Madam, – I sincerely hope that the Government will pause to consider the arguments advanced by a number of academics in business, finance and economics in today’s paper (April 17th). The banking crisis still has the potential to pauperise a generation. The academics concerned are disinterested analysts with no axe to grind, political or otherwise. Their arguments against the course initiated by Government are compelling.
The Government is determined to avoid nationalisation of the two big banks although it would be for a temporary period only. However, we can be virtually certain that AIB and Bank of Ireland will be back for further recapitalisation and ultimately, the extent of bad loans are such, nationalisation is likely to become inevitable. This will be the worst of all outcomes. At least if we nationalise now and proceed to strip out the bad loans, the taxpayer will benefit from whatever upside is likely to occur. I can’t see how this can be done while the banks are in private hands without huge cost to the taxpayer.
It would be naive in the extreme to believe that, in this small country of well established networks, it will be possible to price the assets without the usual suspects making a killing at the expense of the taxpayer.
Nothing is so dispiriting for those whose pay is being cut and whose taxes are being increased as the nervous conviction that the hole is getting deeper. Recent sacrifices will be almost invisible if the Bacon scheme is implemented.
The Swedish route offers a way out with little controversy and less risk.
There is so much at risk that the Government cannot afford not to think again.
– Yours, etc,
Madam, – In the emergency Budget the Government has cut the overseas development aid allocation by a further €100 million, the fourth cut since July last, thus reducing the overall aid budget for 2009 by €255 million. This decision has been taken despite repeated promises to the developing countries, even since this crisis began, that Ireland will fulfil its commitment to the UN target of 0.7% of GNP as aid by 2012. This is now a forlorn hope.
This decision has also been taken in full awareness that there will be no marches in the streets of Dublin as we witnessed last October, with the consequent climb-down by the government on medical cards and the income levy on the lower paid. No, those that would march are thousands of miles away in their parched fields and slum dwellings, too busy eking out a living. They represent an easy target.
But let us imagine that the march is taking place. Thousands of Africans, Asians, and Latin Americans – poor farmers, mothers and their hungry children, unemployed men from the immense cities, people living with HIV – have gathered at the Garden of Remembrance. They begin their slow walk down O’Connell Street, filling one side of the carriageway. Dublin’s citizens watch this procession with growing horror at their plight – poor, hungry, angry at their powerlessness. They read their placards– “Ireland, Keep Your Promises”, “We Want Justice not Charity, “Where is our Share?” and many begin to join the throng.
As they reach Minister Lenihan’s office in Merrion Street the crowd has multiplied many times. They are angry, feeling let down once again. The television cameras arrive and this scene is witnessed around the world on live TV news. Ireland’s breach of promise to the world’s poorest people has been cruelly exposed.
Could any government withstand such pressure? For God’s sake, Minister, put the money back!
– Yours etc,
JUSTIN KILCULLEN, Director of Trocaire, Maynooth, Co Kildare