02/04/2015
Ivan Yates, a former Fine Gael Minister, makes some very good arguments about the inadequacies of Irish Water and the potential political fallout at the next general election. Irish Water has made a total mess of everything it has done so far and every new initiative seems to make things worse. The article calls for a 'back to the drawing board' approach but the key question is: will Denis O'Brien allow Fine Gael to change course on Irish Water?
http://www.independent.ie/opinion/columnists/ivan-yates/article31112795.ece
01/04/2015
Another attempt to divert attention from the main issue. Joan Burton is still criticising RTE for its coverage of the water charges protests and she complains about the fact that more anti-water charges people are being interviewed. In her statement today she asks 'what about the people who have decided they need a proper form of infrastructure'. The answer is that everyone wants proper water infrastructure and most people have been paying for it as a percentage of road tax since 1997. Again, politicians using spin words and then they wonder why trust in politics and politicians in Ireland is at an all time low. The Labour Party needs to examine its conscience and its role in the current government.What about Labour's pre-election policies and The Party's claim to represent the working people of Ireland ?
http://www.independent.ie/irish-news/politics/tanaiste-rte-has-developed-a-sense-of-excitement-about-water-charges-31110977.html
30/03/2015
It looks like the water demonstrations are really getting to the Labour Party. Now the leader, Joan Burton, is criticising RTE's coverage of the water charges demonstrations. The attitude of Joan Burton is unbelievable. In the article below we read she's aware that people have problems with water charges. Then she says that one million have signed up, implying that they have no problems with the water tax. Initially the numbers signing up were very low and most people who signed were bullied into it by government threats. It would be hard to imagine anyone being happy with this tax or any other tax for that matter. One solution to the problem is to abolish Irish Water and start again but there will be no climbdown on this by the Government, although the backbench TDs would probably have no objections. Hopefully RTE will continue to report on the water tax demonstrations in the same way as it has up until now.
http://www.independent.ie/irish-news/water/irish-water-crisis/tnaiste-weighs-in-over-rte-coverage-of-irish-water-31104137.html
29/03/2015
Censorship is beginning to rear its ugly head in Ireland. Obviously the government in general and the Labour Party in particular, don't like the water charges demonstrations so they attack 'the messenger, RTE. Again, no surprise here as the "law and order" Blueshirts in combination with Labour have past form in this area. In 1971, the Fianna Fáil Minister for P&T, Gerry Collins, instructed RTE under section 31 of the Broadcasting Act not to interview anyone from Sinn Féin or the IRA. This was during the Troubles in the North of Ireland and the order was liberally interpreted by RTE. However, the Fine Gael / Labour coalition were not happy with RTE circumventing weaknesses in the legislation and once again, the Labour party rode to the rescue with Conor Cruise O'Brien, Minister for P&T, amending the Act. He also issued an new order to RTE banning spokespeople from specific parties, including Sinn Féin. Perhaps Pat Rabbitte might have a word with his 'old mucker' Alex White, the current Labour Party Minister for Communications, to stop RTE reporting on the water charges demonstrations. It's interesting to note that many water tax demonstrators are highly critical of RTE's reporting on the issue, claiming that it is biased in favour of 'the establishment'.
http://www.independent.ie/irish-news/fine-gael-tds-back-pat-rabbittes-attack-on-rt-
31101148.html
29/03/2015
It's might be hard to believe that the government is contemplating deducting water charges from wages, pensions and social welfare. However, this government has no qualms about taking money from people. For instance, private pension funds were, and still are, subject to an annual levy and property tax has been introduced, with legislation to deduct that from the wages and pensions of people who don't pay. Another tax, the Universal Service Charge (USC) has been added. A further revenue-gathering measure is the increases in DIRT tax (now at 41%) up 11% since this government came into power. The figures below are taken from the Revenue Commissioners website:
Deposit Interest Retention Tax (D.I.R.T.), at the rate of 41% (from the 1st January 2014) is deducted at source by deposit takers (e.g. banks, building societies, Credit Unions, Post Office Savings Bank, etc.) from interest paid or credited on deposits of Irish residents.
The above D.I.R.T. rate was:
- 33% for the period 1st January 2013 to the 31st December 2013
- 30% for the period 1st January 2012 to the 31st December 2012
Taking all the measures outlined above into consideration, it should be no surprise that the government is considering attachment orders to deduct water charges from people's incomes. This raises the question about how self-employed people will be treated. How can the charges be deducted from them? I'm sure Labour Party Minister, Alan Kelly, has an answer. He's responsible for the legislation and also deputy leader of the Party that 'claims' to represent the Irish working class.
http://www.independent.ie/irish-news/water/irish-water-crisis/water-bills-to-be-taken-from-wages-without-any-court-argument-31101161.html
25/03/2015
Labour - Exit Stage Left.
The Irish Labour Party, the oldest political party in Ireland, has reached a new low with its involvement in the coalition government in general and in relation to Irish Water in particular. Labour has always been a junior coalition partner throughout its history and has suffered as a result. It can only be concluded that all it will ever be is a bit-player in political terms, if it's not wiped out in the next election,. On the occasions that it entered coalition with other parties, particularly with Fine Gael, Labour has been blamed by the electorate for any negative measures introduced by the government in which it participated. This is because for people to vote for Labour, they have to attract disaffected voters from the two main centre right parties, Fine Gael (FG) and Fianna Fáil (FF). In the 2011 general election the Labour Party got 37 seats, mainly because FF were almost annihilated and entered a coalition with FG, giving the new government a very large majority in Parliament.
Both parties went back on promises made during the election campaign but, although FG ministers have made many major blunders in office, it is the Labour Party that is taking the hit, even though its ministers have not made any big mistakes. The reason Labour has always been blamed is precisely because the people who switch from the big parties believe it will prevent or curtail the main parties' proposals, particularly in relation to social welfare cuts, public service reform and other measures that might impact on 'working people'. History shows that, when alterations are made in these areas, Labour is to blame in many people's opinion and The Party usually pays the price at the next election. During the recessionary 1980's Labour took part in coalition governments with FG and paid the price for the health and public service cutbacks introduced to curb government spending. A review of its history will show that the Labour Party has always done badly in general elections following a period in government and also in European and local election, while still in government.
However, despite this awareness, the opportunity to govern always seems attractive, particularly to the leadership and parliamentary party of Labour. In the light of Labour's current performance, cynics point out that the lure of ministerial office and the associated pensions on retirement are the motivating factor in Labour's eagerness to take part in government. It is hard to argue with this, especially taking into consideration the fact that massive losses usually follow participation in a coalition government. On that basis, it must be concluded that the Labour Party has collectively decided that it will never form a government as a majority party. Being a party of the moderate left, perhaps it has realised that it will never be big enough itself to get a parliamentary majority and it realises the futility of joining up with other populist left-wing parties to form a 'SYRIZA-style' political party.
While 'floating' voters may be generally disaffected with the Labour Party, its handling of the the water charges issue is politically naive at best and totally stupid at worst, and bound to undermine Labour's core support. The Labour Party opposed water charges before the 2011 election and Eamonn Gilmore is quoted as saying that water charges would not be introduced if Labour was in Government. Obviously, the Party supported the passage of the legislation in relation to Irish Water, both at cabinet level and in the Dáil, so this is generally seen as a broken promise. To exacerbate matters, this is legislation introduced by a FG minister, which was badly formulated from day one.
Since the beginning, there has been huge public opposition against water charges, now considered to be a tax, and the creation of Irish Water. In the meantime, the FG Minister for the Environment responsible for the original legislation, Phil Hogan, has moved to Europe as Commissioner for Agriculture, to be replaced by Alan Kelly, currently Deputy Leader of the Labour Party. The political nous of the Labour Party is questionable, since acceptance of this portfolio was always going to be politically damaging, especially in light of the Party's pre-election policy related to water charges. A sizeable majority of people in Ireland no longer believe politicians and the public's trust of politicians in the context of Irish Water, particularly in relation to it remaining in public ownership, is at an all-time low. In recent days, Alan Kelly is reported to be proposing the introduction of legislation involving fines and deductions from wages, pensions and social welfare, as payment to Irish Water. This will (rightly) be seen in simple terms as forcing people to pay a water bill that Labour promised nobody would receive while it was in government.
While it was politically naive to accept the Environment ministerial portfolio, it was utterly stupid to announce the introduction of this legislation two days after a massive demonstration against water charges on Saturday March 21st. On Monday, March 23rd, Alan Kelly spoke about the measures to tackle non-payment and Joan Burton said people will eventually accept paying for water. There has been no comments from FG ministers, other than Enda Kenny's comment that people who pay shouldn't be disadvantaged, which was not given prominence in the national media. The only assumption that can be made is that Labour are 'hanging in' until the next election and hoping there will be a turnaround in Ireland's, and thus its own, fortunes. Whatever about an improvement in the outlook for Ireland, resistance to water charges will continue and may even become more widespread. Instead of the 'water debacle' being associated with FG or at least the coalition collectively, it will be inexorably linked to The labour Party, thus providing other parties with a stick to beat it with during the next election campaign. It should be noted that the Labour Parliamentary Party has lost 5 TDs, including Minister Roisín Shortall, one senator and MEP Nessa Childers, since 2011. Unfortunately for the Labour Party, there will be no heavyweights left as they will all have ridden off into the sunset with their pensions and with lightweights like Alan Kelly as potential leaders, it wouldn't give rise to any optimism in relation to the future of the Party.
22/03/2015
The election of SYRIZA in Greece has opened a debate as to whether it is possible for a leftist government to be elected in Ireland. Left-leaning parties, from Sinn Féin, Socialist Workers Party and People Before Profit in Ireland, to Podemos in Spain, are celebrating the election of SYRIZA. However, there are two issues that need to be examined (a) exactly what is 'The Left' (b) what policies would a left-wing government implement or reject.
In relation to the first, "The Left' can be defined as a range of points on a scale to the left of the centre. This could range from close-to-centre, where its proponents accept the necessity for a free market economy and support private enterprise with an emphasis on equity and social justice. Unfettered capitalism would be contained by strong regulation and the weakest members of society would receive some level of protection and support. As we move further left along the scale, other issues emerge, such as total opposition to privatisation or nationalisation of banks, for example. The last point on the scale is return to a command economy (communism), in the manner of the former Soviet Union or (formerly) in China. There are many more pinch points along the scale that may be acceptable to one left-wing party and utterly rejected by another. This is what is confronting SYRIZA at present. There are various factions in the party, some of which are already opposed to what the leadership has done in its negotiations so far with the EU. This means the Greek negotiators are operating against a background that no matter what they achieve, it will be unacceptable to certain factions within the Party. To compound SYRIZA's problem, its choice of coalition partner (Independent Greeks) seems to be anti Europe and leaning towards cooperation with Russia.
Greece is in a strategic geopolitical environment, considering its proximity to the Baltics and Turkey, as well as it being Orthodox in religion, similar to Russia, It could be argued that these circumstances would give SYRIZA some bargaining power if the Party knew what it would settle for. Ireland is not strategic in a global political context. In terms of a left government in Ireland, a left alliance would face the same difficulties currently being experienced by SYRIZA, without having any geopolitical leverage. Apart from convincing people to vote for them, the parties of the left in Ireland have divergent views about the economy and even EU membership itself. A left-wing alliance in Ireland, if it came to power, would then be confronted with the same internal factional difficulties being faced by SYRIZA.
In relation to a manifesto, what policies could a left alliance in Ireland adopt, firstly to get elected and secondly to run the economy. The European Left is hailing the election of SYRIZA as a breakthrough. The SYRIZA election campaign was based on a debt write-down, an end to austerity, a crackdown on tax evasion and "restoration of the nations dignity". Presumably, the achievement of these objectives would pave the way for restoring the minimum wage to €751, restoration of some low pensions to previous levels, measures to promote growth and tackle the humanitarian crisis. The reality has turned out to be quite different as can be seen from the various clashes between Greece and its creditors. The finance minister, Yanis Varoufakis, has referred to Greece as a bankrupt country on a number of occasions but it has been made clear to Greece that unless it sticks to the terms of the bailout memorandum, then it will receive no further assistance from the 'institutions'. The alternative for Greece is to declare itself bankrupt and default on its debt, resulting in an exit from the Eurozone. It is impossible not to envisage a similar outcome if Ireland were to go down the same route.
The disappointing aspect of SYRIZA is that, although the party was a 'government-in-waiting' since long before Christmas, there seems to be no policies or plans to reform the economy. There have been no measures announced to pursue large-scale tax evasion or tackle any of the anti-competitive practices endemic in the Greek economy. These measures would certainly help domestic consumption, and while not a panacea for all Greece's ills, may help increase disposable income by reducing prices, which could lead to an increase in employment. The same scope in relation to promoting domestic consumption is not available in Ireland. Therefore, it is reasonable to assume that a left alliance in Ireland would fight an election campaign on the same basis as SYRIZA, with economic reforms being paid for by a reduction or write-off of debt. Unless there is a miraculous change of heart among Greece's creditors, the Irish electorate will be voting in the knowledge that this path will lead nowhere and are unlikely to embrace the 'left' as an option.
The difficulty facing 'the left' is that normally they don't prepare pragmatic policies incorporating the need for compromise - it's all or nothing based on generalised principles. There is often no 'joined-up thinking' or a planned incremental approach to making changes. For example, tax the rich is often cited as a means of addressing national income problems but rich people are well able to avoid paying tax legitimately and the amount raised would not solve Ireland's problems. Burning bondholders is another slogan but many Irish pension funds could be invested directly or indirectly in the very banks that would suffer if this were to happen. Irish pension funds lost badly when the share prices of Bank of Ireland and Allied Irish Bank collapsed. The argument in this instance should be about the disproportionate amount Ireland had to pay to save foreign banks, an argument the current or the previous government seem not to have made. Whether this was out of ignorance or being bullied into submission is open to debate.
The only role for left-wing parties in Ireland is as part of a coalition with Fine Gael or Fianna Fáil. Their remit would be to curb the excesses and cronyism of these two parties. The Labour Party claimed this role for itself in the past but is now identified as the same as 'the rest' and is probably facing big losses in the next election. The left can also play an extremely useful role in opposing specific measures proposed or being introduced by government. The national demonstrations against Irish Water and water tax are a very good example. The government's policy has undergone big changes and the campaign has been very effective but Irish Water will not be abolished and it would be better if the Right2Water group had a fallback position on how it sees Irish Water in the future. Legislation that it remain a public utility and never be privatised is a good place to start. The question is will the disparate groups involved in the protests be able to agree a compromise solution among themselves.
In relation to general elections, it's hard to avoid coming to the conclusion that left parties are not really capable of governing on their own or as a majority party, mainly because they are so used to being in opposition, not having to make any hard decisions, lack the ability to formulate achievable policies and are only comfortable with discussion and dialogue among themselves.
http://www.independent.ie/irish-news/politics/politician-vows-to-hold-the-line-dont-hold-your-breath-31085355.html
04/03/2015
Continuing with the election mode theme, Enda Kenny is promising reductions income tax and USC in successive budgets if the government is returned to power. Fine Gael and Labour are building up a list of promises but if they are re-elected most of them will not be implemented. Apart from the fact that politicians make these pledges at election time, there is also the point that in a coalition the promises will be subject to trade-offs as the parties fight among themselves to bring in 'their' list of goodies. There has been no mention of political reform but then again, why should there be - sure everything is fine. Enda Kenny was also able to take the time to advise Greece about what to do to solve its crisis - do what you are told by the EU and its partners.
http://ekathimerini.com/4dcgi/_w_articles_wsite1_1_04/03/2015_547863
However, in the article below from Journal.ie, we also learn about Enda's commitment to people on low pay. The person in the photo with the Taoiseach is none other than Richard Bruton, the Minister for Jobs and Enterprise. Enterprising Richard is the minister, who in 2011 began the dismantling of the JLCs, which set wages in the services sector for 190,000 workers. These are workers in the hotel industry, restaurant staff, contract cleaners, hairdressers etc. who are low paid and many of their rights were abolished or diluted under the new rules. One change proposed under the new system:
"
Special rates of pay for Sundays may now be a thing of the past as the JLCs will lose their right to set different, premium rates. However, Bruton insisted that working on a Sunday will still be recognised as a special position."
Employers, IBEC, ISME and the Chambers of Commerce were very enthusiastic, as can be imagined, and wages were effectively reduced (employers costs) as a result. Now Enda's heart is bleeding for workers on low pay. Not alone that but also graduates looking to return to Ireland are contacting Enda all the time :
"They are contacting me from American and Australia and so on, and they are coming back and they are very welcome because they bring with them new experience and energy that is devastating when you lose it through emigration.”
How anyone would come back to the land of property tax, water charges, a housing crisis and a dysfunctional health system is hard to fathom but if people are asking Enda, then I'm certain they will be reassured that it's all good.
http://businessetc.thejournal.ie/enda-kenny-tax-cuts-1972002-Mar2015/?utm_source=twitter_self
01/03/2105
Unless there's an 'accident' there will be a general election in Ireland in the spring of 2016. Already, the political parties are ramping up for this with the usual plethora of promises. The Labour Party is leading the charge in relation to all it's going to do. Alan Kelly (Minister for the Environment and Deputy leader of the Labour Party) is going to sort out the sky-high rents for accommodation. One wonders why that hasn't been done already but government policy in relation to re-inflating the property market to repair bank balance sheets and take people out of negative equity is not conducive to solving this problem. There is a huge demand for rental accommodation because many people can no longer afford to buy a house due to wage cuts and the central bank rules on mortgage lending have had a further negative effect, by making it very difficult for house-buyers to save for a deposit. Best of luck with that one Alan!
The Labour Party conference was held this weekend and the leader, Joan Burton, has gone 'native' (as in Fianna Fáil) with promises. We're going to have full employment, increases in children's allowances and two years free pre-school for children. The Labour Party is, and always has been, the junior coalition party in government and to see promises of this magnitude is laughable. The one positive point about Labour is that for the most part, social welfare payments were not seriously eroded so far during the crisis currently being experienced. However, no political party in Ireland would implement draconian cuts to the social welfare budget, so every party will claim success in this area.
There has been talk of a voting pact between Fine Gael and the Labour Party for the next election but there seems to be very little difference between these parties, or Fianna Fáil, for that matter. One issue promised in the general election campaign by Fine Gael was the reform of the political system Well, following a botched attempt to abolish the Senate, that went nowhere and never will. Today we read in the Sunday Independent about the pensions Fine Gael and Labour ministers will receive if not re-elected or if they decide to retire. Now, contrast that to the general public who are going through very difficult times, to put it mildly, and ask are any of these politicians electable. Household property taxes, water charges, health service dysfunctional, 300,000 people have emigrated and these politicians will be "standing on their record" in government and promising everything under to sun to be re-elected. And sure why wouldn't they when you look at what they get when they exit the political stage.
http://www.independent.ie/irish-news/politics/rabbitte-quinn-and-gilmores-pensions-to-cost-2-million-each-31030893.html
http://www.independent.ie/irish-news/politics/send-in-the-clowns-theyre-already-here-30993029.html