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Column Ireland faces a decade of austerity – so let’s not waste it

Economists tell us we’ve got ten years of financial difficulty – so do we want to buckle under, or use this opportunity to reshape Ireland? Aaron McKenna writes.

THIS WEEK SEEMS to have been about bursting whatever positive bubble we were in after Christmas. The economists came forth to remind us that a lost decade is ahead, and EU and IMF reports from December criticise politicians for failing to make tough choices.

As usual the political classes have failed to grasp the fundamentals of a problem and are chasing after short term PR goals at the expense of long term national prosperity. The mandarins and czars of Dublin 2 have once again failed to get it. They consistently live in la-la land regarding the economic condition of the country and remain steadfastly loyal to their conservative institutionalism.

The majority of the decent reforms being brought forward – multi-year budget planning, cracking open sheltered professions and putting substantive meat onto public sector reform plans – have been driven by the troika.

Meanwhile it’s business as usual on Planet Politics, doling out the state appointments and cap-breaching salaries to advisers and sending arrogant apparatchiks off to plum jobs their recent performance wouldn’t indicate they’re suitable for.

What will happen when the EU and IMF clear out their desks in Government Buildings? Will the career civil servants and PR hungry politicians keep it together, or will they go spinning back to the old ways as hard as they try today to spin us into believing that all will be well again soon?

That Ireland has entered an economic netherworld for the coming decade or more is no surprise to anyone but a Government spokesperson. The facts are laid down clearly in documents begrudgingly published by the Government itself at the behest of our new paymasters.

‘This will be a millstone around our necks’

As we arrive back to our desks this time in 2016 unemployment will have fallen by less than a fifth from today, to 11.6%. Our debt-to-GDP ratio will have peaked at 118.3% in 2013, but won’t come down to what the government – and the world at large – considers to be below the danger threshold of 90% until 2026.

That’s assuming growth figures that EU and IMF reports in December classed as being at risk thanks to global economic troubles. Other factors are at play, and if interest rates are 1.7% higher than projected then it won’t be until 2040 that we get below 90%.

In the years 2011 to 2015 we will spend €42.9 billion servicing our debt, paying €5.4bn in 2011 versus €10.4bn in 2014 and again in 2015. Over five years we will have spent almost a sixth year’s worth of money in interest.

The total Government deficit in the period will be €55.68bn, which is more than it will spend in any one year in voted current expenditure.

All of this will continue to be a millstone around the necks of private individuals and businesses, as government will make them run harder so it can stand still.

Annual Government spending will decrease 11.2% in 2015 against 2011, whereas the tax take is expected to increase 25.8%, much from growth but borne on the back of previous and upcoming tax increases that will continue to hold people down. Private consumption isn’t expected to begin even anaemic 1% growth until 2014.

‘The idea that austerity will end just around the corner is ridiculous’

The idea that austerity will end just round the corner (likely after an election) is ridiculous. In 2015 we’re to have a deficit that’s 3% of GDP. The following year we’ll need further austerity to bring down that deficit, and/or face further debt acquisition. In any event even if we began to run 3% surpluses we’ll still be spending enough money to give each household in consistent poverty in Ireland today a cheque for €140,000.

That we’re in an economic hole is fact. Fringe elements might tell us we can wipe it all out, go live on collectivised farms and be happy. The reality is that we have set off as a nation on an unwanted adventure.

That’s not the end of the story, though. What we do with this lost decade is still in our hands to decide. When we arrive out the other side, will we rush straight for the bar and get sloshed (party like it’s 2006, if you will); or will we use this odyssey, our crucible, to reflect deeply and change who we are?

We blew our boom. The new national wealth was spent with Renaissance profligacy but without producing much by way of lasting monuments. Few questioned where it was coming from or going to. Government spent with little or no regard to efficiency and failed to develop the kind of professionalised structure that could manage an economy, let alone a crisis.

There was no real vision for the country either, just a lot of money thrown at a lot of problems without much regard for finding the best solutions, just the quickest fixes.

The bust has been the same in reverse: Short term cuts and no long term vision. If a politician tells you they want to reduce crime then ask them: Why are they cutting the social services today that will prevent it in ten years time? Or how they expect to reap the rewards of a smart economy if they’re only allowing us to get dumber with ham-fisted education policies? How can we expect better public service management with the same managers and the same hubris emanating from Dublin 2?

‘Do we really want a smart economy?’

How do they expect anything to be different when they keep on doing the same things?

What Ireland needs is to develop a comprehensive vision for the future and strive towards that.

Do we really want a smart economy? Are we happy to sit idle unemployed in the same half baked Fás Nua training courses, or do we want to take the opportunity to turn unemployment into the greatest skills drive in history?

Are we truly happy to see children in 71,000 households growing up in consistent poverty, without enough to eat every week? Or do we prefer to accept excuses from government that we can’t means test a benefit so that the poor get more than the rich?

Is there genuine belief that cutting bluntly by not replacing anyone who retires will deliver an effective public service for the 21st Century? Or could we take the opportunity to go in and reform every agency, every job, every function of government in a manner aimed at honestly delivering the best service for all our citizens? (And, incidentally, what is the role of government anyway?)

We need to make bold moves, to throw away the outworn doctrines and accepted wisdom of the past. We have to shove aside small minded special interest groups who stand in the way of progress and emerge from this lost decade as a generation who faced up to their challenges and will be remembered for having left behind a better country for their children despite it all.

Will we accept our fate or will we shape it?

Aaron McKenna is Managing Director of the e-commerce company Komplett.ie.

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66 Comments
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    Mute Daniel Hunt
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    Jan 5th 2012, 7:44 AM

    Very good article – thank you for posting it here.

    The only way for the system to change, is for someone who really wants to turn the system on its head to get into the hot seat. That absolutely will not happen, when voters realise that they could end up with lower wages, or no job, as a result of the drastic changes he/she would bring in to right the ship.

    There is no way the sea of public servants would, for example, openly vote and promote a candidate who clearly states they want to fix the country by undoing the excesses of Fianna Fail

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    Mute Daniel Hunt
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    Jan 5th 2012, 7:51 AM

    That reads a tad anti-public-sector – what I mean is that (Irish people in particular) will only vote for change so long as that change doesn’t negatively affect them individually.

    I believe there are very, very few people in this country who would like to see *actual* change come about.

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    Mute Auntie Dote
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    Jan 5th 2012, 9:36 AM

    I don’t think people resist change so much as they resist loss.

    We certainly need to distinguish clearly between those losses that are absolutely unaffordable for people to take on – a choice between buying groceries or heating oil, anyone? – and losses that are merely unpleasant – a deep cut on an over large salary, for example.

    And we need a clear vision of what it’s all FOR. After all this austerity, what will we have achieved? Will it have been worth it? Only if we pick and safeguard our priorities carefully.

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    Mute Jay funk
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    Jan 5th 2012, 10:04 AM

    Rubbish article, not one single thing Ireland could do except reform, where are the details!

    So now you ask do I have a plan, yes I do.

    1 scrap Coroporation tax. It only brings in less than 5bn , on condition that thoes taking advantage of zero tax, bank all revenue in irish banks. This would create thousands of high paid jobs which increases income tax ( highest tax and most efficient tax in Ireland by far). Reduce social welfare as new jobs could come from thoes currently unemployed. It would also recapitalize Irish banks without tax payers money, therefore ruducing the goverment loans by 50bn which would save 2bn a year in interest repayments alone.

    That’s one of my simple ideas

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    Mute Katarzyna Septko
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    Jan 5th 2012, 11:07 AM

    “We blew our boom” I didn’t blow any boom, yet I am millions of other tax payers, Irish and foreign are being made paid for banks and political friends.

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    Mute Seamus Ryan
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    Jan 5th 2012, 1:03 PM

    That’s a national collective “we”, Katarzyna. It’s nowhere near as misused as the “we” as in “we all partied”.

    “We” collectively as a nation (rather than collectively as individuals in that nation) certainly managed to blow the boom. Even when it was a real boom as opposed to a perceived boom based solely on lots of people selling each other overpriced houses.

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    Mute Dave
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    Jan 5th 2012, 8:22 AM

    We blew our boom? This is Our debt? I think not Mr McKenna. As you well know, this is bank debt, and i’m sure you also know that inevitably, that debt will be defaulted on. It has to be. The anger is rising and it is only a matter of time before the people force a solution.

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    Mute Sean C
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    Jan 5th 2012, 8:26 AM

    Yes and yes

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    Mute Dave
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    Jan 5th 2012, 8:35 AM

    So the debt assumed by the state which was accrued by banks is morally ours to pay? Ah come on now, you cant be serious!

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    Mute Dave
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    Jan 5th 2012, 8:45 AM

    By the way, I should point out – I agree with everything else in this piece! :-)

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    Mute Sean C
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    Jan 5th 2012, 8:58 AM

    So did you speak up during the greed orgy that transformed the economy into one that produced nothing and everyone thought getting rich by selling houses to each other was sustainable, did you say stop when even blind Freddy could see it’ll would end in tears.

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    Mute Kerry Blake
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    Jan 5th 2012, 9:43 AM

    Lots of people spoke up Sean C do you not remember Bertie recommending that they should commit suicide? The debt burden from digging out the banks is unsustainable and needs to be dumped. Let those who lent recklessly to the Irish banks look after their own losses.

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    Mute Sean C
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    Jan 5th 2012, 9:52 AM

    I thought that was just the one guy he was having a go at, an economist who’s name I can’t recall.

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    Mute Paul Cunnane
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    Jan 5th 2012, 9:58 AM

    This meme has got to be stamped out.

    Leaving bank debts out of it, this country spent EIGHTEEN BILLION more last year than it took in in revenue. That shortfall was borrowed. It wasn’t borrowed to give to banks, it was borrowed to pay social welfare and public service salaries, and it IS our debt.

    Also, anger isn’t a solution to anything. I’m getting fed up hearing about how angry people are, all the while hearing nothing resembling a constructive alternative from all these angry people. Stop being angry, start thinking, and explain to us – in painstaking detail, please – how we’re going to get out of this mess.

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    Mute Réada Quinn
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    Jan 5th 2012, 10:36 AM

    Still being distracted by the blame game. That’s FG only consistent policy so far. Let it go. Along with the debt!

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    Mute Kerry Blake
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    Jan 5th 2012, 10:37 AM

    The bank bail out put Ireland into the hands of our receivers so it is totally linked to our current situation. As of 2013 we will be paying over €3 billion back per annum on that loan in interest only. I’d prefer to see that €3 billion being invested in Ireland for job creation and provision of services.

    Also btw we are borrowing to pay the bank dept and recapatilisation €9.5 billion to be exact last year.

    Your wrong about the anger Paul people need to get angry, very angry or nothing will change.

    We should have done what Iceland did though I fear it may be to late for us now.

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    Mute Réada Quinn
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    Jan 5th 2012, 10:44 AM

    Yes Kerry. We have to take our chances of being called begrudgers because they won’t change unless we force it.

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    Mute Paul Cunnane
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    Jan 5th 2012, 10:45 AM

    @Kerry: I can’t remember the last time I made a constructive decision in anger. Apart from catharsis, what is anger going to achieve?

    I’m tired of hearing about how we can’t afford to pay our debts. I want someone to explain to me how we can afford not to.

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    Mute Réada Quinn
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    Jan 5th 2012, 10:53 AM

    Take the gag off our president. That would be a great place to start. He has great ideas about how a real republic should be based.

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    Mute Rocky Dennis
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    Jan 5th 2012, 7:53 AM

    interesting article and sadly very true….

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    Mute Conor Graham
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    Jan 5th 2012, 2:11 PM

    How easy to say ‘very true’ to an article with scores of diverse claims and unsubstantiated recommendations

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    Mute Tony Skillington
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    Jan 5th 2012, 9:56 AM

    The political class in this country will not change one iota unless we feist change on them. They’ve created an incredibly well protected world for themselves and the top 5% of the civil service in this country and genuinely do, I believe, not care as to what happens to the ordinary people of this country. We are nothing more than a cash dispensing machine to these people..I see them as neither my equals or my betters but rather as an entity detached from anything resembling normality. They do not speak the same language as us..they talk political horse shit. They seak at us rather than to us..see us as a nuiscence rather than part of the solution.
    We have nothing to choose from when it comes to the quality of political representative in this country and that to me is the greatest worry. What do we do at the next election? Re-elect FF? I don’t think so…FG/Lab have shown themselves to be another version of the same thing…a blunt instrument.
    Sadly this country is in for a lost decade and I completely agree that what we do with this decade is really in our hands. But this begs the question what can we do? The occupier of that so called ‘ hot seat’ may only be in primary school, may not even be born…so in the meantime what’s to happen? We can’t continue on with the gombeen political pedigree we have to put up with now nor can those in the shadows at the top tier of the publuc service be given such an influence on what happens to this country.
    It’s tough to be positive…optimistic for the future and my childrens future and there’s no point in saying otherwise. Mr Kenny and his band of useless cohorts promised so much and their election brought genuine hopes that the red neck form of politics was on the wane in this country..instead he delivered more of the same. So therefore we cannot depend on them..our so called fellow Irish men and women to do the right thing by us and to show us we matter for something in Europe. Let us hope that this country’s real leader shows themself sooner rather than later..for all our sakes.

    40
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    Mute Réada Quinn
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    Jan 5th 2012, 10:32 AM

    We have to stop looking for leaders and lead ourselves. Community based. Government backed.

    37
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    Mute Réada Quinn
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    Jan 5th 2012, 10:33 AM

    Btw everything else spot on.

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    Mute Nigel O'Neill
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    Jan 5th 2012, 1:24 PM

    Fantastic yet disturbing analysis! I agree 100% with this! There has been no change and our chance at a new republic has so far been lost. Te Political system failed us and continues to fail us and until that changes, we are doomed for a long long time. Emigration is looking more and more like the only option

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    Mute Auntie Dote
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    Jan 5th 2012, 4:47 PM

    We do need change, accountability and a return to effective democracy. Our last election abysmally faile to do this – that is why refusing to sign up to the household tax at present is an unofficial referendum. It is, collectively, a way to say we’re not on the right road here. But, I agree with Reada, we need to reclaim our own power and become active citizens. It’s just not good enough to elect people and then sit back and do nothing but moan. We need to reclaim what is ours – government only by our active consent, a sense of engaged ownership of our national resources, and democratic accountability in setting national priorities, both for spending and for saving.

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    Mute Ciaro
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    Jan 5th 2012, 9:04 AM

    Tax take for 2011 was €34 billion.
    In the years 2011 to 2015 we will spend €42.9 billion servicing our debt.
    That’s paying interest only, its unsustainable.

    Enda Kenny, please explain? I know your lackeys read all of these posts.

    39
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    Mute Réada Quinn
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    Jan 5th 2012, 10:12 AM

    The gap between rich and poor is getting larger all the time and as we all know a heavy burden is falling on the middle income group and the disadvantaged. Not on future FG voters.

    Wouldn’t we prefer a fairer social system for everyone? The hard work we do now for our families is only part of a small picture. The bigger picture of social change and fairness would provide a better Ireland for our children as adults and our future grandchildren. An Ireland they will want to stay in.

    But all this makes one sound like a flipping communist. Socialist is nearly considered as bad a word now! But what kind of a country doesn’t treat her young, old, sick and poor with compassion.

    Ignoring those on the margins and not including them in the whole community is not sustainable in reality and is a root cause in the rise in crime. People who feel disconnected don’t care. They have to feel like they are included.

    That’s not the country I want my family growing up. You can’t protect your family once they’re out in the big bad world. What you have to do is look at the big picture.

    Change has to be looked taking every citizen into account. Not just the system. The system is meant to work for its citizens and vice versa.

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    Mute Eamonn Zaidan
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    Jan 5th 2012, 4:52 PM

    Perfectly summed up. Thank you!

    To be a socialist these days is considered to be a communist, if true socialism from a centre left perspective, there would actually be no real change to our lifestyle as we know it, nor would it affect an open economy, but it sure as hell would/should run a proper public service…

    We are being asked to sell our State assets via the Troika, yet time and time again it has been proven that a nation with a population as small as ours, in various sectors, competition simply does not work, it increases cartels, price fixing, etc… I cite the energy, communication & transport market here.

    Yes, I wholeheartedly agree there should be open and free competition in the sectors that actually benefit the consumer instead of penalising them with privatisation. I cite the food sector, mobile phone and the list goes on.

    Essential services on this island are not benefited by privatisation. Many will disagree and probably put me in with the ‘looney left’ as they are so eloquently put.

    I do agree with the article and wonder would the author comment on essential services here?

    I also believe the tax regime here is now completely outdated and that needs to be turned completely upside down, started from scratch, made more equitable for all – and no, I do not believe we just tax the wealthier – and should be done in this time frame of austerity while we have the chance. That will take real leadership, but no one in the corridors of Dáil Éireann seems to possess a spine.

    I have attended many marches/protests in my life but for whatever the reason, the majority who would benefit do not come out. In the 80′s marches were effective against Government policy, why not now?

    Maybe in the words of Bill Hicks, ‘Nothing to see out here, I’m going back to watch Gladiators’, if localised I guess he would say (pick any reality TV program, so many I would not like to offend anyone’s favourite program!)

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    Mute Réada Quinn
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    Jan 5th 2012, 5:24 PM

    Those “crazy capitalists” left a right mess. And they have no idea how to clean up after it either !!!

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    Mute Alan Conroy
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    Jan 5th 2012, 9:03 AM

    The “social partners” will never allow for any sort of reform like this in Ireland. The vested interests are far too entrenched.

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    Mute Cork Horticulture
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    Jan 5th 2012, 8:22 AM

    Hi. Great article. Well written. We need good management of resources we always have so this crisis in a way, may be part of the maturing as a people and a state that we inevitably had to transition. But we must build well planned, efficient ways to create wealth to give what we need to all our people not what we want short term to a few. Also, Manu public servants are good people who work their butts off and care and the same kind of people exist in every sector. Don’t forget these people in cuts. Good management
    Means Measurement. Cutting out the inefficient and encouraging the hard working.

    33
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    Mute Michael Milner
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    Jan 5th 2012, 9:35 AM

    This the first article in a long time that I completley agreed with.

    We are where we are becasue of a complete lack of of strategy, planning and a faliure to see the bigger picture and more of the same will not fix the situation.

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    Mute Kerry Blake
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    Jan 5th 2012, 9:45 AM

    As long as we keep electing career politicians the cycle will not change.

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    Mute Les Reed
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    Jan 5th 2012, 8:23 AM

    This is a good article which I hope is widely read. Thanks.

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    Mute Graham Temple
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    Jan 5th 2012, 8:27 AM

    Nothings going to change with government. Hanging on to votes remains too high on the priority list for that. Buy a few chickens and plant a few spuds in ur back garden …… we’ll be lucky to get out of this. How can a broke country pay five euro an hour (after tax) to over 400,000 people (dole).

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    Mute John Murphy
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    Jan 5th 2012, 12:54 PM

    Get this Government out. This is our chance to do it. Force revolt between the Government parties by refusing to pay the household charge and put the lying chancers back on the streets to spin their lies once more. A sharp and angry electorate that are no longer concerned with the handy favour will put manners on them.
    Break up the party monopolys and force the establishment of an emergency Government to tackle this mess in the interest Irish people, not the European ort the corporate financiers of political parties.
    Take the opportunity to tell them on your doorstep that in exchange for your scrimping and and scraping in the face of cutbacks and ‘austerity’ you want to see the architects of this mess in court, names named, doors slammed and keys turned. Not more useless inquiries, studies and reports. Tell them the cosy deals, bonuses and pensions for top civil servants and advisers is finished and will not be accepted.
    The Government must fear us. not us fearing the Government.
    I accept that the money saved from cleaning up our dysfunctional political and state institutions will not solve the financial mess. But the change in how the country is run will be more effective and the public that must shoulder the burden will not feel as betrayed.

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    Mute John Murphy
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    Jan 5th 2012, 1:06 PM

    How’s that for a start Stephen?

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    Mute Don Booker
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    Jan 5th 2012, 11:44 AM

    The deficit can be managed in the medium term – quite quickly if we had brains and brawn where it matters. Create jobs and tackle Croke Park. It’s all coming down anyway – the debt’s unsustainable, we are in an economic whirlpool and we are going under. Our leaders are grossly overpaid in terms of money and importance for being mere poster boys for the IMF. Easy to get stuck in anger. Been there – done that. Your government don’t give a 4x. Been through a few systems now in this country mainly trying to get something moving again. It’s stifling. The level of incompetence is astounding. Some departments are not fit for purpose. It’s scary in fact.
    I too saw this calamity as a possible chance to change direction and become a country that truly honors the ideals of a republic. It even excited me a little. Back in ’09.
    We need a drastic overhaul or it’s going to be a decade or two before the light at the end of the tunnel is switched back on. People should use their anger to become pro-active in a positive way. Out the systemic failure in Ireland where ever you come across it. What have we to lose. There ain’t a whole lot more to take. We need a government of national unity for a few years and we need to move away from a lot of the present bunch. Weighing us down and slowly pushing us under.

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    Mute heather
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    Jan 5th 2012, 8:33 AM

    Many in the older generation are looking forward to a time of penance, just like the old days. Except it won’t be the same. Ireland has changed irrevocably, and they aren’t acknowledging that fact.

    A whole generation who are trying to get a foothold will have it very tough indeed. There has been little thought to them. One thing that will be similar is another wave of emigrants. Even I scampered over the border.

    Good article, just wish it wasn’t so.

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    Mute Geoffrey Collins
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    Jan 5th 2012, 10:38 AM

    Can’t see European growth helping us out of this mess. With a global slowdown, currency crisis, carbon taxes, higher oil prices and Iran the next target of the US military, things will likely get much worse. Paying the bank debt is financial suicide. Then we sell off our state assets like ESB, ports and coilte etc. We should front up now. Default on bank debt immediately and take it on the chin like Iceland. I’d like to think Enda is taking his pats on the head from Angela while secretly printing punts and plotting our exit from this control freak nightmare Europe has become.

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    Mute Tigerisinthezoo
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    Jan 5th 2012, 11:29 AM

    I agree. Default and go back to punt/sterling arrangement. Allow turf production again and generate electricity through peat fired stations. It would create employment and lessen dependence on oil.
    I dont think any of us appreciate how bad a situation we are in yet. Even with a default things would be very difficult. But at least a line would have been drawn in the sand.

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    Mute James Walsh
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    Jan 5th 2012, 1:06 PM

    I have a problem with articles like this because there’s not one suggested solution in it. Its just a rant against the current situation.

    The thing is that its far too easy to just say “reforn this” and “change that” and “get rid of the other” but what do you propose to put in its place? Anybody can post generalities but the problem is once you start to lay out concrete solution you get huge disagreement on what should or shouldn’t be done. I can’t think of one suggested reform that would have complete unaminity among the Irish people.

    So for example, everybody says that we should try and eliminate “parish pump” politics because it means our TDs are too focused on looking after their own backyards, trying to get this and that for their constituency instead of being concerned with national priorities. But the minute you suggest altering the electoral system to something like a list based system where people don’t represent constituency, you get people who complain that this will make TDs even more divorced from what happens to ordinary people because they’re not relying on them to get elected.

    And as for those who keep saying “The Government should work for the Irish people’s interests” there are radically different views among the publiv on what exactly “the Irish people’s interests” are. Its very easy to tear down structures but unless you have practical, achievable and supported alternatives then its all just rant and hot air.

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    Mute John Murphy
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    Jan 5th 2012, 1:24 PM

    Disagree James.
    Peoples priorities are a bit different now than when the present Government were elected and certainly quite different than when FF were last elected.
    Our electoral system may or may not need reform and indeed there may be many opinions on that as on other the other things you mention.
    Their is one obvious difference now though. People are angrier, better informed, less inclined to accept lies, and more open to reform as their is little to loose. The politicians need to be reminded that their seats are not safe, that reform will be demanded on corporate donations and the feathering bedding of their chums in the senior civil service, state boards and law benches will not be accepted.
    The pepole need to get assertive and crack the democratic whip and not allow party whips be cracked in Government against their interest.

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    Mute John Murphy
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    Jan 5th 2012, 1:29 PM

    And by the way I think this article is very well written in the context of it’s medium. It’s an article to open debate, put the current situation in perspective – which has been done very well – and get the public (us) to air their views.
    Well done Aaron!

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    Mute James Walsh
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    Jan 5th 2012, 2:13 PM

    John, I agree that there is a lot of anger out there but that is always the case when there is an economic downturn. I remember the same (if not more) anger during the 80s when the country was in a major recession. However I’m not sure if I entirely agree that people are “better” informed because in some ways, because there are so many different sources of information out there, its now even harder to distinguish between what is actually commentary and what is propoganda posing as commentary.

    The thing is the saying people are open to reform is again too general. Let’s take the recent defeated referendum on Oireachtas Committees. One group of people (mainly politicians I admit) were saying it was a good thing because it would get rid of the need for expensive tribunals, other people pointed out that it gave too much power to those committees. Now I don’t want to debate the merits of that referendum but what I’m pointing out is that once you start to suggest actual changes to the way things are done, the reform consensus splits apart and vested interests will tend to take over. And in general once people aren’t sure about a change they tend to opt for the status quo, a result that satisfies nobody.

    Another example comes with the proposal to remove the Seanad and the move to reduce the number of TDs which in theory sounds like a good thing. Yet there are many people who are firmly opposed to both of these measures because they feel it will concentrate power into an even smaller group of people. So what could be seen as major reform in one way can also be seen as a threat in another way. I actually have a feeling that when we do get a vote of the Seanad we will probably vote to retain it even though most people agree that its a fairly powerless body. Of course there will be calls for it to be made more relevant but again there will be no agreement on how exactly that will be achieved.

    I know its seems that all I’m doing is being unduly negative and I’m sorry about that but its just that we’ve articles like this for over two years now pointing out the problems and calling for reform but I haven’t seen any major grassroots movemernt arise that people are signing up to. Even on the biggest issue facing us, our economic path there is no one option that commands majority support.

    God I sound like such a negative person! Time for lunch I think. :-)

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    Mute John Murphy
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    Jan 5th 2012, 2:31 PM

    I gave you a thumbs up their James!
    The funny thing is I agree with every thing you say. My point is though elections reflect the mood of the people and anger is positive especially on doorsteps and at polling stations. If anger is not released in a positive way like this it turns to despondency and that is useless.
    My argument is to have the palpable anger that is out there put to use when it is most effective by getting rid of the Government by the only chance open and…well let ‘em have it!!
    Think I’ll grab a sandwich myself!

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    Mute Auntie Dote
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    Jan 5th 2012, 4:57 PM

    Parish pump does not mean “non local.” It means individual favours traded for votes. Just to give an example. One of my former local representatives, Ms Mary Coughlan, was a great woman for getting favours for people (or at least writing letters that made people think she’d got them a favour – all very standard – nothing unusual). The whole favours thing, though, can work against those of your constituents that don’t vote for you.

    But when it came to actually representing her constituency, just off the top of my head, I can think of two occasions on which she abysmally failed:
    1) the people of Donegal rejected the Lisbon Treaty – twice! As our representative, she should have gone back to the government and said her people weren’t for supporting this treaty, and she should have voted against any legislation relating to it. She didn’t.

    2) when the so-called eight cancer “centres of excellence” were chosen, all of them lying south of the line between Dublin and Galway, she should have voted against this plan, as it left her constituents badly robbed of any participation in the provision of cancer services. She didn’t.

    Politicians have no business trading in favours! But if they do not represent their constituents, then we have no democracy. Do you understand the difference?

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    Mute John Murphy
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    Jan 5th 2012, 5:06 PM

    Auntie.
    Your the sage of these comment threads!

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    Mute James Walsh
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    Jan 5th 2012, 5:27 PM

    To be honest I would like to see complete root and branch reorganisation of our political structures to divorce the local from the national as much as possible.

    I’d like to see most county councils and local councils removed and replaced by around 8 or 9 larger regional councils which would have their own revenue streams and a large amount of control over the provision of local services. There would obviously still be central organisations to run large scale infrastructure (such as the Health Service, Major Road/Rail Networks, Policiing/Defence, etc).

    National politicians should then be elected to legislate for the country as a whole and not be tied to a local area and they should be discouraged from intervening directly on behalf of any person on a local issue.

    Sometimes the national interest and the local interest may be at odds. The logical follow through of your arguments is that where such interests clash the national interest would be subservient to the local interest. I would prefer to see it operate the other way.

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    Mute John Murphy
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    Jan 5th 2012, 5:51 PM

    James
    If Auntie will forgive me for speaking out of turn!
    I think the point is that the national interest and local interest should not be at odds. It is when local issues are defined as the planning for the few sites or the matter of the issue of the medical card where such considerations should have been decided on their merits and not on the (supposed) involvement of some sleeveen trickery. That is where ‘local issues’ have little to do with the proper administration of national or local government.

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    Mute Réada Quinn
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    Jan 5th 2012, 8:36 PM

    I’m glad uncle Enda can’t shut Auntie Dote up too.

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    Mute Wayne Driscoll
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    Jan 5th 2012, 9:18 AM

    Good article, hit the nail on the head, as hard as it is to come to terms with.

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    Mute Cork Horticulture
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    Jan 5th 2012, 8:25 AM

    Sorry about typos etc under pressure to get paying for the over spenders!

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    Mute Stephen Spierin
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    Jan 5th 2012, 12:40 PM

    Yet another article that highlights the problems and pontificates about the country’s failings and future misery, and yet again the author fails to provide any suggestion or solution on how we can better the situation. Where are the answers? They’re certainly not in any of the questions posed or generic statements. Random columnists are developing a pattern for non-delivery of any objective writing. Well written? Perhaps. Useful? Most definitely not.

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    Mute Mark Andrew Salmon
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    Jan 6th 2012, 12:04 AM

    In times of crisis what do most of us do? We tend to clutch to the familiar, to what we know from past experience. It is only the rare few who see other paths, other solutions to problems. Politicians in general turn to what they perceive has worked before and assume it will work again. In general innovation is not the domain of politicians. In most cases what are produced as visionary policies are usually old wine of a dubious vintage in older bottles with a nice colourful new label slapped on. In Ireland and in most of the western democracies politicians have scrambled over one another all rushing for the centre but the centre can no longer hold. In the US both parties strain to hold the centre right with one just a little more to the right than the other.

    Another weakness of the current system is it’s susceptibility to corruption and manipulation by individuals and interest groups. When a large amount of people are ruled by a small amount the bill for corruption is naturally much smaller. Even a well placed bribe to the right individual can succeed in undermining the common good.

    This then is the problem but what you may rightly ask is the solution? The internet has, for the first time given the general public much more access to information coupled with the ability to comment on events directly. Sites such as The Journal have made news, ans by sefault public policy, interactive. So why can’t it do the same for national government?

    Perhaps it is time to question the fundamental basis of it all, the system itself and the ideas behind it. If representative democracy no longer represents the will of the people then it is not performing its most basic function, it has failed. Perhaps it is time to introduce a more direct form of rule to at least supplement it. In this digital age it is not beyond the grasp of man to create a secure, simple form of digital voting that would allow the people to vote directly on issues of national importance. Defining issues of national importance would have to go beyond the present scope of referenda to include social and economic as well as foreign policy issues that would have a significant impact on the nation as a whole.

    Such a system would indeed greatly aid our politicians at times. Think if the bailout had to have been put to such a national vote. The government could have negotiated terms on the basis that if they didn’t get better terms the Irish people simply would not accept it precipitating a crisis in the eurozone. What would the troika’s negotiating stance have been had they known any deal would have to be approved by the people and not just a handful of representatives in parliament subject to party whips? Such a system would also make it far too expensive a proposition for individuals and lobbyists to influence national policy by underhand means. The hand would find the till no longer greasy but clean, shiny and far too big to fill.

    This is just one idea and I’m sure there are many alternatives, now is the time to start discussing them.

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    Mute Réada Quinn
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    Jan 6th 2012, 1:38 AM

    Very interesting idea Mark. Seen it mentioned a few times, never getting much credence or any attention. It is a modern concept of the real republic that’s been bandied about for years.

    I think that doing the same thing time and time again is just plain ridiculous. I hate this popular notion of cutting TDs as I think it will just erode any representation rural communities have. Always necessary to say in these circumstances it wouldn’t affect me personally as I live in a 5 seater! (Hope that saved the mé féiners an accusatory reply! :-) )

    This thread dead more or less but bring it up again Mark. Good comment. We have to look on this as an opportunity not a disaster.

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    Mute WeAreRagbags
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    Jan 5th 2012, 8:55 PM

    ” emerge from this lost decade as a generation who faced up to their challenges and will be remembered for having left behind a better country for their children despite it all.”

    Left a better country for their children by stopping child benefits age 7?

    It takes a monumental amount of doublethink to have any belief that bludgeoning the state and those who rely on it can or will make this country a better place in any way. This policy amounts to what Thatcher and her groups described as “managed decline.”

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    Mute Eugene O' neill
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    Jan 5th 2012, 11:34 AM

    Default or pay of the bank debt’s.Which is worst for this country?

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    Mute Tigerisinthezoo
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    Jan 5th 2012, 4:21 PM

    Everyone is calling for a new gov/republic. What good will that do? You will still have the same problems and lobby groups.
    I think the gov are trying to balance the books as much as possible. Then they will go to the creditors (Germany UK and their various institutions) and try to bargain on our outstanding debts with the proviso of defaulting unless a fair deal is agreed. However, the gov’s hand is weak at present and into the future as the money coming in in taxes is far from matching what we spend every year. Thus the gov’s hands are pretty much tied. If we do default the pain would be massive. Public pay, pensions and the dole would have to be severely cut. Hospitals would have to close. Would people be prepared to do it? As James said above it’s highly unlikely. Unless there was no choice like in Argentina.

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    Mute Alan Dunne
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    Jan 5th 2012, 2:06 PM

    This country should be run as a business our politicians haven’t a clue what to do. If the people could buy shares in our own country to raise money to get rid of IMF and ecb and get rid of all politicians and get a management team to run the country and be answerable to the shareholders and invest in providing energy and better food production get the rest of Europe out of our fisheries and create jobs let’s face it we could be better off without Europe plenty opportunities outside Europe or maybe I am wrong

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    Mute John Murphy
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    Jan 5th 2012, 2:18 PM

    Well Alan
    Why aren’t our senior civil servants, in say finance for instance, recruited from the corporate world like the management teams of RyanAir, Google or Goldman Sachs for that matter! Why do we have to have the likes of Kevin Cardiff who have slithered their way up the slimy greasy pole of politically aimed brown nosing.
    Let’s see some people in charge with proven records and a background free of Irish gombeen cronyism.

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    Mute James Walsh
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    Jan 5th 2012, 2:22 PM

    This is an old argument and one that is I don’t think stands up at all. How do you know that such a “management team” would do any better a job?

    Let’s be honest here, if we had appointed people from business to run our government in 2005-2007 who would we have appointed? Well probably people like Sean Quinn, Sean Fitzpatrick, David Drumm and probably some of the major developers like Sean Dunne. Why? Because at the time they were paraded as the new gods, there were running companies that were making millions and billions in profit for their shareholders and were supposedly the toast of the world. But as it turns out they were at best incompetent and at worse criminal.

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    Mute John Murphy
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    Jan 5th 2012, 2:39 PM

    James.
    I don’t think the like of Sean Quinn, David Drumm, Sean Fitz etc. would last very long in the senior management of RyanAir, Google or McDonalds for that matter!

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    Mute John Martin
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    Jan 5th 2012, 10:47 PM

    Ye See…. there we go …This Guy went out young and built his own Career with no Help from the F.Fail F***in Free State. Now he wants to help the rest of us through the eye of the needle and the Civil servants who don’t know what hard work is, along with the “Bearded Brethren” and the “Political Brown Nosers” are trying to shut him up.

    Why does this not surprise me?

    A few “Good Men” is all it takes …Fair Play to you Aaron!

    I Hope your Listening Taoiseach…..I am a die hard Fine Gael Supporter …John Bruton turned a deaf ear to me once….Who?

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    Mute Nigel O'Neill
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    Jan 5th 2012, 11:21 PM

    John.. My own best mate has left with his family for Australia today for possibly 4 years!!
    He was a very successful FF councillor and polled 2nd at his first attempt. He was too honest and opinionated for FF HQ however and after HQ overturned the cumman decision or him to go on the ticket for the last county council election and replaced him
    With an ex HQ worker and favourite, he went on a week in politics to express his disgust and was disowned by FF for doing so.
    This guy was a young, creative, passionate and honest public servant but that did not sit well with one of the established parties and thus they screwed him and he has given up on politics and Ireland in general . A microcosm of the problem with politics and our system here!

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