We hope that this blog will create an opportunity for people to share their views on Sinn Féin in a positive and constructive manner. We believe positive discussion of our strenghts and weaknesses can help build Sinn Féin into a mass 32 counties wide party. If we do this then we will be on the way to building the Republic that the people of this island deserve.
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David McWilliams wrote a very good piece which effectively demonstrates why the neo-liberal reaganite model is such a failure. Such a model assumes that the interests of business and state are always aligned and the state benefits incidentally as long as business is booming. The more business booms the more the state will boom. Unfortunately it does not work like that does it. The interests of the state (and more accurately the nation) are frequently similar to those of business but most definitely superior to them. Thats where Linehan and company have gotten so lost. They still think that as long as you are slavishly acting in the interests of businesses, property holders or debt holders then somehow that raises the state's boat as well (with a few bob won on the horses as well of course) . Naive men and women blinded by ideology (and personal greed) who are incapable of performing the jobs they hold and as a result need men like Suds and Seanie to tell them how to proceed.
David McWilliams:
I am writing this article from a ''ghost hotel'' in Leinster. Rumour has it that the business was recently sold for €1, but the hotel itself is probably in Nama.
It will never be worth what it was built for. Today, as well as owning a small part of this hotel, I am the only guest in it. The reason I know this is that, when I asked about the lack of hot water, the very charming hotel manager said that I'd have to run the water for a bit as there was no other hot water being used in the whole hotel.
There were no other guests. The hotel has more than 90 rooms. This is reality in Ireland, and this reality needs to be defined and accepted. The reality is that bank lending is falling, prices in most sectors are falling, lending to residential housing is falling and the economy is in the grips of a credit crunch. People have too much debt and don't want to borrow, and the banks have too much bad debt and don't want to lend.
Against this background, the people who run the country make announcements about ''front loading'' budget cuts as if budget cuts are some sort of clean arithmetic, which has no impact on the economics. This is not arithmetic, it is economics and, in economics, everything is related.
On paper, arithmetic can look clean and incisive, but in reality it affects jobs and people's decisions to spend. It means nights in a ghost hotel and wages for hotel managers, it means Christmas parties and Christmas presents, it means investments in machinery and the difference between some hope and no hope.
Those who best understand the difference between simple arithmetic and complex economics are the financial markets.
Investors want to invest in an economy which has the prospect of growth. If they see that a country is being turned into a large debt-servicing machine, they will pass. If they see that the people who run the state on behalf of the citizens are little more than despised debt collectors for owners of capital, the financial markets will take flight.
How do you get rid of €1.8 billion just like that? Well you dont get goofball comedian Tommy Cooper. Instead you get a goofball finance minister and hey presto the National Pensions Reserve Fund is down by €1.8 billion. The Sinn Fein budget proposals calls for a multi-year investment strategy to reflate the economy using money from the National Pension Reserve Fund. Can anyone seriously tell me that throwing away €1.8 billion in a flash is a better option than using the money to invest in the economy. Yet against all common sense I am sure the Govt. will say it.
As noted on the NamaWineLake blog and taken up again on IrishEconomy.ie Lenihan has engaged in another bail out of AIB shareholders and subordinated debt holders for reasons that are hard to fathom.
Brian Lenihan made a statement of October 30 that "AIB's upcoming €5.4 billion will be fully underwritten by the National Pension Reserve Fund Commission (NPRFC) at a fixed price of €0.50 per share." The catch as noted by Karl Whelan is "Unfortunately, the shares closed on Friday at €0.337."
So the way things are being set up the Fund is going to drop an impressive €1.8 billion when those shares are bought. So what would be the alternative. IS there an alternative. Well one possible option layed out is " Cancel the underwriting, nationalise the bank and appoint an assessor to value the shares. If, for instance, the shares were valued at their closing price on Friday, this would cost us €364 million. Which sounds better? Losing €1.8 billion or losing €364 million. Is it worth €1.4 billion to retain a tiny private ownership share?"
Which again would be the SF position. Get these banks nationalised. Grasp the nettle and stop trying to keep them in private hands via huge, unwarranted state subventions for no benefit to the state.
How can Brian Lenihan agree to just provide a 1.8 Billion subvention simply to avoid nationalisation. They are totally in hock to the bond holders and the developers as noted by Martin Ferris and Pearse Doherty. And the property developers and bond holders are no fools. There advise is good advice. Good for bond holders and good for developers. Indeed the only fools here would appear to be the Min. of Finance and his team who despite all their pro-market fawning have only succeeded in driving interest rates over 7%.
They have brought us to the Greeks level of debt. The way things are going we'll end up fire saling every single asset which will be bought for next to nothing by investors. That may well be the end game here.
Over the last week the SF Oireachtas team put the focus right on the grossly negligent decision of the govt. to continue to take advice (and act in the interest of) property developers while at the same time relying on bond holders to give advice on dealing with the economy. The south of Ireland is now a profit center designed to maximise returns for a few business interests rather than a state seeking to guarantee the highest standard of well-being for its inhabitants.
Bond Holders:
The Sinn Féin Spokesperson on Workers Rights, Martin Ferris TD has claimed that the Government’s austerity programme is not only designed to pay for failed bondholders and speculators but is being advised by them. He referred to the fact that the Chairperson of Goldman Sachs Peter Sutherland whose Asset Management section holds Anglo Bonds has been advising the Government on the cuts.
Deputy Ferris said: “Apart from the economic and financial issues that we have discussed here for the past few days there is the whole moral and ethical aspect of the situation.
“All of the proposed misery is being planned to benefit failed speculators among whom are the Anglo bondholders. There are websites which have published the names of these companies and there are discussion groups on the internet about it. And yet no national newspaper here has regarded it as of sufficient importance.
“While most of the bondholders are European based there are Irish connections and no doubt some of our fine patriotic and charitable tax exiles have their noses in the trough.
“More importantly perhaps is the connection between all of this and the fact that representatives of these people are advising the Government on how best to make the rest of us pay for their mess.
“Take Peter Sutherland for example. He has held various high positions in this state and on behalf of this state abroad. His views are still given a lot of credence and he was recently widely quoted in claiming that this state had an obligation to protect the Anglo Irish bondholders.
“And of course he has been advising, in a totally disinterested way of course, the Government on how they should deal with the crisis. Among his proposals has been to sell state companies. And no doubt he probably knows chaps who might be interested in buying them at a fair price.
“How many of those who referred favourably to Sir Peter’s excellent advice also referred to his own possible self interest and the interest of his friends in all of this? He is, after all, Chairperson of Goldman Sachs whose Asset Management section is a key Anglo bondholder and which incidentally made profits of more than €13 billion last year.
“If our priority is to look after people like this, then the description given on one web site of Ireland as, ‘an international welfare state for super-rich bankers’ is all too accurate.”
DEVELOPERS:
Pearse Doherty shows that the only opposition, the only alternative voice in the Oireachtas, is Sinn Fein. Labour and Fine Gael think you can build a consensus with corrupted and bought out politicians.
Below is a statement from Conor Murphy on the need to fight the planned Tory cuts. As stated previously I believe Sinn Féin must refuse to implement these cuts full stop.
We are a left wing party and must refuse to be pawns of a right wing goverment which is directly attacking working people. We must show working people from across Ireland and from various cultural traditions, that Sinn Féin will fight for them. It was not the working class that caused this mess.
Executive must take lead in challenging cuts
Sinn Féin MLA and Executive Minister Conor Murphy has stated that the Executive should now prepare a united approach to fighting the punitive cuts being brought forward by the British government. This follows today’s Executive meeting which dealt mainly with the Comprehensive Spending Review and the affect it will have on the local economy.
Speaking earlier Mr Murphy said:
“Today’s meeting was realistic and dealt with the issues at hand.
“We put it to our Executive colleagues that there needs to be consensus when fighting these cuts. We were elected to do this and represent the citizens of the North, to deliver for them and not to acquiesce to what the British government has proposed. This would be failing our electorate gravely.
“The Tory government, though Owen Patterson, has said that they received an endorsement for their platform of cuts from the electorate and that people knew what they were voting for.
“Let us be clear. That mandate was rejected whole-heartedly at the last election in the North of Ireland with not one conservative candidate being elected. We said no then to cuts then and we are saying no now.
“We have laid out measures to grow the economy based around what was promised from the Gordon Brown. Owen Patterson stated he would honour this agreement yet £4bn has been removed from this package.
“This is a disaster for the local economy, especially the construction industry. There is no fairness in devastating one of the main sectors of the northern economy, as there is no fairness in attacking the most vulnerable in society through attacks on pensions, benefits and low-income families.
“Coming from this we need to see the political parties sitting down, bringing proposals to the table to work out a clear strategy on the best way forward.
“Sinn Féin have already released our document and there has been positive acceptance of it containing viable and workable economic proposals. Let debate these and lets have the other parties bring forward similar proposals. The initiative lies with us all here.
“The Assembly has already been recalled to debate the economic crisis and as an Executive we must follow suit. Today is the start of that process. We need to accelerate our efforts and work towards safeguarding and providing jobs in the immediate future and putting in place economic stimulants for future growth.”
“There was a boat race between a Japanese crew and a crew from the National Health Service (UK). Both sides practised long and hard and the Japanese team won by a mile. So the NHS ...faced with this problem setup a working party which reported that the Japanese had eight people rowing and one steering and the NHS had eight people steering and one rowing.
So they brought in management consultants and the management consultants confirmed the diagnosis, suggested the NHS team be completely restructured to make it more efficient, more cohesive, streamlining and all-round better performance. A strategy document was drawn up and the recommendations encouraged restructuring for the entire organisation.
As part of the restructuring, a number of appointments were made including three Assistant Steering Managers, three Deputy Steering Managers, a Director of Steering Services and the rower was given an incentive to row harder. They had another race, this time the NHS team lost by two miles, so management laid off the rower for poor performance, sold the boat and gave the Director of steering services a large payout for making the ‘hard decisions’ and concluded they had too many management consultants and not enough managers!"
The Government is telling us its too busy with the "job in hand" to hold elections. But they are not too busy to open new FF offices in Crossmaglen (80 years late better than never I guess) or attend Ogra FF talk-ins, attend their own drink ins and waste time opening shops and conferences and any other myriad number of locations and non-events over the last 16 months. What a weak and watery excuse.
Mary Lou McDonald noted in her blog that there is something seriously wrong when a government will go to any lengths to prevent elections
The government is dead set against a general election. It would be a ‘distraction’, they say, from ‘the job in hand’. They don’t want to be ‘distracted’ from their bailouts for the bankers- cutbacks for the people agenda.
They don’t want to hold elections to fill the empty seats in Donegal South West, Waterford and Dublin South either. The ‘distraction’ of losing those bye-elections could bring the government down.
Avoiding elections is an expensive business. It cost €9000 to transport junior minister Dara Calleary from Brussels to the Dáil to vote against holding the bye-elections. He travelled by government jet and the taxpayer picked up the tab.
Today the government goes into the High Court to defend their refusal to hold the bye-elections. Sinn Féin’s Pearse Doherty took the case. He believes that no government has the right to withhold people’s democratic right to vote and to have full representation in the Dáil. He’s right.
There is something seriously wrong when a government will go to any lengths to prevent elections.
The government, Labour and Fine Gael have an agreed position to introduce crushing cutbacks over the next four years. Brian Cowen and company now want to formalise that consensus so they’ve invited like-minded parties to talks.
The Taoiseach’s decision to exclude Sinn Féin from discussions because we oppose those cuts shows that the Government is not willing to listen to any alternative opinion.
Politicians talking among themselves is no substitute for an election.
The scale of our economic problems, the length of the dole queues and the staggering numbers emigrating – these are the reasons why the government is running scared of elections. They are the very same reasons why an election is so necessary.
We need an agreed way forward. A way forward democratically agreed by the electorate. After all it is the people who are in charge here.
The site highlights how water charges will "hit the lowest income group four times harder than the highest. It will give rise to annual bills in the region of 170 euro per person or 685 per family of four."
This is also a campaign for a more thoughful approach to how the state should handle the issue of water distribution in the southern state.
One option the Govt. is looking at is an outlay of €500 million to install meters in 1.1 million households with proponents pushing a demand for full cost recovery i.e the householders will pay for everything with the possibility of a bill of up to €500 before the tap started to flow.
The Govt. focus is wrong. The focus must be on making the water distribution system more effective rather than trying to control the pattern of consumption. Currently 58% of treated water is lost through broken pipes. Actively tackling leaks would, according to the Local Government Review Group, make a significant contribution to managing the cost of the system.
The Fianna Fail govt. decided to build housing state after housing state and encouraged its friends to enter into large scale investment property deals domestically and internationally when it should have been investing in the national infrastructure.
Now they want us to pay for their mistakes...again.
