Rebellion in Labour Party Might Suit Fine Gael

The Irish Government Coalition of Fine Gael and the Labour Party looks very unlikely to run its full term despite the insistence of the two Party leaders.



Rarely has a Political Party leader looked in so much peril of removal as does Eamon Gilmore at this moment. To the despair of his Labour Party colleagues it is their Party who are taking the lions’s share of the blame for the never-ending austerity measures that the current Government is imposing.

Never mind the fact that the policies now being implemented were first started by the previous Fianna Fail administration. Never mind the fact that Fine Gael is the largest Party in Dail Eireann (Irish Parliament) and should shoulder most of the blame. The electorate has focused most of its ire on the Labour Party who seem to have abandoned just about every one of the core values for which it once stood.

It must seem amazing to Fianna Fail supporters and Fine Gael supporters alike that the Labour Party, that which is supposed to represent the interests of the working classes and unemployed, the poorest and the down-trodden, could be part of a Government that has introduced such savage and wide-ranging cuts in public services and incredible increases in taxation.

That the Labour Party supports the introduction of a Property Tax will probably be the final nail in its coffin. Of course both Fine Gael and Labour claim that they have no choice with the Property Tax and that they must introduce the tax as part of the EU/IMF/ECB loans to keep the country going. If that does not work then they will point to Fianna Fail and blame them for all of the austerity being foisted on the hapless Irish public.

This tactic worked for a while but has now worn very thin. Fianna Fail has bounced back in the polls while the Labour Party has plunged downwards. The Party has now lost 5 T.D.’s (members of the Irish parliament), all of whom have left in disgust at the direction the Party is heading. MEP (Member of the European Parliament) Nessa Childers is the latest member to resign from Labour’s Parliamentary Party. The Labour Party candidate in the recent Meath by-election did not get even enough votes to secure the return of his election deposit! There is a public perception that the Labour Party leadership has sold out and the Party seems set to implode with rebellious factions fighting each other.

But does this suit Fine Gael?



The Fine Gael leader Enda Kenny has repeated his assertion that there will be no renegotiation of the ‘Programme for Government’ and that there will be no substantial reshuffle of his Cabinet. He is basically giving Labour no wriggle room whatsoever at precisely the moment when they are taking the flak for the severe policies the Fine Gael Government are implementing. That is pretty useful political cover!

If Labour left Government, as they must surely do in advance of any General Election, then Fine Gael would still have enough support to carry on, and, even if it did not, it could cut the smaller Party loose while attacking the policies of Fianna Fail and then the policies of their previous coalition partners.

A Fine Gael unencumbered and untainted by a link to a faltering Labour Party would certainly look more attractive to the Irish electorate than the current coalition Government does. Fine Gael will find a way to ditch Labour unless, as seems likely, Labour does it to itself.

The Labour Party is heading towards utter decimation.

by Michael Green
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Irish Football Team Suffer World Cup Setback

The prospect of the Irish football team lining out in Brazil for the 2014 World Cup hangs in the balance. A fine battling performance in Sweden to gain an unexpected 0-0 draw and a vital qualifying point was followed up by a 2-2 draw with Austria in the Aviva Stadium in Dublin.



It could have been so different. The young Irish team were a goal down within 11 minutes after a defensive mistake let in the Austrians who had dominated the early part of the game. Martin Harnik poked home the opening goal past the despairing dive of Irish keeper David Forde. The Irish team dug in and with the excellent Shane Long leading the attack got a lifeline with a penalty after an Austrian defender rashly chopped down Shane Long on the edge of the penalty box. A definite penalty that was expertly converted by Jonathan Walters. Long was unlucky not to score shortly after when his beautiful back-heel came back of the post. The Irish were in the ascendancy with the stadium erupting when Walters scored his second goal of the night, a header from a corner kick and right on the stroke of half-time.

The Austrians regrouped and started to dominate the game again in the second half. Ireland still threatened and might have had a third goal when the Austrian goalkeeper Heinza Lindner expertly prevented an own-goal from an Irish corner. Increasingly the Austrians gained the upper hand and it was with a sense of inevitability that they snatched a deserved equalizer deep into added time. Just seconds remained on the clock but the three points had been converted into just one with new questions abounding about the tactics employed by the Irish manager Giovanni Trapattoni.



No-one doubts the ‘gameness’ of these Irish lads and they are not without genuine footballing quality but against Austria they were let down by their Manager’s unwillingness to believe that they could do more than just cling on and defend their goal advantage. With the Austrians dominating it became clear that the Irish team needed midfield reinforcements while the substitution of Shane Long was baffling to say the least.

It is not over yet and if the Irish can produce an away performance against Austria and turn over the Swedes in Dublin then they may yet claim second place in the group and a play-off place.

At the moment this looks like a very tall order.

Group C – Current Standing
Germany - Played: 6 – Points: 16
Austria - Played: 5 – Points: 8
Sweden - Played: 4 – Points: 8
Ireland - Played: 5 – Points: 8

Lose Your Cable TV If You Want a Mortgage Write-Down

The issue of mortgage write-downs or ‘debt forgiveness’ has been a very thorny one in Ireland ever since the Irish banks effectively collapsed and were taken into state ownership. Thousands of home-owners lost their jobs at about the same time as the value of their property plunged. They found themselves in negative equity, preventing them from selling their now-devalued property and trapping them in apartment blocks and rural housing estates in a vicious circle that is hard to escape.

The realization that a certain level of mortgage write-downs would have to be granted was greeted with a mixture of despair by those who actually managed somehow to pay their mortgage and with an opportunistic ‘nod and a wink’ by those who are trying to ‘game the system’. There is anecdotal evidence that a certain number of home-owners are deliberately not paying their mortgage in anticipation of a deal being struck in the future. This is preventing write-downs being offered to the most deserving of cases, stalling the property market, trapping people in homes they cannot afford.

It is estimated that as many as 100,000 Irish mortgages are now in arrears of at least three months. It is inevitable that deals will have to be done with some if not many of these cases. The banks are unsurprisingly being very cagey. Where home-owners in arrears present themselves to the bank they are being offered longer terms, mortgage holidays, interest-only payments, split mortgages, etc., in an effort to give them some breathing space. For some, even these measures will not be enough.

The new Personal Insolvency Service has laid out a number of concessions that they expect from those desperate for a deal including:

* getting rid of a second car and even trading down to a lesser model of car
* an end to taking foreign holidays
* removal of certain Cable TV services including sports and movies packages
* removal of children from private schools
* ending of private health insurance
* any other obvious ‘unnecessary’ expense

The Personal Insolvency Service is part of the Government’s overhaul of the outdated bankruptcy laws in Ireland. Irish banks are expected to use the new rules and restrictions laid out by the Service in dealing with people seeking mortgage write-downs.

It is likely that these new measures may be tested in the Courts. The spectre of desperate families choosing between private education for their children and private health insurance over keeping their family in their home is likely to be loom large in the national consciousness and soon.

It is a battle that will likely get ever more bitter as the stark reality of a bank-imposed ‘austerity lifestyle’ hits home.

by Michael Green
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Blow to Economy as Tourists from Britain Desert Ireland

The number of visitors from Britain has fallen by as many as a Million visits since 2007 when 3.7 Million trips from Britain to Ireland were recorded.

Six short years ago Ireland was a very different place. The ‘Celtic Tiger’ still stalked the land although his days were numbered. A property market collapse and financial ruin were just around the corner. Britain suffered its own recession too but was spared the carnage caused by the banks that Ireland suffered. Against this backdrop it is perhaps no surprise that visitors from our closest neighbour have decided to opt for sunnier climes.

The Irish Hotels Federation (IHF) are doing everything they can to reverse the trend but are not helped by the high costs they face in running their businesses. Commercial Rates are effectively an extra big tax on their income. Many Hotels are also suffering negative equity in respect of the development of their Hotel property after the market collapsed in 2008. Consequently Hotel rates in 2012 were at their highest level since 2008 according to a Hotels.com survey.

Killarney at 101 euro per night was listed as the most expensive destination for Hotel rooms where the country averaged 90 euro per night. Irish Hoteliers are not at all happy with the survey though, claiming that the cost of rooms has been greatly reduced in recent years despite persistently high costs and that Ireland compares favourably to most other popular European destinations.

Tourism is vitally important to the Irish economy accounting for 5.3 Billion Euro in revenue and employing 11% of the entire workforce of the country.

by Michael Green
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Government ‘Divide & Conqueror’ Strategy to Test the Resolve of Public Sector Unions

A successor to the ‘Croke Park Agreement’ has been finalized that will see cuts of 1 Billion Euro from the Government pay bill. The deal includes pay cuts for all staff, and up to 10% for top-earners, additional hours of work at no extra pay, and reductions in allowances and premium payments.

As many as nine Unions have already indicated that they will not support the new deal and are recommending that their membership reject it. The consequences of being outside of the new arrangements are likely to make for a very difficult situation for the Unions. It is very likely that the Government will unilaterally reduce the pay of those staff who do sign up to the deal, a step that will almost certainly cause strikes.

The Government seems to be playing hardball this time around. The new proposals actually provide for some compensation to public servants in two years time in certain situations, but only to those Unions that sign up to the deal. Those staff who opt out will not receive the agreed compensation. Divide and conqueror seems to be the tactic.

Similarly the deal provides for zero compulsory redundancies for those Unions that sign up – a huge concession given the current unemployment rate of over 14%. Those left outside the umbrella of the agreement however will have no such comfort and may see compulsory redundancies implemented, on top of compulsory pay cuts.

The divisions in the Unions are becoming apparent. The huge Impact Union that represents over 63,000 public servants has recommended that the deal be accepted. The Irish Nurses and Midwives Organisation however is to recommend rejection of the deal to its 40,000 members. Similarly Teachers Unions have rejected the deal. Already a group representing Gardai, Nurses, Paramedics and Fire-Fighters, some 70,00 public servants, has been formed to co-ordinate its opposition to the deal.

The problem with the deal from a Union perspective is that it requires every public servant to take a pay cut. While this may seem reasonable in the case of a person earning over 65,000 euro per year it is a lot harder on lower paid civil and public servants, nurses and front-line staff, many of whom earn less than 30,000 euro annually.

Taoiseach Enda Kenny is determined that the cuts to pay and conditions have to me made:

“Implementing these savings by agreement with public service staff would be another big step on the road to economic recovery, and would send out a signal to the world that the Irish people are determined to fix our economic problems and restore the country to prosperity and full employment.”

It is ‘Game On’ with division, public protest and strikes inevitable.

by Michael Green
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Irish Government Finally Issues Apology to Magdalene Survivors

The Irish Government response to the release of the Report into the extent of Irish State involvement in the now infamous ‘Magdalene Laundries was very poor indeed.

Taoiseach Enda Kenny botched the response and unwittingly inflicted more stress and hardship on the victims. The easy and honorable thing to do would have been to immediately apologise to the victims of what were essentially State-Sponsored Labour camps.

Instead of apologising Enda Kenny decided that his Government needed more time to examine and consider the findings of the Report. Now, in respect of putting together a proper financial compensation package for the estimated 1000 still surviving women who were interred in these prisons, a considered approach is certainly appropriate. But quite why an immediate apology did not follow is a source of bafflement to just about everyone outside of the Taoiseach’s close circle of handlers and advisors and prompted severe media criticism.

The backlash had an effect. Enda Kenny finally stood up in Dail Eireann (the Irish Parliament) and apologized to the women, some of whom were in attendance:

“Therefore, I, as Taoiseach, on behalf of the State, the Government and our citizens, apologise unreservedly to all those women for the hurt done to them, and any stigma they suffered, as a result of the time they spent in a Magdalene Laundry”

The Government has also established a fund to provide compensation for the victims of the 10 Magdalene Laundries. Labour leader Eamon Gilmore criticized the four religious orders who ran the Laundries and called on them to help provide compensation for the women.

The apology does not mark the end of the investigation into the running of the Laundries but it is a starting point and hopefully will provide some measure of, if not closure then at least acknowledgment, for the women who suffered so badly in these most terrible of places.

by Michael Green
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Debt Deal for Ireland: A Step in the Right Direction?

The Irish debt deal did not reduce the amount owed by the country. Ireland still owes in the region of 125BN Euro – a staggering figure that will take decades to pay off. The new debt deal merely allows part of the debt to be paid off over a longer term.

This is not necessarily a bad thing if you are able to ignore the immorality of it. By pushing the debt repayments down the road to the year 2053 the current Government has essentially lumbered today’s toddlers with the task of paying their parents debts. On the other hand, the breathing space that will be created by not having to pay as much as 2BN Euro annually over the next 10 years has given the current generation the opportunity to create jobs and growth to repair the damage sooner.

Under the deal the Central Bank of Ireland swapped high-yielding ‘Promissory Notes’ for longer-term Government Bonds. The original deal was to cost over 3BN Euro annually for the next 10 years. The new deal sees a reduction in the interest rate from 8% to 3% and stretches the loan out to 40 years. This reduces the borrowing requirement of the Government in the short term which it is hoped will free up funds for job creation.

The response in Ireland to the news of the deal has been broadly welcoming although those opposed to the whole concept of the Government bailing out the banks to begin with used the opportunity to demand that a write-down of Irish banking debt be sought immediately.

The Fine Gael and Labour Party coalition Government made the point that the European Central Bank has never agreed to debt write-down before so it would have been pointless to even negotiate on that basis. The more militant of those opposing the Government want to see an immediate default on the debt to force the issue with the ECB, EU and IMF.

This may yet happen.

The level of debt being carried by Irish citizens and small businesses is reaching catastrophic proportions. Although the economy of the country has stabilised it is still quite dreadful. Unemployment in Ireland is stuck at over 14%, Irish emigration is at pre-Famine levels and job creation is barely perceptible. The gamble by Fine Gael that they can soldier on in the hope that the economy recovers may backfire under an avalanche of personal debt and mortgage defaults. In such a scenario a massive default on the loans granted to us by our European ‘partners’ will become a question of ‘when’ and ‘how much’ rather than ‘if’.

Against this backdrop the much vaunted ‘Promissory Note’ deal may become just another footnote in this bizarre period of Irish history.

by Michael Green
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Magdalene Laundries Abuses To Be Made Public

The Report by the Committee that was established to investigate the role that the Irish Government played in the abuses perpetuated in the notorious ‘Magdalene Laundries’ is to be published.



In the decades that followed the creation of the Irish Free State in 1922 and the Republic in 1948 the Catholic Church had tremendous influence in Ireland. It is only since the 1970′s that this influence has declined. Over the last two decades the litany of abuse carried out in institutions by religious orders and sponsored by the State has been graphically exposed. One such institution was the ‘Magdalene Laundry’ where young girls and women who had a child out of wedlock, or who were prostitutes, or who were even homeless, were basically interned.

The Laundries were state-sponsored workhouses. Although privately owned by religious orders they were subsidised by the Irish State for part of their existence. Thousands of women were forced to work in the Laundries which were run on a for-profit basis by several religious orders. The inmates were imbued with a sense of shame – their first names were changed and their surnames never used. They were often labelled as ‘Maggie’ by those of the public they encountered – a slang-word for a prostitute. It is both an amazing and damning fact that the final Laundry did not close until 1996. Located in Sean McDermott Street it is in the very heart of Dublin city centre.

The survivors of the Laundries – ‘Magdalene Survivors Together’ – have demanded that the Government finally issue an apology for the part it played in the abuse. The instigation of an appropriate compensation scheme is also the very least that can be done now. What compensation can their be for a life destroyed by these terrible places? Many did not even make it out the front gate. At least 988 women were buried within the grounds of the Laundries – likely many more died within the walls.

It is amazing that this new enquiry only took place after prompting from the United Nations Committee Against Torture in 2011. Perhaps now ‘Official Ireland’ will give these women some sense of justice.

RTE report highlighting the Magdalene survivors campaign:

The 2002 feature film ‘The Magdalene Sisters’ is available to view on YouTube:

by Michael Green
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Nurses Set To Claim Victory In Showdown With Government

The recent attempts by the Irish Government to recruit new nurses into the profession at 80% of the usual starting wage has backfired.



Nursing Unions have mounted a vocal campaign against the scheme which they regard as an insult to the work done by nursing staff on the front line of the health service. The Irish Health Service Executive (HSE) has been forced to extend the deadline for applications after interest in the jobs was reported as being very low. Should the HSE be forced to abandon the scheme all together it will be seen as a victory for the Unions whose members are increasingly being asked to work longer and harder for less and less pay.

Union leader Liam Doran was scathing of the HSE decision to extend the scheme:
‘The HSE decision also confirms that this was never an educational programme, nor an opportunity to consolidate learning, but was always an overt attempt to introduce cut-price, yellow-pack nursing posts into our health service.’

Under the Government proposals new nurses would earn 22,000 euro (approx 30,000 US$) compared to their colleagues who were recruited at 26,000 euro (approx 35,000 US$). The contracts were to last for only 2 years. The average industrial wage in Ireland in 2012 was just under 42,000 euro (57,000 US$) according to the Central Statistics Office.

By any measure these rates of pay would show nursing to be a very poorly paid job for highly trained graduates to take up in Ireland. Yet their work is crucial to just about every citizen of the country.

by Michael Green
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Irish Emigration At Highest Level Since The Famine

The tragedy of Irish emigration continues unabated. Over 46,500 Irish people emigrated from Ireland in the year up to April 2012. The rate of emigration is the highest in Ireland since the Great Famine in the middle of the nineteenth century.



The devastating recession and austerity measures being imposed in Ireland have made work very hard to come by. Unemployment remains above 14% in Ireland and at over 11% in the Eurozone. Little wonder then that so many Irish citizens are flocking to places like Canada, Australia and America.

More than half of the 6,350 working visas to Canada available to Irish people during 2013 have been taken up in the space of just a few days. Demand for the 2-year work-travel visas has been especially high as Canada is crying out for skilled workers in certain parts of the country. The high cost of living in Canada and particularly in the major cities such as Toronto and Vancouver has not put off the hordes of mostly younger Irish people who continue to escape from their recession-hit homeland.

by Michael Green
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