Economy – Page 65 – Slugger O'Toole

The circle of the block grant vs lower corporation tax can be squared, we’re told

Brian Walker on January 18, 2011, 11:06 am

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At last! The Bel Tel carries a thoughtful piece by economic commentator Paul Gosling on how to reconcile the continuing need for the substantial subvention of the block grant with the incentive of a regionally lower corporation tax. He quotes economist Mike Smyth. ” If you don’t do something like this, the subvention will be north of £10bn in a few years. If we don’t do something we will be bailed out by the Treasury in perpetuity.” Making up the …

Brian Cowen: Extreme Political Turbulence Ahead

Brian Spencer on January 18, 2011, 10:00 am

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Your captions, please? Brian SpencerBrian is a writer, artist, political cartoonist and legal blogger. Actively tweeting from @brianjohnspencr. More information here: http://www.brianjohnspencer.com/ www.brianjohnspencer.com/

Euro crisis: “Slowly the public is being softened up for historic change.”

Pete Baker on January 17, 2011, 5:29 pm

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While the euro crisis rumbles on, and with Frau Bundeskanzlerin promising that “We will do what is necessary, everything else will be discussed step by step”, the BBC’s Europe editor, Gavin Hewitt, wonders “what democracy in Europe means”… If the eurozone group of countries heads towards fiscal union then a further question will surely follow. Can you have fiscal union without political union? Slowly the public is being softened up for historic change. President Sarkozy was not a lone voice when he …

Irish Government tough on fiscal policy; weak on dishing it out to the banks

Mick Fealty on January 17, 2011, 3:17 pm

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P O’Neill with a sharp observation of the Irish version of mañana, or ‘don’t do today, what you can do tomorrow’. Think of those late agriculture, regional development, education and OFMdFM draft budgets, if you’re getting all nordie and smug. But in the maelstrom of the Republic’s economic crisis, the consequences have been catastrophic, not least in the government’s ‘unaggressive’ dealings with the banks… He quotes Lorenzo Bini Smaghi, a member of the ECB: “Markets waited and waited and since …

“Next time they might try openness and joined-up thinking”

Pete Baker on January 15, 2011, 4:37 pm

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I was somewhat blunter in my initial assessment of the Northern Ireland Executive’s spending plans, but I get the impression Patrick Murphy, in The Irish News, agrees. Their budgetary plans tell us three things – departments do not talk to each other, few of them know what a customer is and most ministers do not expect to retain their posts after the election. The information you wanted to know – details of how the cuts will affect you – will …

“We do not want foreigners in here” – Redux

Pete Baker on January 15, 2011, 3:33 pm

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And on a somewhat related note, Miriam Lord spots a report of comments by Fianna Fáil TD, Ned O’Keeffe, who, as they say, has form on the topic… From Miriam Lord’s Week Our thanks to reporter Brian Moore of the Avondhu newspaper in Mitchelstown for bringing us this update from Ned, who is doing the nation some service by keeping a beady eye on troop movements in the Far East. In the course of a wide-ranging interview on Cork local …

“It was the choice of the successive governments, and their voters…”

Pete Baker on January 15, 2011, 3:27 pm

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In a lengthy interview in the Irish Times senior European Central Bank official, Lorenzo Bini Smaghi, makes a point previously noted here. From the Irish Times article A lean Italian in his mid-50s, Bini Smaghi is a ranking member of the ECB executive board and was a key figure behind the scenes in the drama that saw Ireland seek an EU-IMF bailout two months ago. He is the first senior European official to publicly describe in detail, from the perspective …

Michael Somers on Anglo Irish Bank: “they weren’t essential for normal day-to-day banking”

Pete Baker on January 14, 2011, 4:56 pm

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At the Guardian’s Ireland Business Blog, Lisa O’Carroll spots another wrinkle in the Anglo Irish Bank saga [Michael Somers, the former head of the NTMA] is a bit like the governor of the central bank, Patrick Honohan, when it comes to media. Composed, mild-mannered and long on integrity. In short, a credible witness. Somers explained that the NTMA had, at any point, between €5bn and €10bn to place among 100 banks around the world. Anglo only got €40m of that, …

Bullshit, and joined-up government…

Pete Baker on January 14, 2011, 3:04 pm

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Some four weeks after the departmental allocations were agreed and all Northern Ireland Executive departments have, to a greater or lesser extent, finally published their spending plans. Don’t worry, though. There’ll be an extra week of that public consultation… Meanwhile, the Northern Ireland Finance Minister, the DUP’s Sammy Wilson, is complaining that the UK Treasury has “swiped” £300million of NI departments’ yearly underspend – rather than allowing it to be drawn down in the subsequent year. The NIO has issued a statement …

Heave, ho?

John Ó Néill on January 13, 2011, 2:54 pm

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After a number of false alarms (take your pick), it appears that Brian Cowen may now be under fatal pressure as Taoiseach as his parliamentary party meets at 3 pm today, at which his immediate future may be up for discussion (yet again). Having had to deny any impropriety around his game of golf with Sean Fitzpatrick, formerly of Anglo Irish Bank, he appeared to have just about kept his head above water in the Dáil yesterday. That was until Caoimhghín Ó Caoláin, leader of Sinn Féin in …

Angela Merkel: “We will do what is necessary, everything else will be discussed step by step”

Pete Baker on January 12, 2011, 6:44 pm

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Eastern promises aside – and isn’t there something about beware [metaphorical] Greeks bearing gifts? – Portugal’s visit to those reluctant bond markets is described as “successful” by this Reuters report at the Irish Times – €1.25 billion raised with the ten year yield kept below 7%. But as the BBC report points out Bond buying by the European Central Bank (ECB) had helped keep the yield below 7%. “Probably the most important thing for the 10-year yield is that the 7% level …

Eastern promises

Mack on January 12, 2011, 11:10 am

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It would appear that our Asian friends have confidence (and an interest) in the survival of the European project. Japan and China will help fund the European Financial Stability Fund that will be used to bailout European banks, sorry, I mean Ireland. With Japan pledging to buy 20% or more of the bonds that will be sold later this month. From Bloomberg – There is a plan for the euro zone to jointly issue a large amount of bonds late …

POTD – The Bank’s on Fire (Captions welcome)

Moochin Photoman on January 11, 2011, 9:28 pm

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Kind of ironic that at roughly the same time the head of Barclays Bob Diamond was appearing in front of a treasury committee at the House of Commons today , I happened upon this scene at one of his branches in High Street. Seems to me that this photo is ripe for a caption or two, so have at it…… Moochin PhotomanPhotographer and visual artist based in Belfast. I have facilitated community based workshops with groups as diverse as visually impaired …

“the euro crisis had a Christmas break, but it’s back”

Pete Baker on January 10, 2011, 2:03 pm

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With Portugal heading back to an increasingly reluctant bond market, the BBC’s Europe editor, Gavin Hewitt, notes that “White knuckles have re-emerged in Brussels and other vulnerable European capitals.” Sometimes in Brussels I detect that the fight is less to save Portugal but more to ring-fence Spain. It’s the fourth-largest economy in the eurozone. If it needed rescuing the funds currently are probably not there. And then awkward questions would have to be asked – including whether Germans, in those …

Open thread: your questions for FG economics frontbenchers

Pádraig Belton on January 4, 2011, 9:41 pm

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Fine Gael this morning announces launch of their 2011 election campaign (for Dáil elections likely the last Friday of March) with a new website. I’ll be at the Dáil tomorrow to interview two of their economic team, Deputies Brian Hayes and Richard Bruton. I’ll after be talking to Professors John O’Hagan and Brian Lucey, both economists at TCD. If readers might have questions for them, please share them in comments, and I’ll be sure to pose them and post …

NI water crisis: “why Sinn Féin and the DUP have reacted with a mix of denial and pulpit thumping”

Pete Baker on January 3, 2011, 2:37 pm

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Via Newshound, in the Sunday Times Liam Clarke adds his thoughts on the “pulpit thumping” intervention of the OFMDFM, the possibly misplaced ministerial confidence, and the ongoing cost of Executive crowd-pleasing as the NI water crisis continues. From the Sunday Times article Murphy and his colleagues are making the most of the inherited nature of their difficulties. Yet, knowing the risks, the DUP/Sinn Féin-led administration did little to improve the situation. There was some limited investment in the water system …

Bertie Ahern: “If you ask me, my view is you’re better doing it my way…”

Pete Baker on January 2, 2011, 4:48 pm

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Now that the notorious gambler, and former Taoiseach, Bertie ‘Lucky’ Ahern, has confirmed his decision not to contest the next Irish general election he obviously feels freer to be critical of his party colleagues in government. From the Belfast Telegraph report Mr Ahern, a columnist for the Irish News of The World, told the newspaper Mr Cowen’s administration failed to communicate properly with the public throughout the crisis. He said he carried out daily doorstep interviews with the media when he led …

The Arts must remain independent of politics in 2011 and beyond

Brian Walker on December 30, 2010, 12:18 pm

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Two pieces from Fortnight extracted by Newshound over the holiday period are examples of the tense and difficult relationship between politics and culture in our slowly changing society. I hope a real debate will start on this in 2011, unfettered by moral or political blackmail. In How to Make Derry a Better City of Culture, Robbie McVeigh tilts at a familiar windmill. When Derry was awarded the title of ‘UK City of Culture’ the cultural antinomies were immediately obvious – what benefit in …

Euro crisis: “For good or ill, she is perceived to set policy, pace and tone at every turn.”

Pete Baker on December 28, 2010, 9:06 pm

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In the Irish Times Arthur Beesley’s assessment of the “mammoth task” European leaders face in the year ahead is well worth a read. From the Irish Times article Strain and anxiety were everywhere in 2010. Merkel held the line against easy bailouts but her dogged intransigence on core principles led to accusations that she was making matters worse, not least in Ireland. From the summit room came whispered reports of shouting matches between French president Nicolas Sarkozy and ECB chief …

NI Water: Mr MacKenzie walked away from ‘identified savings’…

Mick Fealty on December 24, 2010, 12:55 pm

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The BBC the other day made rare mention of Northern Ireland Water’s irregularities over the issuing of contracts. These are the breaches that were taken by the Minister (acting on the rather pointed advice of former Permanent Secretary, Paul Priestly) as a premise for the high profile sacking of four non executive directors of the company. It was taken to mean at the time that this represented losses, or monies misspent. But as we’ve demonstrated on Slugger time and time again, that …