Cutting aid undermines common decency

It seemed like the cruelty of nature was matched only by corporate cruelty. Hurricane Mitch devastated 75 per cent of Honduras' banana plantations last week. Decisively, Chiquita Brands International announced that 7,782 banana workers on its 17,300 acres were being laid off for at least a year. Some may be re-hired for construction or relief work.

Tela Railroad Company, Chiquita's local subsidiary announced that it would not be able to reach prestorm production until 2001. The damage to its plantations was estimated at $850 million (£578 million) at least.

Its payroll in 1997 totalled $18 million, according to Associated Press. Wages are about $6 per day.

At first sight, it looks like another instance of a cold, cruel, exploitative capitalism at its profit-driven worst. The global ethic, how are you. But then enter Fyffes, with a donation of $500,000 to emergency humanitarian relief. It does not have any employees in Honduras, but said the donation was made because of the close relationship the company has had with many people in Honduras and Guatemala. In a statement, Fyffes said it was also making available cargo space on its ships sailing from Britain and Ireland to Central America to aid agencies wishing to transport relief supplies. The Fyffes donation was followed by a doubling of Irish Government aid from £200,000 to £400,000.

Yes, there is decency in the world, and some of it is found in the boardrooms of international business. It is comforting to reflect that this is an Irish, international business, although one should not overdo it. Fyffes' payment represents approximately 0.62 per cent of its profits last year. There is a simple point of principle here: the pursuit of profit does not exclude common, human decency. Not everything is black and white opposites, even in Chiquita's case. The company is paying its laid-off workers $43 per fortnight. You can argue with $21.50 per week, just as you can argue more generally about an annual GNP per capita of about $500.

It's never one or the other as between profits and social justice. Nor should it be between tax cuts and a decent society. This, I think, was the basis of the approach of the present Government to the last election. An electoral commitment was made to cut taxes, says the Minister for Finance, and so they are to be cut. Absolutely right - faultless logic.

A commitment was also made to increase Ireland's foreign aid to 0.45 per cent of GNP by 2002, aid which would assist victims of man-made and natural disasters. Increasing aid in equal steps from the present 0.3 per cent of GNP would be faultless logic, quite apparent to one, like Mr McCreevy, who was in a position to allow that commitment to be made before the last election. But no. It's now known that the specifically Irish, voluntary aid programme is to increase by less than 1 per cent, around £420,000, when what was needed was more like £25 million. The aid agencies have been supported by the Irish Congress of Trade Unions and the Irish Business and Employers' Confederation's Mr John Dunne in their calls on the Government to stick to its target. Mr Dunne is on the finance committee of Concern, illustrating again that a profit culture and common decency can go hand in hand. This is evident, to the point of banality. Unfortunately, it does not appear to be so evident to those in control of the national finances that Irish aid is a symbol of a commitment to common decency. Even if that cannot be grasped, then how about the mere sums of how to get from 0.3 per cent to 0.45 per cent of GNP in four years?

It was recognised before the election that GNP could grow quickly, but that this would be factored in. The mandate for this commitment is as strong as for tax cuts. If it were assistance to, rather than by, the State , we would be brilliant at it.

One of the great shames about deliberately not meeting this commitment would be the undermining of the argument that low taxes and a decent society can, and do, go hand in hand. This Government's approach, one that was meant to distinguish it from the left-leaning Rainbow, would ring hollow. We would then have no government to look to, but rather Fyffes. Oh, sorry day for this mostly decent country of ours.

Oliver O'Connor is an investment-funds specialist