Dell plans closure of Limerick plant-Sunday Business Post Report

An article in the Sunday Business Post reports that:

Up to 2,000 job losses are expected at Dell in Limerick in the new year when the computer firm announces its intention to cut back manufacturing in Ireland.....

Unemployment in Limerick has risen from 7,630 in November 2007 to 12,886 in November 2008- an increase of 69%. In addition the decision by Aer Lingus to discontinue the Heathrow service is a further blow to the economy of the Mid West region. It is an open secret that Dell was considering its options. Nevertheless the loss of 2000 jobs at Dell-if realised- would be catastrophic.

Ireland-Government rocked by groundswell of opposition to medical card proposals forced to backtrack

No sooner had Minister for Finance Brian Lenihan completed his budget speech than Government deputies from FF, Greens and PDs broke out in thunderous applause. However opposition deputies on the FG and Labour benches had already spotted serious flaws in some of the proposed health and education cutbacks.

The Government's decision to end universal medical card provision for people over 70 lit the fuse. The opposition in the Dail was apoplectic with rage. Enda Kenny and Eamon Gilmore spearheaded the attack. Yet Brian Cowen, Mary Harney and Mary Coughlan strongly defended the proposal. Government TDs were slow to react.

Grey voters vented their spleen with a display of ferocity seldom seen in Irish politics. Many elderly people have been stunned and frightened by the proposals. All organs of the media were utilized. Now many backbench FF, Green and Independent TDs supporting the government have begun to rebel. Independents such as Michael Lowry and Finian McGrath have come out strongly in opposition
Today Wicklow TD Joe Behan resigned from the Fianna Fáil party in protest at the Budget citing not alone cutbacks in health but also in education. Mr Behan has accused the Cabinet of being out of touch with the electorate.

Just one question for many of these backbench FF deputies. Why did they not shout stop when the FF/PD government allowed public expenditure to rocket by 25% in the two years leading up to the 2007 general election. The property boom bubble supported this growth in public expenditure. It was clearly unsustainable. Many of these deputies won their seats on the back of benign budgets. It is possible that the outgoing government would have been re-elected without such a massive growth in public expenditure.

Four years ago Richard Bruton FG Finance spokesman warned of the unsustainability of the public expenditure splurge and spoke continuously about the inevitable consequences.. Economists such as George Lee, Dr Alan Ahearne and David McWilliams warned about a property boom crash. They were accused of talking down the economy.

The present Medical Card proposals would not get through the Dail. Any effort to force them through would tear the FF Party asunder. The Independents and Greens would probably desert. Tonight on RTE Taoiseach Brian Cowen announced that he would set up a process to deal with the problem. The Government intends to try and renegotiate with the IMO with a view to securing savings.

It is likely that the proposals will be substantially amended or parked. However FF backbenchers, Green Party and Independent TDs had better get used to bad news. Indeed a supplementary budget cannot be ruled out in July 2009 (after the Local Elections) to arrest the slide in the public finances. In addition there may be at least two more harsh budgets one in December 2009 and the other in December 2010. The Government has scored a huge political own goal. Happy are those sitting on the opposition benches.

Ireland- Taoiseach Brian Cowen losing out in Dail exchanges

There is increasing evidence in Dail exchanges that Brian Cowen is prepared to adopt a more aggressive approach to the opposition than Bertie Ahern. Former Socialist Party TD Joe Higgins said in 2003 that "asking the (former) Taoiseach Mr Ahern a question is like trying to play handball against a haystack. You hear a dull thud and the ball does not come back to you. It goes all over the world, but it certainly does not come back to the person asking the question". In marked contrast Cowen is more combative.

Prior to assuming the mantle of Taoiseach Cowen had been quite dismissive towards Kenny. In a Dail exchange in February Mr Cowen-then Tanaiste- attempted to belittle Kenny on the issue of Mr Ahern's finances and the Mahon Tribunal when he said "You are neither qualified nor able to evaluate that evidence”. This may yet come back to haunt him. The personalised nature of the comment has energised Kenny.

Political journalists assumed that Cowen as Taoiseach would destroy Kenny in exchanges. This is not what has transpired.
In the Dail yesterday (Tuesday) Enda Kenny raised the HSE announcement last week that it was contacting more than 4,500 patients whose x-rays and CT scans at Our Lady`s Hospital, Navan, and Our Lady of Lourdes Hospital, Drogheda, might have been misread. Cowen injudiciously attacked Kenny and alleged that he was attempting to make political capital out of the issue. He came off second best in the exchanges.

Today in the Dail a row erupted when Mr Kenny questioned the Taoiseach about health expenditure.
In reply Cowen claimed that Fine Gael had not backed a single initiative aimed at improving health services. This comment drew howls of disapproval from the FG front bench.
Mr Cowen told the Fine Gael spokesman on Health, Dr James Reilly, that if the heckling continued, he could ensure that Fine Gael leader Enda Kenny would not be heard in the chamber again.
This was a bad lapse in judgement.

Mr Cowen was then tackled by Labour leader Eamon Gilmore on price increases and on the alleged failure of the National Consumer Agency and other bodies to act.
The Dail microphones picked up a comment made by the Taoiseach to Tanaiste Mary Coughlan : 'We need to get a handle on this, will you ring those f***ers.'
The use of the F-word although not used in the Dail exchanges was a further embarrassment for the Taoiseach.
All in all a bad week for the Government and for Mr Cowen.

EU Restrictions on Brazilian beef-unanswered questions

The EU's Food and Veterinary Office in its missions to Brazil has encountered chronic abuse of production standards as has an IFA delegation. The US, Australia, Japan and South Korea have banned all imports of beef from Brazil yet the EU has only introduced a partial ban. Why is the EU insisting on higher standards of traceability from its farmers than from Brazilian farmers?

The EU Commission appears to have an agenda to restrict production by indigenous farmers and to sell out on agriculture. The Commission is determined to increase access to the Brazilian market for manufacturing industry. As a quid pro quo it will allow access to Community markets for Brazilian beef.

The EU has lambasted the US on its emissions of Greenhouse Gases. Yet the EU Commission is prepared to accept imports of Brazilian Beef from ranches in Amazonia. These ranches have been created through the burning of the rain forests. This practice continues and is increasing CO2 levels in the atmosphere. Why has the EU Commission chosen to ignore damage to the environment caused by ranchers in the Amazon Basin?

Minister for Agriculture Mary Coughlan had refused to support a full ban on beef imports from Brazil. Then 24 hours before the EU announcement of a partial ban she called for a full ban. Why the about-turn?

Michael Creed the FG Spokesman on Agriculture has stated that "Brazil should face a total ban until it is meeting the production standards that Irish and European producers are obliged to meet and EU consumers are entitled to expect." In this he has been totally consistent unlike the Minister.