Madam, – Given the recent stringent proposed pension levies (otherwise known as salary cuts) to be imposed on the income of public servants, will the Government now inform the nation of the travel plans of senior and junior ministers over the St Patrick’s Day period?
A cost/benefit analysis of this activity at a time of world recession should be submitted for public scrutiny, particularly as many financial affairs of state appear to be conducted on the back of an envelope.
Seeking international inward investment by sending intellectually lightweight, if physically heavyweight, senior and junior ministers to far-flung capitals at great expense does little to improve our status overseas, and serves only to promote the “leprechaun” image of Ireland and maximise our carbon footprint. – Yours, etc,
Madam, – It has taken Justin O’Brien, described as a “professor of corporate governance” at the Centre for Applied Philosophy and Public Ethics in Canberra, Australia to tell us in this democratic republic what happened to our beloved Celtic Tiger (Opinion and Analysis, February 9th).
“Staggering regulatory, corporate and political incompetence”, according to Prof O’Brien, not only put a stop to the Celtic Tiger but also ruined Ireland’s international reputation.
Prof O’Brien is not afraid to name names. He blames the then Minister of Finance, Brian Cowen, for amending the Finance Act to provide tax-free status for “esoteric” methods of trading called “contracts for difference”. This, he contends, “reflected the power of interest groups to dictate policy” and resulted in the country degenerating into “something resembling a dodgy casino”.
Since all of us are going to have to pay for this mess the least we should expect from the people responsible and from those in the media who shamelessly provided PR for everything that went on is some humility and acknowledgement of mistakes that were made.
The spectacle last week of the usual suspects in the media wetting themselves with excitement because the Taoiseach made a speech does not give one any hope that will happen. One has only to listen to powerful ministers in Dáil debates and the heads of both public and private companies, including banks, on discussion panels to know that the arrogance-will-get-you-everywhere philosophy which got us into this mess is still alive and well. – Yours, etc,
Madam, – It is claimed that, despite the current turmoil, financial institutions cannot refuse to make bonus payments to their senior executives because they are contractually bound to do so.
May I suggest that the Government introduce a new levy on bonuses in the financial services sector? I propose that such a levy be set at a rate of 99 per cent. – Yours, etc,
Madam, – With regard to the public sector pension levy I suggest the public service unions establish a pension levy benevolent fund whereby those union members who can afford to do so contribute to assist those who are worst hit. This would give the unions public credibility and show leadership with regard to the best way forward.
As a public servant myself, I am firmly opposed to the idea of any industrial action on this issue given the pay cuts and job losses taking place in the private sector. – Yours, etc,
Madam, – A cursory look at our latest unemployment figures compared with those for the US puts our crisis in context.
Our increase of 36,000 unemployed (in a population of approximately 4 million) is equivalent to an unemployment increase of 2.73 million in the US (population about 303 million). This is proportionally higher than the US’s unemployment increase of 2.6 million for all of 2008. If the US is in crisis, we are in meltdown.
We need an immediate rebenchmarking of all salaries and expenses starting with the Taoiseach and working down. All banks and institutions receiving taxpayer funding must reduce salaries at least in line with President Obama’s US guidelines.
A final sobering thought: the US has a property crisis on the back of a 59 per cent house price increase from 1995 to 2006. We had a 350 per cent increase for the same period!
We know the figures. We have gone way beyond our means. No more fudging. We need crisis action. – Yours, etc,
Madam, – The Government’s decision significantly to reduce the overseas aid budget for the current year is a worrying development.
Even more important than the size of the cut (€95 million), is the fact that our Government, which has often boasted about its commitment to the poorest on the planet, intends reneging on a sacred promise.
The present economic downturn is causing havoc across virtually every sector of Irish life. This, presumably, has led the Government to feel entitled to ask the poor and vulnerable of the third world to take further punishment. One can at least understand the motivation, while profoundly disagreeing with it.
My colleagues and I in Goal appeal to the Government not to reduce the emergency budget by a single euro. Rather, the €95 million saving should be found in areas where the reduction would have no impact on those who need our help most.
In the year ahead, the poorest nations will again be visited by natural disasters; that much is certain. Certain too, given the severity of the global downturn, is that the response of the international community to the plight of the stricken will be greatly reduced.
It is imperative that the Irish Government retains sufficient funds to be made available in the event of future human catastrophes to Irish NGOs, which have a proven record of achieving results. – Yours, etc,
Madam, – Yesterday’s front-page photograph of the Taoiseach, with head down, apparently stepping into the path of an oncoming train must surely be a metaphor for current government inaction in the face of impending fiscal economic forces. – Yours, etc,
Madam, – It is about time the Government realised that a 10 per cent pay-cut is not enough to show leadership and commitment. A 20 or 25 per cent cut would be more appropriate. And where are the captains of industry and the property magnates when their country needs them?
Surely it is about time that those who benefited most from the Celtic Tiger showed some patriotic leadership and commitment to the people and the nation. – Yours, etc,
Madam, – The problem Mr Cowen faces is one of trust – not that the people of Ireland do not want to share the burden of recession.
After all, this is the same Mr Cowen who as Minister for Finance told us the “fundamentals of our economy were sound”, the same Mr Cowen whose Government’s first act after election was to award themselves a huge pay rise, even as the writing was on the wall for many thousands of workers; the same Mr Cowen whose party had such a cosy relationship with the developers, bankers and vested interests that have destroyed the real economy.
So when Mr Cowen asks us all to “pull together”, the problem is: how can we trust him, or his lackeys in Government? – Yours, etc,