Irish Election - Coverage of Irish Politics, News and Current Affairs

In a statment released this morning, the Government signalled that it will “safeguard the Irish Banking system”. The world fell apart yesterday and surely some of our most famous banks are hanging on by a thread. Their stock pummelled and - in private at least - their reputation is now in tatters, they need security [...]

Part of the UK’s new short-selling rules is to require that investors disclose short positions in quoted financial institutions.  The list reveals that some big investors are looking negatively at Irish banks –
[Wall Street Journal, subs. req'd] Lansdowne and Blue Ridge Capital disclosed short positions in Anglo Irish Bank. Kynikos Associates held a short position [...]

While some on Questions and Answers last night were talking of socialism for the rich, New York bourses plummeted again on uncertainty about the Hank Paulson bailout plan. The Dow ended down 3% again, ISEQ fell over 5% this morning and everyone is left scratching their heads. The problems lie in Donald Rumsfeld’s known unknowns.

Reads very well for the deal to benefit private sector workers before public sector and address concerns over the lower paid. It might be a nightmare to get passed by ICTU though.
From
PRIVATE SECTOR PAY TERMS
It is agreed by the parties that the following basic pay terms shall apply in the Private Sector:
A Pay Pause [...]

And the overall economy?  Today’s Wall Street Journal reports on what sounds like advanced deliberations inside Dell about shifting its manufacturing capacity from Limerick to Lodz in Poland.  Office jobs in Ireland would be retained.  But as the article explains, Dell is unusual among computer makers in its retention of substantial manufacturing capacity — most [...]

Lehman’s collapse could not be prevented over the weekend and we are definitely facing into “Great Depression” territory now in the banking system. It doesn’t create the greatest macro-economic background for a globalised economy but one thing could make it worse; a collapse of a bank here leading to queues around corners for money.
Will it [...]

IF you haven’t glimpsed the Sunday Independent, you can guarantee that the edited extract of a speech given by Junior Minister at the Department of Trade and Enterprise John McGuinness will be dominating discussion of the Social Partnership talks over the coming days. It remains unclear if the governmen is capable of steering a course [...]

Mature reflection was undertaken in Cabinet today and government has decided to bring the budget forward to October 14th.
This comes amid record unemployment levels, job closures which cause concern and criticism of inaction by government. Moving the budget forward will be a dud trick if they don’t engage in some grand gesture to stave off [...]

With Gordon Brown’s one year stamp duty land tax holiday on properties costing £175,000 or less (up from £125,000), the differential between stamp duty on house purchases between the UK and Republic of Ireland is now even sharper.  The zero rate in Ireland is only up to €125,000 and then goes to 7%, the highest [...]

Simon McGarr’s post raised the issue of state agency rationalisation. It is an issue we may well not care much for at the moment, as we’re ‘too busy’ with the recession. Yet we should be concerned that some the agencies being tied together and taken back into departments are those ones with a nasty habit [...]

Truly, a tale of two economic cities. First, the Irish Times heads an article ‘Wage Increases Higher than EU Average in 2007‘. Citing a recent European Industrial Relations Observatory survey it stated:
‘Irish workers enjoyed higher wage increases than their counterparts across Europe in 2007 . . ‘
Well, actually we didn’t. The report [...]

If you see Charlie McCreevey walking down the street, dining in a fashionable café, or panhandling outside Government Buildings – arrest him. You have the power – the common law citizen’s arrest. The charge? Crimes against the economy. Is that an offence? Yes, it dates back to Saxon times, judicated on by courts that looked [...]

The news that the ESB is to seek a 20pc price hike will if granted, drive the average annual bill up to a staggering €1,100. It is up to the Commission for Energy Regulation to sanction all such rises. Before it does so, it had better think hard about the hardship they could bring and [...]

The centrepiece of today’s announcement of public spending cuts by Brian Lenihan and Brian Cowen is a claim that the motivation is to cut only current spending while preserving capital spending.  This may make for pleasing-sounding spin and apparent commitment to the NDP but it ignores one simple thing: capital projects don’t exist in isolation.  They [...]

At the weekend, Minister for Finance Brian Lenihan said that would mean savings rather than cutbacks.
From RTE The spin merchants deserve a bonus for that line. Genius

Cowen was giving a speech last night where he conceded that corrective action on the economy is likely to be “painful”. Not a great time for the ESRI to recommend a rise in Social Welfare to E230 per week across the boards, yet interesting to see them call it a priority in a time when [...]