Hot Water

November 24, 2014

Enda Kenny has landed himself in hot water again. Teachers will strike for a day on Dec 2 http://www.independent.ie/irish-news/education/logistical-nightmare-as-schools-must-open-while-teachers-strike-30768310.html to fight austerity cutbacks. Teachers will attempt to protect the current Junior Certificate examination and the right of the school children of Ireland to an unbiased and independent review of their course work at second level. It’s a cost government with an austerity driven agenda are not willing to pay.

There is an agenda to abolish independent state examinations at second level. Pretty soon government will be asking teachers to design their own curriculum and have students correct their own coursework. All who wish to protect the Irish examination system from an austerity driven agenda, should support teachers in their efforts to protect the Irish educational system to maintain standards and improve them rather than damaging them.

Irish Water mess deepens. Apparently the cost of installing meters was understated by €100ml or 25% over the original guesstimate. https://www.irishtimes.com/news/ireland/irish-news/irish-water-parent-company-defends-100m-extra-for-meters-1.2012959 This came by the usual route. Once taxpayers are on the hook, another 25-30% can be leached from them with no one to say BOO. Don’t ask to what extent consultants costing extra €86 ml were involved in that decision.

There was a time in this democracy when the an increase in vat imposed on children’s shoes would bring down a government. Hardly an eyebrow is raised at the billions shovelled to bondholders, millions to consultants, with the prospect of further billions to be leached from taxpayers by Irish Water.

Have a look at this and look fondly back at the time we had democracy and not Endocracy a la Enda Kenny.

http://www.irishstatutebook.ie/1997/en/act/pub/0029/

“LOCAL GOVERNMENT (FINANCIAL PROVISIONS) ACT, 1997

AN ACT TO ENABLE LOCAL AUTHORITIES TO ENJOY THE REVENUES FROM DUTIES CHARGED UNDER THE FINANCE (EXCISE DUTIES) (VEHICLES) ACT, 1952 , AND FROM DUTIES AND FEES CHARGED UNDER CERTAIN OTHER ENACTMENTS, TO REMOVE THE POWER OF LOCAL AUTHORITIES TO MAKE CHARGES FOR THE SUPPLY OF WATER FOR DOMESTIC PURPOSES OR FOR THE DISPOSAL OF DOMESTIC SEWAGE, TO ENABLE STEPS TO BE TAKEN FOR THE PURPOSE OF SECURING THE PROVISION BY LOCAL AUTHORITIES OF SERVICES IN A MORE ECONOMICAL AND EFFICIENT MANNER, TO OTHERWISE MAKE PROVISION IN RELATION TO LOCAL GOVERNMENT (IN PARTICULAR FOR THE PURPOSE OF ENSURING THAT THE REVENUES FROM DUTIES AND FEES AFORESAID ARE APPORTIONED AMONG LOCAL AUTHORITIES ON AN EQUITABLE AND FAIR BASIS) AND TO PROVIDE FOR RELATED MATTERS. [20th May, 1997]”

Is Irish Water illegal and can it be challenged in court under the above provision.

On December 10 we need 10 out of ten people in Ireland to come out and object to the scandalous mess of Irish Water. Its reckoned the cost of setting up Irish Water will take 10 years of charges without one penny spent of the required billions to fund infrastructural development, that’s just to pay for the quango and the cost of keeping the mess tipping over.

http://www.environ.ie/en/Publications/Environment/Water/FileDownLoad,38716,en.pdf

The funding model of Irish Water makes an interesting read. Irish Water will be funded not only by the water tax charges levied on taxpayers by regressive taxation forcing Joe Soap, unemployed, to pay the same charge on his home without a swimming pool, as that payable by Bono, a tax exile. But it will be funded by government taxpayers money.

” Government decided that it would provide annual operating funding to
Irish Water in 2015 and 2016 (“Operating Funding”)”

“The Minister for Finance has sought the approval
of the Government to provide such moneys to Irish Water and the Government decided that
it would provide an amount of equity in 2014 to Irish Water (“Capital Funding”)”

In order to borrow the billions required to develop the water infrastructure currently envisaged by Irish Water it must satisfy certain European requirements:

“In addition, the Government decision in relation to Capital Funding has been framed on the basis that the Capital Funding provided to Irish Water will be classified in Government accounts as an acquisition of equity (which would not impact on GGDeficit) as opposed to a capital transfer (which would impact on GGDeficit). This classification is only likely to be accepted by Eurostat if Irish Water is a market producer and the Government can show it is acting as a rational investor in providing the Capital Funding. If reasonable investment returns are not expected to be made then the investment will be considered as a capital transfer not an acquisition of equity.”

In today’s financial world where black is often termed to be white it’s not at all certain that Irish Water will fail the test to prove it a viable concern for European investment funding.

It is transparently obvious to this writer that given the back-end funding of Irish Water by way of both Capital Funding and Operating Funding and the cap on increases in water levy charges into 2015/16/17, that Irish Water by no means can deliver a ‘reasonable investment return’ without Enron accounting practices.

Neither this state nor Europe should invest in this awful mess. Europeans pay water charges and do not pay through the nose for water with their taxes. We pay for both through taxes and quangos….

Enda Kenny has holed Fine Gael under the water line with this Irish Water debacle. It will be interesting to observe what swimmers abandon ship from FG when the people march to voice their righteous indignation on December 10.

Ending with a smile:

Excellent water song by Phil Coulter here:

“Cool Clear Water”

http://www.rte.ie/radio1/countrywide/

 

Till again.

 

 

 

 

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