Category: Government

All citizens are equal but some are to be treated as diplomats – or else?

Former District Court judge Michael Patwell was recently interviewed by Charlie Bird. He had some interesting things to say.

Around 1966, while working in Customs and on duty at Dublin airport, he confiscated a number of undeclared items he had discovered in the luggage of a well-known sports personality.

A week later he was removed from his nice clean job in the airport and found himself in a boiler suit searching ships on Dublin docks.

Shortly afterwards he was summoned to Dublin Castle where he was given a lecture, reminded that his period of probation was nearly up and had his file ‘reviewed’. He was informed that he could be a little bit over enthusiastic.

It was made clear to him that some people who leave Ireland who are not diplomats were to be treated as if they were diplomats on their return.

The Inspector General of Customs at the time had a son deeply involved in the same sport as the man who had his items confiscated.

About a week after his interview Patwell checked with his colleagues at the airport and was told the man in question had been given back all the items confiscated and no record had been made of the incident.

Disgusted by the whole affair Patwell left Customs and got himself a job as a court clerk.

Isn’t that a great little statement?

Some people who leave Ireland who are not diplomats were to be treated as if they were diplomats on their return.

It really sums up how our corrupt little republic is (mis) governed.

It tells us that even in the 1960s there was an untouchable golden circle that enjoyed massive benefits at everybody else’s expense.

And, of course, that golden circle has grown into a deadly, state-destroying monster in the intervening years.

Have a question about TDs expenses? Get lost (peasant)

The following excellent letter on the issue of politician’s expenses appears in today’s Irish Times.

Sir,

I write to support the comments of Jason Power (September 22nd).

On August 28th, 2010 you published an opinion piece from myself detailing the history of our politicians’ expenses culminating in the “reformed” system introduced in March 2010.

To highlight just one aspect of the “reformed” system, TDs no longer had to submit detailed travel claim forms with receipts.

Instead they received generous round figure allowances depending on the distance of their home from the Dáil, paid monthly and tax free. These allowances are known as turning up money.

TDs living within normal commuting distance of the Dáil do extremely well.

Those living within 25km of the Dáil receive €12,000 per annum tax free, which is slightly more than the contributory old age pension for a year.

TDs living within 25km to 60km from the Dáil receive €28,106 tax free which is more than many workers earn gross in a year.

These payments are in effect untaxed salary. Allowing for income tax (41 per cent), PRSI (4 per cent) and USC (7 per cent) the payments equate to €25,000 gross for those receiving the €12,000 rate and €58,554 gross for those on the €28,106 rate.

Naively I assumed the new government would genuinely reform the expenses system, and at the very least end the scandal of those TDs living within normal commuting distance getting these travel payments while ordinary workers pay their own costs to work.

Eighteen months in government and no action; but our masters are actively considering curtailing the free travel enjoyed by OAPs!

I wrote to Minister for Public Expenditure and Reform Brendan Howlin earlier this year pointing out the conflict of interest politicians have in setting their own expenses, and offering to serve on a committee to recommend a proper system.

I stressed the public disquiet about the present system.

I was politely told to get lost.

Yours, etc,

Enid O’Dowd FCA,
Moyne Road,
Ranelagh,
Dublin 6.

Vulture capitalists, corrupt politicians and poverty

Wilbur Ross is a billionaire businessman who specialises in taking over, restructuring and selling on distressed businesses.

Some have referred to him as a grave dancer or vulture capitalist.

He is a key member of a consortium that bought 35% of Bank of Ireland last year to keep it out of state ownership. He personally owns 9% of the bank.

Mr. Ross is obviously a man who checks out every detail surrounding a venture before he commits large amounts of cash.

I assume therefore that the comments he made to George Lee about how well Ireland and its citizens are dealing with the current crisis are meant to encourage the markets while at the same time trying to convince Irish citizens that their situation is not so bad.

It’s very tough medicine but it’s necessary.

The Irish people understand that there’s a big problem, they understand there’s only one way out so as far as I can see they’re bravely gritting their teeth and they’ll get through it.

If Mr. Wilbur actually believes what he says then he’s not as well informed as he should be.

He might, for example, find it useful to listen back to a discussion between Marian Finucane and Irish Times columnist Conor Pope on the brutal reality facing a good percentage of Irish citizens.

Keeping in mind that the average industrial wage is €35,000 it has been found that to run a household, without being lavish, costs the average Irish family about €1,000 per week – after tax.

This figure does not include holidays, social life and expensive events like Christmas.

Neither does the figure include property tax, water charges, or the big increases recently announced for electricity and gas.

It does not take account of cutbacks and extra taxes and charges which are coming down the road in the December budget.

Recent research by the Irish League of Credit Unions found that 1.82 million adults say they have less than €100 per month to spend after bills have been paid.

It was also found that about 17% of adults, about 602,000 people, say they have absolutely nothing left for discretionary spending once the bills have been paid.

More than 150,000 people are unable to pay their mortgage and 300,000 are in negative equity.

About 300,000 are struggling to pay gas and electricity bills.

Wilbur Ross couldn’t be more wrong when he says the Irish people are gritting their teeth and getting on with it.

Irish citizens are still in transition from relative prosperity to a level of poverty not seen since the 1940s.

This catastrophe is entirely down to the corrupt political system that has ruled Ireland from at least the early 1980s and which still holds power today.

People like Wilbur Ross are ruthless businessmen coming in to suck as much blood as possible from the rotten carcass of the first republic which received its final and fatal blow from its corrupt political system on 29 September 2008.

Looking at the big picture Irish citizens have just two things to consider.

Are they going to meekly accept severe poverty for the coming three or four decades?

And

Are they going to allow the corrupt political system that brought them to such poverty to continue to exist?

Time will tell.

The curious case of Alibrandi's bank accounts

I see the former papal nuncio to Ireland archbishop Gaetano Alibrandi legged it out of the country in 1989 when it emerged that there were large amounts of unaccounted for money in three Irish bank accounts belonging to him.

What’s really curious about this affair is that it was the Department of Foreign Affairs that, apparently, challenged Alibrandi on the matter.

It’s curious because during the 1980s Ireland was an open sewer of corruption.

The criminal politician Haughey was busy plundering the nation’s wealth with the willing assistance of his business and political cronies.

Such corrupt schemes as Ansbacher and DIRT were in full swing and the banks were openly robbing the state and their customers as a completely normal part of their financial activities.

In other words; unaccounted for money in banks during the 1980s was a fully acceptable aspect of Irish culture.

So-called law enforcement authorities, who should have been doing what Department of Foreign Affairs personnel, were, apparently doing, simply held their collective noses as they stepped over the rotten sewer.

So why, I ask, did those gentle, nothing to do with law enforcement folk at the Department of Foreign Affairs, get all hot and bothered about poor old Albrandi’s accounts?

Of course I don’t know but I am certain of one thing.

It wasn’t because Irish authorities were so shocked at the discovery of a dodgy bank account that they asked Alibrandi to leave the country in case such practices were to infect the honesty of Ireland’s governing class.

The ECB is coming to town to replace Irish 'Wild West' financial regulatory system

Last Wednesday the Central Bank deputy governor Matthew Elderfield told the Irish Funds Industry Association that change is coming.

Change is coming and it will be significant. As I said my key message to you is engage in the debate and be prepared to adapt.

Adapt indeed – and quickly. Why, because the days of gombeen regulation are rapidly coming to an end.

For decades, Ireland, the Wild West of European finance, allowed and facilitated dodgy financial activity that, ultimately, played a major role in the onset of the current economic catastrophe.

But the good times are coming to an end, the European Central Bank (ECB) is coming to town and, thankfully, the Irish gombeen (non) regulatory regime will be no more.

The ECB will have wide ranging powers including the ability to shut down banks, carry out raids and fine them 10% of their annual turnover for not complying with regulations.

So, not only can Irish citizens breath a sigh of relief that, at last, a truly professional financial regulator will be looking after their interests, they can also look forward to something they have never witnessed before, banks actually being raided and fined substantial sums for robbing their customers and other crimes.

The Irish Central Bank will be (rightly) reduced to the level of ensuring that ECB instructions are properly carried out although, given its record to date, even that task will require major reform and a management cultural change of gigantic proportions.

The only worrying aspect of the new regime is that the Central Bank will retain some oversight of banks and be responsible for consumer protection.

I’m sure, however, that the ECB will quickly realise that even these duties are beyond the capabilities of our Wild West style of ‘regulation’ and take appropriate action.

Copy to:
Central Bank

Bazooka assets and the 'rich' bankrupts

Minister for Justice Alan Shatter has said he would need convincing that those applying for bankruptcy should be allowed to keep high value items like rings and other personal jewellery (Irish Independent).

One individual’s €100 ring that has ceremonial significance might be another individual’s €200,000 or €300,000 diamond bazooka that they regard as having a great deal more ceremony than the €100 ring.

They’re looking for a debt relief notice but they want to hold on to the ring worth €300,000 or €400,000.

Now let’s get real about what we’re talking about here.

In order to get more ‘real’ Minister Shatter could perhaps tell us why the bankrupt Sean Quinn is allowed to retain his palatial, multi-million (bazooka) house while ordinary peasants will have to prove that their assets are under €400 in order to qualify for bankruptcy.

And are we to believe that Sean Fitzpatrick has been denied access to all his ‘bazooka’ assets?

Howlin: Put me in power but don't believe my promises

Minister for Public Expenditure and Reform Brendan Howlin speaking to Pat Kenny this morning.

There are those who think you can shake some magic wand and all the debts and all the problems will go away.

And there are those who believe that when they changed government last year that somehow you changed the economic circumstances.

And those who believe all the above do so because that’s what Howlin and his fellow gombeens told them during the last election campaign.

Garret Fitzgerald's elitist mindset still with us today

It may seem bizarre to many that Garret Fitzgerald could write in great detail about his long political career without mentioning, never mind actually analysing, the corruption of Charles Haughey.

But there is in fact a very simple reason.

The criminal Haughey was a member of the same ruling elite club as Garret Fitzgerald.

Members of this exclusive club instinctively know that they must stand by each other if they are to survive as the ruling elite.

So while it is perfectly acceptable to play the game of politics, slagging each off in the Dail, hotly debating issues through the media, it is totally unacceptable for club members to call into question the right to rule pedigree of any member by accusing them of criminal or corrupt practices.

In December 1979 when the criminal Haughey came to power Fitzgerald rightly referred to him as a flawed pedigree

Fitzgerald realised immediately that he had overstepped the mark, that he had offended the sensibilities of the ruling elite who were all present for the nomination of Haughey as Taoiseach (See here for my view of this incident).

Thereafter, and for the rest of his long career, Fitzgerald constantly apologised/explained this insult to a member of the ruling elite club.

In his book, Just Garret (page 288) he once again tries to explain away his (totally accurate) assessment of Haughey’s real character.

The phrase ‘flawed pedigree’, an oratorical embellishment that must have owed something to the hour of the night at which I had finally drafted my remarks, achieved lasting fame.

I should of course have recognised the danger of using a colourful phrase that could easily be distorted by being taken completely out of the specific context of a comparison between Charles Haughey’s and his predecessors’ repute among their peers (my emphasis).

Fitzgerald tells another story that confirms how the ruling elite support each other and gives us a hint of how some in the media are more than willing to cooperate with protecting the interests of the ruling elite.

In 1983 Labour leader and then Tánaiste Dick Spring had a bit of a row with Haughey at a meeting of the New Ireland Forum.

Haughey became so upset that he had to be escorted from the room.

It later transpired that earlier on the same day a biographical book, The Boss, had been published which greatly upset Haughey and his family.

Fitzgerald’s response to this incident is incredible and bizarre when we consider that he had already accurately described Haughey as a flawed pedigree.

In other words he knew that Haughey was nothing more than a political gangster.

The publication of The Boss which outlined in great detail the corrupt activities of Haughey in the short three-year period since becoming leader of Fianna Fail confirmed in black and white Fitzgerald’s flawed pedigree assessment of the criminal.

To avoid being accused of quoting Fitzgerald out of context I include his full response in his own words.

The Forum was immediately adjourned, and Dick Spring made his peace with Charles Haughey.

But following the afternoon session, I realised that I had earlier responded to a query from Vincent Browne, editor of the Sunday Tribune, about my Christmas reading, saying that The Boss was something that I would want to read during the break.

I then found that Dick Spring had also mentioned the book to Vincent in this way.

I rang Vincent, who I found already knew what had happened that morning, and he agreed not to publicise the traumatic event in the Forum and to substitute other works in place of The Boss on my list, and in Dick’s.

So here we had the Prime Minister and his deputy going to great lengths, with the willing cooperation of a journalist, to minimise the impact of an accurate account of Haughey’s corrupt activities.

The response by Fitzgerald and Spring is a perfect example of how members of the ruling class, first and foremost, look after each other.

That elitist political mindset is still the guiding force in the body politic today.

Two tier justice system

Socialist Republican Party member Louise Minihan has gone to jail for refusing to pay a €1,500 fine for throwing paint over then Minister for Health Mary Harney in November 2010.

So, in just twenty months the justice system processed this citizen with efficiency and without any undue delay.

This is as it should be in a functional democracy.

Meanwhile, it’s over four years since the banking gangsters, their political friends and facilators within the regulatory sector destroyed the economy causing severe hardship for most Irish citizens.

No proper investigation, no progress whatsoever, not a hope in hell that any of these gangsters or their friends will be brought to justice.

Freedom of Information will not be free

This government has failed to keep its promise regarding the repeal of the Freedom of Information Act (FOI).

This government will not repeal or enhance the FOI in any significant way because to do so would endanger the interests of the corrupt political/administrative system that rules this country.

Letter in yesterday’s Irish Times.

Sir,

“Jam tomorrow, jam yesterday but never jam today” is the only way to think of Government’s action on political and institutional reform.

Consider the promise to repeal the 2003 Freedom of Information (FoI) Act, which changed the original 1997 Act for reasons that are still not clear.

Last week Minister for State for Public Service Reform Brian Hayes deferred a new Freedom of Information Bill until next year, two years after taking office. (Home News, July 7th).

This contrasts with the firm commitment in this Government’s programme of March 2011.

“We will legislate to restore the Freedom of Information Act to what it was before it was undermined by the outgoing government, and we will extend its remit to other public bodies including the administrative side of the Garda Síochána, subject to security exceptions.”

A simple repeal of the 2003 Act would do much of what the Government promised.

In opposition, the Tánaiste Eamon Gilmore pointed out that the 2003 change to Freedom of Information, “did fundamental damage to the way in which the FoI regime ought to operate.

The legislation has, as a result, been handicapped and it no longer functions as effectively as it should . . .”

Passing this law is easy. Doing so would need virtually no drafting effort or even much Dáil time, given the work done in 1997, the Dáil debates on the 2003 changes to Freedom of Information and the current Government’s majority.

This would not get in the way of the more comprehensive measure now promised for next year.

This Government has no excuse for delaying this reform.

The Taoiseach and four current Ministers were also members of the Cabinet which brought in the 1997 FoI Act.

The Tánaiste and three other Cabinet members were Ministers of State in the 1997 government. In addition, both the President and the Ceann Comhairle were also members of the 1997 Cabinet.

Delaying this simple reform does not augur well for the Government’s efforts to rebuild our trust, as citizens, in the State.

Yours, etc,

Donal O Brolcain
Griffith Avenue, Dublin 9.