Jobs for the boys and girls!
April 17, 2022
“Nowadays, the rise of inequality in income distribution experienced in
the United States and Western Europe is rather alarming. If it deepens, the
participatory nature of their political regimes might jeopardise. The fall of what we
have called Roman middle class occurred in a relatively short period of time, less
than a century, although its effects were obvious earlier. Populism was the result of
the destruction of these middle classes. The effects of populism are not new; even
the Romans knew them well. These are the first symptoms of social and political
decomposition.”( The Decline of the Middle Class
and the Fall of the Roman Republic
Carlos Felipe Amunátegui Perelló
Université pontificale catholique du Chili )
Rome saw participatory democracy decline from “we could say that Roman population was divided into an elite that comprehended about one per cent of the population, a Middle class that accounted about 55–60% of population and have-nots that were between forty and forty five per cent of the total. These figures sound awfully familiar and are not very different
to the ones a modern democracy would put forward today.”
In the latter days of the Republic for various reasons the middle class declined to be approx 15% of the population of Rome wars such as the Punic Wars having placed excessive demands on Roman citizens unable to compete with the influx of foreign produce decimating their livelihoods; farms were seized by a Roman elite grown rich on foreign trade. Wealth had become more concentrated around the super rich 1% of the Roman population. Better quality came from food imported from abroad.
There are huge similarities with the EU of today. In Ireland the political elite under FF and FG and the Greens have made an alliance with the 1% increasing further the annihilation of the Middle Class. The destruction of wealth following World War 11 saw the wealth of the elite decimated to nothing. Adoption of the gold standard gave opportunity for the rise of a middle class where wealth and its prospects was based on education and enterprise and economic participation of the poor. The middle class could afford property. Wealth based on inheritance following World War 11 was destroyed through the destruction brought about by World War 11 .
Instead of the Favelas , rent to purchase schemes, rent only property building of today, Dublin saw in the 40’s and 50’s large housing schemes built for the new and growing middle class whose membership reached down to the poorest of the poor participating in a new wealth distribution empowered by their access to education and opportunities arising from that.
Today this democratisation of our economy has been replaced with a new drift towards totalitarianism with new alliances being made. Our political class has been replaced with a new administrative role appointed by an alliance forged between the 1% and the well paid political elite.
Michael Martin has about as much power to change our property laws as an Irish senator in Irelands Senate. Ministers have reduced powers comparable to powers allocated to members of the Irish Senate. They’ve an administrative role delegated to the administration and execution of decisions taken elesewhere.
The Tony Holohan/Robert Watt jobs for the boys is but the tip of the iceberg, if the fixer upper deal had gone through, it could potentially have cost taxpayers 2m eur annually for the next 10 yrs, it happens all the time.
Largely bureaucrats from the EU down now run the country with thousands on expensive committees charged with doing the minimum possible to keep the show on the road.
The status quo is a massive plutocracy, government for the wealthy, by the wealthy, by the wealthy.
Unpeel the onion layers right the way down from the European Central Bank, European Parliament, to the European Central Bank, to national and local government at the political level, right down to the civil service, appointments are made on the basis of who knows who; the status quo must be protected in a huge European led bureaucracy helping the rich become richer and the poor poorer.
People all across Europe not only yours truly are beginning to question if our politicians have any power left other than rubber stamp edicts from Europe.
As in most totalitarian societies, most everything is either grinding to a halt or failing miserably. Adding to this is the erosion of wealth itself caused by inflation.
Our housing crisis is a good example. Government response as weak as it was “Housing for All Strategy” is failing miserably and its not just by delays caused by Covid.
Helping keep the show on the road is a policy of high wages for public servants charged with keeping public expenditure as low as possible. We know they are kept busy mostly by the collection of taxing the poor rather than the rich. They are not busy expanding our numbers of hospital beds. Our one hospital project Our National Children’s hospital project, has proven to be a mess from start to finish. The most expensive site chosen for its location with rising costs of materials, shortage of labour, inflation is currently at estimated cost of 1.7bn and still rising.
Say goodbye to infrastructure development or better services in Health and Education.
The New climate Change economy also promises to be a massive failure. There are 2 companies currently registered to deliver the retrofitting of 100’s of thousands of homes in Ireland. Regulations governing the policing of this new economy do not exist. Expect to see 10’s of thousands in the changing variable of what it costs to retrofit your house, depending on which company you talk to.
Construction worker numbers that ought to be concentrated on delivering an increase in housing supply, plans are afoot to siphon off numbers to service poorly planned, poorly thought out, plans for retro fitting of Irish housing as if we didn’t have enough on our plates to build social houses
This is not Germany with regional committees of experts, estate agents, builders, craftsmen, licensing skilled workers and setting down allowed charges for work, regulation and licensing of builders, suppliers, etc. Instead its a free for all of poor standards and price gouging, a scenario that can only get worse.
Fuel for the mess in the deterioration of public services in Ireland comes with contribution of 10,000,000,000 eur flowing into the treasury from FDI Corporation tax. Not to mention the amount from taxation of the thousands of employees working for FDI.
Its a myth FDI needs us to be members of the EU; with global exports they do not only export into EU . Europe had its eyes on this Corporation tax but has probably abandoned proposed changes in the face of the realisation without it, Ireland’s debt burden canary in the mine, might not service its debt. We might bring the rest of Europe down with us.
Ukraine, growing inflation and a looming currency crisis envelope and make the above matters worse.
What we are left with is a growing dysfunctionality at the macro and microeconomic level.
Elephant in the room is INFLATION. Inflation more than anything else is evidence of the loosening hold of the present financial order. It can ruin the assets of both rich and poor leading a downward spiral end of which is the unravelling of the financial order itself.
Echoes of The Second Coming by WB Yeats
“Turning and turning in the widening gyre
The falcon cannot hear the falconer;
Things fall apart; the centre cannot hold;
Mere anarchy is loosed upon the world,
The blood-dimmed tide is loosed, and everywhere
The ceremony of innocence is drowned;
The best lack all conviction, while the worst
Are full of passionate intensity.”
Other social tensions exist such as the beginning of the disappearance of the middle class’s ability to share and own property its offspring unable to compete with the rich be they cuckoo funds or other. Inherited wealth, money from wealth abroad, cuckoo funds, buy everything available as the middle class sell off their property to the highest bidder. Jack and Jill Soap can no longer afford to start a family and build a home instead they join the increasing numbers joining our vassal and slave classes servicing rents they can barely afford.
This has echoes in the disappearance of the middle class back in Roman times.
https://en.wikipedia.org/wiki/Social_class_in_ancient_Rome
Global currency stability based on the dollar and the euro is beginning to fall apart. Prices for property in Ireland are at levels not seen since just before our last economic collapse in 2008.
But while taxation flows into our economy with poor outcomes for infrastructure development Ireland’s status quo is “austerity”. Austerity is not for administrative prefects such as Robert Watt on €298,000. You can be sure Slainte Care with its goal of a single health care system for all, will not be brought closer. Our private health care system for the rich will continue to prosper under his reign.
We need to pay interest on our massive and growing public debt of 250bn one of the highest per capita debts in the world mostly courtesy of our ill judged membership of the EU.
As we recognise the growing impotence and failure of our political system to respond to the needs of our population, we should look into a future for Ireland rescued from the cocooning suffocation of the EU
‘Right about here, we switched to generally acceptable accounting procedures.’
Unification of Ireland with Ireland a future member of a commonwealth of nations comprising of Nordic countries, England, Scotland and Wales is worthy of consideration. Sadly those with idealistic republican ideals in Sinn Fein view Europe as opportunity to promote the idea of a 32 county republican member of the EU. 32 County republican ideals are not in keeping with an EU drifting steadily to the right with increasing tendency to totalitarianism. There are increasing calls for a European army.
The IMF determine Fiscal space to be:
“(2)What is fiscal space? It can be defined as room in a government´s budget that allows it to provide resources for a desired purpose without jeopardizing the sustainability of its financial position or the stability of the economy. The idea is that fiscal space must exist or be created if extra resources are to be made available for worthwhile government spending. A government can create fiscal space by raising taxes, securing outside grants, cutting lower priority expenditure, borrowing resources (from citizens or foreign lenders), or borrowing from the banking system (and thereby expanding the money supply). But it must do this without compromising macroeconomic stability and fiscal sustainability—making sure that it has the capacity in the short term and the longer term to finance its desired expenditure programs as well as to service its debt.”
“Ireland is forecast to have the highest government debt per head of population in Europe this year, as the impact of Covid-19-related borrowings pushes the burden on each individual in the State up by almost €4,000 in 2021.
It means that, per capita, the Irish will shoulder a debt burden of almost €20,000 more than the EU average.
According to figures from the European Commission, Ireland is forecast to have total government debt of €241.6 billion for 2021, up by almost 10 per cent on 2020. When considered on a per-person basis, this means that the debt burden will be € 48,291 this year, the highest across the European Union and the UK.”
In one way that debt may work in our favour, its unlikely the EU will proceed in the short term with its plans to cull Irelands take of Corporation Tax windfall from our FDI sector. Taxes generated through sales of goods in other European countries get paid instead to us helping us balance our budget and pay our debt!
Accordingly, austerity raises its head when investment in housing and infrastructure are being considered. Lack of investment in housing, infrastructure, health and education is restricted and conditional upon our ability a) to service our debt, b) the amount of fiscal space, difference between our expenditure and our income, the current government parties are allowed to budget for cocooned by the strict determination of the European Central Bank and its regulatory system.
EU is not without its own internal dynamics and tensions evidenced in recent years with the rise of right wing parties across the EU currently echoed by the huge turnout for LE Penne in recent French Elections.
There is growing disillusionment with the EU not only in countries such as Hungary and Poland but also closer to the heart of Europe in Germany and France. Cost of fuel, rising inflation and dramatic increase in the cost of living highlight an economic reality that increasingly punishes the poor and favours the rich. Not everyone who is a critic of the EU is a member of the far right.
Many of us rue the day we joined the EU. Its Jobs for the Boys and Girls Central! Increasingly our membership has led to a democratic deficit with more and more the voices of the people of Ireland whether it comes to housing or infrastructure, not listened to.
A recent report from Irish Water that only 47 km of 496 km pipes laid as part of its 5 yr plan show the plan is already down the tubes.
Any hopes the housing crisis will be relieved will not be comforted by Darragh O Brien our housing minister recent statement that to respond to the refugee crisis, they will go further than their “Housing for All Strategy”. Suddenly our minister apparently has found ways to provide accommodation for Ukrainian refugees, he did not pursue for Ireland’s homeless!
If that was bad enough evidence of his incompetence there is even more evidence in the fact that its apparent to the rest of us new housing and services discovered by Darragh O’Brien that could have been earmarked to relieve our housing crisis will no longer be targeted for Irish homeless but instead will be directed to Ukrainian refugees.
I welcome Ukrainian refugees but I’m appalled at the lack of planning and confusion about their arrival here. Michael Martin and Darragh O Brien have a lot to answer for. Already 21,000 have arrived with over 200,000 planned for the next year. Present plans though there are a shortage of tents, is to house them in Sporting Halls, Community Centres on camping beds. We’ve yet to see Darragh’s plans rolled out for the expansion of our housing supply to include housing for refugees, though I believe consideration is being given to considering the leftovers of our ghost estates. Everything appears to point to a Green Light to a demographic nightmare led by Darragh O Brien and Michael Martin.
- There’s a difference between providing housing for Ukrainian refugees and providing housing for the Irish homeless and those who can’t afford exorbitant housing costs due to lack of supply. In the case of the homeless in Ireland, providing them with housing could significantly impact the cost of housing thus significantly reducing the profits of vulture funds and TD landlords profiteering on current housing shortages. Provided the cost of housing has gone down to affordable levels. Unfortunately, affordable levels means those who’ve purchased over the past number of years will find themselves in negative equity. The secret is out “unaffordable” has become the new normal. There is even speculation that a new tariff will be imposed in anticipation of the vast numbers of renters when they finally retire, finding themselves unable to pay their exorbitant rents.
Ukrainian refugees provide no significant threat to landlords. They do not have assets to compete on the open market with young Irish people looking for a home. Ukrainian refugees will be part of a cocooned direct provision service with limited citizens rights.
It’s a damning indictment of FF Housing for All strategy that we hear Minister Darragh ó Brien is able to tell us of measures beyond Housing for All he couldn’t implement for Ireland homeless never mind for those who can never help to get on the property ladder but who are instead condemned by FF/FG to be fodder for their single room apartment for rent cuckoo schemes or face homelessness or live at home with their parents until middle age!
According to Darragh Ó Brien there are already 21000 Ukrainians refugees here. Approximately 500 arriving per day. Last Saturday numbers were up to over 900. According to Darragh their needs will not compete with the needs of Ireland’s homeless. I’m guessing O’Brien believes the needs of Ireland’s homeless have already been provided for in his Housing for All strategy. How else could you make sense of his proposals to house up to 200000 Ukrainian refugees over the coming months. Let’s see at 500 per day that’s 15000 per month ramping up to 180000 up to this time next year probably 200000.
You would have to ask why his absurd planning for this event has not been initiated for Irish homeless people and those Irish people suffering the consequences of the Irish property mess. If you walk around the suburb I live in the only building work taking place is apartments for rent led by cuckoo funds. Most of these apartments are unsuitable for family living.
There are a number of realities to which this blog is addressed. One reality is contrived, virtual, built for public consumption propagated by politicians and government spokes people and largely echoed by the press and the official media led by RTE. This reality is bought by a significant number of people most of whom are wealthy and have done well out of Ireland’s economy. The number includes property investment funds, landlords and those on large salaries. They are the “Haves” not the “Have Nots” who’ve not done well out of Irelands economy in recent years.
Throughout Europe the number of “Have Nots” is on the increase as wealth concentrates around the “Haves” with greater numbers feeling themselves disenfranchised than ever before. In Ireland “The Maastricht Treaty proposal was defeated by 53.4% to 46.6%, with a turnout of 53.1%. Ireland was the only EU member state that held public referendums on the Treaty”. We voted against NICE. Politicians voting for jobs for the boys and girls aided by a propaganda machine second to none, decided not to listen to the people.
But we are where we are! Politicians now argue there is no descent into chaos either socially or economically, that we never had it so good!.
This current blog is addressed to the Have Nots who’ve little support in the media. There is a case examine the case for the view Ireland is on a precipitous descent into chaos fuelled by a largely artificial, virtual economy sustained by FDI Corporation Tax we really ought not benefit from to the extent we do; the second pillar of our economy must be the property sector: We’ve largely been transformed into an economy based on landlordism and laisser faire economics with the right of property ownership triumphing over the duty of government to house its people and provide adequate education and health care for their needs.
- We’re inviting 200,000 Ukrainian refugees here. We don’t even have enough tents to accommodate them. Incompetence. No published plans on how they will be provided for in schools, hospitals, 23 yrs of Direct Provision turned out to be an Open Prison for the unfortunate internees.
- Housing Strategy has been another abysmal failure for the coalition in particular Michael Martin’s Housing for All strategy . If you walk around the suburb where I live in Dublin South West, the only construction taking place is apartment build to rent schemes funded by Cuckoo Funds. Local Social Housing Schemes have been abandoned. Various excuses such as the rising cost of materials, inflation, delays in obtaining materials among others. There is no investigation by RTE; all they need do is get a camera crew into a car and travel to Social Housing Schemes right across the country to reveal the sad truth that Social Housing Provision is on the brink of collapse. RTE’s coverage of the debacle demands a willing suspension of disbelief as they largely ignore the debacle in favour of meaningless cock and bull debates led by Fianna Fail excoriating all who point out the Emperor Has No Clothes on. Housing Policy has transformed into a debate concerning the billions in compensation that will be handed out to those who’ve suffered the most due to their houses collapsing because of poor regulation of the construction industry leading to pyrite and micah turning a large housing stock into dust. Before that scandal we had the shoddy standards employed during the Celtic Tiger /years and 16 yrs later we’vea report awaiting publication that will outline the compensation due to homeowners whove suffered terribly because of that. The construction industry is still largely regulation free in Ireland.
- MeanwhileSpeaker of the US House of Representatives Nancy Pelosi has highlighted Taoiseach Micheál Martin’s tackling of the ongoing housing and healthcare issues in Ireland.
- “Speaking at the Friends of Ireland luncheon in Washington D.C. on St Patrick’s Day, Pelosi paid tribute to the Taoiseach’s “reinvigoration” of Ireland’s approach to the housing and health crises as well as his overall managing of the economy.”I said [to] the Taoiseach that the world has been awed by his handling of the pandemic,” Pelosi began.”Because he’d had a lifetime of leadership in terms of public health, of his handling of the economy of Ireland; especially during the difficult times of Brexit, his reinvigoration of the government focus on housing and healthcare – healthcare being a focus in his public life.” What planet does Nancy live on? Our health system is in total chaos years not months added to waiting lists even for elderly patients. This was even before the pandemic. Michael has perhaps 200,000 coming to Ireland with its history of Direct Provision that turned housing for refugees into an open prison system. He’s published no plans on how these numbers will be catered for.
- Our membership of the EU has been an unmitigated disaster that has saddled and crippled our economy with a debt we’ve inherited from our economic collapse in 2008. Previous to 2008 we had a runaway property collapse filling our country with poorly built ghost estates. Now the EU won’t allow us build anything, a property infrastructure, a railway/transport infrastructure, a proper health care system, nothing unless its built from the private sector. And what has Michael introduced to the private sector to build our housing infrastructure, unregulated, tax free Cuckoo funds building one bed apartments in the wrong places on postage stamp spaces. Our young people have been betrayed by incompetence that has become the trademark and hallmark of Micheal Martin’s reign as Taoiseach and leader of FF. But don’t take my word for it, look for Michael’s ratings in the polls despite all the showboating and pumping up of Michael Martin’s reputation by Nancy Pelossi and co.
- Inflation is now leading the spiral downward into recession and possible global currency collapse. The new economy promoted by the Greens with billions earmarked for retrofit policies that fail before they begin in a wash of propaganda signifying nothing.
- Do we regret yet joining the EU’s potential for disaster that’s coming to be realised more with every day passing? Should we have not worked more to unite with Northern Ireland in a bid to unite Ireland as a full member of a new Commonwealth with the UK? Has membership of the EU further riven our state apart as a nation. Do our best interests lie with the EU meaning not only a lack of development but an increase in bailout debt to the EU? Have we sacrificed short term gain for long term loss. Meanwhile the rich get richer and the poor get a lot poorer while we shiver for the prospects that will be meted out to Ukrainian refugees arriving on our shores competing with the needs of our own homeless, who’ve already been betrayed by false promises of “Housing for All”
- Whatever happened to the National Broadband Plan? At one point, Varadkar was promising delivery of broadband to every house in the country irrespective of location on every mountaintop! It would appear that goal has been shelved in favour of Elon Musk’s Starlink Express. Well, at least by now every village in Ireland could be served with broadband but that hasn’t happened. Its another can of worms filled with broken promises. A bit like the ‘Housing for All Strategy’
- Whatever happened to our carbon emission targets?
Are you looking to our government’s climate action plan to provide some sense of competence in the midst of the descent into chaos described above. You will be disappointed but Here it is:
https://www.pwc.ie/issues/climate-change-sustainability/action-plan-2021.html
Click to access 2020-Renewable-Energy-in-Ireland-Report.pdf
“Ireland failed to meet our national renewable heat target, reaching just over half of the 12% target. Since heat is a large share of final end use, Ireland’s low share of renewable heat is the main reason that we failed to meet our 2020 renewable energy targets.”
Infrastructure projects, Housing for All, Climate Action Plan, Health Strategy, Ukrainian refugees, the mess grows by the minute.
Till again…..
1.
2.
https://www.imf.org/external/pubs/ft/fandd/2005/06/basics.htm
Pouring State Money Down The Drain Again!
May 5, 2019
Worst Broadband Proposal Ever!
https://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Act
“The Sarbanes-Oxley Act of 2002 (Pub.L. 107–204, 116 Stat. 745, enacted July 30, 2002), also known as the “Public Company Accounting Reform and Investor Protection Act” (in
“This shouldn’t take long now that I’m on broadband.”
the Senate) and “Corporate and Auditing Accountability, Responsibility, and Transparency Act” (in the House) and more commonly called Sarbanes–Oxley, Sarbox or SOX, is a United States federal law that set new or expanded requirements for all U.S. public company boards, management and public accounting firms. A number of provisions of the Act also apply to privately held companies, such as the willful destruction of evidence to impede a federal investigation.[citation needed] “
“Whitewing was the name of a special purpose entity used as a financing method by Enron.[32] In December 1997, with funding of $579 million provided by Enron and $500 million by an outside investor, Whitewing Associates L.P. was formed. Two years later, the entity’s arrangement was changed so that it would no longer be consolidated with Enron and be counted on the company’s balance sheet. Whitewing was used to purchase Enron assets, including stakes in power plants, pipelines, stocks, and other investments.[33] Between 1999 and 2001, Whitewing bought assets from Enron worth $2 billion, using Enron stock as collateral. Although the transactions were approved by the Enron board, the asset transfers were not true sales and should have been treated instead as loans.[34]“
The private world of institutional finance can be a quicksand ready to drown any investor and caveat emptor applies. We should learn from mistakes.
Bernie Madoff currently serving a 150yr sentence Hedge Fund Scandal:
“Madoff operated his fund by promising high consistent returns he was not able to achieve. He used money from new investors to pay off the promised returns to prior investors. A number of investment professionals questioned Madoff and his alleged performance. Harry Markopolos, an options trader and portfolio manager, did substantial research and determined Madoff’s results were fraudulent. He reached out to the SEC numerous times over the years, providing evidence of the fraud. However, the SEC brushed off the allegations after minimal investigation. As of September 2015, Madoff is serving his prison term.
https://www.investopedia.com/articles/investing/101515/3-biggest-hedge-fund-scandals.asp
We should note what happened in the California Electricity crisis:
“The California electricity crisis, also known as the Western U.S. energy crisis of 2000 and 2001, was a situation in which the U.S. state of California had a shortage of electricity supply caused by market manipulations and capped retail electricity prices.[5] The state suffered from multiple large-scale blackouts, one of the state’s largest energy companies collapsed, and the economic fall-out greatly harmed Governor Gray Davis‘ standing.
Drought, delays in approval of new power plants,[5]:109 and market manipulation decreased supply.[citation needed] This caused an 800% increase in wholesale prices from April 2000 to December 2000.[6]:1 In addition, rolling blackoutsadversely affected many businesses dependent upon a reliable supply of electricity, and inconvenienced a large number of retail consumers.
California had an installed generating capacity of 45 GW. At the time of the blackouts, demand was 28 GW. A demand-supply gap was created by energy companies, mainly Enron, to create an artificial shortage. Energy traders took power plants offline for maintenance in days of peak demand to increase the price.[7][8] Traders were thus able to sell power at premium prices, sometimes up to a factor of 20 times its normal value. Because the state government had a cap on retail electricity charges, this market manipulation squeezed the industry’s revenue margins, causing the bankruptcy of Pacific Gas and Electric Company (PG&E) and near bankruptcy of Southern California Edison in early 2001.[6]:2–3
The financial crisis was possible because of partial deregulation legislation instituted in 1996 by the California Legislature (AB 1890) and Governor Pete Wilson. Enron took advantage of this deregulation and was involved in economic withholding and inflated price bidding in California’s spot markets.[9]
The crisis cost between US$40 and $45 billion.[6]:3–4″
https://en.wikipedia.org/wiki/California_electricity_crisis
Such examples should lead us to be extremely careful using extreme rules of caution and probity in investment by the state in any financial vehicle. Lets look at what Mr Bruton is up to:
The level of absurdity in the following is difficult to believe:
It’s beyond flaky and smacks of an incompetence that will topple the incompetence in the children’s Hospital debacle. Mr Bruton Minister for Communications, Climate Action and Environment, Dublin Bay North, actually stated the following:
““We’ve developed this [NBP] proposal on the basis of subsidising the private sector to reach areas that need to be reached,” said Mr Bruton.
“When the private sector has built an existing networks of poles and ducts, it is absolutely logical that the state should seek to build on that rather than have, in its own ownership, isolated ports and wires at the end of a network that is otherwise in private hands.”
In other words, Mr Bruton believes the state should hand over money to a financial entity purely on the basis the monies provided will be used to procure a desired outcome of National Broadband.
A bit like saying lets buy 1000 private jets at a cost of 3ml each and because we’re the government and most of these aircraft are privately owned, sure we’ll give you the money to purchase and own them and charge us for their maintenance. And yep, in case you asked, we’re giving the money to you no questions asked and you’ll own them and rent them back to us. Up to you to purchase what you like and where you like……what the heck!
The state will not own the infrastructure. There is no guarantee it will be built. There apparently is no plan to discern when it will be built, what will be built, or how it will be financed in the future. Or even clarity on who will build it. Apparently all this is done at our expense on the self-destructive idea that on the handing over of 3bn of taxpayer money, all will be revealed.
Mr Bruton is expected to bring the NBP proposal to Cabinet next Tuesday to seek approval for it. Taoiseach Leo Varadkar has indicated that he supports the plan.
“The private sector is not able to commit to [high-speed broadband] for the remaining 25pc of the population,” said Mr Bruton.
”And that’s why we have committed to the National Broadband Plan that we have been tendering for. We’re getting to a very advanced stage in moving to make a decision.”
The only bidder for the National Broadband Plan is Granahan McCourt, a consortium led by businessman David McCourt.
Lets look at the financial worthiness of the group led by David McCourt. Lets not question the fact the group could be a Black sinkhole whose many parts can cave in in spite of government subsidy. For example, we recently read:
“The riskiest new bonds Digicel has issued under a massive debt restructuring have started trading at a 50 per cent discount this week, as a leading credit ratings firm highlighted that the financing of Denis O’Brien-owned telecoms group was “untenable”.
Following four months of negotiations, Digicel said last week that almost 98 per cent of the holders of $2 billion (€1.75 billion) of bonds due for repayment in 2020 had agreed to postpone getting their money back from the debt-laden group, by swapping their holdings for notes that will mature in 2022.”
It looks to me a that quagmire could do with a lot of state investment to relieve the burden of a cash shortage. Involvement in a successful bid to provide a National broadband infrastructure could yield rich pickings for a debt laden company hoping to leverage further borrowings on the basis of an equity injection of the order of 3bn by the state.
Further questions need to be asked.
You wont find any detailed breakdown of what you get for €3bn here:
“The documentation lodged today demonstrates the Consortium’s commercial, financial, legal, as well as technical solutions for the delivery of world-class Gigabit (1,000Mbps) broadband to every home, farm and business in the Intervention Area. The submission also nominates a number of key partners for the project – enet, Nokia, Actavo, The Kelly Group and KN Group.”
I’m sure many have no need of service nor can they afford it and they would appreciate better water schemes to provide clean fresh water rather than a gigabit service down every lane in Ireland…even if the project was delivered! Many could live with broadband available in the nearest village.
Hopefully no quagmire of stakeholders will grab state subsidies to the tune of €3bn and pour the money down their own drainholes without anything left to build anything with.
Lets look at the ridiculous plan instead. The idea of providing broadband to Black Valley through the mountains of Kerry one of the more remote regions of Kerry at enormous cost to tax payers is a bit like building the Taj Mahal on top of Everest. If built there is no guarantee communities would California example above, could come at an extortionate cost to the taxpayer. We do know the cost of unaffordable housing already!
A more realistic approach would be to provide broadband infrastructure to every village in Ireland. This would cost in the region of €500ml not €3bn. Based on need and proven takeup creative ways to grant aid local communities could be developed at a later stage. This could easily be developed by a company such as the ESB allowing for regulation and equity holding participation by the state and the guarantee of infrastructure.
The notion that 3bn be given to a capital adVENTURE Fund who would own the infrastructure and network and the state not own it is a marvel in incompetence. It’s a casino bet of the lowest order responsible that is a lot worse than the Children’s Hospital debacle.
Let me repeat Bruton’s nonsense:
““When the private sector has built an existing networks of poles and ducts, it is absolutely logical that the state should seek to build on that rather than have, in its own ownership, isolated ports and wires at the end of a network that is otherwise in private hands.”
Firstly, there is no existing network of poles and ducts to Black Valley. Unless we were to charge the ESB to provide broadband through its existing network. Not an entirely unfeasible and very possible approach especially in regard to isolated communities such as Black Valley.
It’s as madcap a view as stating we should not build public hospitals because we have private hospitals. But its worse than that. Because we would never consider funding private hospitals with state money without state ownership having a role. But here we’re proposing to pay off a private concern to build and own a broadband network crucial to the state and taxpayers and at the end of the day if it ever gets built, the state and taxpayers, have no say or ownership to ensure its maintenance and upkeep.
The selling off of Telecom was a disaster for the state https://www.ictu.ie/download/pdf/learning_from_the_eircom_debacle.pdf
“”The privatisation of Eircom in
1999 must rank as the biggest
single economic mistake made
by an Irish Government – until
the disastrous blanket bank
guarantee of September, 2008.””
” Poor financial and economic analysis
of the Eircom privatisation by most
media and virtually all economic and
financial academics.
11. Huge financial gains for the Valentia
consortium in just over 2 years, not from
wealth creation, but largely through value subtraction from this strategic, dominant
Irish company”
Do we have guarantees the company supplying broadband be not like Eircom looted first then sold on to another loss maker for the state.
It’s very likely Natioanal Broadband infrastructure will never be built at the scale proposed. There is no need for it at the level of uptake that will be proven when it’s rolled out. Its future if built will be entirely risky if it is ever expected to pay for itself. It’s very likely that the present consortium will loot the deal for all its worth then sell its remains to pay for their own losses. This will be a Further loss for Irish taxpayers.
“Poor old Robert Watt must feel he just can’t win. The notoriously prickly secretary-general of the Department of Public Expenditure and Reform drew the fire of no less than three Oireachtas committees over the Government’s failure to control the costs of the National Children’s Hospital. After weeks of argument he agreed in early March to appear before a star chamber composed of members of the Public Accounts Committee and the Finance Committee.
Watt delivered an 18-page opening statement in which he talked about many things, but not the National Children’s Hospital. He described how his department, despite its grandiose title, had responsibility for how taxpayers’ money is spent but very little power. They keep an eye on how the money is being spent but it’s up to individual departments and agencies to deliver projects within budget.
The true extent of his department’s impotence was revealed in an aside he made to the committee about the national broadband plan – a project which is threatening to make the children’s hospital look like a bargain.
Originally tagged to cost €500 million it is now expected to require an investment of €3 billion from taxpayers but will not be owned by the State.
‘Career ending’
Mr Watt was asked to give his view on the rising cost of that plan. He demurred. “I have views, but any comment I would make would be career ending.”
It seems, however, that he made his views clear in private and they have now become public. Watt is widely reported to have been one of the “senior officials” who have counselled against proceeding with the plan because it does not represent good value for the taxpayer. However, the Government is determined to press ahead with the project.
Irony does not even put a tooth in it. Watt would appear to a have done exactly what politicians castigated him for not doing – rightly or wrongly – with respect to the costs of the children’s hospital. He has shouted stop. But he has in turn been completely ignored by politicians “(1)
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The anaconda of financialisation continues to devour Ireland. Fresh from the cost overruns at the National Childrens Hospital it’s very clear the cabinet are on the verge of giving the go ahead to the crazy plan.
Time to come clean on the future of the National Broadband Plan
“My gut feeling is that the NBP will happen. It will be mostly fibre-based and there will be parts that will need to be wireless. But if it is going to take five years or 10 years to deliver, then say so. Say what it is going to cost and show what money has been set aside or requested for the project to happen. Hold the winner to a strict timetable and accountability rules, and let it happen. The NPB is meant to be a ‘plan’ after all.”
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Submission
Commenting on the submission of the tender, founder and chief executive of Granahan McCourt, David McCourt, said: “We have assembled a world-class team with financial resources, unrivalled construction expertise and proven experience of operational capabilities to deliver this project for the Irish Government and for the citizens in rural Ireland. ”
In addition to announcing its new partners, the consortium – National Broadband Ireland – said it will have access to Eir’s rural pole infrastructure as well as their duct network to complete the physical bid.
While it is unclear when the final tender will be accepted or declined, Mr Naughten said his department will evaluate it “over the coming weeks”. Pressed my Mr Dooley on the members of the consortium, Mr Naughten said: “the 543,000 families and business across Ireland don’t care what’s on the side of the van, they want high-speed broadband, they deserve high-speed broadband and I’m determined they get high-speed broadband.”
The reticence to go into the detail of the members of the consortium and their current and previous financial affairs speaks volumes and should ring alarm bells!
The plan, which was first announced in 2012, promised to provide “next generation broadband to every home and business in the State” through a combination of commercial and State investment.”
Well, I care whats on the side of the van and who the members of the consortium are. More particularly I care about the plan. It sounds to me like a shake down plan to extract money from Irish taxpayers.
Its government in Rip Van Winkle mode economically illiterate in the financial affairs of the state ready to take us all to the cleaners.
Worse than the children’s Hospital debacle we don’t even know what the plan is? Wireless, 5G, Fibre, Power lines? Can i see the PLAN PLEASE?
Nope, its give me the money and I’ll go away and scrap up a plan. Who knows what the cost over runs will be? Who knows who’ll drop out of the consortium and at what point?
A plan without a plan is rubbish. John Perkins in his book “Confessions of an Economic Hitman”….describes how huge unaffordable infrastructural projects delivering little have crippled third world countries destroying their economies leading to financial collapse.
Here we go again!
The threadbare nature of the McCourt website speaks volumes
“The National Broadband Plan is the largest-ever telecommunications procurement undertaken by the Irish State and aims to radically transform the country’s broadband landscape through the delivery of quality, affordable broadband to premises in all parts of Ireland that cannot currently access high-speed service.
Given the ongoing NBP procurement process, National Broadband Ireland will be making no further comments on this topic in the short-term.”
What a load of rubbish! No further comments!
There’s a difference between raising money, spending it and getting value for money. In the world of anaconda financialisation only raising the money counts, caveat emptor, buyer beware!
Have you noticed the election posters for the European Elections and local elections all over the place featuring brightly colored faces of the candidates in the coming elections?
Some posters just give the name of the candidate and their party. A few mention a phrase like “Fighting for You” others “Corporate Greed VS Public Need”.
What’s that about one might ask? There are no debates on TV in fact there’s less than dull and weak coverage of the European Elections.
A little bit on the Sunday news at One highlighting parts of the country on a regional basis, nothing much else.
There are no profiles given on any of the candidates never mind the issues they are campaigning on. One would be forgiven for thinking there are no issues! What are their policies?
What job will they do they do in Europe? Will they sit on committees?What salary are they paid? What are their traveling expenses and accommodation expenses. What does their job entail. What do they do?
I’ve quite a bit of knowledge on how the EU works but even i cant answer that question. Its possible they’ll be paid for doing nothing! Are they meant to do nothing. Whose funding their campaigns? What has their party achieved in Europe?
Its clear what happens in Brussels stays in Brussels and democracy is dying there. While we still can ask questions, we should ask questions. And family hubs do have similarities to concentration camps, or havn’t you noticed?
till again
https://www.irishtimes.com/news/health/national-children-s-hospital-set-to-be-world-s-most-expensive-medical-facility-1.3734669 the cost of Broadband(2)
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