Who will be accountable when we discover, like in Iceland, that no global bogeyman was to blame for our banking collapse? asks ELAINE BYRNE in the IRISH TIMES 14 April 2010
THE SPECIAL investigation commission, established by the Icelandic parliament, published its nine-volume 2,300-page report yesterday into the causes of Iceland’s ecnomic collapse.
Will the terms of reference for the Irish Banking Inquirybe as wide as that of Iceland?
The Irish public does not have any such opportunity to engage in an inquiry which from the outset is perceived to lack legitimacy because of the decision to hold the investigation in private, unlike similar inquiries in the US and Britain. To that end, I have registered the domain name www.bankinginquiry.ie and perhaps the governor of the Central Bank, Patrick Honohan, would use it to ask the public what questions they believe should be asked, as was the case with the the Treasury Select Committee inBritain which held an inquiry to “identify lessons that can be learned form the banking crisis” and received more than 6,000 written questions from the public.
1. “ministers and representatives of government bodies passed the blame for failure to perform duties and no one assumed responsibility.” p.107
2. “When the banking system had become far too big, relative to the size of Icelandic economy, the governmental authorities needed to respond”
3. “The largest owners of all the big banks had abnormally easy access to credit at banks they owned, apparently in their capacity as owners”
4. “boundaries between interests of banks and interests of their largest shareholders were often fuzzy”
5. “The banks had invested their funds in their own shares.”
6. “the state’s budget policy nor its monetary policy adequately addressed economic fluctuations, overexpansion & growing imbalance in economy”
7. “authorities decided to lower taxes during an economic expansion period. This was done despite expert advice and even against better judgement of policy makers who made decision. This decision was highly reproachable “These (gov) decisions in fiscal and monetary management and others named in the report exacerbated the imbalance in the economy”
8. “The Icelandic banks thus lent substantial amounts while experiencing considerable liquidity problems at the same time.”
9. “the government’s actions concerning matters relating to the banks were unfocused when the situation became more dire”
10. “ministers focused too much on image crisis facing the financial institutions rather than obvious problem”
11. “the government did not act in harmony and overall leadership was lacking.”
12. “Shortly after collapse of banks in November 2008, an appraisal showed 40% of the booked value at the time when the banks collapsed.”
13. “[financial regulator] did not perform their duties adequately when auditing the financial statements of the financial corporations”
14. “both the parliament and the government lacked both the power and the courage to set reasonable limits to the financial system.”
15. “detailed criticisms and rebukes regarding government’s efforts during time leading up to collapse of the banks, may be found in the conclusions”
Loyalty to Fianna Fáil and its leader was Brian Lenihan snr’s lodestone. His son must take a new direction, writes ELAINE BYRNE in the IRISH TIMES April 27 2010
‘WILL THE Taoiseach indicate when the legislation on wandering horses will be introduced in the House?”
When Brian Lenihan made his first, rather unremarkable, Dáil contribution 14 years ago this month, he probably did not envisage the remarkable circumstances he currently finds himself in.
Acquaintances of the Minister for Finance describe him as singleminded. His absolute selfbelief is characterised by his own sense of defiant patriotism and resolute belief in his abilities to turn the corner of economic instability.
Labour is primarily an urban party and must make inroads in rural constituencies if it wants to succeed, writes ELAINE BYRNE in the IRISH TIMES April 20 2010
EAMON GILMORE is good at oratory. His “One Ireland” rhetoric at the Labour Party’s annual conference in Galway paid tribute to the hope of an Ireland defined by “employers and employees. Farmers and business people. Private sector and public sector”. It rhymed well with Barack Obama’s signature line – “There is no red state America; there is no blue state of America; there is the United States of America.”
But just how capable is the Labour Party in translating these nice sounding words into plausible actions?
Thank you for your kind invitation to speak to this 88th ASTI annual conferenceand for your patience over the next fifteen or so minutes.
As a former pupil of an ASTI school, Tullow Community School in County Carlow, I am especially proud to recite before you the motto of my alma mater which neatly encapsulates the ethos of my message today. Our motto was “to nurture the wellbeing of all so that they may grow in knowledge, conscience and compassion” sums up very well the spirit of educationalists and what they seek to achieve.
As the teacher union conferences get under way, more focus needs to be given to the future of Irish education, writes ELAINE BYRNE in the Irish Times APril 6, 2010
THE ANNUAL teacher union conferences are currently under way and much of the focus over the next week will centre on their response to the public service reform deal recently brokered at Croke Park.
The motions on the various programmes reflect deep concern among teachers about the security of their jobs, pay and pensions.
The cohesiveness of the trade union movement will also come under scrutiny given the growing crevices between the expectations of union leadership and membership from that negotiation process. Understandably, these issues will dominate internal debate at the various conferences.
RENEWING THE REPUBLIC: This series has shown a thirst for political reform coupled with an uncertainty about how to achieve it, writes ELAINE BYRNE in the Irish Times April 3 2010
ACCOMPANYING THIS series has been an image of our national flag, contorted at the centre by a knot. The narrative embarked upon by the various contributors over the last few weeks – the writers, theatre directors, poets, song writers, political scientists, retired public servants, former politicians and others – was the well-worn path of deep-rooted despondency mixed with flickers of optimism and even an unconventional suggestion that our country was in need of some mothering.
Of the 300 readers who contributed to the debate online, it was perhaps the very first reaction that set the tone for the rest of the series. According to Joseph Morgan, “There is a complete disconnect between the political elite and the people.”
Fear is the driving force behind the most significant day in the country’s recent economic history, writes ELAINE BYRNE in the Irish Times March 30, 3009
TODAY WILL be full of language that seeks to “once-and-for-all” draw lines in the sand. A public exhausted by financial fatigue will continue to be confused by the complexity of capital requirements, preference shares, ordinary equities and special purpose vehicles.
Brian Lenihan, the Financial Regulator and Nama representatives will dance with choreographed statements containing warnings of imminent Greek tragedy unless their policies are vigorously implemented.
When people are frightened and uncertain they want to emotionally believe in something, anything, that will make them feel safe and secure again. The power of fear is its ability to manipulate compliant deference to the powerful. When things are too big to understand we wilfully allow others to interpret them for us.
The culture of self-interested national interest, as defined by Fianna Fáil, has already thrown €4bn of taxpayers’ money at Anglo Irish Bank, writes ELAINE BYRNE in the Irish TImesMarch 23, 2010
FINE GAEL is a failed political entity when compared to similar political parties in western democracies. It has never held two consecutive terms. It has only possessed power for 19 of its 77-year existence. It has been out of government for a generation. This consistent failure to get elected has generated a fatalistic political mindset numbed by expectations of defeat. The Fine Gael mentality is to constantly look backwards to the foundation of the State to find justifications for its existence.
Although the party flirted with pragmatism, conservatism and liberalism over the years, underlining it all was an obsessive obligation to protect the institutions of the State. Its core value of loyalty to the State, and not the party, articulated as slavishly acting in the national interest, became a ball and chain around any political ambition. When push came to shove, Fianna Fáil could always rely on the polite charity of Fine Gael’s voluntary restraint.
Dr. Elaine Byrne is a weekly Irish Times columnist and adjutant lecturer on Irish politics in Trinity College Dublin. She writes on political reform, corruption, citizenship and Irish history. Her first book: Political Corruption in Ireland will be published by Manchester University Press in 2010.
