Saturday, November 28, 2009

Time for mutiny on this ship of fools


Over on the Sluggerotoole site they have highlighted a review on the Guardian newspaper of Fintan o'Toole's new book Ship of Fools: How Stupidity and Corruption Sank the Celtic Tiger.

It looks like its going to be an interesting read and above all its fantastic to see this type of contribution to the general debate. After the fall of the Soviet Union Finland nearly fell as bad as we now have fallen. But they rebounded rebuilding a fairer society and becoming an inspiration to other countries. So while things may seem incredibly bleak now this is an opportunity to start building something new.

Of course the Finns didnt have to deal with a Fianna Fail party but the debate has to start somewhere and if we are going to build a Republic on this island then getting rid of the corrupt Fianna Fail kleptocracy is a necessary step.

The book review highlights clearly our predicament:
Irish GDP is now shrinking faster than in any other advanced economy, and the country's gross indebtedness is larger than Japan's. House prices have fallen more rapidly than any others in Europe, and the average Irish family has lost half its financial assets. Unemployment has risen faster than anywhere else in Europe.
It lays out clearly how Kleptocracy relaced democracy in the south:
All this has been accompanied by a culture of corruption so shameless and spectacular that it makes Dublin look like Kabul. The former prime minister Charles Haughey stole €250,000 from a fund set up to pay for a liver transplant for one of his closest friends. Last year, the chairman of Anglo Irish Bank resigned when it emerged that he had €84m in loans from his own bank, a sum concealed by an annual (apparently legal) cooking of the books. As O'Toole points out, bribery, tax evasion and false evidence under oath have not simply gone unpunished; the very idea of penalising the culprits is viewed by the governing elite as unsporting or even unpatriotic.
And thats to leave out the most cunning of them all. The review continues apace laying bare whats rotten in the southern state:
The state is widely seen as "a private network of mutual obligations" rather than an impersonal body. Palms are greased, backs scratched and old pals promoted, often without much sense that this is anything other than the natural thing to do.
And boy did the last 10 years take that to a new height. The worst type of gobdaw was appointed not because they were barely qualified but because they were the orignal greasy hands in the till.

And then it gets to a point of discussion that is all too common in Ireland today:
The discrepancy between formal and informal codes in the country, between official behaviour and nods and winks, bulks large. Stretching a point or turning a blind eye is rife, in ways that would scandalise many a German or American
How do we make our country more like Germany and less like a maffia ridden fiefdom? Now those countries are not perfect but for all the American pork barelling at least they have some corrupt people do the perp walk.

Why are basic minimum standards of governance ignored in this state.

Why are key positions farmed out to buffons whose only qualifications was buying rounds with one pint of Bass included.

The review ends by saying for the south
Perhaps its best hope now is to revert as soon as possible to third world status and qualify for a loan from the IMF.

Is that what we are reduced to?

Once upon a time people in the south believed that the Greens would be the party that would drag the south into the modern world. We have two failed states on this island and need to build one - a modern state, where merit is the key to advancement and nomal democratic standards are upheld.

Friday, November 27, 2009

The rich pay too much tax me arse!! Just look at the facts



Below is a piece from Eoin Ó Broin that appeared in this weeks An Phoblacht. It provides useful information on how we can answer the government claim that the rich cannot afford to be taxed anymore and are already paying more than there fair share.


I strongly believe the information here and the information contained on the TASC website, mentioned below, is the ammunition we need to counter the propaganda of the ruling elite in this country. In order to convince people we are capable of running this country we need to convince them we know our stuff, especially in relation to economic matters. Therefore it is vital for republicans to continue to educate ourselves on economic matters and the TASC site and Michael Taft's notes from the front http://notesonthefront.typepad.com/ are good places to start.

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FINANCE MINISTER Brian Lenihan keeps telling us that high-earners pay enough tax.
In their November pre-Budget outlook, the Government told us that 4% of earners could pay up to 48% of the total income tax take in 2009.

What more proof do we need that the country’s super rich are paying their fair share? Well, as it happens, a lot more.

Why? Because the Government’s figures don’t tell us how much the top 4% earn and whether paying 48% of all income tax take is fair or not.

Fortunately for us, those smart people at TASC have produced a report that tells a lot more about income distribution than the Government would like you to know.

TASC is an independent think-tank dedicated to combating economic inequality and promoting equality. The website http://www.tascnet.ie/ is filled with invaluable information.

Their latest report is The HEAP Chart. It provides a detailed analysis of income inequality in the state.

The top 1% of the population own 20% of the state’s wealth. When residential property is not included, this same 1% own 34% of the state’s wealth.

83% of the PAYE workers earn less than €50,000 per year, while 66% earn less than €33,000 per year.

Only 14% of PAYE workers earn more than €50,000 per year, with a tiny 2% earning more than €100,000 per year.

When you consider that 5% of the population own 50% of the state’s wealth, then the Government’s projected income tax returns for 2009 don’t seem so unfair.

What TASC’s HEAP report tells us is even more interesting. While, during the boom, the income of all groups increased, the gap between high and low incomes widened considerably.

In a comparison of income distribution from 1987 to 2005, TASC demonstrate a clear growth in inequality.

In 2006, women’s income was only 86% of men’s. The proportion of women at risk of poverty in 2007 was 19% compared to 15% of men.

The average annual salary for those with no primary or formal education was €13,489 compared to €45,707 per year for college graduates.

More shocking is the fact that 34% of those with no primary or formal education were at risk of poverty compared to only 3% of college graduates.

IN every EU or OECD comparison contained in the TASC report, the 26 Counties was near the bottom of the pile.

We have higher levels of inequality and poverty and lower levels of spending on social protection than almost all of our rich EU or OECD neighbours.

For TASC, the solution to this mess requires greater equality in people’s pre-tax and post-tax income. Guaranteeing minimum incomes, limiting ‘super salaries’, a fairer tax system and investment in education are all required.

So the next time you hear a Government TD tell you that 4% of workers pay 48% of income tax, don’t just sit there, reach for the HEAP Chart and tell them it’s because our society is so unequal.

Tuesday, November 24, 2009

Leader of a developing-world country visits natural disaster zone


What leader of the developing world could this be...?

Well look no futher than Mr. Brian Cowen.

Nobody will doubt the accuracy of "natural disaster" but developing world is that a bit harsh for south Ireland?

Frankly no its not. If the shoe fits we should call it as it is. There is a reason why traffic in Dublin creeps along, why rail bridges collapse and why Galwegians either cant drink the water in their houses or they cant get into their houses cause of water.

The enjoyable
notesonthefront blog highlighted a report by world economic forum in October 2008 on our infrastructure. Its not comfortable reading. It turns out that infrastructure wise we are all too often a disaster.

In the category of 'Quality of Overall Infrastructure' we rank 64th in the world. 64th! 64th out of 134 countries. Our infrastructural quality ranks behind Sri Lanka, Mauritius, Azerbaijan, Jordan and Jamaica.

Sri Lanka and Mauritius are developing countries and we rank behind them. That description of south Ireland as a developing world country seems to be holding water.

Quality of Roads: We rank 70th - behind even Georgia. With a mean score of 3.5, we are closer to bottom ranking Mongolia (1.4) then we are to top ranking France (6.7).

Georgia - 70 years of Moscow mismanagement is better than 70 years of FF/FG mismanagement it seems

Quality of Port Infrastructure: But then we fall back down - all the way to 64th (we own 64). This is particularly dismal given that over 90 percent of our exports go through our ports; and we're an exporting nation. We even rank behind Zimbabwe and they're landlocked! (They rank higher because they still have better access to South African ports and any inland waterways.)

Worse than a land locked country. Brilliant stuff Fianna Fail. Why would a country like Ireland need quality ports. Thank god we are are surrounded by water but tis a pity at the moment we are under it. So according to the WEF many important aspects of our infrastructure are worse than countries we give aid to.

But the World Economic Forum are not the only body turning an eye on south Ireland. Our friends in the OECD issued a set of conclusions and recommendations at the start of November on our environmental performance.

There are many interesting points in it to discuss but I want to focus on the part that deals with water and flooding. That being topical and all.

Remember this was issued only in November. It was so rosy back then when we were assured that

Ireland has met all deadlines to date for implementing the Water Framework Directive. A new approach to minimising flood risk is being put in place.
Excellent news that. Cork will be thrilled to hear that.With brilliant timeing it continues:
nevertheless, the rate of progress so far is unlikely to prove sufficient...
The city of Galway experienced outbreaks of cryptosporidium in 2002 and 2007, and old lead pipes cause unacceptably high lead levels in more than a few towns.
Unlikely to prove sufficient. Could that be the understatement of the year? I wonder what affect having to drink faeces fouled water has on the minds of multi-nationals in Galway? Were jobs lost because of that?

But then at the end of the report's section on water, and you'd have to laugh really, they have the following recommendation to the Fianna Fail Govt:

further integrate water quality and flood risk management considerations into spatial planning and development management processes.
Can anyone imagine Fianna Fail tying together water quality, flood risk management and spatial planning. Well maybe some naive newbie in the OECD but surely in Ireland we are all learning the hard way that FF is simply too corrupt and incompetent to even tie their shoelaces.

Martin Ferris TD, the Sinn Féin spokesperson on the
Environment, put it well when he said

"The cosy relationship between Fianna Fáil and developers throughout the 80's and 90's saw housing estates spring up in the most unsuitable places such as the flood plains where so many houses have now been ruined by water. Concern for the safety of the homes being built and those living in them meant nothing as developers lusted after massive profits in an over-inflated housing market and in this they were facilitated by their friends in Fianna Fáil.

Martin hits the nail on the head by highlighting this. We have not experienced a natural disaster so much as a man made disaster. Fianna Fail let housing developments go anywhere as long as de boys paid up in the Galway tent. Can we be surprised that aspects of our infrastructure are worse than Georgia or Sri Lanka - neither countries have had an easy time. So what excuse can Fianna Fail have. Corruption, no planning or long term vision, blended with incompetency had a huge role to play in what happened.

Just ask the people in houses built on what Bandon locals used call the swamp. Welcome to a developing country.

There are a lot of ties in with this story - reformed govt:local and national, appropriate tax burden and subsequent investment, NAMA, and criminal legislaton for corruption. This flood tells us so much about modern Ireland.

Sunday, November 22, 2009

Peter & Paul - Till Debt do they part


The great Irish playwright George Bernard Shaw said "a government that robs Peter to pay Paul can always depend on the support of Paul". So how is Peter doing?

Well Peter who we might regard as the ordinary citizen presently getting knocked over because he wasn't smart enough to win money on the horses like Bertie (he was quare lucky that Bertie) is not doing so great.

In the southern state Peter is relying more and more on the state to make ends meet. The CSO's survey on Income and Living conditions 2008 revealed that social welfare and benefits accounted for more than 22% of household income

But for the 10% of households in the lowest income bracket these state payments accounted for 88% of the gross household income. Now every week for months this govt. has been jumping from one position to another when it comes to such payments. They have to be cut drastically or cut a small bit. Smash these dole bludgers or its just necessary cuts etc.

All they have succeeded in doing is terrifying ordinary people who rely on state transfers to make ends meet. Now scaring the bejaysus out of people is hardly doing anything to boost consumer confidence and today's Irish Times report, anecdotal though it be, is further evidence that this govt. is only ensuring economic activity weakens further and further. Japan, move over! south Ireland is thinking about joining you in a lost decade.

But besides the deflationary impact this will have there is a more immediate impact. As mentioned households rely on the govt. for 22% of household income. Add in the fact that southern Irish household debt as a percentage of disposable income increased from 48 per cent in 1995 to approximately 176 per cent in 2009 giving us the dubious honour of being fourth among developed countries in terms of debt ratio.

In other words we are over our heads in debt and the clowns at the top who have NAMA for their developer buddies think Peter our indebted citizen can go hang. Welfare is going to be reduced by god and if that tips him and thousands others over the edge into bankruptcy then its a price worth paying. Who cares that 20% of households were in arrears on payments such as bank accounts, mortgages, rent, credit cards and utility bills. Almost eight per cent of households had arrears of two or more types. Who cares? Well certainly not Fianna Fail.

So what happens when you go bankrupt in south Ireland. Well, as described in an excellent article in the Irish Times, you dont actually go bankrupt. You see when our flag went up over Dublin we didnt seem to ever get around to changing the Victorian mindset. In 2007 a grand total of 4 people went bankrupt in south Ireland. 4! Considering the collapse of the global finances in 2008 this rocketed to 8 in 2008. Doesn't sound right does it?

But remember I mentioned Victorian mindset. Well in the South you have the Dickensian outcome that you get 12 years to discharge your debt; as opposed to 12 months in Britain and 5 years in many other european countries. As the Times noted 12 years is longer than manslaughter. And now that we are speaking about Prison maybe we should think about a system that jailed 276 people in relation to the non-payment of civil debt last year. While the High Court abolished the imprisonment of debtors due to an inability to pay their debt earlier this year its still on the books. Still jailing someone at the cost of 2k a week must make sense on some level although not if they owe money on the level of Seanie Fitz.

And typical of south Ireland when the state fails the people must fend for themselves. The money and Advice budgeting services, a voluntary group, saw its number of clients jump from 14,551 in 2006 to 23,000 this year.

As our economic recovery document says:

There are currently 422,500 people on the live register. This number is growing and there is no government strategy to deal with it. The government claims that saving the banks will fix the economy. Proving them wrong will be cold comfort to the many people who have lost their jobs, who face this Christmas in debt, in poverty and with the prospect of the very small payments made to them by the state being cut.

We are facing into the worst financial crisis since the last one caused by Fianna Fail and we have to rely on a voluntary group to support ordinary people from the deprivations of a Victorian era bankruptcy model thats going to be pushed to the limit by the deflationary policies of a govt. thats intent on reducing the income of one of the most indebted people in the industrial world.

A Bankrupt state morally if not yet financially. I am no radical but the only thing that springs to mind in response to this situation is does anyone have a sledgehammer. This state needs to go.

Saturday, November 21, 2009

Michael Taft's assessment of Sinn Féin's budget proposals.

Michael Taft is one of the most respected left wing economic commentators in Ireland. He is a supporter of the labour party, but has been a strong advocate of a broad left alliance in Irish politics. His assessment of the current Sinn Féin budget proposals is below.

As I have said before on this site I feel any Sinn Féin supporter with a desire to have a better understanding of economics, should read Michael's webpage on a regular basis.

His site is called Notes on the Front (named after a column written by James Connolly) The address is http://notesonthefront.typepad.com/politicaleconomy/

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Putting the 'Workable' Back into the Economy: The Recession Diaries - November 19th


One could despair. All the major political parties are supporting another round of fiscal contraction, though they may differ on the balance of tax increases and public spending cuts. In this respect, Fianna Fail has won that particular battle, we are just fighting within the parameters they have set. There is seemingly no challenge to the deflationary orthodoxy on the horizon.

Except . . . .


Sinn Fein has published its 2009 pre-budget submission, ‘The Road to Recovery’. In short, it poses a more sophisticated approach to our economic and fiscal crisis. On the one hand, an investment stimulus to generate growth; on the other hand, a range of mostly taxation measures to start to repair the public finances. Sinn Fein proposes to use different instruments to attack the distinct parts of the deficit – the cyclical and the structural.

It’s a ‘walk-and-chew-bubble-gum-at-the-same-time’ fiscal policy; not only is it workable, it has the potential to bring the economy back to some sort of ‘workable’.

Let’s start with the investment stimulus, or the cyclical side of things. They are proposing a €3.9 billion stimulus, or 2.5 percent of GDP (pointing out that this is equivalent to the Anglo-Irish Bank give-away).

The main components include:

~ a job retention scheme with a potential to save 90,000 jobs
~increasing and modernising CE schemes
~Investment in state infrastructure (labour intensive work in construction, insulation, etc.)
~a National Development Scheme to directly employ people on ‘public works’
~a temporary ‘Front Line’ services initiatives to employ people in ‘civilianising’ work in the Gardai and nursing sectors
~The establishment of a state childcare and pre-education sector, along with employing a range of specialist teaching assistants.

These would be supplemented by a range of fiscal stimulus – reducing alcohol duty over the Christmas period, reintroducing the Christmas bonus, and a ‘cost of living’ package that would reduce everyday expenditure items (utilities, public transport, insurance policies, etc.).

There’s a lot of material here that would need to be developed. For instance, I’m not sure what modernising CE schemes would look like – especially with a National Development Scheme running alongside it. The Front Line services initiative looks extremely worthwhile – so much so, why make it temporary? This has the potential of substantially increasing public sector productivity. And Sinn Fein might have benefited from examining the ICTU/Fine Gael proposals for promoting public enterprises as an engine of infrastructural investment to raise long-term productivity (next generation broadband, green technology, etc.).

But the broad thrust is correct: public sector expansion (especially in the areas of education), job retention, infrastructural investment. This will boost output, create jobs and start the economy back on the road to recovery which, in itself, is the most sustainable means to bringing the deficit under control. That’s the ‘walking’ part.

Now for the ‘chewing gum’. Sinn Fein proposes a range of taxation measures and spending cuts to achieve savings of €7.6 billion – a larger amount than any other party is proposing. These can be broadly broken down into:

Taxation: a new third tax rate of 48 percent for those over €100,000, a wealth tax (or, as I like to describe – a comprehensive property tax), standard-rating tax reliefs while getting rid of property-related ones along with the private hospital co-location relief, abolish the PRSI contribution ceiling, increase the tax on ‘second homes’ along with other capital income measures, etc.

Spending Cuts: apart from a couple of innovative suggestions such as establishing a state wholesale distribution of drugs and the wider use of generic drugs (on top of saving money, it could actually be little money-spinner), this section mostly focuses on public sector pay and salary reductions, including politicians and professional fees.

There’s no sense in going over each detail. We can always find something to disagree with. For instance, I wouldn’t support capping public sector pay at €100,000; this would disadvantage the public sector in the specialist labour market and, in any event, as CSO researchers have shown, higher paid public servants suffer a wage disadvantage, especially males, compared to their private sector counterparts. And I would prioritise the effective over the marginal tax rate. But in the main, the proposals go in a positive direction.

Sinn Fein proposes to pay for their stimulus programme by: (a) taking a proportion of the revenue raised from their tax/spending measures (about €1.9 billion), and (b) dipping into the National Pension Reserve Fund (€2 billion)

Again, I would be cautious about resorting to the Pension Fund. There may well be a lot of calls on that fund through future bank capitalisations. I would have rather seen Sinn Fein make more of our strong debt profile – the combination of a relatively low debt level combined with our strong Exchequer cash balances. They did make insightful comments:

‘ . . . we should not be afraid to sustain some level of deficit financing – borrowing for infrastructural development – something which most other countries use as a matter of routine . . . The claims that we are over-borrowed, that we cannot sustain the current level of borrowing and that public spending is the cause of all fiscal ails, are untrue . . . ‘.

Nonetheless, to the extent that resources for stimulus can be obtained from low-deflation tax resources and public spending efficiencies, that is clearly an advantage. The argument for debt-financed stimulus has never rested on ‘we borrow because we can’, but rather, ‘we borrow because we must’. Stimulus that is partly financed from own-resources is preferable.

But let's take a step back for a moment. Because there is something more going on here than just a new calculation, a catalogue of different policies. Franklin Roosevelt once said, ‘There are many ways to go forward, there is only one way to stand still.’ At present, the current economic debate is standing still, stuck on this contraction. There is no dialogue, no conversation – merely a hectoring, a lecturing: how we must fact reality, how we must take the pain up-front, how hard decisions must be taken.

Sinn Fein is pointing to a new dialogue, one consistent with going forward; where more and more people are encouraged to present all sorts of ideas to grow the economy – from business supports to social protection measures, from state spending to incentivising private investment, from increasing taxes on some to decreasing taxes on others.

Not all of them will be good measures, not all of them will stand up to scrutiny, and not all of them can be accommodated. But to have a growing pool of walking-forward ideas – we would be engaged in a new dialogue, over what will work best

Indeed, a new dialogue could have an energising effect, raise confidence and act as a stimulus in and of itself. We should never overlook the psychology of economies – of the people who work in them, of the consumer, of the investor. A new dialogue could produce, in the first instance, a substantial rise in the output of ideas. If that happens, material output will follow.

Now compare that to today, when every idea, every suggestion no matter how worthwhile is met with a ‘We’re broke, can’t do it, where’s the money coming from.’ My favourite is ‘We must cut our living standards to improve our living standards.’ That would depress any economy regardless of its potential.

Sinn Fein has provided, not only a clear and coherent alternative to the deflationary orthodoxy, a more sophisticated fiscal platform from which to launch recovery. They have demonstrated a new way of how we can talk about our economy.

All in all, not a bad day’s work.

http://notesonthefront.typepad.com/politicaleconomy/2009/11/one-could-despair-all-the-major-political-parties-are-supporting-another-round-of-fiscal-contraction-though-they-may-differ.html



A defense of Sinn Féin's record in support of public services in the North.

Below is a piece from Sinn Féin MLA Sue Ramsey. In this article from this week's An Phoblacht see defends Sinn Féin record in Stormont in its defence of public services.

If people in the party, or near to the party, feel like attacking this article, and the argument put forward in it, I believe it is vital that an alternative strategy and policy be put forward.

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Sinn Féin ministers – Standing up for services

BY SUE RAMSEY
SINN FÉIN MLA


RECENT weeks have seen people across Ireland uniting to demand action on unemployment, in opposition to cuts to public services and to defend the declining income of people on low wages and social welfare.

Sinn Féin commends the trade union movement for these mobilisations and we applaud the tens of thousands who took to the streets throughout the country.
In the North, the focus of the ICTU-called demonstrations was on the so-called “efficiency savings” of more than £700 million being demanded by the British Treasury of the health service over the next three years.

There is growing anger among health and social care professionals, trade unions and the broader community as the cuts threaten to seriously erode the quality of care in the North’s healthcare system and attack the rights of health workers.

HITTING FRONTLINE SERVICES

The proposed cuts may lead to the loss of up to 3,000 jobs, including more than 700 nursing posts, and a drastic reduction in the ambulance service as well as the closure of hospital beds.
There is also a push to have patients stay in hospital for the shortest time possible, including those who have undergone surgery. Women’s health professionals have expressed dismay at the Belfast Trust’s plans that new mothers be released from hospital just six to 12 hours after they give birth.

And while these so-called efficiency savings are supposed to free up resources to be reinvested in frontline services, there is no guarantee or mechanism to ensure this is the case. You cannot get more frontline than the ambulance service, one of the targets of the cuts, or the backbone of the health service – its nurses.

Additionally, the Belfast Trust’s plans to stop recruiting new staff, ban agency workers and overtime would impact on the most vulnerable and lowest-paid health workers.

MEETING CHALLENGES

There are undoubtedly real efficiency improvements that could be made in the health service, such as addressing high levels of bureaucracy, top-heavy management and outside consultancy fees.

Ending duplication and maximising the scale of economies through greater all-Ireland workings could release millions back into service delivery. Sinn Féin has called for the comprehensive ‘Investing in Health’ strategy proposed by Bairbre de Brún when she was Health Minister to be implemented as a way to strengthen the health service and integrate it with other departments and social agencies, such as housing and education bodies for example.

This strategy has the potential to save millions of pounds in the health budget by taking a holistic approach to preventative health care.

PUBLIC CONTROL

The proposals are being driven by the British Government’s agenda of privatising and attacking the public health service and other public services. We believe a strong campaign by the community and trade unions will play an important role in defending our public services from such attacks.

Sinn Féin ministers in the Executive have taken steps to ensure that key public services such as water and public transport remain under public control. Our ministers have been pursuing a strategy of investment to protect public services and jobs, and tackling persisting inequalities, poverty and discrimination while advancing all-Ireland co-operation and integration.
Minister for Regional Development Conor Murphy has announced the investment of hundreds of millions of pounds into developing efficient, high-quality, affordable and accessible public transport that aims to make the bus or train a more attractive option than private car use. This includes funding for 290 new buses, 20 new trains and a rapid transit network in Belfast. Last October, Conor also introduced free travel on public transport for all citizens in the North aged 60 and over. More than 57,000 older people have now taken up this entitlement.

NO PRIVATISATION OF WATER

As well as developing sustainable transport, Sinn Féin has used its role in the Department of Regional Development to ensure that water remains in public hands.
Despite the obvious eagerness from London to have the Government water company in the North sold off, the Minister has firmly ruled out any moves towards privatisation of the water and sewerage services and voiced his commitment to ensure “it will remain in full public ownership now and in the future”.

We have campaigned since 2001 against the plans made under direct rule ministers to force citizens in the Six Counties to pay a new charge for water when they already pay for this vital service through rates.

In 2007, Conor Murphy commissioned a two-part ‘Independent Review into Water and Sewerage Services’ that recognised the contribution households already make through regional rates and ruled out double charging and private profits being made from the service.
Responding to the increased financial pressures households have come under in the context of the recession, Sinn Féin recently brought forward a successful motion to defer any decision on the funding arrangements for the water service until beyond 2012, when the North’s economic situation would be reassessed by the Executive. The Executive agreed to cover the cost of domestic water use until that time.

INVESTING FOR EQUALITY

Last December, Deputy First Minister Martin McGuinness helped secure a £15 million financial hardship package to provide assistance in housing, fuel and debt costs for those most vulnerable to the effects of the economic downturn.

Sinn Féin Minster for the Department of Agriculture and Rural Development Michelle Gildernew has also organised the investment of £10 million to tackle rural poverty through fuel support, rural transport and rural childcare initiatives. Over the next five years, she will be investing £530 million into rural areas in the North.

The most significant change taking place in an Executive department is the radical, progressive reform of the education system being led by Sinn Féin Education Minister Caitríona Ruane. She is advancing a programme of modernising education, based on replacing the failed academic selection system with area-based planning to facilitate the development of post-primary education provision.

The minister has launched a £700 million Schools Modernisation Programme of investment in the schools estate over the next three years.

COMMUNITY CAMPAIGN

Sinn Féin ministers in government are demonstrating their commitment to defending public services, to advancing the all-Ireland agenda and overcoming poverty and inequality.
But the Executive is facing serious challenges in meeting the efficiency targets demanded by the British Treasury across all departments. The framework of the British Government’s pro-privatisation economic policies, and its refusal to address the legacy of its historic under-funding of vital services in the North, lie at the root of the problem.

The unfolding crisis in health care provision clearly shows that more must be done to defend the public sector.

Our immediate priority is the defence of frontline public services and to tackle health inequalities, and ensure that vulnerable people, people living with disadvantage and poverty, and those most at risk are protected.

These proposed cuts demonstrate sharply the need for decision-making powers about the economy to be in the hands of locally-elected and accountable politicians that will make decisions based on the interests of local citizens. Sinn Féin reiterates our call to the other parties to support the acquisition of greater fiscal powers for the Assembly on this basis.

We support the community and trade union campaigns across Ireland in defence of jobs, public services and social welfare and believe a strong and organised movement will play a vital role in protecting and advancing our rights, living standards and services for the future.