Archive for category Politics
OK maybe I should expand on that a little.
All right, let’s break it down: Should Apple and Google pay more tax?
Should they pay that tax in Ireland?
Should they shite.
They ought to be paying the tax in – ooh, I don’t know – the countries where they actually owe the tax? The places where they did the work and made the profit. As opposed to giving it to us for letting them pretend they do their business here. Apple and Google are not the only examples of this of course, and I’m sure that they’re far from the most egregious. They do actually do some stuff here, unlike hundreds of companies that have their brass-effect plaques in the IFSC. But they are immensely profitable and we are helping them keep more of those profits for themselves. For a cut.
There is nothing fundamentally wrong with offering a slightly lower rate of corporate tax to attract business, especially if it’s a loss you’re willing to take in order to compensate for another disadvantage – a fairly peripheral location, for example. It could, and I’m sure it once did, attract people to do real business and create real employment here that they would not otherwise have.
But when the rates are so low that they tempt corporations to just start trucking money through the country, and when we provide them with “pro-business regulation” that doesn’t check excessively carefully to make sure all that money is really being made here, then we are stealing. It’s as simple as that. Those companies should be paying taxes to the people of other countries, but we’re taking it.
And ultimately, it does us no good. Just look. This easy-money attitude helped create a soufflé economy that grew and grew and grew until it wasn’t there. Some people made billions out of it of course, but all most of us have to show is debt, negative equity, unemployment.
To this we can add international pariah status. Did you not notice Eurovision?
So now we begin again. What if we try to rebuild the economy on radical principles – like proper regulation, reasonable taxation, and actual value?
- Apple pays tax rate of less than 2pc in Ireland (independent.ie)
- Apple disputes claims of tax avoidance (telegraph.co.uk)
- Apple tax row: Ireland says its tax regime is not to blame (guardian.co.uk)
- Apple’s Tim Cook gives evidence as questions raised over Irish tax rates (independent.ie)
Captured from Twitter:
Love it. It neatly captures the Catholic Church’s schizophrenic morality. Insinuating itself into public and private life, offering its creeplove salvation.
The “Sindo” by the way is the Sunday Independent newspaper. They like to run polls. I seem to have voted in one just now by clicking on a link in fact. At least it thanked me for voting – I still don’t know what the question was. So I wouldn’t give too much weight to the results, I don’t think 22% of people today would really prefer a woman to die than have an abortion.
I wish I could be sure though.
Somebody on the radio saying they’re going abroad to declare bankruptcy. A different holiday idea I suppose. Naturally others soon phoned in to object to this “moral hazard“, as the banks would like us to call it. It was wrong they said to walk away from your mortgaged home just because you owed more on it than it was worth.
That got me thinking about what debt actually means. Is there a moral obligation to repay?
Well of course there is. It’s a matter of trust, which is what morality is basically all about. If you’re in a business, you were given materials and help by your workers and suppliers. You are obliged to pay them so they in turn can pay their helpers and suppliers and so on. The wheels of the economy keep turning and everyone gets fed. A financial debt is a promise like any other.
However there is one important qualification. You are only indebted when and if you actually receive something.
The banks will argue of course that they gave you money when you signed that mortgage so you are obviously obliged to repay it, along with the agreed interest. But the thing is, did they actually give you money?
No. They never gave it to you, because they never had it to give to you.
I don’t mean they didn’t have it in their vaults; we all know that’s not how finance works. All loans are borrowed, when it comes down to it, from the future. They’re based on the reasonable prediction that most of the time they will be paid back in full and with interest. But when the banks decided instead to start making ludicrous loans for several times the value of the houses they were raised against, thereby further escalating the price of housing and so allowing them to offer even bigger loans, they knew that ultimately the whole thing had to blow up. The loans were fake. There was no money in the future to borrow from.
When the inevitable crash came the banks of course had a parachute: They were too big to fail – or so at least they managed to convince themselves. And with themselves convinced they had little trouble convincing the political parties they were going out with – who effectively promised that they would make this impossible future money somehow magically become real money.
Or to be precise, they promised that we would.
The money you seemed to get from the bank ultimately came therefore out of your own pocket. You were tricked into lending it to yourself so that they could take a cut. It’s immoral to stop repaying that? It’s probably immoral to keep going.
Besides, you will only be a little ahead of the crowd. It should come as no surprise that even with all of us working together we can’t actually afford to turn the banks’ lies into reality. The State itself is going to default at some point. That is as inevitable now as the property crash was. Our public debt is soon going to be 200% of GDP, and the harder we try to pay it the less we will be able to; we are being crushed in fact by the burden of trying. Actual people being crushed, by imagined money.
The sooner we all default the better.
It’s that time of year again. The time when I do my taxes. Yeah, I know it’s not the time you do your taxes, but it is the time I do mine. About six months late, on average.
Once again, we open the form all a-tremble, excited to see just how many wholly indecipherable questions – perhaps entire pages – they’ve added this time. It’s not so long since they re-formed the form for the self employed so that non-accountants could read it. Year on year since though, entropy has dripped back in. A clause here, a category there, and now about 90% of it doesn’t even seem to apply to me. I guess some people’s businesses must be very different from mine, making very different things.
Money, to name one.
At least the online version has asterisks to mark the required fields. I figure I can’t go too wrong if I just fill all those. Then I scan for places to put in expenses and allowances I can apply for. Did you know by the way that if you are getting any form of social welfare payment you are entitled to a PAYE tax credit on top of your normal tax free allowance? I have no idea why, I can only guess it’s because tax is deducted at source from welfare payments – in some sort of entirely notional way. Anyway, ours is not to reason why, ours is to remember to tick the box. It may come in useful if they disallow some of my larger expenses again.
Antique erotic netsuke are research materials, dammit.
While getting my tax affairs in order, I remembered that I’d received an email from the new Local Property Tax agency. We didn’t use to have any residence-based taxes in Ireland, a Fianna Fáil government abolished them one time in a spree of vote-buying. Now that another FF administration has driven the economy off a cliff we have to have them back – though of course it’s the parties now in power that get the blame for it. Political lesson: If you create the most mess, nobody asks you to clean up.
Anyway I hadn’t paid much attention to the email. It’s a tax for property owners and I don’t own any property, I just rent a small apartment in an old four-storey building in the middle of town. Reading it now though, I find that seemingly I do. According to “our records”, as the tax people put it – by which I think they mean a hat – I own the building. Not just the room I live in. The whole. Fucking. Building. Walls of solid stone four feet thick, older than the United States, a good restaurant downstairs. According to an official government agency, it is all mine.
I tell you one thing, I’m not paying any more rent.
It was strangely reminiscent of that military coup where the signal to attack was, of all things, the Portuguese entry in the Eurovision Song Contest. With coded announcements, the President snatched away from a diplomatic mission, an emergency all-night sitting of the house, and plenty apparently deliberate misinformation, “Project Red” saw Ireland taken over – though not by the military.
If you went by the news coverage, you might be forgiven (a special offer, today only) for thinking that we just escaped the jaws of disaster here. On the contrary – Ireland avoided an acute short-term problem by making an awful long-term commitment. A very, very, very long-term commitment. We were forced into it at what might be termed fiscal gunpoint.
On September 30th 2008 in the wake of the collapse of Lehman brothers in the US, the Irish government pledged to guarantee the banking industry here. Not just the banks’ deposits but all their liabilities – including the vast amounts they’d borrowed from banks overseas to fuel the country’s property speculation bubble. That figure turned out to be truly mind-boggling – over €400 billion. That is more, even after inflation, then all of Germany was forced to pay in reparations after World War I.
You might fairly ask how the government of a small country could hope to come up with €400 billion. They couldn’t of course. It was a bluff, a confident front designed to ward off market chaos and speculation. But if you’re bluffing, you don’t bet the house. The government exposed the country to a liability that beggared belief. Indeed, beggared the lot of us.
It’s been argued in their defence that the industry lied to them, directly, about the scale of their liabilities. That’s true, but they knew damn well that there was something seriously wrong anyway. These banks had been making staggering profits for a decade mainly by lending people money on excessively easy terms, thereby boosting the price of housing, thereby creating demand for bigger loans… Banks had been enjoying a prolonged bonanza, but it was a bonanza of debt raised against assets that no one could seriously argue were not grossly overpriced.
Why had banks not simply raised the price of borrowing, to profit more from less lending – and at the same time moderate demand? Because there was no limit to the amount of money they had to offer. Other banks, in the US, the UK, but mainly in continental Europe, were lending them as much as they could shift. There was a global credit boom going on of course, there was an (originally) quite genuine boom in the Irish economy, and to cap all this there was no longer a national currency to wildly inflate and so damp things down as had happened in booms gone by. Ireland represents perhaps 1% of the Eurozone economy, so even incandescent levels of overheating here were not going to drive up the cost of money. Money was, as odd as this may sound, too cheap. Yet keeping inflation down was the main – indeed about the only – guiding principle of the European Central bank. It, or rather its political masters, chose to pursue a policy which might have been reasonable for the Eurozone as a whole, but which was utterly unsustainable for Ireland.
Some people, mainly politicians eager to share out their responsibility, have blamed the population for borrowing too much, as if economic meltdown is caused by sudden outbreaks of cupidity. Those who borrowed more than they should have did so in the main because banks were quite literally pushing money on them. Like many, I opened my post one morning to find I’d been approved for a loan I hadn’t asked for. Certainly far too many got into property, but the housing boom was not only driven by speculation. Another major factor was that thanks to all this cheap credit, house prices were rising far faster than incomes. People worried – not unreasonably – that if they didn’t buy a house soon they would never be able to afford one. Lenders fuelled the fear with the marketing image of the “property ladder”, the idea that if you wanted any chance of owning a good home in the future you needed to buy a bad one now. Many, many awful houses and apartments were sold – and even more built. The entire Irish banking industry had in effect become a Ponzi scheme, profitable only as long as there was new investment. When the market fell it fell like a lift with the cables cut. In doing so, it called the government’s bluff.
At which point they could and should have said “You got us. Of course we can’t possibly afford to pay that much money. Ever. It’s an insane figure.” And they would have been right of course, we can’t. Even after realising the assets of the collapsed banks and throwing in the national reserves, we’re still left something like 70 billion short. They even had an excellent excuse to renege on the guarantee when it came to light just how much these banks had been lying to them about their assets. They should have known better, sure, but officially they didn’t.
Unfortunately however government needed to pay more than just the billions in bank debt. This Ponzi scheme had essentially become the tax base. Not only was a lot of revenue raised on property sales, a simply ludicrous proportion of the population was by then employed in building buildings that no one would ever actually want but which existed solely to be traded on the bubble market. Without this income the exchequer couldn’t even keep public services going, pay doctors and teachers and police and pensions. But the fact that our economy looked to be (and indeed, was) on the point of collapse meant that the country couldn’t borrow cash on the market at anything approaching an affordable rate. The only institutions with both the money and the motivation to lend to us affordably were those of the Eurozone, the very ones who were to a large degree responsible for the collapse. In return, they held us to the untenable: The undertaking to pay back all the money our failed banks had borrowed to fuel the property bubble. The fear being that if we didn’t, the banks that lent to our failed banks would in turn fail, and so on.
So the Irish government’s gamble didn’t save our banking industry; virtually ever lending institution in the country (honourable exception: the Credit Union movement) went bust. But it probably stopped the European banking system going down like the world’s most expensive set of dominoes.
This is what really rankles. Instead of being punished by the market for poor – indeed, reckless and harmful – investment decisions, these institutions are going to be rewarded just as if they had made profitable decisions. They’ll probably give themselves bonuses. And these rewards will be paid not willingly by the market but unwillingly by the taxpayers of Ireland whose jobs and lives they so damaged. And the taxpayers’ children. And their children, if there’s anyone left here by then. Those of us who had the willpower to resist the easy credit have to reward them, just as if we’d taken it. Those who lost their homes because they could not afford the repayments to these institutions, still have to reward these institutions. Those who now own homes worth a fraction of what they owe on them but who are nevertheless still making repayments to these institutions, will see their taxes go to these institutions. The injustice of it is barely conceivable. Ireland is paying roughly 42% of the cost of Europe’s banking crisis. We can’t possibly do it of course. That’s why the Eurozone governments and ECB cut the deal that all the fuss has been about. To help us.
To help us pay back the money we didn’t borrow.
You may have seen the headline figure, that this is meant to save us €20 billion. Are they writing off some of the debt? No. On no account are we to even contemplate not paying any of that money. The twenty billion is just the difference between the “easy” interest we’ll get from them and a rate we might have paid otherwise. They’re giving us easy terms to repay the debt we don’t owe. Some deal.
This explains why we had to shut down the Irish Bank Resolution Corporation – formerly Anglo – literally overnight. While most of the bad debts of the various failed Irish institutions were still being held by this “zombie bank”, there lingered some remote possibility that a government would have the guts to say “Look, the state has no moral duty to pay back failed private investments. Goodnight.” We almost certainly would have negotiated a deal rather than just pulled the plug of course, but we had that bargaining chip. Instead we’ve cashed in our last chance for freedom. Whereas repudiating Anglo’s debts would not have been technically or morally a loan default – indeed, might have been seen favourably by the markets as the shedding of a liability – there is no way out of our commitment to the ECB. Short, that is, of crashing out of the Euro in flames.
So now we are committed to this vast payment. That still doesn’t mean we can pay it of course; indeed, attempting to will just drive us deeper into recession. We will inevitably default on this, as Germany defaulted on the onerous Versailles treaty terms. It will just be later rather than sooner. The only achievement will be a few more years – perhaps decades – spent impoverishing ourselves to enrich those irresponsible lenders.
The “deal” won yesterday was quite the opposite – a scared and desperate government buying time and in doing so, condemning their country to indefinite economic servitude. Death of the Republic would hardly be an exaggeration. Democracy is effectively suspended; the government we elected to overturn the errors of the last has repeated and even amplified them. We are being dictated to – not by the military, not by a despot, but by an industry.
- ECB, Ireland reach deal on promissory note – source (uk.reuters.com)
- Anglo Not Our Debt (notourdebt.ie)
- Paying For Our Banks A Recipe For Instability (independent.ie)
- … as Republic’s leaders say deal will help taxpayers (belfasttelegraph.co.uk)
It’s often remarked how little Irish people are protesting, despite the cruelty of the cutbacks and the blatant injustice of much of the debt foisted upon us. You could come up with a variety of deep psychological explanations for this, but in doing so you might be overlooking one major factor: The lousy coverage that public resistance gets in the mainstream media.
Case in point, the brave folk of the Ballyhea Bondholder Bailout Protest have been marching every Sunday for two years now. But even when they brought their protest to the ECB in Frankfurt (you’ll remember, I went with them) they hardly won a mention from the press or TV.
Until last Sunday! Finally, they got on RTÉ main evening news. Why now all of a sudden? I think I know: . Would’ve been more than a little embarrassing for the national broadcaster if a story from their own country went big internationally and they didn’t even have footage. got wind of it
You can see me there in the first few seconds. I’m on international TV! Don’t we look all brave in the January weather? In the Middle East they must think we’re downright superhuman.
But there are ways you can protest without risking pneumonia, with help of Contact.it. Yesterday a judge rejected a challenge to the legality of the government piping money directly from poor to rich, on the grounds that a private citizen does not (somehow) have the standing to take such a case. In his findings though, the judge did mention that a TD would.
So we’re looking for one brave TD. Contact.ie provide an email that will be sent to all of them, it’s just up to you to sign it. A suggested text is provided, but of course you can use your own.
Or you can use the one I wrote, which puts the case a little more starkly:
We need someone to take a stand. The lending bubble, and subsequent channelling of the nation’s remaining wealth to the very institutions responsible for it, has sent one message and one message only to the people of this country: That we exist, that we live and work, not for ourselves or for the ones we love but purely for the further enrichment of these institutions and their owners; that they now effectively control our lives – and control you, our supposed representatives – as surely as if we were goods or livestock. We are being owned.
We need to reassert the purpose – indeed the existence – of democratic government. For once, a single TD could make all the difference.
Help to stop the madness before the last of this country’s life is sucked away. You can send the letter here.
- Irish Town Resists Bailout Conditions (aljazeera.com)
- Over 300 Take Part In March Against Bailout (rte.ie)
- Anglo: Not Our Debt (notourdebt.ie)
- Fine Gael chief whip to “give a talking” to Peter Mathews for this speech (namawinelake.wordpress.com)
- “A milestone we never thought we’d see” – Week 100 in Ballyhea (namawinelake.wordpress.com)
- Deal or No Deal on Promissory Notes looks like No Deal (namawinelake.wordpress.com)
- Email Campaign: Dear Irish Government, stop defending the #Anglo Promissory Note – #NotOurDebt (contact.ie)
Are we not the sharpest-dressed protesters you have ever seen? We’re at the launch of a new commemorative coin – face value, €15 – an event we found more than ironic on the day that the Dáil debates a budget designed to exact from the poor the money promised by the rich to the rich. Unemployment benefit is being cut. Children’s allowance is being cut. Respite support for carers is being cut – this last so obscenely cruel to the vulnerable protectors of the even more vulnerable that I strongly suspect it was put in the budget just to make the other cuts seem politically acceptable.
All of this, basically so that we can make the latest €3.1 billion of payments to the people whose reckless lending destroyed our economy. Yes seriously, we continue to reward the rapacious, wilfully short-sighted, knowingly unsustainable lending that led to 2008. Though we cannot afford it, though we will never be able to pay back the enormous sums our banks went bust owing, we continue to try – by means of attacking the unemployed and impoverished. This is not the function and duty of a state.
Ours was a restrained, even polite protest today. The only real way to tell us from the people who were invited was that we wore less make-up. I’d come directly from an exam in project management. There my wearing a suit had been cause for comment, but I think it gave me a real psychological advantage. No one else did the management exam dressed like the manager.
Whether it was this or the intense preparation I put in, my least-favourite subject turned out be probably my best exam. If it had a fault it was that I spent more time than I really should have on a favourite question. This concerned people issues in “Agile programming”, a modern approach that requires the code-trolls to closely interact with clients and have interpersonal and presentational skills.
The people issues, they abound. I kept going back to the question to add another one I thought of.
And that, incidentally, concluded my first semester. What a short strange trip it’s been. That in six months I could end up actually enjoying questions of personnel management theory… It’s some change all right.
- Budget Attacks In Full (irishtimes.com)
Over four thousand women from Ireland are known to have obtained an abortion in England or Wales last year, a figure that probably under-represents the true numbers significantly. Why are they having abortions abroad and not here?
If you could sum it up in a single word, that word would be “hypocrisy”.
We have a hypocritical Constitutional ban that has the effect not of preventing abortion, but of making it someone else’s problem. It allows us to pretend it hardly happens at all, that we live by higher ideals. In fact, we live a lie.
And oddly, to an extent it is not even our own hypocrisy. The amendment was the result of a manipulative campaign coming largely from overseas, particularly the British organisation SPUC, that intended to make Ireland a showcase for Conservative Christian values. They wanted to prove it was possible, despite the examples of the US, UK and most of Western Europe, for abortion to be banned in a country where women had a vote.
Yes, a clear majority disapproved of abortion. They don’t necessarily approve of enforced birth either though. Irish people are no strangers to moral complexity and contradiction, and even if doctrinal absolutes came easy in those post-Papal-visit days they would not have stayed that way for long. But the amendment to the constitution stifled that moral debate by rendering it pointless.
It still stifles it. Even now we are hung up – insanely – on whether a danger of suicide constitutes a legitimate threat to the life of a pregnant woman. Of course suicidal feelings are a real threat to life, but some want to pretend the danger away in case it is used as a pretext to give abortions to those who merely want them.
This is all mad. Why are we trying to force women to give birth when, for whatever reason, they do not want to give birth? Only remorseless ideology produces such inhumane law.
Ah but the unborn are people, you can’t kill them!
Except they are not. That is just a religious doctrine, a philosophical view, forced into our Constitution to make hypocrites of all of us. Who is to say at what point human life begins? We could leave the decision to priests, to doctors or scientists. But I think instead we should leave it up to the woman who has to bring that life into the world.
Who else’s decision should it be?
- Abortion, X and the Eighth Amendment: why legislation isn’t enough. (considertheteacosy.wordpress.com)
- Ireland’s Abortion Law (i.doubt.it)
- Hundreds of Irish women forced to come to Britain for abortions (guardian.co.uk)
What James Reilly did was nothing special, just politics as usual. That’s precisely why he has to go. What passes for usual politics in this country is the whole problem. Politics as usual is what we threw Fianna Fáil out for.
James Reilly is our Minister for Health, in case you’re wondering. For the moment at least. And believe it or not, this has little or nothing to do with the Savita Halappanavar tragedy. There was a time when, as an actual doctor running the health service instead of a career politician, he seemed like a breath of fresh air. That chapter was brief, its ending a few months ago decidedly anticlimactic. His Labour party junior at the Department gave up, accusing him of manipulating health service priorities to bring investment and facilities to his own constituency. Documents released now appear to confirm this.
Is that not just the inevitable outcome of representative democracy? People expect their reps to bring back the goods. A little thumb on the scales.
No. A TD is not a warrior-champion, not a hunter. We’re sending them to Dublin to represent us there, not to loot it. Government tends to look away when a minister slips some spoils to the folks back home. It helps keep the seat safe at the next election. For ministers, it helps them keep their job and its lavish pay – not to mention its influence. Public money is diverted for their personal benefit in an only very slightly indirect way. In other words, it’s corruption. The sort of endemic, omnipresent corruption we used to mistake for normality.
But this is not a victimless crime. Favouring his own constituency disfavours the rest of the country. By taking a hospital from where it’s needed most to where it’s needed less he’s reducing someone’s chances of survival – and doing it for his own gain. Just like the worst sort of career politician.
We have had enough of this. He’s got to go.
- James Reilly Lies as he Distorts Reality (misebogland.wordpress.com)
- James Reilly backer owns controversial primary-care site (independent.ie)
- Fresh calls for Health Minister James Reilly to resign after latest ‘stroke politics’ revelations (irishcentral.com)