Massive Waste of Taxpayers' Money in FÁS

Ireland's national training and employment agency FÁS (Foras Áiseanna Saothair) has wasted vast amounts of taxpayers' money and exceeded its budgets regularly.

A new report by Ireland's Comptroller & Auditor General John Buckley, which is the result of a nearly year-long investigation, highlights "a substantial and prolonged breakdown in budgetary control" at the state agency.

One of the agency's most significant follies is a case especially highlighted in the report: FÁS did spend more than € 600,000 on a television advertisement that was never broadcast.

Mr. Buckley also found that general spending in FÁS exceeded budgets by up to 66%.

Nearly a year ago, when the scandalous money-wasting of FÁS became public knowledge, he was given the task to investigate the agency. (see my entries of September 22nd & 23rd, 2008)

Between 2002 and 2008, FÁS spent over € 48 million alone on advertising and promotional activities. This is the largest advertising spend in the non-commercial state sector, and for most of the period audited Ireland had almost full employment. Which means the agency had hardly anything to do and only very few 'customers'.

The Comptroller & Auditor General also found that budgetary control in FÁS was "poor" and expenditure in this area exceeded budgets by 38%.

As well as the € 600,000 spent on the un-used television advertisement, the agency spent a further € 600,000 with no services at all delivered.

Criticising the wasteful expenditure of FÁS, John Buckley said that "public procurement requirements were not met".

Overall, the report finds that advertising and promotional activities lacked strategic direction and that much of the advertising was ineffective in increasing awareness of FÁS services.

On the basis of what is known by now, there are good reasons to abolish FÁS as an independent agency and to divide its obligations between two government departments: Education (for the training elements) and Enterprise, Trade & Employment (for the work-related and employment duties).

It would also be sensible to prosecute FÁS employees who were responsible for the enormous spending spree and the massive waste of taxpayers' money and try to re-coup as much of it as possible from guilty individuals.
But as things are in Ireland, this is rather unlikely. Those close to the government here get away with everything and are never punished. The ordinary Irish people are instead burdened with the costs of government follies and the many failures and mistakes of its countless agencies.
If one would not know better, one might think Ireland is still a feudal state in the Middle Ages.

The Emerald Islander

For further details about the scandals and wastefulness of FÁS see also my entries of November 22nd, 25th, 26th & 27th, 2008.

Commission on Taxation presents its Proposals

Ireland's Commission on Taxation has proposed an annual tax on all residential property, water charges and the taxing of child benefit.

The report, which has been published in Dublin today, is part of the Irish government's strategy to shore-up the public finances, with the budget deficit likely to exceed € 20 billion this year.

With Ireland facing its worst financial crisis ever, the government is under huge pressure to restore the public finances.
Step one was the McCarthy Report, which recommended extensive spending cuts across the public sector, and step two is the list of recommendations from the Commission on Taxation.

The commission states that its priority is "to broaden the tax base, rather than merely increasing tax rates".

Commission chairman Frank Daly says the recommendations would "not damage economic growth". All recommendations were "designed to spread the burden of taxation more evenly and to give the government more certainty about its tax revenue".

The report urges the government to focus on raising revenue through property taxes, spending taxes and income taxes - in that order.
The commission also identified 245 tax relieving measures in the Irish tax system.

The main proposals are:

• An annual property tax on all residential property, excluding social and local authority housing.
• Child benefit should be a taxable income, with a tax credit to offset the increase in tax for low income earners.
• A new three-rate income tax system should be introduced to replace the current high and low income tax rates.
• The health levy should be abolished and integrated into the income tax system when fiscal conditions improve.
• Rules on residency and tax exemption should be strengthened.
• Stamp duty on ATM, credit and debit cards should be phased out in the interest of promoting a cash-free society.
• Removal of tax relief for nursing home expenses once the 'Fair Deal' scheme ends.
• The current 'Cinderella clause' needs to be supplemented with additional tests and criteria.
• Additional capital gains tax should apply on windfall gains from property rezoning.
• Domestic water charges should be phased in, with incentives to install meters and with a waiver for low income households.
• Carbon tax based in tonnes of carbon should be introduced and collected at the earliest point of supply.
• VRT should be replaced over ten years by a system based on car usage.
• Tax relief for pension payments should be replaced with a scheme 'along the lines of the former SSIA scheme'.
• The first € 200,000 of pension lump sums should be tax-free, with the remainder taxed at standard rate.
• Ireland's low corporate tax rate should remain in place to support economic activity long term.
• The artists' tax exemption should end.
• Expenses of Oireachtas members should be treated in the same way as expenses paid to all other employees, with a limit placed on the dual abode allowance and an end to the flat rate of relief for accommodation.
• End stock relief for farming business, but continue relief on farm land leasing.
• Income tax relief for trade union subscriptions should be ended.

As these are so far only recommendations, it will be interesting to see which of the proposals the government will adopt, and in which way they will be implemented.

HSE is facing € 800 Million Budget Cuts

Today the Chief Executive of the Health Service Executive (HSE) has confirmed that the Department of Health has instructed him "to draw up plans to cut next year's budget by at least an additional € 800 million".

Speaking on the Sunday programme This Week on RTÉ Radio 1, Prof. Brendan Drumm (photo) said the HSE would have "to cut at least 6000 jobs in the coming years if substantial savings could not be achieved".

Prof. Drumm also announced that he will not seek a renewal of his contract when his five-year term as head of the HSE comes to an end in 2010.
"Five years are a sensible period of time," he said, "but ten years in the same position might be too long for one man and lead to unexpected problems."

Irish Exchequer Deficit at € 10.6 Billion

Official Exchequer figures for the first five months of this year show that the Irish government is currently running at a deficit of € 10.6 billion.

While tax returns are sharply down on last year's revenue, the returns for May were broadly in line with the government's forecast in the Emergency Budget.

The extent of the slow-down in the Irish economy can be seen clearly in these latest Exchequer figures. Overall, taxes are down by 21% on an annual basis.

Stamp duty and capital gains taxes are down over 63.5% and 68.6% respectively, reflecting the almost total collapse of Ireland's property market.

VAT and excise duty rates are also down sharply, reflecting reduced spending in the economy, although excise duties came in a little better than the government had expected.

On the spending side, most government departments have kept their expenditure broadly in line, but it is nevertheless up by 2.9% on an annual basis.

But whatever happens in the real world, Taoiseach Brian Cowen (left) still lives on a planet of his own and says that he is "optimistic about the country's economic future".

Speaking at the National University of Ireland (NUI) in Maynooth, Co. Kildare, Cowen said his government was "determined to keep people at work and create new jobs in the IT area".

He regarded it as "encouraging" that today's tax returns were "on target".

Addressing IT specialists and academics during a lecture in Maynooth, the Taoiseach stated that "there are hopeful signs nationally that this recession is bottoming out".

In his usual brash and brusque manner, Cowen did however not stop to speak to reporters as he left the function.
This, as well as his strange statement, only underlines how much he is out of touch with the rest of the nation. No-one else here can see any 'hopeful signs' in the economy, and certainly not a 'bottoming out' of our recession.

In two days' time we will most likely see the unemployment figure pass the 400,000 line, and as Friday is also election day, the Irish people will show Cowen, his incompetent government and his rotten party what they think of the economy.

The Emerald Islander

Ireland's Tax Deficit will exceed € 8 billion

Ireland's Minister for Finance Brian Lenihan (left) has said that he will take "remedial steps" to reduce government spending after the latest Exchequer figures revealed a very sharp deterioration in the country's public finances.

The new figures show that the shortfall for this year is now set to exceed € 8 billion, which is almost € 2 billion more than the government expected just two months ago.

November is the most important month in the tax collection calendar for the government, since it includes all self-assessed taxes as well as a larger proportion of corporation and capital gains taxes due for the year.

According to the new Exchequer figures there has been a massive shortfall of close to € 7.5 billion in the amount of taxes collected by the government during the first eleven months of the year.
This is a much more than was predicted, and analysts now expect the tax shortfall for 2008 to exceed € 8 billion, which is about twice as much as the amount allowed under EU guidelines.

Richard Bruton (right), the deputy leader and Finance spokesman of the opposition Fine Gael party, accused the government of "rushing the 2009 Budget" and of "making a bad economic situation much worse".

As a neutral observer and analyst I cannot help but agree with Deputy Bruton, who is regarded as one of Ireland's most capable experts on fiscal politics.

But what is even more significant is the fact that for years the Department of Finance - under Brian Cowen and now under Brian Lenihan - got every single forecast of taxation totally wrong. So-called 'experts' of the government and the highly paid senior civil servants in the department alike seem to have no clue about the real economic and fiscal situation in the country.

During the boom times they were each November "surprised" by a sudden surplus of several billions in extra taxes they had not expected to rake in. (But they saw well fit to waste them very quickly on needless projects and - more significantly - on themselves and their luxury lifestyle.) And now they are equally surprised that the shortfall is much larger than it was calculated only a few weeks ago.

One has to wonder what qualifications these people have to hold their senior positions. There are very few economists among them, but plenty of pig-headed apparatchiks whose inflexibility has cost the country already dearly - and it will get a lot worse next year.

No-one in the government, and especially in the Department of Finance, listened to the regular and steady warnings that some well-known and highly qualified Irish economists like David McWilliams, Senator Shane Ross and George Lee (of RTÉ) have issued over years. They predicted with amazing clarity everything that has happened during the past months of rapid economic decline, and I have contributed my own two-pence of analysis and advice as well.

It becomes ever more obvious that our current government, and in particular its majority party Fianna Fáil - which is in charge of the Department of Finance for more than eleven years now - is completely incompetent to govern the country.

Furthermore, the government is directly responsible for many of the elements that caused the current crisis.

But instead of doing the decent thing - resign and call a general election - the clueless and highly overpaid scoundrels muddle on and pretend that they understand what is going on.
Every day they cling on to their power - and the beloved perks it brings them - the situation for our country and economy will get worse. It is now time for the people of Ireland to take matters into their own hands, stand up and be counted.

People power has recently made a huge change in the USA, and people power has also just forced the corrupt government of Thailand to resign. We could learn a lot from those examples, and if we still care for ourselves and our future, we need to act now.

The Emerald Islander

Irish Farmers "won't go away quietly"

Padraig Walshe (left), the President of the Irish Farmers Association (IFA), is warning the Irish government that "farmers won't go away quietly and accept the Budget cuts".

He was speaking yesterday evening in Ennis, Co. Clare, where more than 7000 IFA members from counties Clare, Cork, Galway, Kerry, Limerick, Offaly, Roscommon, Tipperary and Wexford had gathered for a mass demonstration to vent their anger.

Since October more than 20,000 Irish farmers have now expressed their anger over the 2009 Budget cuts at various IFA meetings all over the country. (see also my entries of November 2nd & 16th)

The IFA says that the recent cutbacks will mean a € 20 million loss to farmers in the region every year and is urging the government to think again.
It also accuses the Minister for Agriculture Brendan Smith to be "in denial over the impact of the government cuts on farmers".

Padraig Walshe says that Minister Smith is "disingenuous by referring to 2008 payments, which have nothing to do with the government's farm cuts for 2009".

"The way farmers have been hit is totally unacceptable", Walshe declared in an interview with RTÉ.
"The cuts are a direct attack on the viability of low-income farmers, especially in the West. Many farmers will not be able to make a living from farming under these conditions."

In reply, Brendan Smith (right) said that he did "not accept claims about the impact of the cuts on farm incomes".

This is another example of a Cabinet Minister closing his eyes and ignoring the facts, hoping that the problems will somehow 'go away'.

Smith, who was only appointed to his current position in May of this year when Brian Cowen became Taoiseach , seems to be quite a fast learner when it comes to collective ignorance and - as Padraig Walshe pointed out - denial.

He makes a fine addition to a Cabinet that is meanwhile so far removed from reality and from the Irish people that no argument, no matter how valid, can get through the ring of political cotton wool it surrounds itself with.

There are two ways to deal with this: Either the government removes the cotton wool, or the people have to remove the government. Personally I think the latter is the more desirable and more effective solution to improve our lives, our country and our economy.
As the IFA would be a welcome ally in such an operation, I hope that this time the farmers will indeed "not go away quietly" and remain strong and steadfast in their protest.

The Emerald Islander

Farmers protest against Fianna Fáil in Co. Offaly

While more than 8000 teachers and parents protested in Donegal town today against cuts to the education budget (see my earlier entry below), the Irish Cattle and Sheep Farmers Association (ICSA) demonstrated outside the Tullamore Court Hotel in Tullamore, Co. Offaly, where Fianna Fáil were holding their National Councillors' Forum Annual Conference.

Around 200 Fianna Fáil county and city councillors from around the country gathered for this meeting and had to pass the gauntlet of the angry farmers, who displayed banners, placards and a small flock of miniature plastic models of cows and sheep in front of the conference hotel.

ICSA's angry protest was directed against recent cuts in the agricultural budget, and especially against a reduction of support schemes for small farms, which affects mostly people farming in the west and north-west of Ireland, where they raise cattle and sheep.

The Taoiseach, the Tánaiste and three other government ministers were addressing the Fianna Fáil meeting, and it has been reported that especially Brian Cowen gave "a rousing speech" to his party members.
This is probably quite necessary, as the current unpopularity of the Irish government worries many Fianna Fáil councillors, particularly in light of the up-coming local elections next year.

The Tánaiste and Minister for Enterprise, Trade & Employment Mary Coughlan, Transport Minister Noel Dempsey, Education Minister Batt O'Keeffe and Agriculture Minister Brendan Smith also addressed the meeting and then faced the councillors in a questions-and-answers session, especially over the details of the controversial 2009 Budget.

However, in their usual arrogant way neither the Taoiseach nor his ministers had any time for the protesting farmers and showed no concern for their problems. I am sure the farmers - and not only those who were present today in Tullamore - will remember this when they cast their votes in future.

The Emerald Islander

8000 protest in Donegal against Education Cuts

Today over 8000 people took part in a protest march in Donegal town against the government's cuts in the education budget. The protesters included teachers, parents and members of boards of management from schools across the north-west of Ireland and came mainly from counties Sligo, Leitrim and Donegal.

They outnumbered the 2500 inhabitants of Donegal town by more than 3:1, and a good number of local residents also joined the demonstration.

The gathering in Donegal was addressed by John Carr (right), General Secretary of the Irish National Teachers' Organisation (INTO).
Representatives of other teaching unions were also present.

INTO, which has already organised a number of protests around the country (see my entries of October 29th and November 22nd) since the 2009 Budget was introduced by Finance Minister Brian Lenihan on October 14th (see my entry of that day), is planning further demonstrations in the near future.

The largest of them is a national rally, which will be held in Dublin next Saturday.

INTO's courageous President Declan Kelleher (left) said that there is strong political support for the campaign, and from my own observations I can second this statement.

I would also urge anyone who has the time and opportunity to be in Dublin next Saturday to join the protest march. Education is the key to our future, and we should do everything in our power to prevent the damaging cuts the government has proposed for the education budget.

The Emerald Islander

25,000 protest in Cork against Education Cuts

Today about 25,000 Irish people have been marching through the streets of Cork city in protest against the government's cuts in the education budget.

The march was part of a series of protest demonstrations organised by the Irish National Teachers' Organisation (INTO), which says that children should not be made to pay for the current difficulties in our economy.

It was the third time since mid-October that teachers, pupils and their parents have taken to Ireland's streets, protesting against education cutbacks.
INTO's General Secretary John Carr (right) declared that the marches will continue until the cuts are reversed.

Meanwhile the Minister for Education, Fianna Fáil's Batt O'Keeffe (left) who comes from Cork, said that he "simply does not have the funds" to reverse the cuts. This is his mantra ever since the major education debate in the Dáil on October 29th/30th. And unlike other ministers, who have been busy looking for extra money or alternative ways of saving on expenses, O'Keeffe has just remained stubborn, repetitive and inflexible like a stick in the mud.

Many in the education sector, who welcomed the appointment of the former teacher at first, think now that he is not really up to the job of heading the Department of Education.

The Emerald Islander

Trade Union fears that more Council Workers in County Donegal could soon lose their Jobs

The IMPACT trade union has said that as many as 238 contract staff with Donegal County Council may lose their jobs.

71 people, whose contracts are not being renewed by the Council, will lose their jobs between now and the end of the year. (see yesterday's entry on that matter) 49 others are to be let go between January and March of next year.

IMPACT representative Richie Carruthers stated that the situation of the remaining 118 contract workers is currently "under discussion".

Despite the promise of a detailed statement on the matter earlier this week, Donegal County Council has now declared that it will be "making no comment on the situation until after a Council meeting on Monday", when the matter will be discussed further.

Under the new government rules Donegal, like all other local authorities, has to make a saving of 3% on its payroll costs.

Dinny McGinley (left), Fine Gael TD for Donegal South West, described the situation as "a virtual tsunami for the county".
He said that he had been in touch with colleagues in other Irish counties, and it appeared nothing as shocking was happening in these other local authorities.

So one has to wonder why - of all the counties in the Republic - Donegal, home of Tánaiste Mary Coughlan, is making such drastic cuts to its workforce. Could it be that the Fianna Fáil controlled Council has been overspending in previous years and is now running out of money?
Or is the rural county in the far north-west of Ireland just too eager to please the government and in particular Finance Minister Brian Lenihan, who is scraping the bottoms of all barrels in the public sector to find more money for his Budget?

Whatever the reason is, the massive cuts in Council staff will create immense hardship in Co. Donegal, and subsequently also reduce the overall quality of local services, which will affect every person living there.

Fortunately there will be local elections next year, so the people of Co. Donegal - like everyone else in Ireland - will have the chance to make significant changes and send the Fianna Fáil Councillors, who have controlled Donegal County Council for the past 4 1/2 years, where they belong: into private life and the political wilderness.

The Emerald Islander

The West awakes and rejects Budget Cuts

It appears that the Irish government has very few friends and supporters left for its outrageous policies and in particular for the shambolic 2009 Budget it presented more than a month ago.

Ireland's farmers, who have in the past always been a strong bulwark for Fianna Fáil and were subsequently awarded with generous - and often even over-generous - grants, subsidies and compensations, are turning now in droves against their former champions as well.

This is quite a change from the last minute change of mind they had earlier this year, when they joined the YES camp for the Lisbon Treaty shortly before the referendum, after having been against the treaty for months before.
But things have changed since June, and we are living under quite different conditions now. The farmers - like almost everyone else - are feeling the pinch of economic recession and financial instability. And - with all respect - Ireland's farmers have always known on which side their bread is buttered. So now they are joining in ever larger numbers the majority and call a spade a spade, or - in this case - the government for what it is: incompetent, arrogant and not up to the job of leading the country.

The growing anger in the farming community is especially strong in the west of Ireland, which is still an agricultural area with very little industry and infrastructure. Having lived in the west myself for some time, I know these farmers. They are very sturdy, conservative people, slow to anger and mainly interested in getting on with their own business.
But once they begin to grumble, pick up placards and go to demonstrations, they really mean it and will not sit down quietly again until their grievances are addressed and their problems are solved.

Today more than 5000 of them gathered in Carrick-on-Shannon, Co. Leitrim, outnumbering the local population of this small county town.
They are concerned and annoyed, feel betrayed and were sending the government a clear and unmistakeable message. "The West rejects 25% cuts" was written on thousands of placards they carried. It was in fact like a sea of messages, but they all said the same and showed a unity seldom seen in that part of the country.

Addressing the gathering, Padraig Walshe (right), the outspoken president of the Irish Farmers' Association (IFA) accused Fianna Fáil of "forgetting their roots and letting down the west of Ireland".

The IFA estimates that the 2009 Budget measures will cost farmers in the west and north-west of Ireland nearly € 40 million.

Since the Budget was announced on October 14th (see my entry of that day), farmers have been holding meetings all over the country to voice their anger over cuts in investment programmes and in retirement and some livestock schemes.

The IFA is accusing the government of taking the easy option by cutting the income of farmers on marginal land, mainly in the west of Ireland.

Padraig Walshe said that "cuts in the suckler welfare and the disadvantaged areas schemes are a direct attack on the viability of low-income farmers".

As things are, we can expect more meetings like this and more demonstrations - by farmers and many other people - in Dublin. One wonders how long it will take for the government to realise that they have really messed up everything and that it is time to go and let better people govern the country.

The Emerald Islander

More Protests against Education Budget Cuts

More than 4000 teachers protested against cuts in the education sector in Tullamore, Co. Offaly (home county of Taoiseach Brian Cowen) this afternoon.

According to he Irish National Teachers' Organisation (INTO), which represents primary school teachers in Ireland, many teachers and parents from counties Offaly, Laois, North Tipperary and Kilkenny took part.

One of the organisers said that Fine Gael TD Olwyn Enright (right) was the only national politician who was willing to speak at this demonstration, which marched through Tullamore to O'Connor Square, where the speeches were given.
Parents, principals, and representatives of boards of management were among the speakers addressing the protest meeting.

The education cuts were also raised at the annual conference of the National Parents Council for primary schools in Athlone, Co. Westmeath this weekend.

Minister for Education Batt O'Keeffe (left) was listed in the conference agenda to open proceedings this morning.
But cowardly as the government is these days, he backed out at the last moment and did not address the meeting. This led to strong expressions of anger and disgust from delegates.

Elsewhere, a protest against the suspension of the cervical cancer vaccination programme has taken place in Dublin. That rally was organised by the Feminist Open Forum, and it is expected that more protests will follow.

Meanwhile there is utter silence from the government, and especially from Batt O'Keeffe. When he was appointed by the new Taoiseach Brian Cowen as Minister for Education in the Cabinet reshuffle in May, there were some hopes for improvement in the Department, since O'Keeffe is himself a former teacher. But as it turns out, he is one the most arrogant and ignorant holders of this post in years and a complete poodle to Brian Cowen. And - as he has shown today - he is the same kind of coward as his master.

By law and by right TDs and ministers are accountable to those who elect them - the people of Ireland. But ever since the disastrous introduction of the 2009 Budget on October 14th (see my entry of that day) almost the whole Cabinet has gone into hiding and refuses to face the facts and the people.

How on Earth can they ever again expect our trust and votes...?

The Emerald Islander

Shock and Awe - Part 2: An Taoiseach

Taoiseach Brian Cowen has made a rather strange statement yesterday. He said that "we are battling the most severe global economic and financial conditions for 100 years".

How does he know that? Did he commission a study into this matter? Perhaps like the one he commissioned into the reasons for the rejection of the Lisbon Treaty by Ireland's voters?

I think not. And no-one else has heard of it either. So how can Brian Cowen have such amazing insight and defining knowledge about economic history? He is no historian, and no economist. Just a humble country solicitor from Offaly with very little practical experience, as he entered professional party politics aged 24 and has not done any normal work since.

So, I ask again: How can the Taoiseach make such a fundamental statement - one for which usually a hundred historians and economists would have to meet over several conferences to agree on research and findings - just by himself and almost off the cuff?

The answer is actually quite simple: Because he is making things up as he goes along.
He does not have a clue about economic history, or economics in general, but he has the bucolic shrewdness often found in people with a rural background. It is the kind of skill one needs when dealing in cattle or horses, or when trying to buy seeds at a bargain price. (There are quite a few of our TDs - across the party lines - who have this trait. After all, Ireland is still predominantly a rural country, and even most of our city dwellers are only one generation removed from farming the land.)

This shrewdness tells Brian Cowen that the Irish people have been successfully hoodwinked into voting for Fianna Fáil for many years, and especially in the last three general elections. So he thinks that he can carry on with more of the same now, except that this time it is not the prep talk of the "great Irish success" and the "we never had it so good".
This time it is pure scaremongering in order to frighten the living daylight out of us. (Maybe someone has told him that it is Halloween...)

And what is all this patronising lesson in homespun economic history in aid of? Only one thing: to promote a very bad Budget and tell us "that government cutbacks cannot be avoided".

This is the second stage of the 'Shock and Awe' concept, originally invented by the Pentagon for the US invasion of Iraq, but now applied by the Irish government to force a half-baked and counter-productive Budget on the nation. (for a detailed analysis - item by item - see my entry 'Shock and Awe - The 2009 Budget' of October 14th)

Cowen lectures us that "we have to change the economic paradigm and policies, but this cannot be done if people oppose every cut that is proposed".

Interesting. Unless he mutated over night into his evil alter ego, I presume this is the same Brian Cowen who told us only a few months ago that all was fine with Ireland. The same Brian Cowen who boasted about the strength of the Irish economy and our "secure finances" before last year's general election. And perhaps even the same Brian Cowen who is now a Fianna Fáil TD for two dozen years, a member of the Cabinet for 16 and Taoiseach for nearly six months.
The very same Brian Cowen who was - as Minister for Finance - responsible for the last four Budgets, and thus responsible for imprudent overspending and generous tax breaks for property developers. This financial policy of Fianna Fáil, supported by the PDs, created the crisis we find ourselves in now.

The very man who created the virus and helped spreading the disease is now presenting himself as the wise and concerned doctor, while he tries to sell us useless medicine at inflated prices.

No, Mr. Cowen, this will not wash! Your deliberate scaremongering does not impress Irish people who have retained their brain over eleven years of Fianna Fáil rule. You have brought this crisis not only on yourself, but on all of us. It did not just appear out of the blue and fall onto this island like an asteroid from outer space.

True, there is a global crisis. No-one denies that. And it certainly has some affect on Ireland and our economy, as these days much business is interlinked across the globe.
But the crisis we are in now is 90% made in Ireland. The way Fianna Fáil - which controls the Department of Finance since 1997 - has wasted and squandered billions while the money was aplenty, was a major factor in the creation of the current situation. Analysts have warned for years that things are going wrong, that concentration on the construction industry and hyped-up property prices are a recipe for disaster.
No-one listened, and least of all the then Minister for Finance: Brian Cowen.

We might well be living through the most serious financial - but not economic - crisis the world has seen since 1929. But that - in my Maths book - makes 80 years and not 100. And, as I have stated here and in many other articles, Ireland needs not to be affected by that in a big way.

Had we had a prudent Minister for Finance and a competent government, we would now have a nice nest egg in form of a sovereign wealth fund, created by the State and accumulated over the years of plenty. Norway has one, and so has Singapore (to mention only two other countries with a population similar to Ireland).
Many countries - large and small - have established sovereign wealth funds when they took in more money than they needed at the time. This is a sensible and prudent way of government.

Only Ireland - under Taoiseach Bertie Ahern and Finance Minister Brian Cowen - decided that the unexpected extra money could only be spent and spent, as the Irish are supposed to be feckless and don't save money.
And not enough with that, the Irish people were heavily encouraged by their banks and by the government to borrow, and borrow more. This went on until a few months ago, and in some ways it is still going on now.

So if Brian Cowen is looking for a reason we are running out of money, a look into a mirror would give him the desired answer.
If he had any guts, he would call an early general election and give the people a chance to decide their future destination. But Cowen is a bully, and - like all bullies - a coward. He will try to hang on to the sinking ship until the water is reaching his ears. In the process he will take many of us down with him.
And - in all fairness - many deserve nothing else, as they kept voting for Fianna Fáil even when their lies and incompetence were clear and obvious, for everyone to see.

The government we have is only there because we elected it. So some "mea culpa (1997), mea culpa (2002), mea maxima culpa (2007)..." is well in order for those who voted for Fianna Fáil and for the Green Party.

But a Brian Cowen lecture on the world's economic history is not. There are plenty of ways to get out of the crisis with dignity and a maximum of fairness. It is time for the government to abandon bullying and scaremongering and turn to these decent methods. (And if they feel not able to do so on their own, they can drop me a line. I would be happy to offer my services as a political consultant and can be contacted by e-mail...)

The Emerald Islander

All depends now on the Green Party

The Irish government has today won the vote on the Labour Party's motion condemning the education cuts in the 2009 Budget, which had been adjourned last night after a long and angry debate in the Dáil. (see yesterday's entry)

The result was 80-74, which means that the original coalition majority of ten has now shrunk to just six votes.
Should further Fianna Fáil backbenchers or independent TDs who support the ruling coalition defect, the government could lose its parliamentary majority in due course.

Today's vote made it quite clear that the government is now completely dependent on the votes of the six Green TDs, the second-largest partner in the coalition.
Should they - for whatever reason - withdraw their support or leave the coalition, Brian Cowen's government would fall like a house of cards, which indeed it has been for some time.

A change of government before the end of the full five-year period for which the 30th Dáil was elected in 2007 looks now more than likely. There could either be a different coalition taking over - as it was the case in 1994, after the short-lived coalition between Fianna Fáil and the Labour Party under Taoiseach Albert Reynolds collapsed - or there could be an early general election.

All depends now on the Green Party, which - probably without intention - has become the crucial political force in Ireland. They can either nail their colour to the mast of the damaged ship of Fianna Fáil, or recover the rests of their once strong morals and decency that have survived 15 months in government and appeal to the mercy and forgiveness of the nation.

This morning the Green Party's youngest TD Paul Gogarty (photo right), who commented in an e-mail that his party "might eventually consider withdrawing from the coalition", stated that he was now "fully behind the Minister for Education".

He said that - contrary to media reports - "the Green Party is not pulling out of government, nor are they climbing down on the education issue".

Taoiseach Brian Cowen said he does not believe there is any question mark over the stability of the current coalition government.

Meanwhile the independent Kerry TD and political 'maverick' Jackie Healy-Rae (photo left) declared that he would continue to support the government.
In statement he said that Minister for Education Batt O'Keeffe had "assured him that educational needs on a school by school basis would be reviewed in a better economic climate".

Last night the opposition claimed the Green Party was facing oblivion over its stance on education cuts, and this view is shared by many political observers and analysts, myself included.

The official position of the Green Party has been that they are in government "for the long haul, even if in the short term they are seeking changes in the education cuts".

But remarks in e-mail correspondence from Paul Gogarty go further. The Dublin TD and spokesman on Education for his party, tells a lobbyist against the budget cuts that "the Greens may eventually have to pull out of government on this or combined issues".

However, he now says "it is not going to happen until the party has exhausted all avenues".

One wonders how many avenues there are in Dublin. Last time I looked at a city map of our capital, I did not notice that many.

And in my opinion the Green Party remains in an uncomfortable fix. Being the youngest of the six Green TDs, Paul Gogarty is probably not yet fully infected with the dangerous virus of incompetence and ignorance that Leinster House seems to spread so easily among our elected representatives. He is obviously still able to see clearly the political reality, to which the more senior members of his party - especially the three Green ministers - close their eyes and ears so conveniently.

Looking at the three Green government ministers, one cannot help but be reminded ever more of the three proverbial monkeys, who see nothing, hear nothing and say nothing.
Quite a change from the once vibrant and ambitious speeches and actions the 'old' Green Party we had for 25 years was famous for.

I take no pleasure in writing this, but for me - until last year a long-time supporter of the Irish Green Party and environmental movement - the party as a force for good, for change and political alternatives, is dead. And if the Irish voters are not entirely blind and stupid, they will give the Green traitors the same treatment they applied to the PDs in the last general election.

The Emerald Islander

Massive Protest against Education Cuts in Dublin

In freezing cold temperature and rain approximately 12,000 teachers and parents turned out this evening to demonstrate against the education cuts announced in the 2009 Budget. (This figure is according to official sources, while the organisers of the protest say that they brought 20,000 people to Dublin.)
The rally outside Leinster House coincided with a Dáil debate on a Labour Party motion calling for the increase in class sizes to be reversed. It was addressed by several union leaders, parent representatives, school managers and politicians.

John Carr (right), General Secretary of the Irish National Teachers' Organisation (INTO), described the budget as "an act of educational sabotage".
He said the people were there to protest in the strongest possible terms about it, adding that they would not allow the educational system to be destroyed by the people inside Leinster House.
He urged the people to "stand and fight, shoulder to shoulder, against the most savage cuts ever taken against children in this country".
The cutbacks represented one broken promise too many, he added.

John White (left), General Secretary of the Association of Secondary Teachers Ireland (ASTI), said the cuts would affect every single school in the country.
He urged those at the rally to go back to their communities and ascertain what the effect of the cuts will be on their local schools, and then tell their local representatives.

Ferdia Kelly (right), the General Secretary of the Joint Managerial Body (JMB), which represents the Boards of Management of more than 400 Secondary Schools in the Republic of Ireland, warned that from January children may have to be sent home from schools, or schools may even be closed for a time, because of the proposed cutbacks on substitute teachers.
For generations, he said, teachers, parents and management had worked hard to keep Ireland near to the top of the international league on education.

Áine Lynch of the National Parents Council Primary (NPCP) said the increase in the capitation grant announced in the Budget will not even cover the rise in fuel prices and other day-to-day running costs of schools. The NPCP now fears that the cost of the deficit of running schools will be passed onto parents.
It also expressed concern about the reintroduction of the ceiling on language support teachers.

Meanwhile in the Dáil chamber this evening, the Taoiseach Brian Cowen (left) warned that "even with the Budget economies and cutbacks, the country will still run a deficit which will have to be tackled in the years ahead".

He was responding to questions from opposition leaders, including Fine Gael leader Enda Kenny.

Labour's education spokesman (and former leader) Ruairi Quinn (right) described the government's Budget as "an act of social vandalism which attacks children".
Introducing the Labour Party's motion seeking the reversal of the education cuts, he said that one effect of the cuts would be "to push young, shy children into classes of over 30 other children".

Education Minister Batt O'Keeffe (left), who is becoming increasingly rude and aggressive, accused the opposition of "hysterical claims and scaremongering" in the debate.
He described the changes as "a measured adjustment" and told TDs it was "not credible to claim that the primary school system will be in crisis next year as a result". It was pretty obvious that he was not comfortable in his role and stumbled through his speech in a very bad way, not to be seen from him often.

Fine Gael's Education spokesman Brian Hayes (right) said it was "stomach churning" to hear the Green Party justifying their support for the government cutbacks.
He predicted the controversy would prove "the Green's Stalingrad", claiming that the Green Party would never recover from the serious damage caused by breaking their pre-election promises.
Deputy Hayes emphasised that Minister Batt O'Keeffe "has no credibility in the education sector", describing him as "Brian Cowen's puppet".

Sinn Fein's Caoimhghín Ó Caoláin (left) called the Budget cuts a "callous attack on Irish children" and - reaching out across the party lines - urged "all members of the Dáil, regardless of allegiance" to join him in the "defence of our young, our schools and our education system".
Deputy Ó Caoláin, himself a teacher by profession, arrived a few minutes late and entered the Dáil chamber while Ruairi Quinn was already speaking.
He came directly from the mass demonstration outside the parliament and introduced himself to the debate as "a messenger of thousands of teachers and parents gathered outside in outrage and anger over the government's onslaught on the education and future of our children".

A nasty incident overshadowed the debate for a while and raised the political tempers even further. Conor Lenihan (right), Minister of State for Integration and brother of Finance Minister Brian Lenihan, shouted across the Dáil chamber during the speech of a Fine Gael TD and called Dr. Leo Varadkar (left) - Fine Gael's spokesman for Enterprise, Trade and Employment - "a fascist".
Lenihan augmented that outrageous statement with giving the Nazi salute, which caused uproar on the opposition benches and led to the intervention of Leas-Cheann Comhairle Brendan Howlin, who chaired the session in the absence of Cheann Comhairle John O'Donoghue.

The debate, which saw spirited exchanges between speakers from all parties, has now adjourned until tomorrow morning.

The Emerald Islander