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.
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The news that many IT managers in Ireland make in excess of €100K per annum is not that surprising. I think the comment ‘Once again, when it comes to the true believers in the value of IT, Irish firms just aren’t at the races, no matter what the politically correct thing to say is.’ is an oversimplification.
From my experience Irish business managers are not unwilling to invest where they seem opportunity. And this willingness to invest includes IT assets – including IT people. I would suggest that most of the failure is within the IT community – failing to sell the benefit of what it offers to business people. It’s too easy to suggest that Irish firms do not appreciate benefits of IT. In many cases the benefits have not been demonstrated – no matter what the politically correct thing to say is.
Finally, I think many IT managers in Ireland are worth at least 100K per annum.
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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.
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Today’s report in the Irish Times gives a reasonable summary of just how bad things are around Europe. We have made some serious errors in Ireland – but there is a major international dimension to this.
Was interested in listening to economist John Fitzgerald today. Even if we end up putting €20bn into rescuing our banks this number will pale into significance when we look at costs associated with government spending – be that public sector or unemplyment payments.
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How does a government lend €3.5Bn to a Bank which is worth €300m and not take control? Last week we saw the appointment of a new CEO at Bank of Ireland. Obviously he was seen within the Bnk as the best man for the job – and he may well be. But the Bank is in business because the taxpayer through the governmen has lent it €3.5Bn, having previously guaranteed its operations. Time to get real – these are now state businesses – and the government needs to start behaving as if it has taken charge. Anyone being announced as new CEO must have the full backing of the government.
Interesting when you read
Paul Krugman in the NY Times – also frustrated at behaviour of US government and its dealings with banks in US. They talk a big game but not walking the talk.
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Writing in Fortune, Feb 16th, Allan Sloan’s article,
‘Geithner’s Redemption’ rings bells in the context of Ireland. Sloan focuses on the mess that has been made of Citi and Bank of America – requiring a €90bn government bailout. He references concerns that the banks will not seek to lend to business at a lower return than the 5-8% they are required to pay on the government preference stock. He argues stongly for conversion to common stock – with the government acquiring controlling interests in both banks.
In Ireland the government has nationalised Anglo Irish – when there seemed only one other choice: to let it go under (with all that would entail). For now the government has followed the recapitalisation route (via preference shares) in respect of the two main banks – AIB and BoI. Any number of commentators seem to expect that there will be a requirement for further funding – notwithstanding that there may be some merit to a phased, careful, approach (has any other country actually worked out the right solution yet?). But eventual government ownership may be the outcome. Sloan would argue: ‘The dilution (of the common stockholders) would inflict pain in the right places – institutional shareholders – and perhaps cause them to police their investees in the future’.
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