recognised only three comrades, were in the dark about the Pat held that Fianna Fail (and political parties in Ireland, Fianna fail;The politics of the Ardee branch of his family particularly Charlie Haughey) is due a Trade Unions, and the Irish Times. He background. We were amazed to hear large measure of respect for its contribution could work easily with the first two but he from him only recently that his own father to the creation of Social Partnership and reserved all his agitational genius for the was a member of the Garda Siochana and the prosperity which followed and he saw third. . . the organ of West Britain in that he had impressed upon Pat when he the culture of the tribunals—attacking Ireland. first went to England for work back in the 15 1950's: "stay away from them oul politics every year with all the sisters, including way now he is free. His agitation is over or ye'll come to no good " Nancy, again with Pat doing the driving. . . .or is it ? The mind boggles—I mean ….what if One thing about Pat and his politics I mean , look at his picture there now, Pat had followed his dads advice: . he was how remarkably good-humoured he black and white, taken twenty years ago, could a been a contender, followed his dad remained in the face of inevitable setbacks. a wicked look in his eye, if ye were meaning even and been a Chief Super... maybe He was disciplined, organized, respon- to small talk him. He was a wily old fox even an Asst. Commissioner Murphy. No, sible, never self indulgent. Not for him back then and no less now, lying there in Pat was his own man, always. He kept the sitting around moaning or making excuses his coffin, draped in the National Flag and faith. Even to being contrary. for not moving on. .Neither was he in the he a red rip roaring Communist most of I told him about the pensioners' recent grip of a insufferable ego. He didn't indulge his adult life. I can think of one of his "revolt" over the universal medical cards personal whims. He was never brash. He Dublin comrades who is still flummoxed reform threat as a good sign of politics knew who he was. Public issues were the that it's the tricolour and not the red flag— breaking out at last. He wasn't impressed. focus not private expression.. he was a or at least the Starry Plough. But Pat was They had no case. Blasphemers he even grand man to work with, magnetic, very always one for solid ground from which to called them ,protesting in a church: should attractive to women. Alas, none were lucky fight politically. Communism fell in 1989. have been batoned out of it by the garda; enough to catch him. Everything afterwards has been in a state they never had it so good, and he should Despite the obvious end to the last few of flux. After all that commotion, we in a know as one of them himself. He wasn't months I think they were very positive way came back to Pat's solid ground. He having any of it.More media hysteria. times for Pat. They certainly weren't sort of became our Taoiseach. As ye know Anyway, the private barriers came down negative or a downer for those of us around with Taoisigh, loyalty is a big thing these a bit in the past few months. He was him. One person in particular made a big days. Look at the Lenihan family in Fianna overwhelmed by the love, care and difference to making it all so positive. Fail. The Cowans in Offaly, the Coughlans attention he received from everybody. Maria Tyrell, Pat's colleague from the in Donegal. Almost every County has its The boot was on the other foot and he Larkin Unemployment Centre. Her family tradition, its family loyalties. The loved it. For once in his life he was the intervention at a crucial stage last Springs in Kerry, the Andrews family in centre of attention and in control of it all November meant all the necessary pieces Dunlaoghaire. despite the stark reality. On the positive fell into place to make things work out as Of course a flag is only a symbol, if a side he was in no pain and, as his date with well as they did. That and the help of Tony powerful one. It can unite traditions, even destiny came nearer, it only seemed to Rodgers, his nephew and Pat's sister Nancy different family traditions. There are many sharpen his mind. There was definitely an helped Pat to feel he was in control of his different ways of doing the right thing, aura of heightened sensitivity about him. destiny and that his wishes would be serving the state. Just as Pat's dad wore the Little things suddenly became big things. carried out. He was unburdened with fears Garda uniform of the state, the country's The detail of how to cook a potato in its or worry, and of course he was in no pain interest can be well defended by those out jacket so as to maximise its eating value until the very last week or so. The Raheny of uniform also. It is not all about self was a matter of much instruction to his Hospice and The Blackrock Hospice serving. You do what you have to, where daily carer over the period, Conor Lynch. rallied to Pat and he to them. I know its you find yourself useful to defend the Conor claims he is now a jacket potato often said how much we owe such interests of the state under the flag of the connoisseur. Actually, culinary matters Institutions, but it's not until it gets up nation. That was how Pat saw it in the last loomed large in the past few months as Pat close and personal does this hit home. few years with The Irish Political Review fought to keep his strength up. The time, You could say after seeing them in action, Group . care and empathy of Mick Murray, his Oh Death, where is thy sting…? Adieu Pat, you go to where the sun friend, and a true connoisseur, and the And so this parting with Pat is such shines brightly, in the morning rain, back same thoughtfulness of Annette and Manus sweet sorrow. His body may have wasted to nature. Only last week, you still had O Riordan made Pat's face light up with away on him but his spirit never did. We notions of getting back into that car of delight over and over again, whether it both love him and miss him at the same yours and heading out the road from Ardee was bottles of beer or Chinese long-life time. You leave us Pat , on the wings of with Nancy, Maura and Joan, maybe with exercise secrets they brought to him. song: Manus O Riordan with the greatest a Dermot O'Brien tape playing the Turfman Apart from the privacy thing, Pat was song from the 1916 era. "The Foggy Dew". From Ardee and the window rolled down also very sociable. He roamed all over Noel Pocock's Uileann Pipes. Annette O of a Summer's day. Don't worry, Tony high Germany and Northern Italy Five Riordan's fine voice, far better than Rodgers will definitely find a buyer for it years ago, with Angela and Brendan Manus'—in range only, of course. The now that ye won't be taking that particular Clifford in the back of their famous little Parting Glass, sung by Jimmy Kelly, trip for a while, but Nancy will still be red Mini Metro, .famous because of how brother of Luke. Not forgetting the fine going dancing with her friends, celebrating much luggage they always managed to fit flute playing of Des Geraghty, another of the music and all those times and teems of in the back. Pat humorously recalled the Pat's friends from his ITGWU days. happy places. look of shock on the face of their German Ye have all done well by Pat and he in Malachi Lawless host when he, smilingly emerged from the turn has done well by father in his chosen darkness of the backseat mountain of field of endeavour, politics, in the wider luggage. "Mein Gott...!, those British cars sense. The Larkin Centre and all who MURPHY (North Strand and Russell are an engineering miracle", his startled work in it and out of it remains Pat's Avenue, Drumcondra) April 1, 2009, (peacefully), at Blackrock Hospice, expression seemed to say. testament. It lives on, more relevant than Patrick, (late of The Larkin Unemployed A select band of comrades and Pat ever. Centre), survived by his three sisters regularly went on trips around Ireland to As the song says, "Look around you, Maura, Joan (Dublin) and Nancy (Ardee), places of interest to select select bands of because you only miss them when they're nephews David, Andrew, Tony and Paul, comrades but Pat's most regular trips were gone"—.friends, comrades, family, niece Siobhán, cousins, relatives and a in his beloved own car with his sisters partners, even ex wives. large circle of friends and comrades. Re- Maura and Joan. Many's a match in Croke We will miss you, Pat Murphy, who moval from Stafford's Funeral Home, park I asked him to go along with me but managed to radiate an inner grandeur, a North Strand, on Saturday afternoon at no, he always had Sunday set aside for 1.30 o'c., to Glasnevin Crematorium, for 2 poise beyond a time for tears. He insisted o'c. Service. Maura and Joan. After that it was holidays on doing things his way and in his own (2 April 2009, Irish Independent) 16 · Biteback · Biteback· Biteback· Biteback· Biteback· Biteback· Biteback· Biteback

Corporate Crime Measures

Special Criminal Court May Be Used For Gang Trials was the front page lead story in the Irish Times of 17th April. It was reporting Justice Minister Dermot Ahern's extraordinary proposals for curbing criminality in gangs. One of these was that people accused of crimes and their legal teams be excluded from preliminary court hearings, so that they could not assess the police case: This is fact, not satire. This innovation in the justice system occasioned Tom Sheridan to submit the following letter to the Irish Times. It was not published.

I don't believe it—Front page of the are the result of talks Mr Ahern and his suggests this could be a sobering Irish Times 17th April 2009. senior officials have held with Garda experience, however it is aligned with the Minister for Justice Dermot Ahern is Commissioner Fachtna Murphy and other labour party's idea of fairness in distri- planning tough new measures for Ireland's senior officers since the attempted murder buting the pain of the next thirty years corporate gangland, including trials at the of the Irish economy. across the various economic classes in non-jury Special Criminal Court for those Sources close to Mr Ahern said he society. charged with a new offence of membership believed a number of public and private It is already not an offence to "partici- of a commercial or corporate gang. corporate board members were now pate in" a suspected corporate crime gang. Evidence gathered via new covert bug- "putting it up to the State" in a manner not No measure was ever introduced as it is ging operations along with the sworn seen since Fianna Fail republicans last presented as being too complex to testimony of senior Garda officers would burnt the country down, claimed the prosecute. In his most genuine comment, form the cornerstone of prosecutions at insurance, robbed the banks and sub- the minister suggested "we all contributed the Special Criminal Court, which has sequently took power. to this problem… a good dose of amnesia rarely been used for Irish commercial and The measures relating to the use of the is not a bad thing… the events in Limerick corporate trials. Special Criminal Court for corporate entity may assist in this regard....we must look to The new covert bugging legislation will crime—and other proposals relating to the future now cause that's where it's at". be published today and will allow gardaí cosy cross directorships and political party Under the new offence, the Special to use concealed electronic digital moni- cronyism, including appointments to the Criminal Court will be able to draw toring systems, audio and visual devices 400+ state corporate bodies—will be inferences from an accused's unexplained to secretly record public and private com- modelled on legislation used to target wealth, his association with other corporate pany board members suspected of any those whose actions may effectively result suspects and his refusal to answer Garda arrestable offence. in colourful subversions of the state's questions, as well as the covert surveillance The new bugging powers under the integrity (which is always secondary to evidence and Garda testimony. Criminal Justice Surveillance Bill will maintaining the power obsession). Another new offence of directing a extend, not only to gardaí, but also to It is proposed that the extended deten- corporate gang is also planned. "Post- members of the Defence Forces, Revenue tion without charge of suspects be release" conditions for those convicted of officials, the Financial Regulator, the streamlined and that penalties for those corporate gang involvement are also being Central Bank, and Oireachtas Oversight political cronies found over-gorging them- formulated. They include exclusion from Committees. selves at the pig-trough of Irish political certain areas and a ban on associating with Accountants, bankers, insurance agents, party patronage be increased from "being named corporate criminals. auctioneers, solicitors, stockbrokers, taken care of in all circumstances" to the Existing legislation that allows suspects investments and pensions managers, American style "life imprisonment". for corporate crime not to be detained at capital assets managers, taxation advisors, The proposed measures are aimed at all without charge is to be streamlined. planning officials, local government strengthening the hand of gardaí facing Mr Ahern wants suspects and their legal officials and representatives, and property what sources described as "the new chal- representatives to be excluded from court speculators may be targeted initially. lenge" posed by Irish business nepotism, hearings when gardaí apply for extensions Virtually all members of the capital classism, faux meritocracy, and political to periods of detention. He believes administrative, regulatory, and manage- cronyism, following the attempted murder lawyers and suspects are using the hearings ment classes may have to be targeted over of the Irish economy. to assess the strength of the Garda's case the next 30 years. The economy was shot and anyone and are gaining an advantage. It is estimated that currently there are who says anything bad about those invol- approximately 70,000 citizens involved ved are told by Irish media punditry that It is intended that the planned corporate in the ownership and control of over 90% they are being emotional and should be measures will be included in the Corporate of the capital current presented as taxable ashamed of themselves. No one will be Criminal Justice Amendment Bill 2009. It in the state. None of them earn under charged with the shooting as the corporate is currently being drafted with a view to €40,000 per annum. "I think we can really laws put in place by the Irish parliament fast-track enactment before the Dáil's annoy these people for some time to come do not deal with what happened. summer break. without seeing extraordinary electoral Under the proposed new legislation, a Meanwhile, under the surveillance Bill, voting pattern shifts" the minister said new offence of membership of a suspected Garda, the garda ombudsman office, shiftily. corporate crime gang and attempted military intelligence, the Financial Regu- Mr Ahern yesterday briefed Taoiseach bankrupting of the nations sovereignty lator and Central Bank agents can forcibly Brian Cowen on his wide-ranging will be created. The offence will be a enter a corporate premises in secret and, proposals and also met Attorney General scheduled one, meaning those charged with court approval, plant bugging devices Paul Gallagher earlier this week to brief will automatically appear before the for three months. him on what is planned. Special Criminal Court unless the DPP For the first time, the recorded material The new corporate gangland measures directs otherwise. Some commentary can then be presented in court as evidence.

17 So we can thank AIB and the Minister There is nothing new in all this. It has and Taoiseach Cowen for all that! all happened before. Here is what the Does English poet Dryden wrote three hundred It But why should the Banks be saved? years ago: Stack Are they in danger? Each of Bank of Up Ireland and AIB announced they were quite sound fiscally. "So still it proves in factious times ? Why don't we take them at their words? With public zeal to cancel private crimes. Why is the idea of putting assets into a How safe is treason, and how sacred ill, When none can sin against the people's "Bad Bank" being put out to us by the Many years ago in the UK Telegraph, will? there was a report of a merger between politicians and their media groupies? Where crowds can wink, and no offence General Electric Company and another be known, smaller company. It was reported that the Banks have failed in Ireland before, by Since in another's guilt they find their smaller company's Balance Sheet was the dozen. AIB itself rose from the ashes own". much worse in fact that the Balance Sheet of a failed bank. signed off by the smaller company's WHEN WILL YOU, THE PEOPLE, Auditors. The Telegraph succinctly said The business community is said to be SHOUT —STOP? "to the ordinary man two plus two equals finding it impossible to borrow money to Michael Stack four but to a Chartered Accountant two run their business. No doubt this is true. plus two might be five or it might be three But if a Bank fails, will the business depending on the opinion of the Board of community be able to borrow more? They Directors". Just in case, the reader did will do so from other sources. Still Birth not get the joke, the Telegraph concluded its article with a remark that the partner The fact of the matter is, the reason 1 and senior audit clerk in the Chartered "Bank of Ireland and AIB cannot be Once more the blood seeps through the Accountants who had certified the smaller allowed to fail" is that they are owed huge bandages. company's Balance Sheet were now debts by developers and by certain Half conscious he listens to the surgeon: retired. "The Partner is running a herd of powerful politicians and if a bank failed, 'Tut, the tribal religious curmudgeons! pedigree Friesian cattle in 2000 acres in a liquidator would be obliged to collect Calls SAS to stem the haemorrhages. Scotland and the senior clerk has a 400 immediately all the debts due. Court cases acre farm." would follow and developers and Doesn't take much to upset the balance. politicians would not or could not pay— Twenty shots of this, twenty shots of In Ireland in the past month Auditors to would be declared bankrupt—for example that. Pull up the bedclothes and lie there flat. AIB, even though they signed off AIB's how does a politician pay back a loan of Dr Whitehall and death a mere dalli- Balance Sheet as at 31st March 2009, are €42.5 million on a TD's salary or even on ance. now prepared to say on behalf of AIB's a Taoiseach's salary? How a TD could be Directors that €3.5 Billion is not enough given such a loan in the first place is The patient was raised as a recluse, and that the State, i.e. the taxpayers should worthy of Dail Inquiry! Did the bank lend though he had siblings in Scotland and put in a billion or two more. €42.5 million to a powerful politician so Wales, as to be paid €3.5 billion by the politicians the hyperactive in the Crum not bailed, Well—why not? The taxpayers com- out of our pocket? and paramilitary police footloose plain and groan but they pay up time after time. However, if the National Assets Whitehall had bought him a house Management Agency (NAMA) is set up, called Stormont. Remember when AIB pulled this stunt which the Government proposes to do, it The blood of the oppressed gushed from previously? When they bought a pig-in-a- is proposed that it will take over the "bad its font. poke in Insurance Corporation of Ireland loans" and the "impossible-to-pay-back they sought the advice of a PR firm who loans" from Bank of Ireland and AIB at a advised the directors of AIB to wait until price—a much reduced price of course— 2 a Friday evening and then declare a panic it is taking over liabilities, not assets Onwards to the marbled halls of situation to the Government—the Banking (Orwell would approve) and NAMA gets Stormont. system would collapse if the news got the liabilities and the banks get the cash. Gone, he who stole the name of the O’Neill, out—rescue was needed immediately i.e. You're probably ahead of me here—yes existing only on an old film reel. before the civil servants came back to the cash comes out of the tax-payers and Minor blue-bloods no longer at the hunt. work on Monday. the social-welfare recipients/pensioners A truce after the battle is called peace. pockets. Like from the Pension Funds or Dr Whitehall has designs on this earth. The Government wAS successfully the National Treasury Management Afghanistan, Iraq, expands his girth. panicked and came up with the massive Agency. And the politicians are reserving Eating like that will see him grow obese. funding as requested. Without any veri- to themselves and their nominees, the fication. All palsy-walsy-honour- right to decide, which loans are to be A good war puts him in his element. between-gentlemen—etc. Ah, but who taken over. The Doc’s a warrior, it'’s in his genes. paid? We did of course. A levy of 2% was But the war is over, or so it seems. put on to every insurance premium in Result: nice and quietly and friendly- Sing of the old days as a sentiment. Ireland. The cost of the Insurance Corpor- like NAMA will recede into the ation debacle has long since been paid for background of political life, there to molly- The bomb and gun gave birth to politics. by our two percents. But did it stop? Did coddle or totally forgive all those Once more in child but does the infant it what? politically friendly sinners who had the kick. The 2% is still ongoing. It has now misfortune to borrow beyond their means become a tax and in his 2009 Budget, and were helped to do so by incredibly Wilson John Haire. Minister of Finance, Brian Lenihan, TD friendly bankers in the clubs across the 12th March, 2009 has increased it to 3%. whole of Ireland. 18 Redmondite Parliamentary Party "would be swept out of three quarters of their seats in Ireland by the same forces that carried Count Plunkett to victory in North Lord Bew On 1916 Roscommon, believed to be so peaceful and so free from Sinn Féin and the rebellion Insurrectionists And Democrats taint."

"Binn béal ina thost!" This Irish "historical" pronouncement? Just read the This Irish Times assessment—as much language proverb can be translated as "It following from Bew, as quoted by an opinion piece as a report—was is {sometimes}sweet for a mouth to stay McDonald: published on February 8, 1917, under the silent!", and it refers to a person heading of "How Count Plunkett Won pontificating on a subject concerning "He said the danger was that such a North Roscommon—The Inner Story Of which they are displaying a considerable film about the Rising would simply por- The Contest (By One Who Was Through degree of ignorance. To which the hearer tray the events of Easter 1916 as a It)". It observed that those who had might assent: "B'fhiú dó!"—pronounced struggle between the Irish and the Brit- benefited most from land reform were "Bew doh!" and meaning that "It {the ish. In fact, added Bew, Pearse's targets precisely those who were now mouth} should indeed shut up!" were also the constitutional pro-Home wholeheartedly set on the path of In the London Observer on Easter Rule Nationalist Party, which at the time Republican separatism: Sunday, April 12th, its "Ireland Editor" had the overwhelming support in na- Henry McDonald sycophantically tionalist, Catholic Ireland... A very im- "The significance of the contest is to portant part of Easter 1916 and its after- reported as follows on the "thoughts" of be found in the light which it throws on math is the displacement of the demo- the Unionist peer, Lord Bew: the mind of rural Ireland at this moment. cratic [sic] elected Irish leadership by Here is a constituency where three- "On the anniversary of the Easter the insurrectionists. It's about internal fourths of the electorate are peasant pro- Rising, a historian warns that a Holly- Irish politics too. The story of the Rising prietors under the various Land Pur- wood version of the story could be used is the decision by an unelected group of chase Acts. They were never getting as justification by the men of violence… politically motivated to destroy the better prices for their produce, and they One of Ireland's foremost historians has democratic, leadership of Irish national- were never better off... Yet 3,023 of warned that a Hollywood take on the ism." these men record their voice for the 1916 Easter Rising might be exploited candidate recommended to them because by dissident republicans in their cam- But it was those whom Lord Bew he was the father of one of the leaders paign against the peace process. 'Easter sneeringly derides as "insurrectionists" executed in Easter Week." Sixteen' stars Guy Pearce as Padraig who so rapidly became the democratically Pearse, a teacher, poet, and nationalist elected Irish leadership. For it was in fact In less than ten months since the 1916 who was one of the key figures in the at the ballot box itself that Redmondism Rising, the Irish Times had correctly uprising. Paul Bew, a professor of Irish was so comprehensively defeated. The foreseen the dynamics, if not yet the full politics and a leading historian, has ex- Sinn Féin Manifesto for the December scale, of the triumph of Irish Republic- pressed concern that unless the com- 1918 General Election had explicitly anism over Redmondism which had been plexities of the Rising are explained, the sought the electorate's endorsement of the presaged by the North Roscommon by- simple message that a dedicated minor- 1916 Rising. This was enthusiastically election victory of February 1917. And ity can use violence will encourage given by the universal suffrage of the less than two years later again, in the present-day dissidents." majority, and was once again reiterated in December 1918 General Election, the the formal pronouncements of the very "insurrectionists" so derided by his The August 2008 issue of Irish Political first sitting of Dáil Éireann on 21st January Lordship would comprehensively put Review exposed the following multi- 1919. Redmondism to flight at the ballot box. As faceted howler of an "untruth" from that one speaker had so eloquently expressed same "foremost historian" in his book If that electoral outcome remains a it, when singing the praises of insurrection Ireland: The Politics of Enmity, published mystery for Lord Bew, it came as no on 11th February 1898: by Oxford University Press in 2007: surprise to his fellow Unionists of the day. "This year Irishmen will be celebrat- "In office, Haughey stopped the Irish It had been forecast by the Irish Times as early as February 1917, as soon as Count ing the centenary of the insurrection of army attending the British Legion Re- 1798 ... It means, that with the great bulk Plunkett, father of executed 1916 leader membrance Sunday services in St. of the Irish people at this moment, the Patrick's Cathedral, thus creating a con- Joseph Mary Plunkett, had trounced the question even of an armed insurrection text whereby the Irish army was present Home Rulers in the North Roscommon against the system of Government, which at the Glen of Imaal to honour the Nazi by-election. Unionist alarm was expressed you insist on maintaining, is a mere dead of the 2nd World War ..." in the Irish Times report that, for twelve question of expediency, and the chances days, Sinn Féin's Father Michael of success. It does seem to me that amid "B'fhiú do bhéal Bew fanúint ina thost!" O'Flanagan had been "up and down the all the nonsense that has been talked in would indeed be the most charitable constituency, going like a whirlwind and recent times about a 'reunion of hearts' comment to make. In other words, Bew talking in impatient language to people in that some voice should be heard telling should shut up spouting such ignorance. every village and street, corner and cross- Englishmen to their face the candid truth Far better to conclude unreservedly that roads", as he proclaimed that it "would be in this matter." Lord Bew is an ignoramus on such matters, better and easier for young men in Ireland and has merely been content to run with a to carry their fathers on their backs to the That speaker had risen to firmly voice "ball" thrown his way by others, than polls to vote for Plunkett rather than have his opposition to a British House of contemplate the horrors of the only other to serve as conscripts in the trenches in Commons "Address in Answer to Her conclusion possible, that he himself could Flanders". A horrified Irish Times foresaw Majesty's Most Gracious Speech". His have been in any way consciously party to that, as a consequence of O'Flanagan's name? John Redmond MP. the concoction of this lie of "history" as initiative and leadership, Irish democracy she is now spun. And what of his latest was poised to sweep the polls, and that the Manus O'Riordan 19 West in the long term. And it made the Turkish State ripe for the picking when the vultures fell upon it in November Obama And Ataturk 1914. Around 1740 the Ottoman Sultan gave Barack Obama has recently been Forum, Turkish Prime Minister Erdogan French citizens in Constantinople extra- visiting the Turks to butter them up. Turkey called Israel's operation in Gaza ordinary privileges in the Empire and these is the closest thing to a real nation in the 'inhumane.' The prime minister has were gradually applied to other Westerners world today, and has been since the time verbally attacked the elderly, Nobel- —largely at the insistence of Britain. By of Ataturk. The US has recently found the prize-winning, dovish Israeli President the Nineteenth Century these had become Turks to be exercising their independent Shimon Peres as a killer of children, thus the Capitulations, protected by the West- positioning himself as a Hamas protector. state of mind in ways not conducive to ern Powers through their financial control Ameranglian plans for the region. And He then stormed out of the Davos panel, only to receive a hero's welcome at home. over the Ottoman Exchequer, which the recently the prospect of Turkey offering Banks had obtained by lending the Sul- itself as a beacon to the Moslem world Turkey supports the development of a peaceful nuclear power program by Iran tans money at extortionate rates to act as a again has started to rear its ugly head. but wants transparency and dialog on buffer state against the Russians. Turkey has being saying 'no' when it the subject. However, Erdogan's judg- The extraordinary privileges enjoyed wants to, even to America—as in the case ment has been called into question after by Westerners included absolute juris- of the last Iraq War and the recent dispute he stated last year that 'those who ask diction of consular tribunals over their with the US Navy when it tried to enter the Iran not to produce nuclear weapons nationals, immunity from visits to their Straits with ships greater than the agreed should themselves give up their nuclear domiciles from the Ottoman authorities capacity during the Georgian/Russian weapons first.' except in cases of murder or armed revolt, conflict. This has become something of a There have also been worrisome dev- freedom from arrest or imprisonment by concern in the US where the continuity of elopments in Turkey's Black Sea and the Ottoman State, complete freedom of foreign policy so desired in England bet- Caucasus policies. During the Russian- trade and immunity from search by port ween Conservative and Liberal Govern- Georgia war, the Turkish prime minister authorities and the right to run their own ments in the first decade of the last century proposed the 'Caucasus Stability and postal services. has been seamlessly achieved in America Cooperation Platform.' The platform When the Young Turks sought to during the recent change in administration. proposed a condominium of Russia and remove the Capitulations it was taken Turkey, together with the three South almost to be an act of war by Britain and Dr. Ariel Cohen, a member of the Caucasus countries, but it initially omit- Council of Foreign Relations and the Inter- it is mentioned in many works of the time ted the US and EU, as well as Iran. as a cause of the Great War on the Turkish national Centre for Strategic Studies in Moreover, the United States and the Government in England and France. London, revealed the US concerns over European Union were not consulted on Turkey's independent foreign policy, these proposals beforehand. Turkey Of course, Ireland did her bit in the which prompted Obama's visit to Ankara. also temporarily blocked the transit of attempt to bring the Turk to heel, at US warships delivering humanitarian Gallipoli, in Mesopotamia and Gaza, and "Until the Justice and Development in the process the Middle East was Party's (AKP) rise to power in 2002, aid to Georgia. And it prioritized rap- prochement with the Russian ally achieved—by which, I mean the Middle Turkey was considered a reliable US East was made what it is today. But that is partner. During the Cold War, Turkey's Armenia over the ties with the secular, pro-Western Azerbaijan. not an achievement we hear very much modernizing secular elites championed about with regard to Our War. unpopular causes: the Korean War, These developments underscore Tur- If we want to know what Our War was support of US operations during the key's cozying up to Russia as Moscow is 1991 Gulf War, and Operation Northern providing nearly two-thirds of its gas really about we could do worse than Watch in Iraqi Kurdistan (1991-2003). supplies… Turkey is critical to Europe's reading about it from the time. In an Turkey also played a vital role in efforts to reduce its dependence on Rus- editorial entitled, The World War, on 4th peacekeeping missions in Bosnia, sian energy, including the proposed November 1914, the day before Ireland Kosovo, Somalia, and Afghanistan… Nabucco gas pipeline that would bring declared war on Turkey with the British Today, the AKP appears to be moving Central Asian gas to Europe via Turkey, Empire, The Irish News reminded its Turkey away from its pro-Western and bypassing Russia. However, Turkey readers of the British change in policy that pro-American orientation to a more demanded to fill Nabucco with Iranian had brought about a new situation, with Islamist one. This drift has left many in gas while it is currently stalling on sign- regard to the Turks: Washington uncertain over the country's ing an intergovernmental agreement on "The world has altered since the distant direction… Nabucco. Thus, Turkey is throwing the days when Lord Beaconsfield and Regarding foreign policy, there are 'bypass Russia' gas transit strategy in Salisbury ruled England, and when the important signs that Turkey is drifting limbo. If Turkey's terms do not improve 'refrain' that moved millions to enthus- away from the West. In 2006, Turkey soon, Azerbaijan may be forced to emb- iasm was— became the first NATO member to host race Gazprom. If that occurs, Ankara's the leader of Hamas, Khaled Mashaal. actions will threaten to derail a decade of Western progress on East-West energy We don't want to fight: but, by Jingo, if Turkey also enthusiastically hosted we do, Iranian president Mahmoud Ahmadine- and transportation…" (From Obama in Ankara: Turkey's Dangerous Drift, on We've got the ships, we've got the men, jad and Sudanese President Omar al- We've got the money too— Bashir, whose government has been the Neo-Liberal Heritage Foundation's website at www.heritage.org/research/ And the Russians shall not have accused of genocide. Turkey's geography Constantinople! explains its association with Iran but not Europe/wm2383.cfm) with Hamas or Sudan; only Islamist That was in 1879. In all human pro- solidarity and anti-Western sentiment In the nineteenth century Britain had a bability, the Russians will have Constan- can explain these ties. Although Turkey version of buttering up the Turks—so that tinople before the end of 1915. Germany has been trying to facilitate an Arab- they would help block the Russian desire has lured the Turks to their doom as a Israeli rapprochement, it is losing its for a warm water port at Constantinople. European 'power.' Gladstone's 'bag and impartiality and, therefore, credibility… But the buttering up reduced the Ottoman baggage' policy will at last be put into at the recent Davos World Economic Empire to an economic dependency of the practical operation—nearly forty years 20 after its promulgation by the great old standing at the station and it was "now or Liberal." never" the treaty remained unsigned by SIPTU concluded After spending the best part of a century the Turks. Curzon, after delaying his train enlisting the Turks as a bulwark against in the expectation they would submit, left the Russians, and making them pay for empty handed on his train. The British However it is not for us to concern the privilege, Britain said to the Czar, in returned a few months later and the Treaty ourselves about their electoral prospects. the manner of Cinderella's fairy god- was signed on July 24th 1923. We will see in a short few weeks if this mother: "You shall have Constantinople!" The Turks rewrote the script between talks process has any potential and if it Edward Grey had overturned the main 1919 and 1923 and rejuvenated themselves doesn't we will have no alternative but to plank of British Foreign Policy of the under the direction of an exceptional embark on a prolonged industrial nineteenth century (known in music hall character called Mustapha Kemal—whom campaign. parlance as "By Jingo, The Russians shall The Catholic Bulletin took to be the hero Jack O'Connor, not have Constantinople") to engage the of the world in 1922. Ataturk went on to General President, SIPTU Czar's Steamroller to flatten Germany on humble the British Empire at Chanak and its eastern flank, after securing the French outmanoeuvred it at the conference table See www.rte.ie/news/2009/0419/ in 1904 on the Kaiser's west. afterwards in Lausanne. And ever since thisweek.html for Jack O'Connor\s April On 7th November 1914, The Irish the Turks have looked after their sover- 19th RTE Radio interview on these issues, Independent's editorial concentrated its eignty and national interest with the utmost under the heading of "Demise of the Celtic attention on the financial implications of skill and determination against all-comers. Tiger: Jack O'Connor, SIPTU, says he is this momentous decision: opposed to any opting out of the Social This seems to prove that successful Partnership". "For many Turkey has been financed wars of independence can do great things mainly by France and Great Britain… for nations in terms of their confidence British power was not all that it seemed in During the wars with Italy over the and substance in the world (whilst those Balkan Allies Turkey paid the interest 1919 and they put it to the test. So it is not that are ended by subjection to imposed unreasonable to suggest that they saw that on her foreign debt, the total of which is treaties can have debilitating effects in the £134,000,000. Financially she is in a the New World Order and 'American long term). very weak condition, and she has Century' was to be the shortest one of all, probably to fall back on Germany for The Ottoman Empire was invaded by back in 2002. After utilizing Bolshevik monetary resources to conduct the war. Russian forces in 1914 and in the war of anti-imperialism in 1920-2 the Turks In these circumstances interest payments annihilation that was fought in Eastern concluded a treaty with their enemy—the on the debt money may be suspended. Anatolia, involving Russian and Armenian world super-power. They then sat tight This default cannot cause more than a and Moslem Turk and Kurd, up to a third and waited for its decline. When the US temporary inconvenience, because when of the population perished (some people replaced Britain the Turks utilised the the Allies have disposed of this anoma- from the greatest nation in the world American fear of communism to their lous Empire all financial difficulties can established through genocide now wish to benefit, banking on the West to outlive the be settled." characterize this event as a 'genocide' but Soviet system. And when the Cold War The Irish Independent was noted for it would be more accurately described as ended and a realignment took place Turkey its concern about the financing of Irish the culmination of Gladstone's 'bag and gravitated back toward Russia and the Home Rule and agitated against the Home baggage' policy in which the old tolerant Islamic world. Rule Party largely on the issue of it getting multi-ethnic Ottoman State was destroyed What would the Turks now want of the a raw deal out of devolution from the and replaced with mono-ethnic units). EU? It is a beaten docket and could only Imperial Parliament. But it could not con- But Ataturk established a relationship be an instrument for their destabilization. ceive of anything beyond that horizon, with the Bolsheviks, through the young Which is probably why Obama is raising like Ataturk. Joseph Stalin, which served the Turkish the issue once more. Ireland's position in the world in com- nationalists well in their independence The Turk never conquered the Black parison to Turkey's is summed up through war. The Turks isolated the Imperialist man and enslaved him—so it is doubtful if three treaties. The Anglo-Irish Treaty of Powers with armies on their territory and he feels the guilt the European does in his 1921, the 1923 Treaty of Lausanne and dealt with them one by one until only dealings with the Black man in the White the forgotten Treaty of Sevres. This latter Britain remained. And Britain blinked House. The British used to characterise Treaty was imposed on a defeated nation first at Chanak. the Turk as a spoiled product of the Harem at the point of a gun in 1920. But it was Ataturk consolidated the new Turkey, (which is, in fact, a Byzantine institution resisted by that nation and overturned to that the Sultans retained). If the Turk has such an extent that the Empire imposing it changed its official language, its form of dress, its music and law codes. After the a memory of the Black man in experience went into decline itself as a result of the then it is as a eunuch. And this will probably collapse of its will to enforce it. Sultan and Caliphate became a prisoner of the West he instituted a thorough Western- not help Obama in his dealings with The Lausanne Treaty, unlike the Anglo- ization in order to preserve Turkey's inde- Ankara. Irish Treaty, was negotiated with long and pendence from Europe. He turned the When Lord Curzon, the triumphal hard deliberation spread over an eight- Islamic state into a secular one of Islamic Imperialist Foreign Secretary, appeared month period (the Turkish delegation people. at Lausanne to put the Turks in their place withdrew for a three-month interruption Ameranglia, or sections of it, would in the negotiating table, he donned exotic in the middle of the proceedings when it like to depict the AKP as an instance of apparel to give himself the appearance of was not happy with what was happening). rising dangerous Islamic Fundamentalism an Indian prince. The Turks expected an Turkey refused to have terms imposed and a threat to Ataturk's State in Turkey, English gentleman to appear in tweeds or upon her that would dilute her sovereignty, for purposes of working on this and military uniform. But they sniggered when even though Britain fought tooth and nail keeping Turkey compliant. But the AKP they saw what they took to be an English- to maximize her Imperial influence over appear to be more of a response to Amer- man dressed as a eunuch. And eunuch, the region. The Turkish delegation also anglian expansionism in the region, and a Curzon indeed turned out to be. refused to be railroaded into a take it or development out of Ataturk's State, than Pat Walsh leave it deal imposed by an arbitrary an alien intrusion. Pat Walsh's book on Ireland's Great War deadline. When Curzon said his train was The Turks were the first to see that On Turkey, 1914-24, is published in May 21 have other implications as well, such as main effect is to impose an ever greater SIPTU continued the consequences for the critically import- part of the burden of servicing massive ant Public Capital Programme if we are to public debts on those least able to bear more than a book-keeping exercise aimed build the economic and social infrastruc- the burden. It is as unsustainable as it is primarily at rectifying bank balance sheets ture to facilitate the continuously immoral to make those who had the least regardless of the social cost. improving productivity which will be part in creating the crisis pay for it. In that It also means looking imaginatively at essential to regenerate our economy even regard, I do not expect that the trade union the lessons offered by the experiences of in the context of a recovery in global negotiators will recommend any proposi- other countries, such as Sweden. capitalism. In this regard, we note the tion which fails to address the plight of One of our key priorities in these talks Construction Industry Federation (CIF) members such as Denis Dennehy, who is that of addressing the reality of the has advanced ideas around the potential have paid for occupational pensions pension's deficit in this country. Almost utilisation of a proportion of pension fund throughout their working lives and must 50 per cent of workers do not have any assets leveraged through guaranteed levels now retire with little or nothing, and I occupational pension provision at all and of return. I am not able to comment on this want to make it absolutely, unequivocally more than half of those who do are hope- concept as the CIF have not discussed it clear that the officers and other participants lessly inadequately provided for. It is now with us, although the trade unions organise representing SIPTU, will not recommend clear that the defined benefit pension tens of thousands of workers in that any such proposition. system is unsustainable and there is an industry. However, on the face of it, I see urgent need to create a new universal pay- it as an idea that is worthy of serious The Irish Congress of Trade Unions related pension paradigm. We envisage a consideration and I believe the trade unions has insisted that any agreed strategy with PRSI-based, mandatory mechanism. We would welcome an opportunity to be the Government and employers must be recognise that this can only be developed acquainted with it and to support it or based on the concept of a Social Solidarity incrementally over time. However, we some variation of it, if it offered the possib- Pact which prioritises keeping the maxi- insist on an interim arrangement to address ility of simultaneously providing a num- mum number of people in employment the crisis faced by union members such as ber of Social Dividends in the area of and addressing key social priorities. This Denis Dennehy who have paid for their pension provision, employment generat- is the strategy that has been traditionally pensions throughout their lives and who ion, development of social and economic pursued in the Nordic countries and which will receive little or nothing in the end. infrastructure and reducing the State's has consistently proven itself to be econ- We have offered various suggestions exposure to foreign indebtedness omically as well as morally superior to the as to how the issue could be addressed. A I return to the basic question as to why, unfettered free-marketeerist, short-term limited fund could be established which despite all that has happened, we are policies our Governments have been would provide benefits for pensioners as continuing to participate in these talks addicted to for more than ten years. they become due for whatever interim with the Government and IBEC. True— number of years it would be required the economic crisis has not been caused Whether the bank rescue is achieved pending the evolution of the new national by working people, but the reality is that through the NAMA approach which will system. The amount of money involved they will be first to feel the consequences entail further recapitalisation and probably each year would not be excessive. We of it and it is incumbent upon us to try to bringing the banks under public control, have also raised the possibility of affording steer a course through it which offers the or through direct nationalisation, it offers the trustees of existing defined benefit hope of a better life and which minimises the possibility of developing a co-ordinated schemes the opportunity to transfer all, or the implications for working people and strategy that creates an investment vehicle part of their funds, to the National Treasury their families in the interim. That course capable of managing this new national Management Agency in the event of the must recognise the reality that the majority debt and laying the foundations for a employing company becoming insolvent, of our people habitually vote for the centre- universal occupational pension scheme. in return for payment of a guaranteed right parties and that consequently the This is most definitely socially, morally agreed proportion of the accrued entitle- policies followed by Government will and economically desirable. In providing ments of pensioners as they fall due. It reflect that outlook and value system. The a guaranteed income for everyone in would probably involve the NTMA challenge confronting us is to mobilise retirement based on their contribution to offering a return over and above that which the capacity to leverage a Social Divi- society while economically active, we is currently in place for treasury bonds dend from these dismal circumstances. would also be strengthening the engine of which are sold on international markets, In practical terms, that is why we conducted economic growth and helping it withstand but it would not be excessive and it would a national ballot for a mandate to wage an the vagaries of the market while simul- be more than justified in the context of the ongoing industrial campaign across the taneously serving the key imperative of other social costs offset. The NTMA country if it becomes necessary (and keeping the maximum number of people could use the money, instead of borrowing incidentally, we in SIPTU at least obtained at work through this crisis. abroad, to fund the NAMA proposition or an overwhelming mandate from our Indeed, the Government might be well whatever method is employed in the members), but equally it also means being served by adopting the Social Dividend rescue. Equally, given that it is recognised innovative and pragmatic and finding ways approach. They have alienated the support by all that the banks will require further through which we can adapt the policies of tens of thousands of trade union recapitalisation, even after they transfer pursued by the Government and the members over the last number of months. their impaired loan books to the taxpayer, employers so that they also serve socially- People are fair. They do not expect the dividend from future bank profits (as desirable ends. miracles, but they do expect their interests well as the proceeds from the eventual All that being said, we are acutely as stakeholders and citizens to be upper- possible disposal of equity shareholding), conscious that prolonging these talks un- most in public policy formation, whether could be utilised to develop the base of a necessarily serves only the interests of the times are good or bad. It is noteworthy National Pay-Related Pension Scheme. other participants, and they must be that the Swedish Government which brought to a conclusion shortly. The trade successfully tackled an awesome Regardless as to how it is achieved, the union movement cannot lend itself to any economic crisis focussed on the Social project will inevitably mean increased national agreement that promotes ever Dividend, went on to be re-elected. taxes to service the national debt. It will crueller and more ruthless cutbacks whose continued on page 21

22 for the regeneration of our economy. ments in funded occupational schemes to SIPTU continued Other critically important issues arise, which they have contributed throughout such as putting structures in place to ensure their working lives and who will now of 2003 was reneged upon. it does not happen again. Nationalisation receive little or nothing because these Apart from the direct implications for is the only way we can do this because it funds have become insolvent due to the the banks themselves, pumping in this is the only way we can ensure proper collapse of the equity markets globally. level of imported borrowed money has oversight of institutions that have proven Let me read the text of a letter I received had an enormously distorting effect on themselves anything but honest or respon- on 29th March from Denis Dennehy, a our entire economy from every conceiv- sible in the past. Without effective over- member in SR Technic, which is in the able perspective. Consequently we are sight we have no way of knowing exactly process of closing down at Dublin airport. now faced as a society with the biggest how the taxpayers' funds are being spent. "I have worked for Aer Lingus/Team/ negative adjustment since the foundation We may be reduced to using a bucket to FLS/SR Technics since 1964. Despite of the State. This is the stark reality and to bail out the equivalent of a financial Titanic having worked for this company for this extent we agree with the analysis but we can ill afford to have holes in it. almost 45 years and on 1st April '09 I offered by the Government and the Unfortunately, while we in SIPTU are will have a full 40 years' contributions employers' organisations. However, after vehemently opposed to this socialisation to the pension scheme and would be that we part company in a very dramatic of recklessly accumulated debt, it is now eligible to retire in July when I will be way, because we approach the crisis, as is clear the Government will not be dissuaded 61 years old. the case in respect of virtually everything from proceeding with it. Their approach "I have been told by two of the trustees else, from a diametrically opposite is determined by the same outlook which of the pension scheme that they intend winding up this scheme in April and perspective. The issue turns on the elected for speculation over sustainable as I will not be 61 until July I will not prioritisation of interests. Which comes development back at the end of 1990s. It is an outlook which is not necessarily be getting a pension and this despite first—the interests of shareholders or those being told we in line maintenance are of the stakeholders (i.e. the citizens of inherently corrupt in itself. It simply sees no alternative economic strategy other not being made redundant until Ireland)? We opt for the latter and insist August. I emailed the CFO Mr than dancing to the tune dictated by high on a Social Dividend in return for co- Murray (also a trustee) and HR operation in this time of crisis. finance. The question which realistically Manager Mr Niall O'Ceallaigh and presents for us, and it will continue to be their replies are below which don't Nemesis has now arrived—for the the case for as long as the vast majority of seem very promising. PAYE taxpayer at least—in the form of our people vote for the centre-right parties, I think it is outrageous that after 45 years the National Asset Management Agency is whether or not we can extract some kind service and a full 40 year contribution (NAMA). It represents nothing less than of Social Dividend from the implement- to the pension scheme it looks like I the socialisation of the enormous risks ation of an otherwise objectionable policy. will be denied a pension because I will generated by developers, banks and be a matter of weeks short of my 61st speculators in their reckless pursuit of The issue therefore turns on whether birthday when they close the pension profit. The adherents of this approach the inheritance of the banks debacle can down and I will still be working for contend that it can become ultimately be converted from a potentially crushing them after my 61st birthday. Is there self-financing on the basis that the impaired burden on our society into something that anyway you can help in this matter as assets acquired might eventually be sold can become a vehicle for socially creative it is very distressing for me and my on in a more benign economic environment and economically sustainable investment? family." for the equivalent of what it cost to acquire Funds invested in the rescue project, Sadly on the 8th of April, the trustees them. This is highly unlikely because if whether through the NTMA and NAMA announced the winding up of the scheme the price offered is anything less than [National Treasury Management Agency and Denis, a mere 10 weeks short of generous, it will defeat the purpose. The and National Asset Management Agency] entitlement to qualify for pension, will argument also fails to take into account or otherwise, could address one of our receive nothing, even though he contrib- the cost of interest payments on the greatest social evils and one aggravated uted for 40 years. Denis of course is not enormous level of public borrowing by the property boom—homelessness. unique. There are others, including work- required for the initiative. (Incidentally, it Whatever State entity emerges will ers in Waterford Glass, and there will be highlights in stark relief, all the earlier become the largest single property owner more in the fullness of time. public agonising about whether the State in Ireland. In a country where ten per cent So here we have the appalling vista of would be able to maintain borrowing to of our housing lies idle because of unreal- Trade Union members and citizens of our fund the deficit—it seems overnight there's istic asking prices and where there are country deprived of the meagre retirement no problem about acquiring what may well over 55,000 families on the local income they have spent all their lives extend to an additional €60 billion or authority housing lists, there is an obvious paying for, while they and their families, more.) In any event, it still amounts to the and urgent need to ensure that this housing as PAYE taxpayers, simultaneously socialisation of the debt because it transfers stock is utilised to eliminate homelessness assume the burden for billions of Euros of the problem from the banks' shareholders and not left to rot. At least there would be debts which were recklessly accumulated onto the taxpayer. something to show for past folly. It would by those at the top of the banking system We in SIPTU could never support this be unforgivable if the end result of the as a result of the policies pursued by concept for all the obvious reasons. We housing boom was the demolition of Government. But the dismal circum- have repeatedly advanced the demand that houses and apartment blocks that fell stances currently prevailing offer the the major banks be nationalised. This derelict because no one could be found to opportunity to address this critical prob- would still mean the taxpayer becoming occupy them at artificially inflated prices, lem. However it would involve a radical liable for the debt but it would considerably while millions of Euro of public money is change of outlook and mindset on the part reduce the burden of further recapitalis- allocated to rent subsidies. of Government, entailing a citizen/ ation; and it would mean acquiring the The debacle also presents the possibility stakeholder rather than an exclusively performing assets, thus facilitating the of dealing with another unfolding social shareholder-based response. It means possibility of creating the "good bank" crisis relating to the situation faced by stopping thinking of NAMA as anything that could provide the liquidity essential workers who have accrued pension entitle- continued on page 22

23 VOLUME 27 No. 5 CORK ISSN 0790-1712

Under the heading of "Social Divident Essential If There Is To Be Any New Agreement With Government", SIPTU General President Jack O'Connor delivered the following Limerick Soviet Commemoration address on April 18th, at the Hunt Museum in Limerick. SIPTU Demands "Social Dividend" From Banks Bail Out I want to thank the organisers for afford- sustainable economic development. We unfettered free-market prescription, elec- ing me an opportunity to participate in this can trace the decisive shift very precisely tricity prices were increased with the commemoration of the Limerick Soviet. to the eircom privatisation, when a publicly objective of attracting competitors into Your event is taking place against the owned state enterprise and a leader in the the market against the ESB in order to background of the collapse of the Anglo field of communications technology, bring prices down. In the process Ireland American model of capitalism globally essential to the next phase of economic moved from having one of the cheapest which is compounded by a domestic crisis development, was sold back to the Irish energy markets in Europe to the second which is entirely attributable to the way in taxpayers, who already owned it and who dearest and where the margin between which it was slavishly mimicked by policy had invested so heavily in its modernis- generating capacity and demand became makers in this country. My predecessor as ation only to see it fall victim to a series of perilously slim during the boom years. an officer of our union, Bill O'Brien, was leveraged takeovers by corporate vultures. Parallel with this, financial institutions severely criticised for the way in which he such as the ACC and ICC which were dealt with the issues presenting around the Ordinary people who bought into the designed to promote investment in Limerick Soviet. I had hoped the invita- concept of a shareholder democracy dis- productive enterprises were privatised, tion would afford me the opportunity to covered that some people's shares were a and the Trustee Savings Bank was de- make some amends. However, I have to lot more equal than theirs and watched mutualised. Later, Aer Lingus was privat- say I'm offering a reformist perspective helplessly as the real value of their invest- ised despite the obvious risks for a small, on contemporary issues. ment plummeted. What has been left after open, export-oriented economy such as Anyone in doubt about the severity of it was sold four times over, is a husk of a ours on the periphery of Europe. the crisis we are facing knows the answer telecommunications infrastructure that This drive by successive centre-right in the wake of last week's Budget. We, will require years of new investment by Governments to liquidate real assets and that is, PAYE workers, are finally having the taxpayer to make it fit for purpose if sacrifice long-term sustainable growth in to pick up the tab for over a decade of we are to regain our position within the order to slash income tax rates for those light-touch regulation when speculators world economy. most able to pay them helped fuel property were given a blank cheque and pride of The eircom debacle was followed by speculation that created paper wealth of place was given to casino capitalism over the more slowly unfolding but equally undreamt of proportions. The resultant the productive sectors of the economy that serious damage done to power generation flow of indirect taxes from VAT and stamp generated real, export-led growth in the in this country. Zealously following the duty hid the dismantling of the tax base first phase of the Celtic Tiger. that was taking place—until the bubble Subscribers to the magazine are regularly burst. The question many are asking is why offered special rates on other publications we are still engaged in the national talks During the period between 2003 and process with the Government and IBEC. Irish Political Review is published by 2008, the foreign debt accumulated by our In many respects, it is a case of picking the IPR Group: write to— banks increased from 10 per cent of GDP through the wreckage, identifying the 1 Sutton Villas, Lower Dargle Road to 60 per cent. This meant in effect the aspects of the crisis which are attributable Bray, Co. Wicklow or importation of more than twice the equiv- to domestic policy mistakes—because this PO Box 339, Belfast BT12 4GQ or alent of the Public Capital Programme, on is the biggest global crash since 1929— PO Box 6589, London, N7 6SG, or average, for each of the five intervening and advocating a response that offers a years. If the debt was put to productive Labour Comment, new deal with a Social Dividend that C/O Shandon St. P.O., Cork City. use, it would be enormously beneficial in promotes the interests of ordinary people the fullness of time. However, as we all over those of the 'get rich quick' brigade. Subscription by Post: know now, the lion's share of it was for Light-touch financial regulation has 12 issues: £20, UK; property speculation—funding developers been rightly credited with much of the € 30, Ireland; € 35, Europe. and burdening ordinary families with 100 responsibility for what has unfolded, both Electronic Subscription: per cent mortgages so that they could go globally and nationally. However, it is € 15 / £12 for 12 issues out and bid against each other to make the important to understand that domestic (or € 1.30 / £1.10 per issue) developers and bankers even richer still. policy went much, much further. In the You can also order both postal and No wonder the affordable housing commit- late 1990s, Government here actually electronic subscriptions from: ment in the Sustaining Progress Agreement elected to prioritise speculation over www.atholbooks.org continued on page 23