Category Archives: Economy

Leave a reply

Disturbing yesterday to witness angry street protests in Central Dublin.  In fairness what was striking was the level of anger and frustration of so many people – much of it based on fear about the future.

In today’s Irish Times I read a commentary on the speech by David Guinane, at last night’s Institute of Bankers’ Dinner.  His comments included: ‘As bankers, we must recognise first and foremost that this crisis has been caused by the failure of our sector to fully understand and manage the risks inherent in our business‘.

This type of sentiment – expressed publicly – is part of the required social and economic reconciliation process.  Serious mistakes were made by bankers – for a range of commercial reasons.  Others were not innocent – those who got caught up in various ventures, those who adjusted the basis of the country’s finance, those  who failed to implement rigorous regulation.  Some may have overstepped the mark completely.

It is important that groups acknowledge their mistakes (and any wrongdoing where it took place).  There are many who could follow Mr Guinane’s line – it would greatly assist the reconciliation process.

Now we need to focus on learning the lessons, taking the corrective actions and reforming as a team.  There are some signs of this – but one should not underestimate the anger of those marching yesterday.  The reconciliation process to date has been inadequate.

Are SIPTU for real?

1 Reply

Saturday morning reading my Irish Times – and getting ready for a day of sports with the kids.

It’s been a challenging September for everyone: kids back to school, those with jobs back to uncertain work, those without jobs back to the dole, all of us cursing that summer arrived in September and cheated us again.

Then I read that SIPTU is getting its members ready for strikes!  The usual claptrap – the workers are being asked to pay for the sins of the wealthy – the developers and the bankers.

I do agree with Fintan O’Toole’s recent piece – Ireland stuggles to acknowledge or act on accountability.  We need to be seen to deal with any/all who were found to break the law in bringing the country to its knees.

But back to reality.  A No Note to Lisbon as a protest vote against the government would obviously be crazy.  But this type of SIPTU posturing is not a lot better.  We need to tackle the fact that we are spending €400m more per week than we are generating.  Part of the solution is reduced costs – part of that is labour efficiency, part of it is labour cost reductions, part of it is overhead reduction and elimination.

I’m no less disappointed than everyone else that I can now expect to pay much higher levels of taxation for the remainder of my working life.  But I want to live here and I want to do something about it.  SIPTU members, like the rest of us, will not be found wanting.  But a little leadership and inspiration would be helpful.  SIPTU members want the country back firing on all cylinders and want to secure a great future for their children.

My muesli would taste a lot better were I reading some inspiring thoughts from SIPTU as I prepare for another fun Saturday of sports with the kids – part of what makes me want to live here.  And looking forward to tomorrow’s Ladies All Ireland football final.

Irish Diaspora Conference

Leave a reply
Antique engraving of 'Emigrants leaving Ireland'
Image via Wikipedia

Well done to David McWilliams and the Irish Government on the forthcoming conference with leaders drawn from the Irish diaspora.

Reread the piece in the Irish Times earlier this week.  Topics to include:

  • the global economy: positioning Ireland for the upturn
  • Ireland – the innovation island
  • promoting brand Ireland through our global cultural profile
  • Ireland’s image abroad: what is it now, how can it be improved and what role can new media play
  • Ireland and its Diaspora: harnessing unique resource

Would not argue with the relevance or appropriateness of any of these topics.

When I read about other countries beginning their planning for ‘post recession’, for removing some of the stimuli that have been required in the last 18 months – it seems to me that we are a little behind.  However this must inform out thinking and approach in the conference.  Must understand where the diaspora are coming from – where are they in their cycles?

We don’t need to be thinking that we are the only ones to have screwed up in the last number of years.  We have a particular deficit arising from some crazy property lending and some run away public expenditure commitments.  However some of the really crazy stuff was in the US – and spread through the world.

Partnerhsip is what comes to mind.  What can we do for the diaspora and what can they do for us?  I hope that a number of them will spell out in black and white the requirement for us to put our finances on a sound basis – NAMA apart, we have to stop spending more than we earn.  But what does the diaspora want from us?  Do they have any interest in having more of a say in what goes on here?

I remember listening many years ago to Liam O’Mahony (former CRH CEO) speak at a lunch shortly after he had returned from the US to take on the group CEO role.  He spoke of his frustrations trying to resettle in Ireland e.g getting kids back into schools here.  He commented on the excellent benefits enjoyed by Irish (and European) workers compared with US workers in terms of vacations, maternity leave, sick leave etc.   But he reminded us that we are required to compete in global market places – if you want better benefits then you have to be more efficient or accept lower rewards.  And he also spoke of the importance to a city such as Dublin of having corporate headquarters of multinationals located here e.g. CRH – in terms of presence, profiling of the city, sponsorhip of local initiatives in education, arts, sport, etc.

I wonder will much of what O’Mahony was saying previously be echoed in the conference.

I dealt with some related matters in a posting in August: ‘Ireland – continuing to play our part on the world stage’.  While I believe Msrrs Cowen and Martin will be doing a great deal of listening during the conference I think it is important that they share their vision for Ireland (including the Irish diaspora) with  the conference participants.  Unfortunately I do not think a good job has been done to date of communicating this vision – assuming there is one.  ‘Smart economy’ comes to mind – but I am not talking about such sound bites.  What are our brilliant young people leaving Ireland in the next few years taking with them in terms of a future vision for Ireland?  Will there be a real commitment from the Irish government to provide them with a forum in which they can continue to contribute while working and living across the globe? Perhaps some of those attending the conference – who have gone overseas and made theri mark – may feel that this is something in which we let them down or missed an opportunity.

Finally – I do hope that the conference will find room to involve some of the younger Irish about to go overseas or who went reasonably recently.  Their perspective is vital.

Looking forward to informed debate and creative, positive thinking.

Reblog this post [with Zemanta]

NAMA and the truth

Leave a reply

It’s at times like this one is glad to see the Courts in action.  At least we have some effort to argue both sides of the coin.  A good example from the Liam Carroll case is reported in today’s Irish Times: ‘Property market may take decae to recover, court told‘.

The propaganda machine is in full flow in the media – rightly the government is using all its assets to push the line it believes is correct for Ireland Inc.  The alternatives have not been well served by a blunder by Richard Bruton, the apparent lack of enthusiam from Oppostion benches for the ‘good bank’, the much publicised views of FG‘s elder statesman and acknowledged expert, Garret Fitzgerald, the timing of IMF contributions to the debate.

It’s interesting.  As consultants we are always tempted to say to the client’ trust me’.  Generally we cannot do this until we have worked with the client and proven ourselves over a number of months or years. Here is a government very well known to us – and does ‘trust us’ work?

I think the current debate in the Courts is very welcome – with two sides required to put forward their arguments in a structured and fair way.

Looking forward to seeing how this plays out – while continuing to try to filter the other propaganda from all sides.

Reblog this post [with Zemanta]

Ireland – continuing to play our part on the world stage

2 Replies

In my working life (25 years since graduating from engineering school in Trinity College) I have never before experienced the challenges now seen in Ireland. At the time I commenced my training contract in KPMG (then SKC) in 1984 I recall many recently qualified accountants being very concerned for their future. In 2000/2001 – three years into running our own consulting company (www.ciall.com) we faced real challenges in the post ‘.com’ dip. Today’s challenges are on a different scale.

During those 25 years Irish people have been to the fore in international affairs – be it commerce, arts, politics, education, charity. And by Irish people I refer to the 70 million or so who make up the global Irish population – including the 5 million or so on this island.

There must be a temptation within the international community to look at us – on the island of Ireland – as having had the benefit of major inward investment and squandered it. Part of facing our challenge now is to continue to take our place on the world stage. Those of us living and operating within the island of Ireland need to continue to play our part. There is a quid pro quo for looking to the greater diaspora and to Europe for further assistance and investment – we must play our part. We cannot simply get out the begging bowl. We are an established country and we’ve made some major mistakes, much of them rooted in greed. The most recent budget was the first step in convincing the international community that we are going to address our issues. The next budget must show real conviction about getting our cost base sorted.

Dan O’Brien’s article in the Irish Times is pretty hard hitting. He questions the calibre of the people representing Ireland in international affairs. He questions the effort made by the main political parties in the run up to the first referendum and their current effort in the runup to the second referendum. It does not make for pretty reading – but is deserving of reflection.

The next few years are going to witness more largescale emigration of talent from Ireland – without a doubt. Just for now the emigration options look limited – but given the changes we are beginning to see in overseas locations those opportunities will arise again. Many young talented Irish will choose to work and live overseas – not interested in staying to pay high taxes to pay off the sins of the past. A political system which is unwilling to cut overhead to match income will not provide the economic and social opportunites for many of our young talented people. Depressing though this may be, it will happen.

So let us at least recognise that this will happen – and that we need to play our part. Let’s make an effort to make it easier for international companies and individuals to interact with us. I had recent experience of an overseas student (seond generation Irish – US based) relocating here for 1 term of his undergraduate degree. He contacted the university – they advised him to come 4 weeks early and sort out his own accomodation. Given the level of fees we charge overseas students for this privilege I think this is a simple example of what’s wrong with this country at present.

Let’s make sure that the talent that goes abroad wants to continue to be part of Ireland – although they may never actually relocate to live here again. Let’s figure out a way to have them continue to be involved in the development of this country. Some of them may never contribute to our income tax revenues – but some of them may, down the line, bring the next Dell, Intel or Boston Scientific to Ireland. I, for one, would like to have them continue to have a direct role in electing our government.

I would not underestimate the challenges faced by our political leaders at present. (Nor should they underestimate the challenges faced by those of us trying to drive the economy forward). It’s not an easy time to be striding the world stage and advising the rest of the world how to do it. Nevertheless we must have a voice, have a view and play ourt part. The future for Irish business is the world stage – building international and global businesses out of Ireland, building products and delivering services to the global business community. Our innovators and our future business leaders need Irish political leadership which participates and contributes on an international level.

The first step – ensure Lisbon success.

Reblog this post [with Zemanta]

Irish government to appoint a CTO?

Leave a reply

So the government published its paper: Knowledge Society Strategy: Technology Actions to Support the Smart Economy.

There is already plenty of comment – on twitter, in the blogs, on the news and there will be more over the next few days.  Comments ranging from ‘a lot of waffle’, ‘telling us what we already know’, ‘where’s the meat?’, etc.  But buried in the report are enough reference points to show where we’ve been making progress and where we’ve been falling behind.

When I read Friedman’s ‘The world is flat’, listing his concerns about the state of education, engineering in the US, I felt he could have been writing about Ireland.  Ironically he references Ireland as a country pulling itself up and leveraging the flatness of the world.  However the shortage of maths proficient secondary school leavers is a major concern and cannot be fixed over night.

The topics discussed in the paper are very worthy of attention – and do represent opportunities for Ireland Inc e.g. cloud, green data centres, networking.  Delighted to see reference to semantic web – not really that surprising after €25m of government investment.

I just picked out one small detail from the report (p45):

The Government should appoint a high level CTO with the authority to drive cultural change across the many departments and agencies.

I have commented previously on such appointments in the US – within the Obama administration.  I would strongly support such an initiative – though she/he will need plenty of support from Mssrs. Ryan and Lenihan.

Google and the books of the world

2 Replies

Commented previously on the copying of books by google – to make them available online (commercials not clear).  This continues to cause great concern across the globe – who should own/ censor all of this material?  Should a company have control of all this intellect and art?  Quinn Norton writes on the subject in last Friday’s Irish Times.

This is the sort of subject of real import which gets thrown up by the internet.   Good to see ongoing coverage in Technology section of the newspaper.  However this is far too important to be left to those interested in technology.  This requires debate amongst politicians, academics – assisted by technologists as may be relevant.  Easy for major developments of this type to go relatively uncovered in the times in which we live – given the economic difficulties dominating the agenda.

Is Latvia showing us the way?

Leave a reply

Today’s Irish Times report of cuts in Latvia – in state salaries, pensions and old age pensions for those still working paints a harrowing picture.  However we will not tax our way out of our own difficulties – no matter how much it may suit certain groups.

We’ve had significant tax increases.  We’re still waiting for the plans on cost cutting.  Media speculation is that the current government may struggle to bring in another tough budget (if they don’t and a replacement government doesn’t then the IMF will do it for us – god forbid).

Need a National Government – FF & FG – prmoting a structured plan for recovery over a three – five year time frame: pushing through radical reform on the cost side, not simply increasing taxation.

Positive feedback on Finance Minister Brian Lenihan

Leave a reply

It’s been a tough week on the homefront.  We’ve had the AGM’s for AIB and Irish Life & Permanent.  Very angry shareholders.  Directors facing the music.  And an additional €1.5bn privision by AIB.

However our Finance Minister has been out doing his stuff – on tour getting the Ireland message across.  Frank Millar assures us in today’s Irish Times that Lenihan has been well received and has demonstrated an indepth understanding of his brief.

I have heard plenty of objections to NAMA recently – developers, press, opposition parties.  In fact the head of the NTMA caused some concern by making it clear he does not have the resources to push forward with NAMA. Nationalisation of the banks has a great deal of logical appeal at this stage – if the State is to put in significant funding then the State should participate (proportionately) in the upside.

However the government cannot sit still – and needs to formulate and execute plans.  This feedback would at least indicate that we have someone in charge who can explain what they are trying to do – in direct confliect with much of what is reported in the dedia and suggested by opposition politicians.  I think all of this supports points previously made in this blog – there is a need for a National Agenda – preferably supported by a National Government.