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  We’ve Been Betrayed beyond Belief – So Let the Winds of Change Howl

By Ivan Yates
Irish Examiner
June 4, 2009

http://www.examiner.ie/story.aspx?id=93291&m=5.3.4.0&h=weve-been-betrayed-beyond-belief-ndash-so-let-the-winds-of-change-howl

Our republic is just over 60 years old. As you mature through life, you reflect on your own failures, errors and shortcomings. As a nation we need to face these with honesty. We have been too trusting and deferential to those on whom we have conferred authority

NEVER has the nation be so demoralised. After painful months of trying to cope with the impact of the recession, we’ve now had to absorb two bodyblows. Thanks to Ireland’s stable geological base, we don’t experience either earthquakes or tsunamis. The past fortnight has provided one of each in human form.

The unspeakable horror from the Ryan commission report has nauseated everyone. The shock of the ˆ4 billion half-year loss in Anglo Irish Bank has sent a tremor through the exchequer finances.

Trust has been betrayed beyond belief.

Ordinary people cannot believe how religious orders could be so unchristian to children. The Department of Education, as regulator of these children’s institutions, utterly failed.

Ordinary people also thought they could rely on the banks to look after their shareholders and act with some prudential responsibility. Instead they greedily pursued their own pay bonuses. They were reckless gamblers with poor judgment. The Department of Finance malfunctioned in exercising oversight or control.

The Government’s response to these catastrophes has been tepid, inept and accepting. They should have seized on the Ryan report immediately to insist on recompense from the wealthy religious orders.

An immediate audit of all 18 religious congregations’ asset inventory, cash reserves and balance sheets was the first step. An adherence to the proportionality of 50-50 sharing of the cost of the Redress Board was then required. The pursuit of the known evil perpetrators through the criminal justice system was essential for justice. Instead the Government eventually announced it was going to invite the religious in for dialogue.

Politicians are elected to reflect ordinary people’s views and provide leadership. The apparatus of state through departments, civil servants and the attorney general’s office can function without politicians. They are experienced professionals who do a regular job. The purpose of politics is to shape and direct their work. The lack of spontaneous revulsion against the sickening sadism of abusers was surprising. It took the Government at least a week to get on to the same page as public opinion.

Anglo Irish Bank is Ireland’s Enron. Last week’s half-year accounts to the end of March are beyond the scale of anything previously predicted. If the bank can lose ˆ4.1bn in six months, what can it lose over five years? The taxpayer has taken on a bank with a loan book of ˆ72bn, of which ˆ27bn of loans may not perform. This situation is totally unacceptable. We have to shout stop on behalf of the taxpayer. This bank’s debt bonds will have to be renegotiated and discounted.

Three separate scandals were exposed in the past year relating to Anglo. Director loans deliberately concealed through a "bed-and-breakfast" arrangement at each financial year end with Irish Nationwide. ˆ7bn of customer deposits misrepresented when in fact it was inter-bank temporary funds from Irish Life and Permanent. Anglo money used to buy Anglo shares through the share support scheme. The "Maple 10" used only the shares as collateral. I believe these practices breached the law. ˆ308m from this escapade is now to be underwritten by the state. This would build 70 new primary schools. I am astonished and apoplectic.

We await action from Paul Appleby of the Office of Director of Corporate Enforcement. Umpteen enquiries were announced in the aftermath of these revelations. The Irish Stock Exchange, the Irish Auditing and Accounting Supervisory Authority and the Chartered Accountants Registration Board all promised probes. The auditors of Anglo and the Financial Regulator failed to prevent these irregularities. Let’s hope there’s adequate space in Frank Dunlop’s suite in Arbour Hill.

Our republic is just over 60 years old. As you mature through life, you reflect on your own failures, errors and shortcomings. As a nation we need to face these with honesty. We have been too trusting and deferential to those on whom we have conferred authority.

We have tolerated within government a culture of secrecy, denial and cover-up. Our past is now catching up with us. The failures of the departments of Education and Finance are laid bare for all to see.

This week sees the start of the annual exams. The great hope of a country always lies with the next generation. 56,000 Leaving Cert students are facing into the bleakest of job prospects. Their older siblings are experiencing negative equity in their homes and renewed emigration. Their vigour and youthful enthusiasm is our best hope to make a fresh start. Given that the old values of church and state have failed, we need to find a new modern basis to proceed.

Tomorrow, we go to the polls for mid-term elections. The range of Euro, local and by-elections gives voters the first opportunity to pass their verdict on politics since the 2007 general election. Opinion polls show that Fianna Fail’s support has halved from 42% to 21%.

Since its foundation in 1926 Fianna Fail has rarely slipped below 30% of the popular vote. My conclusion is that the last vestige of a core vote is melting as people decide to administer the last rites to civil war politics, requiring a long overdue change in a political landscape that is no longer based on historical tradition.

My hope for the election outcome is not the annihilation of the Government parties, rather the election of candidates of quality. Declan Ganley is correct – our political system is full of "economic illiterates". We need to elect new politicians of any party who will unambiguously defend the interest of the taxpayer. We cannot continue to be raped financially by the likes of bankers in Anglo Irish.

OUR future generation’s solvency is on the line with NAMA. Those defending the public fiscal interest must be of equal ability to those opportunistic property developers and financiers who are now circling the exchequer to be bailed out.

My forecast is that the rejection of the Government parties tomorrow will shorten the lifetime of the Government. I suspect FF and the Greens will find a basis on which to go their separate ways over the renegotiation of the programme for government or the next budget.

The latest opinion poll was commissioned before the monthly payslips issued late last week for May’s wages. The sting from these lower living standards will be followed by more budgetary pain. We are promised a new house/property tax, carbon levy and the taxation of child benefit. Reforms and reductions in public spending and services have yet to commence. To those on the Government benches the lifeboats are starting to look tempting in these deep economic swells rather than go down with the ship. A change of government is no panacea to our ills. Our problems are deep-seated and require structural reform.

The most appealing Irish characteristics are humility and humour. Because of our small size, our society has a personalised intimacy that is not to be found in Britain or on the continent. That, added to the hindsight gained over the past month about child abuse in institutions and losses in toxic banks, gives us the opportunity and the insight to orchestrate a massive change.

Starting with an end to deference to the churches, corporate cronyism and civil war politics.

 
 

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