Irish Ferries stroke

The response to a question on a recent edition of Question & Answers drew some interesting replies. The question was: ‘What is the panel’s reaction to job cuts at Irish Ferries?â€?

Before commenting on the answers, it will be useful to outline what Irish Ferries are planning. They are in the process of re-registering their fleet under “Flags of Convenience’. This means they will no longer be subject to Irish or EU labour laws. Recruitment of staff is to be handed over to an outside source thus allowing Irish Ferries to claim that they are not responsible for pay or working conditions.

When Irish Ferries were recently found to have “employed’ Filipino, workers for 1 Euro per hour they tried to absolve themselves by claiming that they had no responsibility for the pay and conditions of these workers. If Irish Ferries are allowed to get away with implementing their plan, their crews will lose all the established entitlements like minimum wage, holidays and working time directives. In effect, Irish Ferries will be operating a modern form of slave labour.

Here’s how the panel answered the question. Jim Power, Chief Economist at Friends First felt that the plan was reasonable because the company’s finances were coming under pressure from increased competition, especially low cost air fares.

Dick Roche, Minister for the Environment agreed with the opinion of Jim Power adding that Irish Ferries must be protected as it was a vital national industry. Most surprising of all, however, was the reply of John Waters. It’s the way of the world…increasing competition…workers coming from other economies…lower wages…it’s something we are going to have to get used to.

The question that immediately springs to mind is: Would any of these gentlemen be happy if they were forced to choose between losing their jobs or agreeing to work for three Euros per hour on twelve hour shifts without the protection of labour laws? The only thing that can be said in their defence is that none of them seemed to understand the full implications of what Irish Ferries are planning to do.

John Waters, a man who likes to portray himself as a crusader for the down trodden, seemed particularly confused and I got the distinct impression that he was merely mouthing the sentiments of the previous speaker. He really should have pleaded ignorance on the matter thus safeguarding his credibility.

Marian Harkin, Independent TD and MEP was also on the panel and strongly disagreed with Irish Ferries policy. As an articulate, intelligent and honest politician, Ms. Harkin is a rare gem on the Irish political scene.

Banana Republic

One of the dangers of living in a banana republic where corruption is endemic at all levels of society is the tendency to slip into an ‘Alice in Wonderland’ mindset. An article by Claire Shoesmith in last Friday’s Irish Times about ethics in business serves as a good example of this phenomenon. In making her case, she compares recent financial scandals in America and Ireland. The first thing to notice is her use of language. Ms. Shoesmith describes the Enron and Worldcom scandals in America as:

Corrupt organisations, run by fraudsters who lined their pockets with millions of dollars while destroying billions of dollars of investors’ money’?

In contrast, here’s how she talks about scandals in the Irish financial world:

AIB and National Irish Bank, have played their part in eroding public trust in the financial sector and, in turn, prompted calls for tighter rules on corporate governance and increased scrutiny on individuals within the industry.

So, financial criminality in the US is described as corrupt organizations run by fraudsters while in Ireland stealing millions from the State and customers merely amounts to a factor in the erosion of public trust. Another elephant in the room that remains completely unnoticed is the consequences for the fraudsters when caught.

Ms. Shoesmith gives some examples from the US: Bernie Ebbers of Worldcom: 25 years in jail. Kenneth Lay of Enron: Awaiting trial. Denis Kozlowski of Tyco International: between eight-and-a-third and 25 years in jail. These people, and many others, found themselves in deep trouble because of their corrupt activities. Regulatory agencies, the police, the courts all became immediately involved and made sure these people suffered the consequences of their actions.

In the Banana Republic of Ireland, this does not happen. The examples used by Ms Shoesmith, AIB and NIB, will suffice to make the point. For 17 years, National Irish Bank (NIB) robbed millions from the State and its customers in well organised frauds. When this major criminality was uncovered (by the media), there was no police investigation, no arrests and no mention of trials or jail sentences. Instead, two High Court Inspectors were appointed to investigate. It took them six years, yes, six years to produce a report. The report was greeted with the usual shock and horror and promises were made that this time action would be taken. Nothing happened and the fraudsters are walking free as I write.

AIB has also robbed millions from the State and its own customers with no consequences for the bank or any of its officials. This is not surprising as AIB is allowed to investigate itself with no interference from the police. The bank is even allowed to operate its own internal justice and court system, passing judgements and meting out punishment on any staff found ‘guilty’. The so-called Financial Regulator only plays a peripheral and mostly supportive role in all this.

The term Banana Republic is not used lightly here; it is a true reflection of how things are done in Ireland. The difference between a banana republic and a real democracy can be measured by the action taken when corruption occurs. Let’s just compare the Worldcom and NIB scandals.

Here’s the reaction of Harvey Pitt, chairman of the Securities and Exchange Commission (SEC) to the Worldcom scandal

“I’m mad as hell and I’m not going to take it any more,” “The bubble has burst,”… “Serious jail time awaits serious crime.”

And here’s the reaction of Mr. Denis Kelleher, chief executive of investment company Wall Street Access:

“It is outrageous what is going on,” he said. “It is greed of the highest order. If the system does not put these people in jail, we have failed. If this is the system, we have, we’d better get it right in a hurry, and otherwise we are in deep yoghurt, as they say.

The American system went into action and only three years later, long jail sentences are being served.

It’s over a year now since the NIB report was published and seven years since the criminality was uncovered. So what has happened. Well, a High Court judge decided that the NIB should not be closed down because of the consequences for the bank, its customers and staff. (Just what does an Irish bank have to do to get shut down, genocide?)

Paul Appleby, the State’s Director of Corporate Enforcement tried to obtain the names of the bank’s audit committee with a view to taking legal action. He was firmly told by a High Court judge that

‘There was no real and pressing need for the order sought?’

(Major criminality and we can’t even get names). Last July, Mr. Appleby was back in court in an attempt to get the executives involved barred from acting as directors. He hasn’t a hope.

Will there be criminal prosecutions? No, because any evidence gathered for the inspectors report cannot be used as it was given voluntarily.

Welcome to the Banana Republic of Ireland.

Tribunal statement denies giving secret report to McDowell

The tribunal claims it didn’t give the report to McDowell, but I believe he did get it. But how?

The tribunal yesterday took the unusual step of issuing a statement making clear that it has never submitted a secret report to Minister for Justice Michael McDowell.

The statement said that it had come to the attention of the tribunal that a number of media sources had speculated as to whether the tribunal had made a secret report of some matter to the Minister.

“The tribunal has issued two reports: on Explosives Finds in 2004 and on the Barron Death Investigation in 2005. There are no other reports,” it said.

Solicitor applies to cease to represent garda

A curious development.

The solicitor for a former garda applied yesterday to cease to represent him, saying his client was in St Patrick’s Psychiatric Hospital.

Retired garda John Nicholson was due to be recalled as a witness yesterday. He pleaded guilty in 2002 and was prosecuted for submitting forged statements of loss of earnings. These were for Bernard Conlon for court appearances in a licensing case against the McBreartys in Co Donegal.

Tom Murphy, solicitor for a number of gardaa­ besides Mr Nicholson, said yesterday he wished to no longer represent him.

Mr Justice Frederick Morris, chairman, said he could only make an order allowing Mr Murphy to come off record if he was satisfied it was appropriate to do so. The reasons should be set out in an affidavit.

“I don’t want to breach confidentiality but I understand that he is at the moment in St Patrick’s hospital, and I feel it is appropriate that if the reason is because of his detention in that institution that I would be grateful if you could provide a medical certificate in the affidavit confirming that fact.”

The chairman said if he had Mr Murphy’s consent he proposed to ask their own medical adviser to examine Mr Nicholson and ensure the order was correct.

Mr Murphy confirmed his client was in St Patrick’s and said he would draft the affidavit and get specific instructions on having the tribunal’s medical adviser examine his client.

Fitzwilton bids to block Mahon inquiry into Burke payment

More legal challenges to the Mahon Tribunal.

Fitzwilton will launch a legal bid in the High Court tomorrow to block the Mahon Tribunal from holding any public hearings into a £30,000 payment by the company to Ray Burke for Fianna Fail Funds.

Mr John Gordon, SC, counsel for Fitzwilton, told Mr Justice Barry White today that the application would “go to the heart of the Tribunal’s entitlement to have public hearings at all” relating to the Fitzwilton payment.

He said that should he succeed in obtaining leave of the court to challenge the Tribunal’s right to hold public hearings he would be asking the court to impose a stay on the hearings which the Tribunal had scheduled to start on September 28th.

Frank McBrearty Jnr settles with State for €1.5m

The Irish Times reports that the DoJ has settled with Frank McBrearty junior.

The Department of Justice has confirmed that Frank McBrearty junior has settled all claims with the state for a sum of €1.5million.The settlement relates to four claims, two in the name of Mr McBrearty, one in the name of his wife and one joint claim.

Some 47 high court actions by members of the extended Mr McBrearty family had been due to commence on October 18th. The claims relate to alleged malicious prosecution, wrongful arrest, planting of evidence and false arrest. State lawyers conceded liability for damages to McBrearty junior in June last.

Morris tribunal resumes today

The Morris Tribunal is back on, with the expected completion of the current module shortly.

The Morris tribunal resumes today after the summer recess, and over the next two weeks the “silver bullet” module is expected to be completed.

The garda at the centre of allegations of corruption, Det Sgt John White, will for the first time have the chance to give his evidence at the tribunal. He is denying all allegations against him.

Tomorrow, Det White is scheduled to appear in the witness box and is expected to give direct evidence and undergo cross-examination for at least five days.

The module concerns Bernard Conlon’s claim that in 1997 Det White asked him in Raphoe, Co Donegal, to be found drinking after hours on the premises of Frankie’s nightclub, owned by the McBrearty family.

Rossiters believe inquiry terms too narrow

As I expected would happen, the family of Brian Rossiter consider that the terms of the Dublin Police Act are not enough for an investigation into the death of their son. It seemed to me like a rather convenient way for McDowell to shut Village magazine up.

The parents of schoolboy Brian Rossiter (14), who died after a night in Garda custody, might not participate in an inquiry into the circumstances of his arrest and detention because they believe its terms of reference are too narrow.

Cian O’Carroll, solicitor for Pat and Siobhan Rossiter, told The Irish Times the family is considering their position because they feel the inquiry will be unable to answer why Brian died.

Mr O’Carroll pointed out the Rossiter family may opt to pursue a High Court action instituted by Siobhan Rossiter over her son’s death as they feel the Government inquiry is being brought under legislation that is overly restrictive.

He said the Dublin Police Act 1924 will limit the inquiry to simply a Garda disciplinary-type forum and that the Rossiters believe the High Court action will provide a better forum to investigate what happened to Brian.

Mr O’Carroll said the promise by Minister for Justice Michael McDowell to pay legal costs did not reflect the market reality of legal fees as charged by senior counsel.

“The figure that’s on offer here for senior counsel per day is €1,008 but there’s no senior counsel currently before any tribunal in the country appearing for that amount.”

Family calls for new inquiry into cell hanging

Another death in Garda custody.

A man who died in hospital at the weekend after he attempted to hang himself while in Garda custody may have been mistreated, his family has claimed. The family of Terence Wheelock from Dublin’s north inner city has called for an independent inquiry into his death.

Mr Wheelock was detained by gardaa­ in a cell in Store Street Garda station on June 2nd last, where he attempted to hang himself with a cord taken from his tracksuit bottoms.

Gardaa­ and fire brigade officers rushed Mr Wheelock to the Mater hospital, where he died on Friday having never regained consciousness.

Evidence was given that the cord had been secured so low down on the wall that Mr Wheelock had to kneel in his bid to strangle himself. Yet his family has claimed that he was not suicidal and laid flowers at the Garda station on Saturday.

The family also insists that Mr Wheelock suffered bruising and sustained a cut. Neither gardaa­ nor fire officers supported this allegation.

A Garda inquiry was set up to look into the circumstances surrounding Mr Wheelock’s death. However, family members claim they have not been given access to its findings or the statements which were made.

The family are calling for an investigation, along the lines of the current one into Brian Rossiter’s death.

On AIB

Ah, poor Tom, poor Tom Mulcahy. After 29 years of dedicated service, he is stabbed in the back by his former employer. The former chief executive of Allied Irish Banks recently claimed that he was squealed on to the Revenue Commissioners on alleged tax evasion charges. Tom, however, is determined to set the record straight.

He admitted to Revenue that he had an undisclosed non-resident account in England containing ‘several hundred thousandâ€? but there had been no transaction on it for years. This sounds like the “Father Ted’ defence; the money was just “resting’ in my account? Several hundred thousand? Sure, who could be expected to remember such a petty sum hidden away in an illegal account?
Anyway, Here’s how he described his settlement with Revenue “I am not saying that I was always compliant. I made a voluntary disclosure and paid what I thought was due, which is the right open to all citizens”

This is a very interesting statement, not just because it reveals that people like Tom are allowed to decide how much tax they will pay but also because he seems to genuinely think that it is a “right’ due to all citizens. He seems to be unaware that ordinary “peasants’ are not afforded this “right’.

Over the years, AIB has robbed many millions from the State and its own customers through various frauds. Tom defends his time as chief executive of this dodgy organisation between 1994 and 2001 by adopting the “I know nothing’ plea made famous by the Spanish waiter, Manuel’ in Fawlty Towers. ‘A chief executive’s role is to be positive and focus on driving the bank forward, rather than look for hidden problems.â€? He tells us.

Miraculously, Tom seemed to have developed a talent for finding hidden problems during his time as effective chairman of Aer Lingus. He’s very proud of the great job “he‘ did to turn the airline around, ‘I was in there seven days a weekâ€?, he tells us. Alas, once again, he was stabbed in the back, with all the praise going to that young whipper-snapper, Willie Walsh.

It seems poor old Tom just can’t win. He knew nothing about the dodgy dealings when he was the main man at AIB but still had to pay tax on his own dodgy account. He claims that he was the golden boy in turning Aer Lingus around but the credit went elsewhere – Ah, poor Tom, there’s just no justice in the world.