Anglo Irish Bank Director Alan Dukes supports NAMA- surprise surprise

Dukes fails to answer the hard questions on NAMA

Alan Dukes was appointed as director of Anglo Irish Bank by the government and is certainly not an independent commentator on the NAMA proposals. He has long had a reputation as an independent thinker. This reputation is undeserved. He has never come up with creative economic policies. He always has a tendency to talk down to people. Unfortunately on NAMA he is devoid of creativity. He comes across as an elitist who lectures others. The fact that he was a former leader of FG is immaterial. He no longer represents party policy on the issue. In short he has moved away from FG. He should now do the decent thing and join FF- a party whose policy he appears to support. In addition he has always been close to Garret Fitzgerald who has also come out in favour of the NAMA approach.

In the Irish Times article Fitzgerald stated that "I have hitherto avoided any comment on the relative merits of NAMA vis-à-vis other possible approaches because I have not felt competent to comment on the finer points of what is a highly technical issue". Fitzgerald has already come off second best in his battle with the 46 economists who have grave misgivings about NAMA. Professor Karl Whelan exposed the flaws in the Fitzgerald thinking in a debate with him on Newstalk radio. In reality Garret Fitzgerald lacks sufficient understanding of the flaws inherent in NAMA. He has failed to satisfactorily address the ten questions posed by Professor Brian Lucey.

Neither for that matter has Alan Dukes. Today Richard Crowley interviewed Dukes on RTE Radios This Week programme.
Not once did Dukes express any concern for the taxpayers. As far as Dukes is concerned the taxpayers can bail out the banks and to hell with the consequences. He failed to convincingly articulate reasons why we should accept NAMA. He failed to answer with conviction on the purchase price of assets. He fudged his answer. He rubbished the FG proposals without spelling out convincing reasons for so doing. Dukes and Fitzgerald have failed to push for RADICAL changes in the NAMA proposals-which are likely to go through. They are doing a disservice to the country. This is not about political point scoring. It is about securing the best deal for the taxpayer and the country.

Just to pose ONE of Professor Lucey’s ten questions

· Why does no independent analyst support the governments view on NAMA? This includes the Swedish finance minister who ran their bad bank system, who said to the Irish Times that he “favours the more severe mark-to-market write-down of assets rather than a ‘through the cycle’ valuation.”, and that “it (NAMA) does not sound like the right solution to buy assets from private banks.” It also includes the IMF who said " Insolvent institutions (with insufficient cash flows) should be closed, merged, or temporarily placed in public ownership until private sector solutions can be developed ... there have been numerous instances (for example, Japan, Sweden and the United States)

Don’t expect answers from Garret Fitzgerald and Alan Dukes. Too much respect has been shown to both of them. Both have been found wanting on NAMA.

NAMA: Garret Fitzgerald admits lack of competence

In an Irish Times article on Saturday Garret Fitzgerald made the case for what he termed responsible opposition on the issue of NAMA. Again today on RTE Radio’s Morning Ireland he sang a similar tune.

Both FG and Labour have serious misgivings in relation to NAMA-and rightly so. As opposition parties it is their solemn duty to point out the glaring inadequacies. Failure to do so would be highly irresponsible. In the Irish Times article he stated that "I have hitherto avoided any comment on the relative merits of NAMA vis-à-vis other possible approaches because I have not felt competent to comment on the finer points of what is a highly technical issue".

Quite frankly this is an amazing admission. Yet this morning Garret strongly criticized the 46 economists who expressed serious misgivings about NAMA. He is referring to such learned academics as Prof Brian Lucey, School of Business, Trinity College Dublin, Prof Karl Whelan, Department of Economics, University College Dublin, Dr Constantin Gurdgiev, lecturer in finance, School of Business, Trinity College Dublin,Dr Moore McDowell, senior lecturer in economics, Department of Economics, UCD amongst others. With a few dismissive comments Fitzgerald rubbished them. Garret with his admitted lack of competence knows more than all of them put together. His arrogance was breathtaking. Garret appears to want a quick fix and to hell with the long-term consequences. Now is the time to point out the glaring weaknesses in the government proposals.

Amongst the questions posed by Brian Lucey are the following:

• What evidence does NAMA have that the current market price of property, land etc is not in fact the correct price to pay?


• What evidence does NAMA have that the current market price of these is not in fact going to decline for a number of years, as would be the case if Ireland were to follow the common experience of previous property crashes?


• Why would a temporary nationalisation of the banks be a bad thing, given that this would provide the taxpayer with a valuable asset which could be sold in future years?


• Why does no independent analyst support the governments view on NAMA? This includes the Swedish finance minister who ran their bad bank system, who said to the Irish Times that he “favours the more severe mark-to-market write-down of assets rather than a ‘through the cycle’ valuation.”, and that “it (NAMA) does not sound like the right solution to buy assets from private banks.” It also includes the IMF who said " Insolvent institutions (with insufficient cash flows) should be closed, merged, or temporarily placed in public ownership until private sector solutions can be developed ... there have been numerous instances (for example, Japan, Sweden and the United States),


• where a period of public ownership has been used to cleanse balance sheets and pave the way to sales back to the private sector", in the context of saying that the likely losses for Irish banks were such as to render them insolvent.


• Why not force the equity and bond holders in Irish banks to take the first place in the queue to absorb the losses that the banks would have to book were current market prices to be paid for the loans made. After all, that’s what risk capital is for?


• If the state overpays for the loans relative to current market prices, what, apart from a functioning banking system, does the taxpayer gain?


• What percentage of book value of the loans should NAMA pay, given that current market prices for land and development properties are somewhere around 30% or less of book value?


• If NAMA were to pay say €60b for loans that are worth only €30b, how can this transfer of a full years tax revenue to private speculators be justified in this economic time?


• If, as is entirely possible, the loans transferred to NAMA do not provide sufficient income to meet the coupon payments of the bonds issues by NAMA, will the taxpayer, at least in the short term, not have to meet these payments?
  

It is particularly noticeable that Fitzgerald has failed to address these questions. Instead he has played the man and not the ball.In addition he has failed to address FG or Labour criticisms in any meaningful way. The FG proposals stand up to scrutiny. They may not be perfect but certainly protect the taxpayer to the maximum possible extent.If as appears likely the FG proposals do not find favour in the Dail, NAMA will in all probability go through in some shape or form. It must be radically changed if this generation of taxpayers is not to be paupered. Brian Lenihan must take on board the criticisms of the 46 leading economists and those of FG and Labour.
As far as Garret Fitzgerald is concerned Ireland can marry NAMA in haste and repent at leisure.

TK Whitaker, Gerard Sweetman and Sean Lemass some of the makers of modern Ireland

On tomorrow night RTE is running a programme titled Lemass: The Man who Made Modern Ireland.

The title of the programme is misleading.
In 1950 Fine Gael Minister for Industry and Commerce Dan Morrissey established the IDA -The Industrial Development Authority. Sean Lemass in opposition pledged to abolish the IDA if returned to power. FF on return to power in 1951 did not abolish the IDA. The IDA has played a major role in the development of Irish industry.
FF remained in power from 1951- 1954.

In 1954 Fine Gael, Labour, and Clann na Talmhan took office. FG TD Gerard Sweetman was appointed Minister for Finance.
That government inherited an economic mess. Unemployment stood at 421,000 whilst over 100,000 people had left agriculture during the previous 8 years. Sweetman strongly opposed the protectionist policies of FF and took very hard decisions. Sweetman believed that Ireland could grow its economy on the basis off booming exports. In his budget in 1955, he introduced a radical -for the time-scheme whereby a tax exemption was provided for exported goods. He also established the prize bonds scheme as a means of covering the national debt. In 1956 he plucked civil servant TK Whitaker from relative obscurity in the Civil Service and appointed him Secretary General of the Department of Finance. This raised quite a few eyebrows but the decision was a mark of Sweetman's greatness.

The incoming FF government benefited from Sweetman's decisions and indeed the work of Dan Morrissey in establishing the IDA in 1950.
TK Whitaker was the brainchild behind the First Programme for Economic Expansion, which played a major role in Irelands economic development in the 1960s. It is to the credit of Sean Lemass and a mark of his greatness that he accepted Whitaker's proposals and supported free trade policies espoused by Gerard Sweetman and T K Whitaker. In fact Lemass was now advocating policies diametrically opposed to those pursued by FF in power since the 1930. Certainly Sean Lemass was one of the makers of modern Ireland. But so also were Gerard Sweetman and T K Whitaker amongst others. It is important to realise that without the work of Sweetman and Whitaker, Lemass would have achieved little.

Ireland: Green Party faces wipe out in any early General Election

Ireland's Green Party has been wiped out in the local elections. It lost all its seats in Dublin and has just three seats in the rest of the country. In the months prior to the local and Euro elections the party was damaged by the resignations of two councillors, Bronwen Maher (Dublin City Council) and Chris O'Leary (Cork City Council). They were strongly critical of the direction the leadership had taken the party since going into government with Fianna Fail in 2007. This was followed by the resignation of former MEP Patricia McKenna who contested the Euro elections-in Dublin- as an independent and outpolled the official Green candidate Deirdre De Burca.
Deirde De Burca demanded a recount and lost the party further credibility.
Chris O'Leary contested the local elections as an independent and was reelected. Last weeks ugly smear directed at Enda Kenny backfired.

Tonight on RTE defeated Green candidate Niall Ó Brolcháin -from-Galway-mentioned the possibility of crossing the floor and joining FG and Labour in a new government. This suggestion was promptly rubbished by Pat Rabbitte and Phil Hogan who stressed the necessity of a general election to ensure that a new government had a mandate. Quite simply the Greens are caught between a rock and a hard place. Continued participation in government is damaging the party. However if the Greens were to precipitate a general election the party would in all probability lose its full complement of TDs.The Greens would go the way of the PDs.
The Green Party has no option but to remain in government and hope that the tide turns in the next 2-3 years.
Surely Green turkeys will not vote for Christmas.

Ireland-Huge coup for FG as George Lee opts to contest Dublin South by-election for the party

The decision of RTEs economics editor George Lee to seek the FG nomination at the Dublin South Convention on tomorrow night is significant on many counts.

Assuming that he is selected on tomorrow night (a foregone conclusion) he will make a powerful candidate. Up to now Labour's Alex White was perceived as the front runner. However FG has a strong chance of now winning this seat as George Lee is a polished media performer. Whilst FF secured 40% of the vote in the 2007 general election, it is highly unlikely that it can hold its share of the first preference vote even with Shay Brennan as the likely candidate. Dublin South is largely a middle class constituency and is thus particularly suitable for a Lee candidature. Middle Class voters have been hammered in the budgets and a sizeable majority of middle class voters are disillusioned. Lee has never pulled his punches on the Irish economy and had continuously warned-before the housing crash- about excessive government expenditure and over reliance on the property market as a source of taxation. Consequently he starts with a formidable pedigree.

The election of George Lee would send shivers down the government benches as his forensic questioning on economic matters would put government ministers under intense pressure.

George Lee will further increase the level of economic expertise at the disposal of the FG party. Front benchers Richard Bruton, Kieran O’Donnell and Leo Varadkar are already a formidable trio on economic matters.

Lee’s decision increases the electability of the party as it can argue convincingly that it has the level of economic expertise needed to rule the country.

It further boosts morale in the run in to the European Elections and the two Dublin by-elections.

It also increases the likelihood of a further influx of talent into the party as it is on an upward curve.

No wonder Enda Kenny is smiling.

Video: Brian Lenihan, Minister for Finance, and Richard Bruton, Fine Gael Finance Spokesman, discuss the supplementary Budget-7/4/09

Video requires RealPlayer-Download here

Embedded from RTE.IE

Video:RTEs David Davin Power analyses Brian Cowens speech at Fianna Fail Ard Fheis

Video requires RealPlayer-Download here

Embedded from RTE.IE

RTE Video:Homeless Man Lives rough in Wicklow Mountains

Video requires RealPlayer. Download here

Embedded from RTE.IE

Philip Bromwell reports that 'Homeless Henry' says he feels safer living in his heavilly camouflaged campsite than on the streets of the capital.

RTE Documentary on Haiti would draw a tear from a stone.

RTE has a long history of accomplishment in the production of documentaries. However it is doubtful if any has left as big an impression as Jim Fahy's Haiti A Hundred Dead People In My Truck . The graphic footage of squalor, hunger, malnutrition, shanty towns and trucks carrying the bodies of up to 100 people would draw a tear from a stone. The stench of death was everywhere. The film also contained a brief historic background to the problems of the country. In addition it described how First World countries still demand their pound of flesh in the form of loan repayments from a country on its knees. The activities of kidnappers were recounted-ears of hostages cut off if they are lucky. Murdered if they are unlucky.
Widespread hurricane damage is a common occurrence. Haiti is the country that has been largely forgotten by the western world. Of course UN troops are stationed there to maintain a semblance of order.

Two Irish women childcare specialist, Gena Heraty from Mayo, and Dubliner Dr Louise Ivers a world expert in infectious disease - have been working for years in Haiti’s slums and in the mountainous areas. Working alongside them as a doctor and hostage negotiator is Fr Rick Frechette, a Passionist Priest, from Connecticut in the United States.
The film footage featuring all three was so moving. Their determination to swim against the tide, their exhausting schedules, their compassion and their dedication to the cause of social justice is an inspiration to all.

Gena Heraty has dedicated her life to improving the lot of orphans. She is determined to live out her life in Haiti. She stressed that all children are equal irrespective of where they live and entitled to an equal chance to progress. Dr Louise Ivers is an assistant professor at Harvard Medical School . She works in a gradually expanding clinic through the nonprofit organization Partners In Health. She said "I can’t sleep at night because of the things that I see".

The spectre of Fr Rick Frechette helping to load up the bodies for transport and his prayers over mass graves would send a shudder through the hardest heart. The convoys of lorries carrying corpses through the streets merited scarcely a glance from the citizens. As far as they were concerned this was normal.

Congrats to Jim Fahy and the whole RTE team. This documentary should be disseminated throughout the world. It might soften the hard hearted bankers and politicians. This has the potential to shock viewers into action. The full programme may be viewed here

RTE Documentary: Haiti A Hundred People Dead In My Truck- uncovers a land of Murder,Kidnapping,Hunger and Poverty

Audio requires RealPlayer. This may be downloaded here

Embedded from RTE.IE

This audio contains a preview by Jim Fahey of his documentary Haiti: A Hundred People Dead In My Truck. This goes out on RTE television tonight. It follows the work of an American missionary priest Fr Rick Frechette and two Irish women-Gena Heraty and Dr Louise Ivers who are working to improve the quality of life for the people of Haiti. These are the unsung heroes who fight against overwhelming odds for justice for the poor.

Half of the people of Haiti live on less than a dollar a day in a land of hunger,murder,kidnapping,disease and low life expectancy. Many parents are reduced to a life of scavenging in an effort to eke out an existence. Father Rick’s Summer 2006 in Haiti provides a graphic account of the plight of ordinary Haitians.
The full programme may be viewed here

RTE visits the Booley House at Ballyduff Co. Waterford

Video requires RealPlayer

Allow Video Time to download

If using Explorer click Booley House

OR

Booley House

IF using Firefox Click Here

Global Classroom: Hole in the Wall Education in India

This week RTÉ.ie, in association with the Simon Cumbers Media Challenge Fund, is presenting a special three part series about technology in the developing world.
This is part two of the series. Here RTÉ.ie News Editor Joe Zefran takes you to India to learn about the Hole in the Wall project which believes collective learning using a village computer can close the education gap for children around the world.
The full series covers India, Rwanda and Kenya where three programmes, including the Irish charity Camara, are using three very different approaches to achieve the same goal: educating the world's youngest citizens. It is compulsive viewing.
The full series is viewable here.

Lismore Co. Waterford:fire at a disused recycling plant may have serious health implications

Embedded from RTE.IE

Residents from 20 houses at the Mills in Lismore Co. Waterford were evacuated as a precautionary measure when fire broke out around 11pm last night at the disused Sam Shire recycling plant.The building was totally destroyed. Many more families were ordered to keep windows and doors shut as fire-fighters from West Waterford and East Cork tackled the blaze at an asbestos-roofed building. Toxic fumes were emitted as the asbestos roof collapsed into the fire and as plastic was burned. The plant has been left derelict for the past three years. c 4,000 tonnes of rubbish had been left in the building. Grave concern has been expressed at the health implications, as asbestos fibres are carcinogenic.

Waterford's six goals against Antrim and interview with Davy Fitzgerald

Embedded from RTE.IE

This video from RTE's Sunday Game shows interviews with Davy Fitzgerald, Sambo McNaughton, Eoin Murphy, Eoin McGrath and Dominic McKinley. It also shows Waterford's six goals scored against Antrim in the All Ireland qualifier played at Walsh Park on Saturday last. The interviewer was Marty Morrissey.

Ireland- Protesting Fishermen blockade Cork Harbour

Tom McSweeney Marine correspondent of RTE reports on fishermen's demonstration against high fuel prices and low quotas.

Swiss flyer Ueli 'Sputnik' Gegenschatz, glides from above the Aran Islands over Galway Bay to Connemara

Swiss flyer Ueli 'Sputnik' Gegenschatz, donned a specially designed wingsuit and glided from above the Aran Islands over Galway Bay to Connemara. He completed the journey in 5.45 mins beating the average flight time by more than a minute........RTE

Questions and Answers debates Irish Agriculture

Maeve Dineen Editor of the Farming Independent and Presenter of RTE’s rural life programme Ear to the Ground was the star panelist. She was articulate and direct in her answers. She displayed a clear insight into farming problems and the threat posed to Irish farming by the WTO.

Journalist Eamon Delaney is apparently a strong supporter of Brian Cowen. He emphasized that Ireland has benefited immensely from free trade. This is fine as far as it goes. He obviously supports free trade in food. Unfortunately he failed to refer to the dangers posed by imports -of food products such as beef from Brazil- which often lack traceability. Is he not concerned with the health implications? Is he not concerned at EU hypocrisy on the environment? Apparently the EU is determined to reduce Greenhouse Gas emissions. Yet it is prepared to increase beef imports from Brazil. Much of these will come from the destruction of the Amazonian Rainforests. The burning of the forests will increase the levels of CO₂ in the atmosphere. Eamon Delaney's support for free trade in food fails to take account of the necessity to ensure security of supply.

Padraig Walshe of the IFA emphasized the dangers poised by the WTO. He stressed that 50,000 farmers would disappear and that a further 50,000 off farm jobs would go.

Eamon Gilmore and John Gormley were largely supportive of Irish farmers. Will John Gormley push for the use of the veto if necessary? Will the Government use the veto to rein in Peter Mandelson who appears to have gone beyond his brief at the WTO.

Irish Times /TNS mrbi poll shows FF support has returned to General Election levels as FF benefits from Cowen honeymoon

The adjusted figures for party support, compared to the last Irish Times poll in January, are:

• Fianna Fáil, 42 per cent (up eight points);
• Fine Gael, 26 per cent (down five points);
• Labour, 15 per cent (up three points);
• Sinn Féin, 6 per cent (down two points);
• Green Party, 4 per cent (down two points);
• PDs, 1 per cent (down two points
• Independents/others, 6 per cent (no change).

Undecided voters stood at 15% .

The results of this poll are distorted by the avalanche of positive publicity received by Brian Cowen since his election as FF leader. In fact there was saturation coverage. It was inevitable that FF would rise sharply from the 34% in the last poll. FF support is now at the same level as that obtained at the 2007 General Election. One expected that a photograph might appear showing Brian Cowen piloting an aeroplane. The adulation reached levels that are unsustainable in the long term.
FG support is at 26% just 1% below that obtained in the 2007 General Election. This is within the margin of error. In contrast to Cowen, Enda Kenny has been subjected to an ugly campaign of vilification by some elements in the media. Nevertheless he must become much more forceful on economic matters.

Both FF and FG are broadly speaking on the same level of support as obtained by both parties in the 2007 General Election.

Since this poll was taken last Monday, much gloomy economic news has seeped out in relation to building and construction, gas and electricity prices. In addition further serious problems have appeared in the health sector.

The ESRI report has a positive spin. Nevertheless when analysed there is little certitude in relation to the Irish economy. The report was a case of live horse until you get grass. Independent newspapers and the Irish Times emphasized the positive elements in the report as did RTE.
Soft publicity will not insulate the Government when public expenditure cuts bite sharply. An electorate spoilt by the unsustainable rise in government expenditure-13% in 2007- will inevitably feel withdrawal symptoms.

Labour is up 4% on its General Election returns -probably at the expense of the Greens and Sinn Fein.

It is time to wind up the PDs.

RTE report exposes timber trade between Burma and China

RTÉ News carried a special report Foreign Editor Margaret Ward on the timber trade between China and Burma. Ostensibly China banned imports of timbers from Burma. However Margaret Ward’s report proves conclusively that the trade between Burma and China continues unabated.

Ward posed as a purchaser and found that there was no difficulty in sourcing timber at the right price. The Burmese junta benefits enormously from this trade. According to the report Burmese timber is also finding its way to Korea, Japan and Europe. Kudos to Ward and the RTE team for such a penetrating report which is just one of many coming from China.

Unfortunately China consistently refuses to play by the rules in Burma, Tibet and Sudan. China has provided support for the Butchers of Rangoon on a consistent basis. This enabled the junta to crush the 2007 uprising using tactics perfected by China.

The Ward Diaries are a fountain of information on China.

On his first visit to China, British foreign secretary David Miliband rejected calls for an Olympic boycott. The Beijing Olympics provided an excellent opportunity to leverage concession from China but unfortunately the international community is prepared to overlook human rights violations by China in the interests of trade.

RTE's This Week Programme -Should Children's Allowances be taxed?

This Week analysed the thorny issue of the possible taxation of childrens allowances. The contribution of Charlie McCreevy to the increase in childrens allowances was painted in glowing terms. Nothing wrong with this.

There were two references to the FG Party. Both were out of context.

1. One referred to the proposal of Garrett Fitzgerald that stay at home wives should be paid.
2. The second referred to John Bruton and the decision to tax children's shoes.

• The report could have mentioned Charlie McCreevy's Dirty Dozen social welfare cuts. But did not.
• It could have dealt with the massive rise in stealth taxes introduced by McCreevy after the 2002 General Election but did not.
• It could have referred the fact that the same Bruton budget included a plan to increase Social Welfare payments including children's allowances by 25%. But did not.
• The Fitzgerald proposal was not very controversial as it involved no net loss to a married couple unlike the proposal to tax childrens allowances.