Keeping jobs, giving new opportunities and stopping emigration

In 2010, unemployment peaked at almost 460,000. There are 439,000 people on the Live Register. The country has also seen a return to high levels of emigration with the ESRI recently predicting that 100,000 people, mainly young people, would leave Ireland over the next two years. This level of emigration exceeds anything seen during the worst days of the 1980s. Unemployment is the only figure that matters for those of us concerned with economic recovery.

Employment, not percentage increases in GNP/GDP, is a true reflection of meaningful economic growth. High rates of unemployment don’t just spell bad news for the economy now – structural unemployment into the future will have a devastating impact on any hope of restoring the Irish economy.

The relationship between jobs and the deficit is a clear one – more people in work produce higher levels of spending activity and tax revenues, as well as lower welfare payments. In 2008, employment in this State fell by 84,000. This was associated with a decrease in tax revenues of €6.5billion and an increase in social welfare payments of at least €2.5billion, a total deterioration in Government finances of €9billion.


Sinn Féin’s employment and financial stimulus package costs €7.595billion and will create 160,000 jobs directly over the medium-term, tens of thousands more jobs indirectly and also save thousands of jobs. The full cost of our employment stimulus amounts to €7billion. The financial stimulus of €595million is accounted for in our tax and saving measures. The multiplier effect on GDP of creating 160,000 jobs would amount to 1.8%, according to ESRI figures. And this would be real GDP growth – not growth based on the profits of multinational companies based here.


Our stimulus is about providing immediate and direct employment in key sectors such as infrastructure in the immediate term. But in the longer term the impact of our stimulus plan would see the State’s competitiveness increase as we become a world leader in green energy, IT and research and development, in addition to having world-class infrastructure to attract Foreign Direct Investment and support indigenous enterprise for longer-term employment creation.


Furthermore, the completion of key strategic infrastructure projects, such as the National Broadband scheme, and the improvements in the education and health services, will make Ireland more competitive and put us in a better position for economic recovery in the years ahead. In addition to these proposals, Sinn Féin has a strategy to boost the tourism sector including developing tourist attractions and amenities and a plan to create a new generation of co-operatives. This sustainable, long-term employment would broaden the tax base and secure it.

The 10-point plan

1. A jobs stimulus. Sinn Féin is advocating the transfer of €7billion from the National Pension Reserve Fund (NPRF) for a State-wide investment programme (stimulus). We are calling for a transfer from the fund of €7billion –– for a jobs stimulus package. This money should be administered out of the NPRF over the next 3.5 years, with the Department of Finance signing off on proposals as they are submitted from the departments. All proposals would have to have ‘value for money’ clauses and total number of people that would be employed under the proposal. €2billion would be spent on the employment stimulus in 2011.



2. Growing the agri-food sector. Deploy funding of €500million to set up and support central production hubs for SMEs involved in the agri-food sector so that they have access to advice, support and, most importantly, infrastructure and equipment perhaps not available to early- stage start-ups. We envisage existing agencies such as Enterprise Ireland and An Bord Bia to come together with Government to drive this project. This would create 5,000 direct jobs and 2,000 indirect jobs.



Coupled with regional networking, partnerships and branding across the whole country, this measure alone has even greater potential for job creation. Investment in agriculture and the agri-food sector provides high returns for the Irish economy. The multiplier for agriculture on GDP is 1.73 and 1.76 for the food and drink manufacturing industry (if you invest €1million in these sectors, the wider economy sees a return of €1.73 million). Funding required = €500m.



Creating jobs through the construction of essential infrastructure

3. Health infrastructure. We would build 100 new primary healthcare centres throughout the State at a cost of €500million. This would alleviate the strain on our main hospitals. It would provide local healthcare for a variety of medical conditions and an excellent resource for communities. The building of these centres would create in the region of 5,000 jobs and 2,000 indirect jobs. Our pre-Budget submission provides for the lifting of the current recruitment embargo, which would allow all these centres to be staffed in the years following their construction. Funding required = €500m.



4. School buildings and refurbishment. An increased school-building and refurbishment programme for 2011 to take at least 125 schools through the construction stage. A 16-classroom generic repeat design project costs approximately €3million in current market conditions. This would cost €375million in total and create approximately 4,000 jobs directly and 1,600 indirect jobs. A minimum of 150 school-building projects should enter the architectural and planning stage each year so that school projects are ready to proceed as quickly as possible to the construction phases. Funding required = €375m.



5. Crèches. Build 100 crèches State-wide for state childcare provision at a cost of €200million, creating 2,000 jobs directly and 800 jobs indirectly. Funding required = €200m.

Assisting businesses and entrepreneurs



6. Improving communications infrastructure. Augment the current National Broadband Scheme to provide a fibre-optic island-wide network. Fast-track the €435million spend so that it is delivered beginning in 2011 instead of 2013. This will provide in the region of 4,500 jobs directly and 1,700 jobs indirectly. Funding required = €435m.



7. Assistance for those starting a business. Change the PRSI system to create a safety-net for those who attempt to establish their own business. Provide a one-stop-shop virtual helpdesk for business start-ups with legal, HR, patents, accountancy and funding advice. In addition, create an innovation website where budding entrepreneurs can pitch their business and invention ideas to investors at home and abroad. Funding required = €2 million.



8. Helping businesses to export. Create a ‘Sales Ireland’ strategy to help Irish firms access export markets outside the US and Britain and to help Irish firms looking to set up manufacturing businesses with the potential to compete with out largest imports, including R&D funding. Currently, almost 90% of exports come from foreign-owned multinationals and foreign-owned firms import over 86% of the materials they use, bypassing Irish firms.



9. Maximising employment on public projects. Rethink local authority and public sector construction, service and procurement contracts to create a level pitch for small businesses to tender. Breaking tenders into smaller pieces allows contractors with less significant turnover to efficiently tender for work. Make the employment of a set amount of apprentices a condition on which public contracts are awarded to contractors building public infrastructure.



10. Initiate a ‘Frontline Services Aides Scheme’ where people are employed to take on specific work from overworked frontline workers (e.g. civilianising administrative work that is currently done by Gardaí). Funding required = €250m.

The Sinn Fein election manifesto

In this election Sinn Fein, as set out in our policy manifesto, is seeking a mandate to safeguard society and the economy. We cant afford to sacrifice either to the narrow interests of a small clique - either here or in the banking halls of Europe and the policy rooms of the IMF. Too much is at stake. Now we have to stand up for our interests as a society. Beyond this Sinn Fein will be seeking a mandate for:


- Root and Branch reform of the Political System to produce a really open and accountable form of government that empowers citizens and end the influence of the political elites.

- The protection and creation of jobs.
- An end to the two tier health system and and the two tier education system
- The proper use of Ireland’s natural resources in the common good

- Continued support for the Peace Process and the Good Friday Agreement

 http://www.sinnfein.ie/files/SF_GeneralElectionManifesto2011.pdf

Safeguarding Irish interests

Gurdgiev, Ross and even the Fine Gael man agreeing Sinn Fein and Pearse is bang on the money

Ireland’s Austerity Woes

BELOW IS A PIECE FROM TASC.

Ireland’s Austerity Woes
07/02/2011 By Nat OConnor
From the very beginning of the crisis, the Irish Government’s response has failed to protect vulnerable people and has damaged the long-term prospects of the economy.

To put the scale of Ireland’s austerity measures into context, about €30 billion worth of austerity measures (cuts to public spending and tax increases) have occurred since the crisis began at the end of 2008. In scale, these total just under a fifth of the current size of Ireland’s economy (GDP €160 billion). To apply the same level of austerity across the EU, with its GDP of €12.5 trillion, there would have to be €2.4 trillion worth of tax increases and spending cuts.

What is even worse is that Ireland is only half-way through the process. The last budget was the first of four agreed with the EU and IMF in order to secure loans to Ireland. What follows is a brief overview of events, and austerity measures adopted in response, for those who might not be familiar with the details of the Irish case.

Lehman Brothers filed for bankruptcy on 15 September 2008. The Irish Government held a ‘midnight meeting’ on 29 September 2008, centred on Ireland’s banking crisis. Hence, Ireland’s financial and economic crisis dates from then, although other aspects of the crisis only emerged into broad public discourse in later months.

The discourse around the crisis centred on ‘external’ events from the outset. The problems in Ireland were blamed on the global financial crisis. However, it soon became apparent that Ireland would probably have suffered a recession sooner or later, even in the absence of international events; although some people denied this for quite some time. Ireland’s speculative property/construction bubble peaked just as Lehman Brothers fell. As a result, the coincidence of both national and international factors has led Ireland to experience a particularly severe and prolonged economic collapse.

The fiscal policies of the Government in the years leading up to 2008 were increasingly unsustainable. The construction bubble brought in much increased revenue from transaction taxes (e.g. stamp duty on property purchases, plus VAT from construction-related activities). Much of this tax revenue was from private debt invested in the construction market. In addition, income tax receipts were high and low unemployment reduced demand for welfare spending.

During the boom, the Government cut personal taxation and continued to permit high levels of tax relief to individuals and corporations, fatally undermining the stability of tax revenue. When the bubble burst, tax receipts fell by a third in two years. Up until this point, Ireland had been living a fantasy, where unsustainable tax receipts masking otherwise low taxation miraculously allowed the state to raise public spending and provide more services. When tax revenues collapsed, suddenly a massive current deficit appeared. One direct result is that the future size and role of the state is now at stake in Ireland. The balance of austerity measures between taxes and cuts will determine whether Ireland takes a route of low taxation (and therefore eviscerated public spending) or more public services (and therefore more European-average levels of taxation to pay for them).

On 30 September 2008, the day after their emergency midnight meeting, the Government announced a bank guarantee scheme, with the state guaranteeing €440 billion to six Irish banks, with the objective of safeguarding the Irish banking system. To put the scale of the guarantee into perspective, Ireland’s GDP in 2008 was €180 billion. Some prominent figures had called for a bank guarantee scheme, but the devil is in the detail. The guarantee was a blanket guarantee, which did not discriminate between banks of genuine systemic importance to the economy and others, which were not (notably Anglo Irish Bank, which was heavily involved in lending to the construction sector). It also covered more bondholders than should have been protected. Ultimately, it was a costly gamble that assumed liquidity was the only problem. However, it quickly came to light that the problem was not one of liquidity, but of solvency across the entire banking sector.

The Irish Government established NAMA (the National Assets Management Agency) in late 2009 to remove ‘bad loans’ from the balance sheets of Irish banks. However, NAMA was slow to start and has faced legal challenges to its powers. It was quickly overtaken by events. The lack of solvency in the Irish banks has forced the state to recapitalise them. This has led to the complete nationalisation of Anglo Irish Bank (known as ‘Anglo’) and more recently, the near-total state ownership of Allied Irish Bank (known as AIB). Perversely, NAMA continues to transfer loans from these state-owned banks to itself, a state-owned institution, costing unnecessary millions in legal and accountancy fees.

As a euro area member, Ireland has had no direct recourse to monetary policy. A range of monetary policy measures were taken by the European Central Bank in response to the crisis; however, these were insufficient compared to the scale of the problems Ireland was facing.

To date, the government has had four national budgets during the crisis period. (Details available on www.budget.gov.ie) The first budget, at the end of 2008, was two months early in order to respond to the emerging global financial crisis. Taxation was raised and public spending lowered. This budget did raise the level of unemployment payments, but subsequent budgets cut the rates and qualifying criteria for benefits to a greater degree than this budget raised them.

In the 2009 budget, the Government announced a policy of encouraging workers back in to employment by cutting their social welfare payments. Payments for young people (20-24) were set at special low rates. For all other cases, the rate was to be reduced where job offers or activation measures were refused. Further cuts and tax increases followed in the 2010 budget.

The fourth austerity budget, for 2011, again reduced social welfare payments. The national minimum wage was also reduced by nearly 12 per cent. Increases in personal tax in this budget have also disproportionately impacted on the low paid. Changes to rates and bands meant that an employee on €20,000 per year paid as much extra tax as an employee on €200,000. In addition, changes to social insurance created a new Universal Social Charge, which introduced much higher rates onto low- and middle-income employees than had previously been the case. And, of course, people on lower incomes are more reliant on the state services that are suffering cutbacks.

Unsurprisingly, consumer spending in the economy has collapsed and Ireland continues to experience negative growth in the domestic economy; GNP continues to fall. Unemployment is at 13.4 per cent and renewed high emigration masks a higher rate of job losses. The situation is better for GDP, which is growing again (albeit at low levels) due to strong performance by exporting firms.

The last budget was merely the first instalment in a four-year plan, which envisages further cuts and tax increases. Polling day in Ireland’s General Election is 25 February. The result will determine the extent and timing of further austerity measures, but one thing is sure: much more pain is yet to be inflicted on the Irish people. At the same time, the election provides an opportunity for the next government to change direction on economics: more can be done to increase investment and foster job creation, especially by indigenous companies; private bank debt can be separated from the sovereign national debt; and the conditions of the EU-IMF loans can be changed. Indeed, all of these things must happen if Ireland is to be realistically able to afford to repay the loans.

The resistance within some quarters in Ireland to such measures is perhaps more surprising to an outside observer than it is from within. Part of the solution to Ireland’s current insolvency is that many economic commentators and practitioners have to admit that our previous economic model was – and remains – seriously deficient. There is no going back to ‘business as usual’, but to accept this implies a great deal of cognitive dissonance for those who were the strongest supporters of the economic consensus that brought Ireland to ruin.

Brilliant Pearse - Now Marty don't fail us now

Peasrse Doherty made a brilliant speech in response to the budget and many more people in the South are now seeing Sinn Féin as a genuine alternative to the main parties.




Sinn Féin is seen to be fighting for the poor, disadvantaged and marginalised people of this country. Sinn Féin is seen to be offering a modern ecomic alternative to the market based policies that created the current world economic crisis. Sinn Féin is seen to be taking on the priviliged groups in this country and refusing to allow an economic elite to get away with making the working class pay for the mess we are in.

However, in the North Sinn Féin is in a postion of power and is being told by London to make budget cuts of 4 Billion pounds. If Sinn Féin agrees to implementing cuts of this nature, then what the hell are we doing down the South. We cannot oppose cuts in the South and implement them in the North. If we do we will loose all crediblility with the Irish people, and what is worse is that we will be seen as liars.

Sinn Féin must fight for working people North and South and it must refuse to implement the cuts in the Six counties.

Below is Pearse's speech and he outlines for me the direction Sinn Féin must go throughut the island.

Government has negotiated a terrible deal

In an initial response this evening to the details of the EU/IMF bailout, Sinn Féin President Gerry Adams said:

“The government has negotiated a terrible deal.

"The 5.8% interest rate is unaffordable. The decision to force the state to take €17.5 billion out of the Pensions Reserve Fund to pour into black hole that is our banking system is a disaster.

“Sinn Féin had proposed €7 billion be taken from the Pension Reserve Fund for a jobs stimulus programme. The Government refused to do this. But now they are prepared to rob the pension fund to give a digout to the bankers.

“The decision to protect bondholders is disgraceful.
“The banks are getting another €15 billion while simultaneously €15 billion is being taken out the economy- out of people’s pockets.
“The costs of this deal to ordinary people will be deep and will result in hugely damaging cuts to public services, social welfare and wages.”

You makes your bet and takes your chances - facing the bondholders and special interests down

Sinn Féin versus the Bank Bail Out. Rathangan SF blog discusses the Irish banking crisis, the Sinn Fein reponse and the failures of the FF strategy. To see how far Fianna Fail's approach is from reality

you could look at the Financial Times editorial of 01st November which looked on in amazement at the insane strategy followed by Dublin. Even the right wing think FF have lost the plot. Its time to stand upto the bank debt bondholders. If we dont then the economy will likely be crippled.

A few short months ago this blog was both shocked and saddened to read an American headline entitled, "The bank that brought down a nation". Prehaps that wasnt the exact wording, but it was a clear meaning. The Americans, and the rest of the world, were watching in amazement as the Irish government chose covering subordinated bond holders tied to their nations failed banks, over the welfare of its own citizens. The rest of the world were watching our government ignore convention in promising to make Irelands citizens pay for the banking crisis, which they clearly were not responsible for and could only pay for at the expense of their whole way of life.

The recapitalisation of our banks is expected to cost in the range of €45 billion to €50 billion. Over €30 billion is already wrote off to loss in Anglo and Irish Nationwide. Sinn Féin believes that there will be a minimal if not zero return on the funds committed to recapitalising the remaining institutions. The cost of NAMA is not included in these figures. In the worst case scenario, NAMA will cost the Irish taxpayer €40 billion, while the very best scenario still sees the Irish taxpayer €1 billion down.

Sinn Féin believes rather than standing up for the bank bondholders, our government needs to stand up for the Irish people and the future of our economy. If additional billions can always be found for the banks, money can be found for our recovery. The Fianna Fail/Green coalition has it backwards; banks follow the economy; they do not lead it: fix the economy and you fix the banks as well as fix the future.

Certain opposition parties who seem unable to come up with their own progressive economic proposals are spending their time attacking Sinn Féin over our original stance on the bank bail out two years ago. It is true that Sinn Féin supported the original motion, as the guarantee appeared to be a measure to stabilise the entire banking sector which was about to collapse and the party agreed to support it only with the provision of proper terms and conditions. Sinn Féin, along with the rest of the nation were misled on the facts, and when we learned that the terms and conditions provided were inadequate, we voted against it and have done so ever since.

Let no one blur the truth, Sinn Féin is one hundred percent against the bank bail out, and find the fact that the government has refused to reveal the identities of the bond holders to the Irish people, who are bankrolling their get out of jail free card, disgusting. Roman Abramovic recently outed himself as a bond holder and had the cheek to threaten to sue the Irish state if it defaulted on any part of his bond. The fact is, Abramovic invested in a high risk bond with the bank. As the caveat under every financial institution reads - Caution: the value of your investment can go down as well as up.

Sinn Féin believes that the Anglo bondholders must take the hit of their bad investment and the good deposits in the bank must be moved to the now nationalised AIB, which must become a state bank. The banking guarantee as it stands should be abolished immediately, leaving just a depositors guarantee in place.

Sinn Féin refuses to take part in the consensus pretending that the bank bail out and its effects are somehow separate from the rest of the economy, and have no impact on government finances. The bank bail out has heightened the effects of our recession, made recovery much more difficult and left us as a state on our knees before the EU and the IMF. Our international reputation is ruined and despite what Brian Cowen thinks, allowing Irelands citizens and infrastructure to decay in order to save bondsmen will not appeal us to multinational investment. You cannot separate the bank bail out and our government finances, the international markets certainly wont. In reality, the bank bail out places our true deficit in excess of 32%, a truly horrifying figure.

Remember this when the Minister for Finance slashes your social welfare, old age pension, disability payments or single mothers benefits on December the seventh. Remember this when your local hospital loses its A&E, when your local rail line is closed or when your kids cant afford to continue college due to rising fees. This budget has nothing to do deficit reduction. Every cent that is cut from frontline services, welfare benefits and general public spending next year will be redirected at least ten times into our governments bank bail out. You can stop them, but time is running out. It beyond time for the Irish people to pull the rug from under these people, once and for all.

Just Like That.

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.  

Housing advice from developers and debt advice from debt holders

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.

NO RETREAT AND NO FUDGE ON FIGHTING TORY CUTS

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.”

Martin, Ulster fry and the Tories

Well, who would have thought it? Martin McGuinness sitting with a bunch of Unionists eating an Ulster Fry at a fringe meeting of the British Conservative Party conference. OMG!

Okay, I’ll try and look beyond the obvious confusion at seeing a major republican figure sitting in the company he was at the venue he was, but what was he doing there?

Martin is Deputy First Minister of the six counties and he is in a coalition government with Unionists, okay we accept this fact. The British government is planning on imposing massive public expenditure cuts that if introduced will destroyed the lives of thousands of working class people. So the coalition partners in the Northern government head to the Conservative conference to argue the case for not introducing the cuts in the North. Okay I can accept that.

As Martin said at the assembly prior to his trip, “Let me be very clear, Sinn Féin will oppose the unfair and unjust proposed cuts by the British Government; our position remains that we must grow our economy, protect those most vulnerable in our society and ensure that we work to meet the requirements of those in most objective need.”

Also an excellent piece in An Phoblacht argues the case against the cuts and the need to move power over the Northern economy away from London and back to Ireland. http://aprnonline.com/?p=78042 This article concludes with this paragraph.

United resistance“As a party we are looking to build an alliance with the trade union movement and the community and voluntary sector to resist the cuts and to defend frontline services,” Mitchel said. “The public sector did not create the economic crisis – it was the private sector.
“We should not accept the inevitability of cuts. We should focus our minds on challenging them. All parties should agree a common approach in all of this.
“We need to enter into a negotiation with the British Government to resist cuts and secure proper control of the economic levers which will allow us to map a way out of the current recession and to protect the most vulnerable and those experiencing disadvantage at the same time.”
“We need to plan to grow the economy and all options must be on the table. This includes the development and harmonisation of the all-island economy. The existence of two currencies, two different tax and social welfare regimes, two health services, and so on, all restrict our ability to effectively tackle the effects of the recession.
“We need to end needless duplication and develop efficient systems that benefit everyone on this island.”


THE BIG BUT…

All of the above I have no problem with and indeed support. We entered into the GFA in order to build a better Ireland, with Ireland’s future being determined by Irish people. So, all of the above in my mind fits into this category.


BUT, what if the attempt to build a successful opposition to Tory/Lib cuts fails to stop the cuts? What then?

I believe we cannot allow our party to be a tool to implement massive cuts in services across the North. We cannot accept that we are powerless to resist the inevitability of these cuts and therefore our job is to make them as palatable and painless as possible.

If we were to allow this to happen we would be heading for disaster North and South of the border.

At present in the South we are attacking the major party consensus on the need for cuts. We are organizing a mass march in Dublin on 4th December against these cuts and we are right to do this. However, whether we like it or not we are judged by most people as a largely Northern party, and if people want to vote for us they will look to our record in the North as proof or what we really are all about. If Martin’s Ulster fry up fails to stop the cuts then the party must fight them in every way possible and refuse to implement them.

If this does not happen then people across the 32 counties will make their own judgments on Martin’s trip to the Tory Conference, and they will make up there own mind as to who and what we are all about.

Irish Workers more committed than ever.

Thats the finding of the latest ESRI report which states that " Our workers are more committed than ever; they are more willing to accept change and to take on more responsibility...". The broad study reviewed the Irish workplace in 2009 against that of "Celtic tiger" Ireland. Irish workers are stepping up to the plate  - taking on more responsibility for less pay.

Over half of the respondents to the survey, conducted between March and June 2009, noted that there had been workplace job losses in the preceding two years and workers were feeling more nervous and under pressure. One-third of employees said that their own job security had decreased compared to only 4 per cent in the previous 2003 survey.

In both the public and private sectors the impact of the recession, and the impact of the "manual devaluation", are evident. 21 per cent of employees reported a decline in hourly pay in the previous two years. Some 37 per cent of public sector workers reported a decline in pay, compared to only 16 per cent of those in the private sector. The burden of adjustment is being borne by ordinary folks who are losing job security and seeing reduced pay conditions.

Typically in all down-sizing organisations the work frequently remains but the no. of people to do it ends up falling. The result is increased burden on the remaining staff. 54 per cent of employees reported increased pressure compared to 34 per cent in 2003. 61 per cent reported an increase in responsibility. Yet the percentage of employees who would work harder to help the organisation to succeed increased from 81 per cent to 89 per cent.

There is a tendency among the more right wing commentariat, or the loony right which cheered on deregulation and excessive credit, to constantly ask for workers to give more, to do more and to accept less.

Lurking in the background to all that commentary was the idea that ordinary Irish people had fooled around and now the bill was due. We had lost the run of ourselves, wanted too much and lost competitiveness. The report has an answer to that hoary chestnut as well:

"This deterioration in competitiveness in recent years is primarily a result of the labour market pressures exerted by the growing bubble in the property market and the building sector of the economy. However, other inefficiencies, including a lack of competition in key areas of the economy, also contributed to the problem."

Consider that in NAMA tranches 1 and 2 that loans valued at €52 billion (pre-hair-cut) were given to 100 people and its clear how tight the inner circle was behind the boom. The self same boom which force the prices up. However as the boy from Pontchartrain says "We are where we are". I personally think it will be difficult to secure appropriate financial and legal redress against these people. It may be that we are forced to instead focus on how to create the anti-corruption framework, and appropriate regulatory controls to ensure that one interest group and one political party can never again co-operate for self profit while risking the future of the state they operate in.

The commentary in the press seems to have forgotten the role of the select, well connected, few. Instead looking at the easy option of blaming the feckless ordinary worker. Well as demonstrated in the ESRI report the ordinary Irish worker is anything but feckless and is more willing to work harder than ever.

It may be countered that well all well and good to blame the developers and Fianna Fail but we need solutions now not blame. And thats a perfectly valid comment because we do need solutions. People dont want finger pointing or retribution. First of all they want to be able to pay their bills like Seamus Sherlock or avoid emigration. But there does need to be a demonstration to the markets, the god like markets*, the interests of the Irish economy are not subservient to the interests of developers or other sectional interests.

As long as Fianna Fail are in power there is every chance that the foreign lenders will doubt the ability of that party to restructure the economy back onto a trajectory of growth and subsequently may question the long term ability of sth. Ireland to repay its debts.

Those commentators in awe of the market's wisdom should now start to focus on the fact that Fianna Fail itself, and its tendency towards sectional interest, may be a factor in why sovereign funds think we are likely to default (and consider that a few days ago the ECB wanted Ireland to activate the bail out fund to see how precariously close FF have now brought us - potentially days away from a default) .

Irish workers are clearly willing to put the head down. Its time that the Irish media took note and started to focus on two other possible reasons that Ireland's bond yields are going through the roof:

(1) Fianna Fail's slash and burn approach is ripping the heart out of the economy;

(2) Fianna Fail are so entrenched with sectional interests that the market must have doubts about whether their commitment to growing the economy is not at odds with their commitment to sectional interests which they have nursed for over a decade.

ESRI: http://www.esri.ie/UserFiles/publications/jacb201045/BKMNEXT168.pdf

* which same markets are new nailing us at near to 7% interest rates. Despite RTE's spin about last weeks debt sale as successful selling debt at over 6% is as successful as buying a litre of milk for a €10. There'll be somebody to sell it to you but you still get taken for a ride.

Sinn Féin's Caoimhghín Ó Caoláin - Outlines the ONLY way forward in the South

THERE IS AN ALTERNATIVE - AND THEY KNOW IT!

This article was taken from Mary Lou McDonald's Blog. A blog which is always well worth a read.

http://maryloumcdonald.blogspot.com/

There is an alternative to this rotten government

Each year Sinn Féin presents to government the party’s pre-Budget submission. As Ireland’s fortunes have changed significantly over the last two years December’s budget has become an important day of the year, particularly for the least well off in our society as they face cuts in critical supports and services and the double whammy of an increase in inequitable stealth taxes.

Fianna Fáil and the Progressive Democrats’ right wing agenda coupled with their fiscal recklessness during Ireland’s boom years hardened the collapse of our economy. The Green’s have compounded the states public finance deficit and double-digit unemployment figures by signing off on Fianna Fáil’s golden circle policy approach. Or maybe they have just found their political home in a Fianna Fáil led government!

Fianna Fáil was so beholden to those within it golden circle it decided to nationalise the worst bank in the history of the state. Anglo Irish Bank has cost the Irish people 22 billion euro to date with rating agency Standard Poor’s recently estimating that the total cost of bailing out the bank will rise to 35 billion euro.

But it is not enough for those of us in political opposition to bemoan the horrific failings of this government; we need to present our political and fiscal alternatives to the people. And that is what we in Sinn Fein have done each year with a particular focus on job creation since the collapse of the economy in 2008. We are currently working on our Budget 2011 submission, which will be published and submitted to government in advance of budget day on December 7th.

Click on the below links to download Sinn Féin Job Creation strategy document and our 2010 Budget submission to government. In these document’s you will find sensible viable alternatives to the government’s budget decisions including a range of tax revenue measures and proposals to address wasteful spending of public monies.

https://docs.google.com/fileview?id=0Bwa0F8Eb46geNzE3MmQzZjQtYTIyZi00OWU1LTkwZjctYTMwMzJhMzk3YmJh&hl=en

https://docs.google.com/fileview?id=0Bwa0F8Eb46geODE1MzViNGQtNDExZi00ZjdkLWI2OGQtODg2ODdhNzYzZGZk&hl=en

Save the banks but lose a generation - Why Fianna Fail's approach wont work!

At the ‘Reclaim the City’ rally in Dublin Cllr. Dessie Ellis challenged the idea that there is no alternative to the current economic mis-strategy. Dessie's speech goes to the heart of the crisis and the needed response. Are we trying to save and rebuild Irish society and an economy to support it or do we just save the economy while Irish society is hollowed out.

A few days ago, organised by the Right to Work Campaign, Sinn Féin Councillor Dessie Ellis said Fianna Fáil cannot claim any economic competence when they are complacently presiding over increasing unemployment.


Councillor Ellis said the biggest lie from the Coalition Government is that there is no alternative to the savage cutbacks and mass unemployment.

Dessie said: “Fianna Fáil cannot claim any economic competence when they are complacently presiding over increasing unemployment. The government is determined to slash public services and put even more people on the dole. Unemployment is not a price worth paying for a negligent Government – it destroys lives and leaves permanent scars on our communities. What this Government fails to accept is that behind every statistic is a personal tragedy.

“Current policy seems to consist of attacking those on low wages and social welfare. This is not just a short sighted policy, it is an anti social one. We are told we need to tighten our belts, cut back, have a lower standard of living while the government bends over backwards to bail out bankers and big business.

"Indeed the greatest contribution of some of our own native entrepreneurs was to piggyback on the genuine growth in the economy by charging us exorbitant amounts for everything from mortgages to rents to pints of lager and paninis while being careful at the same time to ensure that they paid as little tax or wages as possible.

“And these are the patriots whose bacon the so-called ‘Republican Party’ is proposing to save by imposing a massive drop in living standards on the decent people of this country, whose only crime was to work when there was work and suffer the indignity of unemployment when the work was gone.

“However the biggest lie in all of this is that there is no alternative to the cutbacks and the mass unemployment. There is an alternative, SF’s proposals on tackling youth unemployment costed at €1.316 billion would create at least 50,000 jobs.

“Now 1.3 billion might sound like a lot of money but if we compare that to the 25 billion that is being pumped into Anglo, the private piggy bank of some of the most corrupt figures of this State, we can clearly see where the Government’s priorities lie. If the same amount was diverted into Sinn Féin’s job creation package, our proposals could support nearly 1 million jobs.

“In one month, 2938 young people under 25 signed on – the equivalent of nearly 100 people a day. This figure is further dwarfed by the thousands of young people who emigrated from Ireland because this Government are only able to secure jobs for their political and banking cronies.

“We need to make employment a reality for people outside the golden circle.”

The problem with freeloaders

Brian Lenihan has today put it up to those of us who still have jobs. We all have to stop being freeloaders according to the Minister.

If you believe Brian, and many dont, there is a perception in Europe that if we did not tackle wage rates here we were "freeloading on the euro". Public and Private sector wages are out of line when it comes to Europe.

Now there are just a whole load of things objectionable in that statement.

Firstly the contention that our wages are high in comparison to Europe. Michael Taft nailed that lie forcefully recently demonstrating that our Public Sector wages are not the highest in Europe. In fact they are far from it. Looking at a combined Public/Private sector we see that again our wages are again lower than Europe in general. We have a difficult economic situation to face but half-truths wont help solve it Brian.

And by the way Brian what about this report from December 2009 which shows that the very very top of the civil service including an Taoiseach and your good self are all over paid when compared to Europe. Leave the ordinary people out of this and look at your own pay packet first

Secondly you have to admire the brass tack on a Fianna Fail minister talking about freeloading. Full stop. But to do it on the day when Brian Cowen finally admitted what we all know - that the money lent to Anglo will never be returned nor ever yield any return to the state, is either incredible neck or really bad luck. I suspect the former.

Thirdly Brian Lenihan has made much noise of the perception of the markets, the need to court market opinion etc. When he extends that forming policy in responses to the perception in Europe we should be equally worried

The entire strategy of courting market opinion has been a flaw judged by the sole useful criteria - the cost of Irish debt. Paul Krugman comments:

So, I’m glad to hear that Ireland’s stoic acceptance of austerity is reassuring markets; it must be true, because that’s what everyone says. Because if I didn’t know that, I might look at the data and conclude that markets actually have less confidence in Ireland than they do in Spain, and that austerity in the face of a deeply depressed economy doesn’t actually reassure markets at all.

But hey, what are you going to believe: what everyone knows, or your own lying eyes?

Who are we going to trust? Brian Lenihan and his freeloading party or hard economic fact.

The Working Class is being replaced with the Unemployed class

The relentless trend of economic bad news is not going away. CSO figures for the Live Register shows unemployment is only getting worse. The Figures have now risen from 13.4% up to 13.7%. Since the last election the govt. has tripled the unemplyment rate from 4.5% up to that 13.7%.

But how long will all this last. Aren't things looking up according to the dublin govt. Well according to Ernst & Young's latest report persistent unemployment is going to remain around for a long time. Progressive-economy reports they suggests that it will be well over a decade before all-Island employment returns to its peak of 2.9m achieved in 2007. (And interestingly the report repeatedly focuses on all-Ireland rather than the component economies of each state which is at least one positive trend). For the 26 counties employment levels won’t return to their pre-recession level until 2022.

Some commentators have optimistically looked at the jobless figures and noted that the rate of increase for the live register is droppiing off.

But thats to miss the huge social implications of the return of long term unemployment, under-investment and emmigration.

Over 10 years of Fianna Fail jobs for the boys means another 10 years of unemployment and pain for ordinary people.

Its got to end. We need those bye-elections held, the govt. removed, and the serious work to begin so that the inherent stregth of the economy is developed for the benefit of ordinary people and not a cosy circle of insiders.

Ireland - From basket case to superstar and back again

Morgan Kelly has written a great piece on VoxEU.org very concisely covering the greed by a closed circle that abused the economy for self gain on a massive scale. At the core of his message the idea that those who gamed our economy for self-gain cannot be the ones we now turn to for help out of this mess as they now seek to protect that closed circle and jeopardize our future rather than decisively tackle the problems in our economy.

From Voxeu.org:

The Celtic Tiger faces severe challenges. This column argues that the Irish government’s commitment to absorb the losses of its banking system may well lead to a Greek-style debt ratio by 2012. It is a test-in-waiting for the EU, but one that could be solved by a debt for equity swap to cover the losses of Irish banks.

From basket case to superstar and back again – or almost. One has to wonder: How did all this happen? How did an economy where employment doubled and real GNP quadrupled during the “Celtic Tiger” era from 1990 to 2007, come to have GNP contract by 17% by late-2009 (with further falls forecast for 2010), the deepest and swiftest contraction suffered by a western economy since the Great Depression? The adjustments faced by the nation are monumental (see Cotter 2009 and Honohan and Lane 2009).

Two booms
The key to understanding what happened to Ireland is to realise that while GNP grew from 5% to 15% every year from 1991 to 2006, this Celtic Tiger growth stemmed from two very different booms. First, the 1990s saw rising employment associated with increased competitiveness and a quadrupling of real exports. As Ireland converged to average levels of western European income around 2000 it might have been expected that growth would fall to normal European levels. Instead growth continued at high rates until 2007 despite falling competitiveness, driven by a second boom in construction. I analyse this second boom, the Irish bubble, in a recent CEPR Discussion Paper (Kelly 2010).

Credit bubble
Ireland went from getting about 5% of its national income from house building in the 1990s – the usual level for a developed economy – to 15% at the peak of the boom in 2006–2007, with another 6% coming from other construction. In effect, the Irish decided that competitiveness no longer mattered, and that the road to riches lay in selling houses to each other.

However, driving the construction boom was another boom, in bank lending. As Figure 1 shows, back in 1997 when Ireland’s economy really was among the world’s best performing, Irish banks lent sparingly by international standards. Lending to the non-financial private sector was only 60% of GNP, compared with 80% in Britain and most Eurozone economies. The international credit boom saw these economies experience a rapid rise in bank lending, with loans increasing to 100% of GDP on average by 2008.

These rises were dwarfed, however, by Ireland, where bank lending grew to 200% of national income by 2008. Irish banks were lending 40% more in real terms to property developers alone in 2008 than they had been lending to everyone in Ireland in 2000, and 75% more to house buyers.

Figure 1. Bank lending to households and non-financial firms as a percentage of GDP (GNP for Ireland), 1997 and 2008.

This tripling of credit relative to GNP distorted the Irish economy profoundly. Its most visible impact was on house prices. In 1995 the average first-time buyer took out a mortgage equal to three years’ average industrial earnings, and the average house cost 4 years’ earnings. By the bubble peak in late 2006, the average first-time buyer mortgage had risen to 8 times average earnings, and the average new house now cost 10 times average earnings, with the average Dublin second-hand house costing 17 times average earnings (see Figures 2 and 3).

As the price of new houses rose faster than the cost of building them, investment in housing rose. By 2007, Ireland was building half as many houses as Britain, which has 14 times its population.

The flow of new mortgages peaked in the third quarter of 2006, and then fell rapidly. By the middle of 2007 the Irish construction industry was in clear trouble, with unsold units beginning to accumulate. More than one-sixth of housing units are now estimated to be vacant.

Figure 2. Irish house prices relative to average industrial earnings, 1980 – 2009

Figure 3. Irish new house prices and first time buyer mortgages relative to average industrial earnings, 1990 – 2009

Banking collapse
This property slowdown was bad news for an Irish banking system which had lent, usually without collateral, an amount equal to two-thirds of GNP to property developers to finance building projects and make speculative land purchases. Share prices of Irish banks fell steadily from March 2007, with the crisis coming to a head in late September 2008 with a run in wholesale markets on the joint-second largest Irish bank, Anglo Irish. After aggressive denials that the banking system faced any difficulties, the Irish government has been forced to improvise a series of increasingly desperate and expensive responses.

As well as guaranteeing the deposits and most bonds of Irish banks, the Irish government has currently spent, or committed itself to spend, around €40 billion on a National Asset Management Agency to buy non-performing development loans from banks, and to invest around €30 billion in Irish banks. Despite this large injection (equivalent to half of GNP), Irish banks remain moribund.

While the Irish government bailout deals with bank losses on loans to property developers, it does nothing about their two other problems: a heavy reliance on wholesale funding; and the prospect of further large losses on mortgages and business loans.

Half of Irish bank funding comes from international wholesale markets. Without continued government guarantees of their borrowing and, more problematically, continued access to ECB emergency funding, the operations of the Irish banks do not appear viable. Borrowing in bond markets at 6% to fund mortgages yielding 3% is not a sustainable activity, and Irish banks face no choice but to shrink their balance sheets. Should Irish bank lending return to normal international levels, our results indicate that property prices will return to an equilibrium two thirds below peak levels, with larger falls possible in the medium term as the flow of new lending is curtailed sharply.

The third problem facing Irish banks is their mortgages. With house prices down by around 40%, renewed emigration, and unemployment tripled to above 13%, Irish banks face substantial mortgage defaults. For comparison, in Florida and Arizona, whose investor fuelled housing bubbles closely resembled the Irish one, 25% of mortgages are non-performing.

On top of the continued disintegration of its banking system, Ireland faces two other problems: unemployment and government deficits. Private sector employment has fallen by 16%, while the number of males aged 20-24 in work has halved. The collapse in Irish competitiveness (wages have risen over 40% relative to its main trading partners since 2000) which cannot be solved by a devaluation, will frustrate efforts to reverse this decline.

Debt crisis
Fifteen fat years allowed the Irish government to cut income taxes, increase spending and still run a budget surplus. Between 2007 and 2009 however, tax revenue fell by 20%, while expenditure rose by 9%, moving the state from a balanced budget to a deficit of 12% of GDP. In contrast to its inept handling of the banking crisis, the Irish government has moved decisively to reduce expenditure and increase tax rates, and appears on target to reduce its deficit to 3% of GDP by 2012.

Ireland’s government debt is still moderate. At the end of 2009 gross debt was 65% of GDP and, after subtracting the state pension reserve and pre-funded borrowing, net debt was 40% of GDP. Assuming that deficit targets are not missed too badly, gross debt should still be under 85% of GDP by the end of 2012.

Conclusions
This debt would probably be manageable, had the Irish government not casually committed itself to absorb all the gambling losses of its banking system. If we assume – optimistically, I believe – that Irish banks eventually lose one third of what they lent to property developers, and one tenth of business loans and mortgages, the net cost to the Irish taxpayer will be nearly one third of GDP.

Adding these bank losses to its national debt will leave Ireland in 2012 with a debt-GDP ratio of 115%. But if we look at the ratio in terms of GNP, which gives a more realistic picture of the Ireland’s discretionary tax base, this is a debt-GNP ratio of 140% – above the ratio that is currently sinking Greece. Even if bank losses are only half as large as we expect, Ireland is still facing a debt-GNP ratio of 125%.

Ireland is like a patient bleeding from two gunshot wounds. The Irish government has moved quickly to stanch the smaller, fiscal hole, while insisting that the litres of blood pouring unchecked through the banking hole are “manageable”. Capital markets may not continue to agree for long, triggering a borrowing crisis which will start, most probably, with a run on Irish banks in inter-bank markets.

Ireland may therefore present an early test of the EU bailout fund. However, in contrast to Greece, Ireland’s woes stem almost entirely from its banking system, and could be swiftly and permanently cured by a resolution which shares the losses of Irish banks with the holders of their €115 billion of bonds through a partial debt for equity swap.

References
Cotter, John (2009), “Crises in the banking sector and attempts to refinance”, VoxEU.org, 19 May.
Honohan, Patrick and Philip Lane (2009), “Ireland in crisis”, VoxEU.org, 28 February.
Kelly, Morgan (2010), “Whatever Happened to Ireland?” CEPR Discussion Paper 7811.

Adams calls for unity to oppose tory cuts

Well, the election across the water is over and we have a tory led government to deal with. For us in the South I believe the manner in which the party in the North deals with the cuts to come will be of massive importance. If we can point to the North and say look what we have achieved in fighting to maintain jobs and services, then come the next election down here we will have added credibility.

If however the party simply allows the cuts to happen then we will be in big trouble in terms of our claim to be a party that supports the ordinary working people of this island.

anyway, here is an article from this week's An Phoblacht


http://www.anphoblacht.com/news/detail/39898

Party leaders urged by Adams to unite against cuts



Sinn Féin President Gerry Adams MP, MLA has written to other party leaders in the North seeking a meeting to discuss an agreed strategy against any proposed cuts by the British Government.

Speaking in Stormont on Monday, Adams said: “I have today contacted the other party leaders to put to them a proposal that we should meet to work out an agreed strategy to oppose any proposed cuts from an incoming British government.

“I believe that it is imperative that all parties in the Executive act with a unity of purpose to safeguard public services, to defend frontline services in health and education, and to promote investment in our economy.”

Referring to last week’s election, Adams said that, whatever the outcome of the negotiations in London, both the Tories and Labour have indicated that there will be considerable cuts in public spending.

“These proposed cuts would have a detrimental impact on public services and jobs. They would undermine the ability of the economy here to recover from the recession. This is unacceptable. If we are to protect those most disadvantaged in our communities, if we are to promote economic growth, then the parties here must unite on a positive agenda.

“I am proposing that we unite under the tutelage of OFM/DFM to prepare to go to the next British government from this Assembly with a united opposition to the planned cuts.”

Is pro-business anti worker?

Michael Hennigan has a very nice financial news aggregator site called FinFacts. Today he has IBEC in his sights and castigates them for fearing radical reform not because such reform would lead to chaos but simply because they are too entrenched in the old way of doing things to be able to react purposefully in the new economic environment we live. IBEC issued a new business survey result today which shows most Irish companies believe that the Public Service Procurement sector in sth. Ireland is dysfunctional. When asked to rate the process of selling goods and services to the Public sector 56% of companies stated it as poor. And this is no small slice of pie. Last year it was €16 billion euros.

Hennigan describes the Public Procurement process in south Ireland as of the Victorian era with generally no transparency.

Mary Coughlan is apparently trying to do something about this issue. While her commentary on it might be colourful I don't think it will be useful.

It might be more useful if she packed up her bags.

Sinn Fein has been focussing on this issue for quite a while and has called for  procurement exercises to be split so as to allow smaller companies the opportunity to win contracts, safe guard jobs and keep local economies going and its tried to help small businesses get educated on what opportunities exist.

And its clear that they need this help. 55 per cent of businesses were refused bank funding in the three months to the end of February, compared to 42 per cent who were did not get credit facilities in the three months to the end of October. Quite a sharp rise Mar-May 2008 when only 20 per cent of SMEs who applied for funding were refused credit.
So much for NAMA helping small businesses, so much for the govt. trying to develop indigenous Irish firms so as to avoid the over-reliance on multi-nationals.
And so much for ISME and IBEC which have failed to deliver for small Irish business women and men who are going to the wall at a huge rate and who cant get credit but somehow or other are supposed to create jobs through exports.
A friend once mentioned in passing that a left wing party should have nothing to do with businesses, that we should focus solely on the workers and not push policies that are targeted at helping businesses.
Yet these businesses give jobs to our communities and give people the opportunity to live in their own home towns etc. if they wish.
As a left wing party we have to support small businesses. We have to ensure jobs are provided to ordinary people.

Pushing supports for businesses is not a rocky road to neo-liberalism. It's the only road to keeping our communities working and living in Ireland.

None of these supports precludes us from building on and defending workers rights.