Economy

Updated: Over £260m to be cut from policing spend over next four years – but £171m to be added

| Readers 194

The headline figures in the draft Northern Ireland budget re-allocation indicated only relatively small changes to the current expenditure of the NI Department of Justice up to 2014/15.  Three years of consecutive cuts – £10.6million in 2011/12, £24.1million in 2012/13 and £22 .3million in 213/14 – followed by a slight increase of £9.7million in 2014/15. But, as the BBC reports, the detail published today by the NI Department of Justice reveals that the police, in particular, are expected to find significant levels of “savings” in each of the …

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“Clearly something has got to give…”

| Readers 3

Unsurprising economic illiteracy aside, the political posturing in the draft Northern Ireland budget re-allocation comes at a cost.  As Liam Clarke points out in the News Letter In October 2007 it was hoped, not unreasonably, that the shortfall could be met by selling government land and buildings into the booming property market. Stormont was like a family funding an extension by remortgaging its house, but unfortunately the bottom fell out of the property market almost as soon as the plan …

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NI Company ordered to pay £32million damages over Irish pork dioxin contamination

| Readers 68

The BBC reports that the High Court in Dublin has ordered the Northern Ireland based company, O’Neill Fuels Ltd, Coalisland, County Tyrone, to pay Millstream Power Recycling Ltd, Bunclody, County Wexford, €38.7million (£32m) damages as a result of the Irish pork dioxin contamination in 2008. From the BBC report Millstream supplied the pig meal containing dioxins that led to the recall of Irish pork products. It was ordered after pig meal on a number of farms was found to have had …

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Not just the weather has Stockholm syndrome?

| Readers 10

Ben “I took no counselling and looking back that was not a wise thing to do” Dunne has long been a controversial voice on the Irish airwaves and the unlinkable Irish News and unlistenable Nolan show have picked up on his interview with Thursday’s NewsTalk (at approx 42mins): I’d love to see change, I hope SF’s vote increases because I think those people will make radical changes. They will change the school boy network any way.. I want people that …

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Credit Institutions (Stabilisation) Bill will not be referred to Supreme Court

| Readers 3

Despite the reported concerns Mick noted here, RTÉ are reporting that Irish President Mary McAleese has signed the Credit Institutions (Stabilisation) Bill into law after a three-hour meeting of the Council of State. From the RTÉ report The Council of State has 22 members, including the Taoiseach, the Tánaiste, two senior judges, the Ceann Comhairle of the Dáil, the Cathaoirleach of the Seanad, and the Attorney General. Former President Mary Robinson, five former Taoisigh and two former Chief Justices are also members, as are …

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Peace Processing: “…people often didn’t know when to claim victory and move on”

| Readers 8

Interesting little piece from Trina Vargo who says support in the US Houses of Congress for the International Fund for Ireland is coming to an end now budget cutting Republicans have taken over the lower house. Trina makes an interesting general point, not least about some of the functions of the Peace Process™ years: The Republicans control the House now and a House staffer just told me that the IFI is ‘on the chopping block’. Republicans in the House introduced …

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Now or never to reveal the truth about Sinn Fein’s past

| Readers 111

Mick rightly highlights the get out of jail success of Gerry Adams and Peter Robinson this year but the dark side of Sinn Fein  still lurks.  Musing on the WilkiLeaks cables on the Northern Bank robbery and the size of the IRA’s investment portfolio, that scourge of Sinn Fein Ed Moloney wonders what’s happened to it, suitably adjusted for inflation. Just how much money the IRA has, or had, in that investment portfolio is not disclosed in the WikiLeaks cable, …

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Budget, what budget?

| Readers 3

Reaction to the Northern Ireland budget becomes more confusing as time passes. Northern Ireland is the exception among the three devolved governments, in that pressure to adopt greater taxation powers is not coming from the local adminsistration, but from Westminster. The supposed mandatory nature of the all-party coalition can’t take the whole blame or indeed much of it for  failure. It’s shared among the parties and is strategic rather than purely party political.     To make £4 billion of cuts in as many years, the Executive seems …

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NI Water: ICO launch ‘depth’ investigation of emails…

| Readers 11

And, so according to the Daily Mirror today (attached), the saga continues. Weather permitting, the Information Commissioner’s Office is sending a very senior investigative team to Northern Ireland Water before Christmas to look at two sets of issues surrounding regarding FOI requests for specific email correspondence. One will examine an allegation that the text of one email was altered before being offered for public release. The other will look at a separate allegation that the existence of an email exchange …

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McAleese and ECB worried about legality of hastily assembled Bank Bill

| Readers 11

It seems the Credit Institutions (Stabilisation) Bill is in trouble. Not only does the President think it could be constitutionally questionable, the ECB is expressing the same concern. The key clause is in section 53 of the bill: The provisions of this Act, and any order made under this Act, have effect notwithstanding anything in— (a) the Companies Acts, the Building Societies Act 1989, the Credit Union Act 1997 or any other enactment, (b) any other rule of law or …

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Angela Merkel: “now we need more in common in our economic policies…”

| Readers 10

EU leaders met in Brussels last week, for their last summit of 2010, and agreed the text of a “narrow revision” to the Lisbon Treaty – the conclusions of the European Council (16-17 December 2010) [pdf file]. In Taoiseach Brian Cowen’s view, “There isn’t a change of competence or a transfer of competence, so our strong view is that it is compatible with the Constitution.”  That would be without the need for a referendum.  And from the same Irish Times …

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‘Independence’ is reason Cowen cannot pull off the Brown ‘trick’…

| Readers 4

If it’s a given that the Irish media aren’t very fond of Fianna Fail, then Harry McGee’s summation of their prospects is as fair a one as I’ve seen in while. Early on he wonders out loud whether Brian Cowen can do a Brown and bring his party back from the brink so many believe he has already dropped off. The analogy is an interesting one, and no doubt will have some appeal to those inside government. And despite the …

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The European view on insolvency

| Readers 5

The new proposed European Stability Mechanism looks like it will come into force via a change to The Lisbon Treaty, and will avoid facing public vote by referendum. It provides a process for sharing losses with sovereign creditors in the case of national insolvency. (More details on that below). In yesterday’s FT, Lorenzo Bini Smaghi, an executive at the ECB, made the case against sovereign debt restructuring in the Eurozone. He argues that government debt is a central plank of …

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When is a budget not a budget (hint: when it involves Sinn Fein’s cuts)?

| Readers 6

Here ya go, just over half way in to the Nolan Show this morning (with Nolan running rings around him re the Budget settlement)… Mitchell McLaughlin who said the budget was not really the budget: ‘there will be options available to us that are not available to us today’. And his riposte to Nolan: “If the same proportion out of the budget of the ‘biggest show in the country’ you’d be struggling in the morning.” John Simpson was even less …

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UK Chancellor: “Making the loan has enabled us to set that condition and to be part of the discussion…”

| Readers 6

As the UK’s Loans to Ireland Bill passes on to the House of Lords for a second reading – debate here – the BBC’s Robert Peston notes that The interest rate on the £3.25bn being made available in eight lumps over the next three years will be 2.29% above the cost for the British government of borrowing for seven and a half years. Which means that a profit is more or less guaranteed for Britain. George Osborne today estimated that …

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Northern Ireland approach to Tuition Fees

| Readers 6

From the BBC Danny Kennedy is considering his options: He added: “As I have said in the Assembly, I want a ‘made in Northern Ireland’ approach to student fees. What is done in London and Cardiff undoubtedly holds lessons for us, but the point of devolution is to devise local solutions.” Interestingly he highlights the brain drain effect: However, Mr Kennedy said the situation in Wales differs from Northern Ireland in the sense that it “imports” a lot of students, …

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“making tough choices for the good of the country…”

| Readers 6

And so it came to pass…  After weeks of political posturing the Northern Ireland Executive stayed up late last night to discuss DUP/Sinn Féin proposals for the draft NI Budget. And with those two parties having enough votes in the Executive – the UUP and SDLP abstained with the Alliance Party’s minister agreeing the proposals – today the Assembly is being immediately bumped into passing agreeing the draft ahead of a public consultation… The title quote is Jim Fitzpatrick’s prediction of the spin from …

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Irish Labour Party: “We may not be in a position to build the road from Dublin…”

| Readers 12

Thanks to today’s Irish News we have the response from the Northern Ireland Regional Development Minister, Sinn Féin’s Conor Murphy, to comments from Irish Labour Party transport spokesman, Joe Costello, which cast doubt on the proposed £850million upgrade of the A5 between Londonderry and Aughnacloy. From the Irish News report Mr Murphy said last night it was too late for the Republic to back out of its commitment to the project because the contract had already been signed and a payment plan …

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There’s no point in deluding ourselves about what must be done.

| Readers 6

This may be a slow burning story which will develop over the next week. Fianna Fáil have belatedly agreed to hold a Dáil debate and vote on the IMF/ECB arrangement to push commercial bank debts onto the taxpayers at a punitive 5.8% plus interest rate while continuing to deny that such a debate or vote is necessary. Backbench pressure to hold the vote apparently will include at least one, if not more  government TDs voting against the agreement. Some of whom have become decidedly erratic of late, …

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Queen’s standards or keep fees down? To govern is to choose

| Readers 10

Northern Ireland MPs were united in their comfort zone yesterday to oppose the big rise in university tuition fees, a position said to be endorsed by leading business woman Joanna Stuart conducting a review into the local scene. But what about Queen’s which is committed to keeping its place in the elite Russell Group as a leading research and teaching university? While Peter Gregson the Queen’s vice chancellor has stayed mum as far as I can see, Russell Group reaction to yesterday’s vote …

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