Tapping In

November 3, 2014

Consider the scenario, austerity, 20%+ income tapdrops plus hidden taxation charges for those who have employment over the past few years. Savage cuts in Education and Health; large reductions in the number of full-time jobs in the civil service. Reduced services for members of the public.

Profligacy in setting up quangos or unnecessary infrastructural projects, you would think, would be out of the question.

Lets say members of the troika suggest our water infrastructure is in a terrible state. We’ve known this for decades and refused even during Celtic tiger years to impose this cost on the population. It would make sense during austerity to thread carefully where angels fear to thread; to spend wisely and invest only in real and present improvements.

But a reflexively obedient and compliant regime are persuaded the best way to impress their betters is to immediately act upon their advice and impress them with immediate compliance. Irish Water is born.

IRISH Water will cost €180 million in total to establish itself, with €80 million of that going on outside consultants, the Joint Oireachtas Environment Committee has heard.

We have culled the civil service to the bone. We have decried the bureaucratic overhang of middle management in the civil service as a wasteful expense we may cull more ie in HSE.

But in the case of Irish Water we will create a quango of epic proportions throwing money everywhere on consultants, bonuses, duplicating a core capability that already existed within BordGais to run Irish Water. Quite incredible is the mess.

Tout à fait incroyable, we should be exporting water. Instead we can’t even supply ourselves with clean water…

The argument is put forward this organisation will be able to borrow the billions required to fix Ireland’s neglected water infrastructure. People are not foolish enough to believe if ever such sums were borrowed, super taxes would be required to pay this money back.

Perhaps our road infrastructure will be next. Instead of tolls, an annual charge to Irish Roads…

In a time of austerity, such a risky adventure imperilled through bad management, incomplete planning, without one leaky pipe plugged is recklessness that embodies deep incompetence, a government out of touch with the people it serves.

People would rather this money be spent on fixing their leaky pipes and contaminated group schemes.

An Taoiseach Enda Kenny, refusing to drop the daft notional mess of Irish Water threatens we must pay for it through direct charges or a 4% levy increase to the highest rate of income tax. Which end do you want it shoved. Gas and electricity have to be manufactured; water falls on us almost every day. They will soon try to tax the air we breath.

Mr Noonan, Minister for Finance, argues Irish Water under austerity must be paid for in much the same way we pay for our utility bills for gas and electricity. Irish people always understood we already paid for this water.

Blinkered by lack of prudence and servile compliance to narrow objectives that do not serve the public good, he has revealed a shallow lack of depth in grasping the essentials that should send Irish Water to the dustbin of bad ideas that come at the wrong time. Stupid is as stupid does.

Direct funding of improvements to the Irish water infrastructure can barely be afforded, without leaking funding to a poorly planned and slavish desire to impress those who manage this country from without.

Irish Water is but another example of how Irish taxpayers are being handed up on a plate to predatory financial interests. Min.Howlin & Noonan W. German Min.Wolfgang Schäuble sign B1Rk7FsCIAAFa4Zthe documentation to formalise release of funding for SBCI new German backed bank to provide cheaper loans to Irish SME’s (CF image above).

Its unfortunate this bank could not have provided the funding to the Irish Pillar Bank, IPTSB which recently failed European stress tests. Luckily for the Irish banks the stress scenario was built on the possibility of withstanding runs on the Irish banking system, not the reliability of its asset base contingent on austerity driven property boom phantoms driven by daft shortages staged to support the financial sector.

It’s clear our pillar banks risk regurgitation into predatory forms of the European investment bank. This may not be so bad if interest rates at Irish banks fail to compete with those from international competitors. SBCI is not to date a large investor in Irish Water…

If Irish political parties prove to be a liability rather than an asset to Irish taxpayers, the economic management council usurping the democratic rights of Irish people, may at some point be itself replaced with direct rule from Germany. In the same manner Irish banks are being usurped by deals from SBSI.

The democratic will of the Irish people has awakened and looks like preventing such moves.

The ruminant digestive system of the financial sector as it feeds on taxpayers has reached its nemesis in Irish water. MR Howlin, MR Kenny, MS Burton, MR Noonan, have proven portfolios in the management of Irish financial affairs more suited to the portfolio of a minister for tourism offering Irish taxpayers as sacrificial lambs to the international financial sector.

This blog had occasion recently to praise an interview by Marion Finoucane. “Marion Finucane in an excellent interview on her Saturday Show spoke with Olli Rehn former European Commissioner putting it to him that pressure was put on Ireland not to burn bondholders when it was discovered bondholders were from German and French banks.”

It’s sad to report she has reverted to true RTE form in her interview with Professor John Fitzgerald retiring from working in one of the country’s biggest economic think tanks – the ESRI – our Economic Social and Research Institute.

Besotted with undeclared admiration and simpering adulation of Fitzgerald’s ‘contribution to Ireland’ the simple exercise of comparison of ESRI’s economic forecasts for growth against actual outcomes, was ignored and a road not travelled or referred to. Neither was the ESRI’s contribution to Ireland’s economic downfall discussed.

Lack of insightful and critical exposure of Ireland’s actors in the financial world is the norm; they are not asked to give account. Hopefully the ESRI may be probed by Ireland’s banking inquiry should it even reach the light, but I wouldn’t hold a candle for that line of non PC questioning to emerge.

ESRI was held up on the show as a beacon of independence. Depending on its funding in the main from government contracts, such analogies are way inappropriate.

Perhaps Fitzgerald was using the show as a platform to quell the anger outside over water charges and people who know the difference between growth and decline. Or maybe he has his eye on promotion to the Central Bank.

Postscript:

From a shadow banking point of view, a lot of money has been created under Quantitive Easing, it has pumped up the stock market with inflated prices conjured out of thin year. While the real economy is slowing down, the share price index is ballooning out of control.

There is a need on behalf of banks and other investment institutions to pump vulture fund assets to safer harbours than the stock market.

What better place to pump money created out of air currently dead in banks and investment institutions, than into a national resource tapping into a rich commodity, such as water.

This investment money will be easily got by FG/LB to invest in Irish Water. However, the net result of this is the pilfering of Irish resources by external investment funds tapping into Irish taxpayer pockets. FG/LB are currently being groomed by these investment funds to be the vehicle by which Irish natural resources will be privatised and lost to Irish taxpayers.

We should not sell our natural resources at the drop of a hat. They belong to the Irish people and they should be protected for their use and development only.

If Irish water was properly commodified on behalf of Irish people using new technologies, it could yield an income for Irish taxpayers that would free taxpayers from the large investment cost in its development and maintenance.

FG/LB lack of vision and incompetence have led to the disastrous mess that is Irish Water today.

We should all Resist the loss of Irish natural resources flagged by the mess that is Irish Water.

Till again.

 

http://www.rte.ie/radio1/podcast/podcast_marianfinucane.xml (I wouldn’t bother…)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

l,

 

 

 

 

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3 Responses to “Tapping In”

  1. steve5odd said

    Reblogged this on eamonnodowd and commented:
    Excellent Blog

  2. steve5odd said

    This is a brilliant piece of writing, pity the established press are not so forthright….

  3. colmbrazel said

    Reblogged this on Colmbrazel's Blog and commented:

    Postscript added 05/11/14

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