McKenzie scorns AIB's business methods

Current Account : If hell hath no fury like a woman scorned, Current Account wonders where an upset Kelvin MacKenzie features…

Current Account: If hell hath no fury like a woman scorned, Current Account wonders where an upset Kelvin MacKenzie features on the scale. If reports in Tuesday's Daily Telegraph are anything to go by, he could break the dial.

The object of the media magnate's anger on this occasion was none other than our own AIB, which was one of three banks involved in funding Kelvin's Highbury House publishing company before its collapse a couple of weeks ago.

According to the Telegraph's interview with the man himself, Kelvin reckoned AIB's decision to hold back from a £30 million (€44 million) refinancing was "bloody ridiculous".

With just an smidgen of venom, he then reportedly added: "I would like to know what other kinds of idiot decisions they are making all day long."

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Wouldn't we all, Kelvin?

Sweden-Latvia dispute draws Irish attention

Word reaches us that the Government has intervened before the European Court of Justice in a case involving a Latvian construction company, Laval un Partneri Ltd, which was contracted to build a school in Vaxholm in Sweden.

Swedish trade unions took industrial action against the company when it sought to employ Latvian workers on pay rates lower than would apply to Swedish workers.

The Latvians, claiming violation of EU treaty rules on free movement, took a case to the Swedish Labour Court, which in turn referred the case to the European Court of Justice.

The Government's decision to intervene was announced yesterday by Taoiseach Bertie Ahern at a plenary session of the social partners in Dublin.

"The broad thrust of our intervention is designed to protect our long-standing traditions in the areas of social partnership and industrial relations from any adverse consequences arising from this case," he said.

The Government said the intervention was not intended to be an endorsement of the particular arguments of either party to the Swedish dispute.

Just as well given the vocal support given to the Latvians by Ireland's European commissioner, Charlie McCreevy.

Troubled bank history

The arrival of Bank of Scotland into the Irish retail banking market in 1999 triggered a lot of suspicion among our home-grown bankers.

The mistrust of foreign invaders in the Irish banking world has not really receded in the intervening period. For example in September 2003 David Went, boss of Permanent TSB, described the new arrivals as "suitcase bankers". In response Mark Duffy, Bank of Scotland boss, is believed to have sent over the Permo boss an empty suitcase.

While such comments might smack of a privileged group protecting their patch, a quick flick through the history books suggests all this mistrust may be justified.

For example, centuries ago the English government became suspicious of the "Jacobean tendencies" of the Bank of Scotland and established the Royal Bank of Scotland in 1745 as a counterweight.

"Jacobean tendencies" of course refer to the reign of King James I, ruler of England, Scotland and Ireland. If Bank of Scotland harks back to his period on the throne, their opponents may be a little slower to fling the insult around. James, for example, was in charge when one Guy Fawkes was tortured on the rack!

Strike delays socialists

Current Account was genuinely impressed with a meeting of the Party of European Socialists (PES) held in the Mansion House last Friday. The guest speaker was PES chairman and former socialist prime minister of Denmark Poul Rasmussen

Pat Rabbitte, Sean Garland, Ruairi Quinn and Prionsias De Rossa made stirring interventions, defending the rights of public sector workers against the evils of competition.

But the audience was kept waiting for the great Dane as a workers strike at Copenhagen airport forced him to take an alternative route. Current Account is investigating whether he flew Ryanair.