Taoiseach Answers Our Questions

Image via Wikipedia

Well, Brian Cowen did answer some of the questions posed by the public to him in his online Q&A, try and keep your eyes open during the video's. I think that is the harder task, I didn't realise he was that boring, and people give out to me that Enda is boring (he is but Cowen is worse in these videos). And if you are wondering, he didn't answer my "loaded" question. The videos are all below.

Welcome and Thanks


The Economy


The Pension Levy


The Political Situation


The Smart Economy


Are you still awake? Fair play? I wonder will they try this again?

Related articles by Zemanta

• Why was Brian Cowen unopposed for FF leader? (politics.ie)
• FF split on joining ELDR?? (stephenspillane.blogspot.com)
• Is the Government planning an election? (irishelection.com)
• Brian Cowen and the Árd Fheis (politics.ie)

Ask Brian Cowen!

Image via Wikipedia

So Ireland, and mainly Fianna Fail, is on its way to following the UK the US into Web 2.0 land. Brian Cowen will be answering questions posed to him. I suggest that he actually starts answering questions in the Dáil first then answer our questions. But anyway, you can ask questions here, I have an awful feeling that my question wont be answered, as it will be a scripted affair with all the nice questions being asked.

My question is

When will the Government admit they made a mistake in nationalising Anglo Irish Bank considering the investigation and raids by Gardaí?

I wonder how it will go...

Related articles by Zemanta

• Brian Cowen sends me an email (mulley.net)

Leave My Bank Alone!

Since the Government brought in its guarantee scheme under which it can force mergers, there has been talks of consolidation in the baking sector. Their has also been talks that the only two major banks that will be left will Bank of Ireland and AIB. I personally hope not.

I have been a customer of Permanent TSB (and TSB before that) for as long as I can remember and I must say the service there is excellent. I have never had an issue with them. They also are not exposed as much as BOI and AIB to bad debts from developers. So I was delighted to read a post over on Turbulence Ahead which points out the folly of merging to many banks in our sector. He points to an interview with Nassim Nicholas Taleb (embed below). In the interview he points out difference between big banks and small banks and the importance of diversity in the banking sector as when banks "fails then it isn't catastrophic for the rest of the system." I have to agree with Gerard when he says "we need to let weaker banks fail - though protecting savers - whilst maintaining low barriers to entry for new banks to ensure diversity: and less vulnerability to shocks."

There is room for some consolidation in the way the EBS and Irish Nationwide could be merged with one of the major players in the market without losing too much of the diversity in the system. According to finfacts.ie there are 14 commercial banks in Ireland. So the loss of two banks through merger or acquisition will still leave us with a healthy banking sector that would be able to absorb shocks. Exactly what we need.

"Government has finally woken up to the scale of the crisis facing the economy"

Via The Angry Hedgehog and Breakingnews.ie

So we are going to have an early budget. October 14th to be exact. Is Brian Lenihan going to take a different tack to Darling in the UK (BBC Link) and actually try to talk positive about the economy and by doing three things that Fine Gael have outlined that will help the economy?

- Cutting waste
- Cutting tax
- And promoting substantive reform across the public sector

In ists statement the Government finally admitted our over dependence on the Construction industry which has been long evident to economists and non-expert alike!

Domestically we are also faced with a contracting construction

sector which is suppressing economic growth rates and a rising cost base is

eroding Ireland’s competitiveness. In addition, the slowdown has resulted

in a rapid deterioration in the public finances and falling consumer

confidence.

Fine Gael TD and Party Spokesperson on Finance, Richard Bruton, was quick off the mark to criticise the Governments slow reaction to the budget crisis.

The Government has finally woken up to the scale of the crisis facing the economy. This week's Exchequer figures and the unprecedented rise in the live register has prompted a belated response from Fianna Fáil. But the Government has squandered valuable time and sabotaged Ireland's ability to weather the economic downturn.

Even still, we will wait a further six weeks before we see any concrete proposals. The fear remains that this announcement is about filling a publicity cycle and is not based on a clear strategy. It remains to be seen whether this crisis Budget is about tax increases for families and businesses in the short-term and cuts in frontline services early next January.

We can only hope that the Government has a clear plan of action to rescue the economy, and is not hoping for a flash of inspiration between now and the Budget. Without a definite strategy, Fianna Fáil is likely to foist emergency tax measures on the public come October. Many of these will be stealth taxes which will hit the vulnerable members of society the hardest.

Fianna Fáil only has itself to blame for this debacle. Fine Gael has been warning for years that the Government's over-reliance on a debt-fuelled housing boom was unsustainable. Time and again I highlighted the risks inherent in Brian Cowen's economic strategy. As far back as 2005, the IMF and OECD issued stern warnings about the dangers that Brian Cowen's Budgets would overheat the property market and expose the economy to recession. They were comprehensively ignored.

So an early budget is a novel approach and alot better approach then a stamp duty holiday which is the route been taking by the UK which is a tried and failed method highted by Guido.

I wonder what intiatives they will come up with?

Ditching The Euro

David McWilliams had an interesting column in yesterdays indo. While he is on the right track on what caused the economic downturn we are now facing

In economic history, no sovereign country has faced a property downturn, inspired by a ridiculous credit binge, resulting in such huge personal debts without devaluing its currency.

Look at what is happening in the UK and the US. Both countries find themselves in the same bind as we do. They thought that they could get rich by buying and selling houses to each other using other people's money.

But the idea that we ditch the euro? How much will that cost us?

Businesses will not be for this, they are the ones that will have to change signage, equipment etc. But also the government will have to print a new currency and all the things like that. Its just not economically feasible to spend money on a new currency when we have only had the current one for a (comparable) short period of time.

Germany has lived out a recession that has lasted over 10 years and now Germany is quickly becoming (again) the economic powerhouse of Europe. We will have to weather it out. Our business will have to take "the recession on the chin", just like Germany did.

While I agree that the Euro is a part of the problem it is something we will have to stick with. It will keep us competitive vs the UK, in terms of dealing with the continent.

While I dont know much about economics, (Its one of the reasons I flunked College) I dont see how ditching it will help us!

Morning Briefing, 11th January

Cisco Systems are sueing apple over the use of the word iPhone which Cisco claim they have trademeakeed it. (BBC)

Debris has been found belonging to the missing Indonesian airlibne, which has been missing since January 1st (BBC)

The Oil crisis between Belarus and Russia has been sorted! phew! (BBC)

Cocaine has been found on 100% of Irish banknotes! wooo! we're all drugusers!!!! :P (BBC)

Vietnam has become the 150th member of the World Trade Organisation, showing its commitment to world trade. (CNN)

Britain will send no more troops to Iraq (CNN), unlikeAmerica who plans to send even more as bush says there are 'not enough' troops (CNN)

Pressure groups give mixed reaction to Budget measures

Pressure groups working in a range of areas have given a mixed reaction to the Budget measures announced by Minister for Finance Brian Cowen yesterday.

The National Women's Council and the One Family support group for single parents both say they are unhappy with the lack of measures to make childcare more affordable.

Elsewhere, groups representing the elderly say they are disappointed with the increase in the old-age pension.

The Society of St Vincent de Paul has welcomed the pension increases, but says it is unhappy with the €4 increase in the fuel allowance for older people and low-income families.

The housing organisation Threshold has said an increase of €30 per year in the tax allowance for people renting their home is derisory and insulting given the high rents across the country.

The Irish Patients Association has also criticised the 25% increase in the cost of staying in a public hospital bed, saying it will push up insurance premiums by 5% to 6%.

The Irish Farmers Association says changes to stamp duty on farm land and support for bio-fuel crop growers make this year's Budget a positive one for its members.

The Irish Medical Organisation has welcomed the increase of 50c in the price of 20 cigarettes and the removal of cigarettes from the Consumer Price Index.

Elsewhere, business groups say they are worried that the significant increase in government spending runs the risk of fuelling inflation and the lack of measures to tackle energy costs.

However, they have welcomed provisions to encourage private investment in small businesses and changes in research and development tax credits.

The Irish Congress of Trade Unions, meanwhile, has welcomed moves to remove people on the minimum wage from the tax net, but says Mr Cowen should have done more to adjust tax credits and tax bands instead of reducing the higher rate of tax.

Tax experts say the changes that were introduced favour higher income earners and people on the average industrial wage will not be much better off as a result of the Budget.

Source: BudgetForum.com

FG Budget Reaction Part 2

Renewable energy not high enough on Cowen's agenda - Durkan

Today's Budget barely paid lip service to the need to end Ireland's unsustainable dependence on foreign oil and will do little or nothing to help Ireland meet its Kyoto commitments according to Bernard Durkan TD, Fine Gael Spokesperson on Communications and Natural Resources.

'Thanks to the lack of any political will from the Government Ireland's CO2 emissions have risen by twice the allowable level under the Kyoto protocol since 1990. As a result, we now have to engage in expensive carbon emission trading while remaining one of the highest oil-importing countries in the world.

'I welcome the Government's take up of Fine Gael's policy to reform Vehicle Registration Tax (VRT) through a system of energy efficiency labelling for vehicles but why is Minister Cowen delaying the implementation of this reform until 2008?

'This Government is clearly running out of steam and running out of ideas when it comes to renewable energy. The structures currently in place to promote the growth of bio fuels are minimal and the Government has failed to exploit our potential for renewable energy. They have failed to make the blending of fuels compulsory. If the Government was serious about renewables they would have put in place legislation to ensure that bio fuel is blended into petrol, diesel and home heating oil.

'Had the Minister implemented this and Fine Gael's other proposals, as contained in our Energy For the Future document, real progress could have been made. Amongst our proposals are:

- Legislate to compel all fuel retailers to blend bio fuel into fuels such as petrol, diesel & home heating oil.

- Removal of all excise duty on bio fuels produced from renewable energy crops. In practice, this would mean that producers would not have to pay excise duty on the bio-fuels, which they produce, with the knock-on effect being that consumers would enjoy cheaper fuel at the pump.

- An open public competition for Capital Start-up Grants for the establishment and operation of bio fuel processing plants.

- Require all public transport vehicles and public service vehicles to convert, where practical and feasible, to forms of bio fuel, whether in its pure form or in a blended form.

'The Minister's refusal to take on our proposals means our environment and our economy will suffer for another year.'

Nothing in Budget to get First-Time Buyers on property ladder – O’Dowd

Mortgage relief welcome but will be wiped out by tomorrow's interest rate increases

Today's announcement on Mortgage Interest Relief, while welcome, will be wiped out by the ECB's likely decision tomorrow to increase interest rates according to Fine Gael Environment Spokesman Fergus O'Dowd TD.

Deputy O'Dowd added that there is absolutely nothing in today's Budget to address the 'affordability gap' that is leaving thousands without a home and that not one single extra affordable house will be built as a result of what was announced today by Minister Cowen.

'The doubling of mortgage interest relief is welcome but once one looks past the Minister's soundbites the reality become clear. This increase represents €15 a week for first-time buyers and will be wiped out tomorrow by interest rate increases.

'This Government has failed to control runaway house prices - the price of a house in Dublin has gone from an average of €88,000 ten years ago to over €400,000 today and the ratio of disposable personal income to house prices now stands at an outrageous 11:1.

'That there is absolutely nothing to address these problems and help our young people get on the property ladder highlights the inability of this Government to implement meaningful reform and that it is fast running out of steam. Once again Part V of the Planning and Development Act - designed to provide 20 per cent social and affordable housing - has been ignored in the Budget.

'Having failed to convince the Minister, Fine Gael will now take its proposals to the people at the next election. Specifically, we will implement a three point plan for First Time Buyers that will:

- Reform Stamp Duty and increase the exemption threshold to at least &€400,000
- Frontload Mortgage Interest Relief to the first seven years of a mortgage to give new homeowners the help they need when they need it.
- Establish an SSIA-type saving scheme to help young people save for a deposit

'We will also end the practice of allowing developers hand over cash instead of providing desperately needed affordable housing. We will also offer incentives for those already in houses too big for their needs to trade-down.

'The Finance Minister had a real opportunity to radically reform the housing sector today but instead he showed absolutely no innovation, ignored first-time buyers trying to get on the ladder and provided existing young mortgage holders with a boost that will last all of 24 hours.'

Water charges unjust stealth tax caused by Govt under-funding - Naughten

Speech by Denis Naughten TD at IFA Meeting on Water Charges, Monday December 4th 2006.

Fine Gael Agriculture & Food Spokesman, Denis Naughten TD has branded water charges as a 'stealth tax' on food production and farm business, which will put huge financial pressure on many farm families.

Denis Naughten who was addressing an IFA meeting in Roscommon Town on behalf of the Fine Gael Party said this evening:

"Business, including many of our local food businesses and farmers are struggling to survive due to the high cost of energy and other input costs which have risen dramatically over the term of this Government and the proposed increase in water charges will threaten the viability of some operations.

"These increases come at a time when farm incomes have dropped significantly in recent years and the average farm family is operating at a loss of €75 each week. Water charges are even more discriminatory when it comes to farmers, many of whom would have a low usage of water but, due to farm fragmentation, will have to pay for a number of water meters.

"On average, in the West of Ireland, most farmers will require at least three meters, with 20% of farmers requiring five or more meters, given the number of farm parcels they own. It is unjust for Government on the one hand not to facilitate the reduction in farm fragmentation by failing to address the taxation system which taxes farmers at a rate of up to 29% and then impose a water charging structure which penalises farmers who have fragmented holdings.

"Government must get its act together and ensure that farmers are not discriminated against and are treated in a similar manner to all other businesses. The dramatic increase in water charges and the new pricing structure being proposed by local authorities is as a direct result of reduced funding from the Government, which has forced them to make up more of their budget from local taxes and charges.

"For 2007 alone the Minister for the Environment is only increasing the Local Government Budget by a measly 2% which will result in more stealth taxes being levied on households, business and farm families. Such an increase does not take into account the rate of inflation, implementation of the partnership agreement and its impact on salaries nor does it address the dramatic rise in input costs.

"Specifically in the water services area the funding which local authorities will receive in 2007 does not take into account rising wage costs, chemical costs or energy costs. On top of this the rate of payment from the Department of the Environment for domestic water supplies has not increased in order to cover the cost of providing this element of the public water supply. These deficits must be made up by local government and this will be achieved by significant increases in water charges to farmers and business.

"This is despite the fact that, according to the Government's own report, there will be a €1.5 billion shortfall by 2010 in local government funding. It is absolutely clear that the Government intends to continue their policy of taxing householders, businesses & farm families by stealth in order to make up the massive shortfall that this year's Budget will not come close to address.

"These new water charges will add to the burden on already hard pressed farmers and business people. It is inexcusable that a time of unprecedented national wealth- and such astonishing waste of public money on everything from PPARS to E-Voting- that Local Authorities are forced to pass on such charges.

"To make the situation even worse the Water Management and Rehabilitation Programme, including water conservation programme, under the National Development Plan, which should have funded the reduction in the scale of leakage on the water supply network hugely underperformed, with only 35% of expenditure actually allocated and drawn down. This is despite the cost-benefit analysis of such water conservation projects which found that these projects were almost invariably highly worthwhile.

"If this funding had been utilised then the scale of leakage from the water distribution network would have been significantly reduced and this would have avoided the situation whereby both farmers and business will have to not only pay for the water they use but the water that leaks from the distribution pipes before it comes near them at all.

"It is wrong for Government to force this stealth tax on business and farm families when this is solely due to Government incompetence. But again we have to pay for the gross mismanagement by this particular Government.

"Rural Water Investment in the NDP was also under funded with only 54% of the original target spent on the programme; part of this funding will have to come from farmers in the future.

"Fine Gael has consistently called on the Minister for the Environment, Heritage and Local Government to increase the funding available to councils so that farmers and local businesses are not forced to bear the burden of these charges.

"We also believe that rather than introducing and increasing stealth taxes the Government should collect the money which is owed to them in motor tax. Conservatively the Government estimates that over €40m in motor tax is unpaid every year. This funding would go a significant part of the way to address the under funding of councils throughout the country.

"It is equally unfair on farmers that the current Farm Waste Management Grants do not provide supports to help farmers deal with surplus waste water. It is a huge flaw of this grant scheme that it does not include funding for clean water storage tanks.

"Not only must farmers, in order to comply with the Nitrates Directive, foot the bill for such tanks, but the Department has failed to even provide farmers with a specification guidance document as to the required size of such tanks. But of course that would reduce the Government's overall take in stealth taxes. Once again this Government has created a problem and left farmers to clean up the mess.

"Furthermore, through the Government's water pricing policy, all new water schemes must come up with a significant amount of the funding from commercial water rates. In the past local authorities received 100% grant aid for capital works such as the upgrading of waters schemes and laying of water mains. However this has been reduced back to as little as 30% in some circumstance. This is hugely frustrating for farmers who, in many cases, do not benefit from such enhancements. The fact is that these costs will be passed directly on to the public through increased costs on services and food products.

"These new increased charges are caused by Government under-funding of local authorities and will lead to the privatisation of water supplies throughout the country. For many people in rural areas, who established and paid for water schemes, the fact that their investment will now be handed over to private companies is totally unacceptable".

"Fine Gael opposed the privatisation of water services when this law came before the Dáil but sadly, our local Government TD's supported such privatisation at that time.

"Fine Gael wants to ensure that farmers are not discriminated against due to farm fragmentation. We are also want water storage facilities included as part of the farm waste management grant which would help farmers reduce there overall liability for water charges.

"And we want proper funding for local authorities to cover the cost of running services, upgrading water schemes and detecting leaks."

Economy, Jobs and Prosperity Dependent on Transforming, Not Just Improving, Education - Kenny

"Quantum Leap" Needed in Education to Secure our Future Prospects

In Kerry today (Friday) the Fine Gael Leader, Enda Kenny, said that the future of our economy was dependent of transforming, not just improving our education system. He also said that he was very encouraged by the positive response of business leaders to his radical plan to make the lap-top the schoolbag of the future, by giving a personal computer to every student entering secondary school, within the lifetime of the new government.

Developing that, and other key proposals, in what his new vision for education in Ireland, Enda Kenny, stressed that the future of our economy, jobs and prosperity were all critically dependent, not just on improving education, but actually "transforming" it. "If we're serious about our economic future, there's no other way. We need a quantum leap in education, to secure our future in the knowledge economy. A business-as-usual approach will spell economic decline for the next generation."

Addressing concerns by teachers' unions on some aspects of his proposals, he said taking a huge leap in education would require new thinking and new attitudes on all sides.

"If we want the best possible future for Ireland, education can no longer be partisan. We will have to rise above the old, sectoral interests and instead, make education a national challenge, one which children, parents, teachers and a new government will meet - and this time - meet together. Because, we all share the same vision, the same ambition, the same goal."

Stressing the vital role of teachers in our society, he said - "This is about progress, performance and prosperity and no teacher wants to hold this country back."

"It's time for education to revolve around the child/pupil, not around outdated systems that worked well in the 20th century but had no place in the 21st. Ireland is lagging behind our EU counterparts in the number of days a child can learn at school, when you compare our 167 days with 180 in Austria, 190 in Canada, Finland and Norway and 220 days in Germany. The teaching profession faces an enormous challenge given the increased requirements expected to be delivered in the school day and year.

"With a child-centred system we would use a compelling trio of technology, investment and reform to:

- Transform standards of literacy and numeracy;
- Make our young people the most technology literate in the world;
- Create a child-centred, contemporary, world-class education system that would drive our economy, jobs and success in the future.

"We must make our children the most literate and numerate in the world. The biggest, single threat to our economy is the consistently poor standards of literacy and numeracy that haven't improved despite all the money spent. A child who cannot read is automatically excluded from the knowledge economy. One in three children in disadvantaged areas can barely read and write. Already, a quarter of Irish adults function at the lowest level of literacy. They have trouble filling out forms, helping children with homework, reading the dosage on a medicine bottle. We must tackle disadvantage to eradicate this, so we can move up the value chain and avoid economic disaster."

Partial energy price climb down indicates serious error of judgement by Govt and its trust in the Regulatory system - Durkan

"The recent partial climb down by the Regulator clearly indicates a serious error of judgement by the Government and its trust in the regulatory system," according to Bernard Durkan TD, Fine Gael Spokesperson on Communications and Natural Resources.

"The recent decision, announced this afternoon, which was flagged through various soft interviews in the past two weeks, is an admission that the original decision to increase gas and electricity prices was wrong, because it had no basis other than to enhance Government VAT returns.

"The approval for these massive price hikes, granted by the Regulator, was irresponsible particularly at a time when international energy price indicators were on a downward trend.

"I now call on the Government and the Minister to review the entire regulatory system, which appears to be at variance with logic, national and international rationale and is clearly intended to alleviate political embarrassment and damage to the economy.

"More seriously, this is a slick political attempt to increase gas and electricity prices beyond anything that is warranted and make it look like a price reduction."