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Analysis/Comment Last Updated: Apr 24, 2009 - 5:31:05 PM


Irish Economy 2009: Reform Irish style - - respond only to a crisis...sorry...a dire crisis
By Michael Hennigan, Founder and Editor of Finfacts
Mar 6, 2009 - 8:14:19 AM

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From the 1980's BBC comedy series Yes Minister

Irish Economy 2009: Reform Irish style follows a familiar pattern and we had a regular reprise on Tuesday evening, when the Exchequer Returns for February showed, that the financial crisis was getting worse. When there is a crisis, hope for the best for something to turn up like Dicken's Micawber and respond only when the crisis is dire.

So days after the former social worker and Tánaiste (Deputy Prime Minister), Mary Coughlan, had said further action on spending and taxes, would have to wait until December, an emergency Budget was announced for early April.

I earlier glanced at the "Latest" news links on the Irish Times website and the headline - -  Harte to make sweeping changes  - - grabbed my attention.

Substitute Taoiseach Brian Cowen's name for Tyrone football manager Mickey Harte and wouldn't we be putting more than crosses on the mantelpiece in amazement?

On Thursday, Cowen revealed, that he wasn't aware of how bad the February public finance performance was, until hours before the public knew. It doesn't surprise me a bit given the comatose performance of ministers in the past year which evokes Oliver Cromwell's 1653 order to the Rump Parliament:"You have sat too long for any good you have been doing lately ... Depart, I say; and let us have done with you. In the name of God, go!"

Noel Dempsey, the minister who invoked Cromwell in a speech last weekend, should be among those to follow the advice.

When you order a transport programme logo, that costs €70,000, in preference to an existing logo, which was developed in-house for free, then in these times, you deserve the pillory treatment, with the slogan of the new logo around your neck: Connecting Communities Promoting Prosperity - - you have neither connected communities or promoted prosperity. You have done the opposite.

Finfacts Article: Irish Economy: Economic traitor cries treason; Slow-motion Government hits panic button

The Exchequer figures showed that in the first two months of the year, the overall budget deficit, was more than €2 billion compared to €125 million for January-February 2008.

“The admission today by the Taoiseach that he was unaware of the exchequer figures until Tuesday's cabinet meeting is both astonishing and disturbing,”said Fine Gael finance spokesman Richard Bruton

“It is intolerable that neither the Minister for Finance or the Taoiseach were not monitoring the trends in regard to the exchequer figures, given the grave state of the nations finances at present. Only a few days ago the Táinaiste claimed that the Government was in control, seemingly in denial as to the depth of the crisis we are in and now the Government has announced a new budget."

The consequence of the cocktail of self-interest, laziness and incompetence, is plain to see when there is no adequate contingency fund to currently aid the economy through the economic storm.

Germany on Thursday announced a €100 billion corporate aid fund to assist struggling firms. It already is supporting 300,000 people working short-time. In Ireland in February, more than 26,000 lost their jobs and the Government has to fund them with no return.

Short-time work in Germany: A flexible instrument to fight the crisis according to Deutsche Bank Research

German Chancellor Merkel's Cabinet agrees on launch of €100-billion corporate aid fund to help struggling firms

We have raised the issue of the Irish Buck Stops Nowhere governance system many times and its consequence today, in effect is the destruction of the lives of tens of thousands of people.

Another minister like Dempsey who has sat in Cabinet for almost 12 years not because of any evidence of competence, is school teacher (apparently he is still building up pension entitlements as a teacher) Micheál Martin,  who must hold the record for the number of consultant reports that any minister in the world has requested in the space of 4 years as Minister for Health - at 145, he always had a cure for insomnia, at hand.

Martin spent more on a library of reports and reviews during his tenure than any minister in the history of the State.

The bill for 115 of 145 reports commissioned by the minister in the Department, was outlined in a parliamentary answer to Fine Gael TD Seymour Crawford in 2004. It was €30m. There were bigger bills, which the minister and other senior computer illiterates, in the Department approved and when tens of millions were wasted, the buck was passed around and ended nowhere.

Martin also likely holds the world record for pre-announcing the launch of a website that earned consultants Accenture €3 million but the website was never launched!

Despite the impact of a governance system, that is so unfit for purpose, it is striking that politicians from all parties, have so little to say about it.

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© Copyright 2009 by Finfacts.com

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