Letters To Cobh Edition – Should the Irish People pay for the mistakes of investors?

Why are people in Ireland letting the government dictate to them on how they are going to spend their money? What happened to the democratic assumption that the will of the people must be done? With the introduction of the “Household Charge”, is this just another example of the Irish Government clutching at straws to make amends for financial disasters perpetrated by them? Investors know the risks – “value of shares can rise as well as fall” is written in the small print of every share deal conducted in every stock exchange around the world. It’s just a pity the government  and investors didn’t read the terms and conditions. And now folks, you’re paying for this inattention.

I’ve been living in the UK permanently since the end of 2001 and in that time I’ve watched Ireland go from one of the powerhouse economic miracles, to the laughing stock of the international banks and investors that have their hands on the purse strings. With bailouts, and “austerity” measures (a fancy way of saying massive cutbacks), the Irish population as a whole will be paying for this for many years to come. What has really amazes though, is that the Irish people let this disastrous situation be compounded by their own representatives and more importantly let them get away with what can only be described very dubious and in some cases, illegal activities. Brown envelope anyone?

Recently here in the UK, the MP expenses scandal finally brought the situation where people suddenly realised that a lot of political motivation is money, where as it should be to help the people. I think what has happened over the past 50 years in Ireland, is that the successive Irish governments have forgotten what they are for i.e. They work for the people, and not the other way around. To ask a nation to pay for the mistakes of an elite few is tantamount to sentencing successive generations to a life of financial misery and more importantly will make the country a “no go zone” for all young people starting out in life. The real scourge of the Irish economic recovery will be and is, immigration. Presently, according to CSO (Central Statistics Office) over 600 people are permanently leaving Ireland every 6 days. While 600 doesn’t sound like a lot, when you start to break that down, it becomes a little more sobering: That’s 2400 people a month or 28800 a year. It’s also important to point out that the CSO doesn’t take into account immigration to EU states, so I suspect that this figure is actually much higher than the ones quoted. It’s a lot of people isn’t it? 28800 people not investing back into the economy. 28800 families devastated by their sons or daughters moving away to find what should be available to the in Ireland: A decent future. This decent future has been robbed from them by the actions of a few who, from as far I can see have in no way been punished or even reprimanded.

What should be happening is taxes should be lowered encouraging spending as this creates disposable income, however inflation would need to be kept an eye on. But think of the benefits and think about it logically: The Eurozone as a whole is a free trade entity which means that the value of the Euro is virtually the same across all EU member states. By encouraging investment and spending in the Irish economy this would have a viral effect on the rest of the EU member states.  Remember, the only reason the financial crisis started in the first place was a lack of confidence by investors who decided all at the same time that they wanted their money back. With investment and return comes confidence. With confidence comes more investment – it’s a basic rule of business and economic stability – a rule that seems lost on the Irish government.

Here in the UK we have our own problems, however we’re tackling them, but in a slightly different way. By spending and investment, confidence is starting to return to the UK economy and this will pay dividends within the next 4-5 years. I don’t think the same could be said of Ireland if it continues down the disastrous road set by the Irish powers that be.

I urge every Irish person to contact the TDs, explain that the current situation is unacceptable and if they don’t do anything about it – kick them out and change the Status Quo . Demand change. Demand that they help you. Demand that they do their jobs. Remember: Governments work for you. Not the other way around. 

Stuart McLoughlin
Cobh & UK