Sir, – I refer to "Higgins downgrades ratings agencies" (Cantillon, Business, Opinion 11th).
While ostensibly President Michael D Higgins’s talk was on the topic of the European Union’s relationship with Africa, he took the opportunity to yet again exceed his constitutional constraints by, among other things, criticising the role of ratings agencies and opining “that the ratings agencies go off the table while we are responding to Covid and, indeed, with a bad record, they are not very valuable to anything we have been speaking about”.
His ignorance is tragic, and his de facto investment advice as someone not regulated by the Central Bank warrants scrutiny.
Moreover, he is effectively harming Ireland; rating agencies do not downgrade a country but, rather, risk-profile the various tranches of securities that a sovereign or a corporate entity issues.
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Due to excellent international communication from our Department of Finance and the National Treasury Management Agency, coupled with our impeccable record in repaying national debt on time, these same agencies have been effective honest brokers in opening the widest possible audience of international investors, facilitating time after time oversubscription of our debt offerings at the keenest of rates, which in turn has been of enormous benefit to the taxpayer.
The ranting continues with comments like “it is time for political economy, it is time for social economy”. This suggests confusion as to what constitutes social science and economics, and smacks of lightweight populist propaganda.
While Mr Higgins is, demonstrably, a noble sociologist, it is unacceptable that his increasingly frequent bulletins may have a detrimental effect on Ireland.
As a very widely travelled businessman it never ceases to amaze me that so many business leaders abroad believe that the President of Ireland runs the show here.
Thus, I feel that Government should take action in clarifying the constitutional role of the President, in addition to curtailing Mr Higgins’s misuse, however well-intentioned, of the role. – Yours, etc,
PIERCE AUGUSTAN
CASEY,
Dublin 2.
Sir, – How ironic that President Michael D Higgins, who often warns of populism, bemoans the credit ratings agencies’ downgrading of Costa Rica. Ratings agencies are there – at least in theory – to warn investors that they might not get their money back.
His musings will of course be ignored by anyone who relies on the ratings agencies, but approved of by those who don’t understand their function.
While Mr Higgins is blessed with a strong instinct for compassion, his self-regard is surely only second to his capacity for self-delusion.
Mr Higgins could advocate assistance that might help shore up Costa Rica’s fiscal position. While this would also be inappropriate, given his position, it would at least show an understanding of the role of the ratings agencies. – Yours, etc,
MATTHEW GLOVER,
Lucan,
Co Dublin.