Waste Water

November 8, 2014

Irish Water continues to play out and the more the saga continues the more it reads like a chapter from John Perkins, “Confessions of an Economic Hitman”, where billion dollar loans are pressed on a poor country that can ill afford them, allegedly to build up infrastructure, that will not be rewarded in increasing GDP.

Instead these loans serve to cripple the country and lead it to penury. https://www.youtube.com/watch?v=yTbdnNgqfs8

Irish Water hasn’t even presented a business plan apart from one to cover its bonus structure/salary and reward structure for future investors and present incumbents/consultants who feed off its “off-balance sheet trickery”.

http://www.investopedia.com/articles/investing/071513/understanding-offbalance-sheet-financing.asp

“For anyone who was invested in Enron, off-balance sheet (OBS) financing is a scary term. Off-balance sheet financing means a company does not include a liability on its balance sheet. It is an accounting term and impacts a company’s level of debt and liability.”

But if taxpayers and Irish SME’s on top of their increasing debt levels are massively loaded with further charges for more utilities, this will impact on the ability of Ireland to recover from its financial downfall. This already is the case with super small growth levels conjured out of little or nothing from a very low base compared to the height of the Irish economy. If these levels were standardised against previous growth levels, they would amount to nothing.

Partnerships are another common OBS financing item, and this is the way Enron hid its liabilities. When a company engages in a partnership, even if the company has a controlling interest, it does not have to show the partnership’s liabilities on its balance sheet, again resulting in a cleaner balance sheet.”

Irish Water with its cost overruns and potential liabilities that have horrified the Irish public should have been scrapped as a reckless piece of nonsense at the outset. Clearly the Irish public are far more aware of the risks and their potential and real liabilities, than the current Irish government who need to scrap Irish Water to the same scrap yard as the Irish electronic voting machines were sent.

A small team of individuals drawn out of the expertise delivering water throughout the 26 counties, could easily improve our current system delivering cost-effective plans fixing real pipes for the development of infrastructure in the medium to long-term. Without the mess we have now.

No amount of sugar-coating of Irish Water pills will prevent the wipe out next election of those who continue to plug Irish Water as a going concern.

Government need to be held to account for the exposure of the Irish public to the risks posed by off-balance sheet accounting. Clearly OBA may take Irish water off the tax books, but water charge bills are another form of tax, to pay in this instance for setting up a wasteful quango without even a business plan; a hair brained notion of borrowing further billions in liability for Irish taxpayers.

What regulatory oversight has been mooted upon which will be decided the development and purpose of borrowings on behalf of Irish Water?

Is Irish Water in its present state incubating an Irish Enron?

Will Irish water collect tax from city dwellers to pay for the correction of group scheme water supplies by broken septic tanks and poor practice and lax attitude by way of prosecutors?

Many more Q’s apply.

On Nov 13 Russell Brand posted this video, kudos to him:

https://www.youtube.com/watch?v=nV7KojDB87o

Wow, the pickings are rich in salaries and bonuses for Irish Water:

310 staff total costing 15793179 comprised of 29 senior management at €100000 each, 127 senior staff at €70000, standard employee, 154 at €24000. Of course salaries are in excess of those given here.  Irishwater  xls guess sheet. Not given are salaries paid to private firms €86 million who havn’t as yet worked out what to charge for it.

Sympathies if your landlord comes after you to pay for his leaks. They won’t be paid for by Irish Water.

More here:

http://www.thejournal.ie/29-irish-water-staff-are-earning-over-e100000-1279724-Jan2014/

ECB Letters

http://www.rte.ie/news/2014/1106/657234-ecb-letter/

Mario Draghi has suggested ECB intervention was purely the result of a domestic crisis. The ECB it is suggested had no responsibility for Ireland’s financial collapse. The billions poured into Irish banks from the ECB obviously came from a financial drug lord with no concern for victims.

The Big Brother Orwellian content of those letters with their threatening tone is not the European Union people voted for. What we see is the metamorphosis of the EU into, “All for One and one for All”. ‘One’ being Germany and its banks with ECB acting as German doppelganger for the Bundestag.

However, instead of being forced into bailout as the media and Irish politicians would have us believe, we were led into bailout from within…Honahan leading the charge of the Light Brigade.

But the Light Brigade didn’t even charge, what we got instead was a Trojan Horse telling us we had no decision in the matter.

No fight was led by Irish politicians to defend the interests of Irish taxpayers. Blinkered by the EU, no questions asked?

Scorn was heaped on those who demanded bondholders burden share.

I wouldn’t presume a banking inquiry will unearth any such unpleasant truths, but we hope it will.

Till again.

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