Political World
Inquiry finally turns the focus on bank guarantee
World of Politics with Harry McGee
All good things come to those who wait. And we’ve been waiting nearly four years for the banking inquiry, one of the big ticket items promised by the Government in 2011 to happen early in its terms.
So the public hearings of the inquiry began this week with appearances Peter Nyberg (Wednesday) who chaired the Commission of Investigation into banking and by Rob Wright (Thursday) who was a member of an independent review panel on finance.
That panel wrote a report on strengthening the capacity of the Department of Finance, or in other words, its lack of capacity to deal with the crisis when the bovine excrement hit the vertical rotary blades.
Both have reminded the Inquiry, and the general public, about what is known so far. It will be several months before the special committee, chaired by the capable Ciarán Lynch of Labour, will be in a position to nose its way into new material.
The Governor of the Central Bank Patrick Honohan will give evidence in January but, again, that will be based on the inquiry he himself conducted into the financial regulation system and central banking controls upon taking up his post.
The ‘meat’ of the inquiry is sure to centre on what happened on the night of the infamous guarantee in September 2008, the interaction between bankers and regulators in the run-up to the crash, and the tussles that subsequently took place between the Irish Government and the European Central Bank in the person of its former head, Jean Claude Trichet.
Nyberg, a Finn, is a former finance minister and central banker. His fascinating report was published during the first month of the new Coalition’s term in March 2011. It focused a lot of attention on the night of the guarantee in late September 2008 and reached some surprising conclusions.
For a start it didn’t lay the blame on with a trowel for the Fianna Fáil-Green Party coalition. A month after both parties had become the electoral whipping boys for the crisis, the Nyberg Report concluded there were others more culpable than the former government.
The Commission’s report said it “understood” the then government’s decision to provide a broad guarantee, because of deficient information available from all the relevant State players and the banks.
That is not to say Nyberg gave Fianna Fáil and the Greens a free pass. He did point out in a press conference that the “government is responsible for everything that happens in a country.”
True, but while the buck stopped with government, it came a little lower in the hierarchy of culpability than other institutions. Nyberg’s core finding was a systemic failure of regulation and oversight. The phrase “groupthink” was used more than once to describe a condition otherwise known as “the emperor’s new clothes”.
For more, read this week’s Connacht Tribune.
World of Politics with Harry McGee
Academically, politics is described as a science. But in the real world, it’s more of an art – and one of the big decisions a Government has to make is to decide when to call an election.
Will they see out the full term, or will they go early – either to mitigate the damage they will ship, or to secure a victory before things go awry, or the economy takes a dip, or some kind of controversy erupts?
Timing is everything.
And there’s a bit of art to that – not to mention a lot of luck. If you call it early and win big, you’re a genius. If you call it early and lose, you are the political version of the village fool.
Charlie Haughey was a poor judge of the public mood. Twice he called snap elections and on both occasions they backfired. Haughey succeeded Jack Lynch as Taoiseach in late 1979 and did not – technically – have his own mandate. He tried to remedy that by calling an election in 1981. But it recoiled. Ray MacSharry warned him not to hold it during the H Block hunger strikes when republican prisoners were dying each day. He did not listen to the advice and found himself out of office.
After his return to power in 1987, Haughey tired of presiding over a minority government that kept on losing votes in the Oireachtas (the opposition won nine private members motions).
So he called a snap general election and it backfired. Fianna Fáil lost seats and had to broker a coalition deal with the Progressive Democrats and his long-standing political adversary Dessie O’Malley.
For more, read this week’s Connacht Tribune.
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World of Politics with Harry McGee
I was cycling down Mount Street in Dublin on Tuesday. It’s a wide esplanade that links the Grand Canal with Merrion Square. The street is a mixture of fine Georgian buildings and modern office blocks.
About half-way down is the office of the International Protection Office, which deals with asylum seekers who have arrived in the country.
Needless to say, the office has been overwhelmed in the past year. Besides an estimated 80,000 refugees who have arrived from Ukraine, there have been about 20,000 people from other parts of the world who have arrived into Dublin (mostly) claiming asylum.
The numbers peaked around Christmas, but they have been falling a little. In January, more than 1,300 people arrived seeking asylum but the numbers fell back to 831 and 858, in February and March respectively.
They are still huge numbers in a historical context.
So back to my cycle on Tuesday. I knew that some asylum seekers were camping outside the International Protection Office, but I was taken aback by how many. There were six tents lined up on the pavement directly outside. Then on the ramp that led down to the basement carpark on the side of the building, there were about another 20 tents.
It looked like what it was, a refugee camp in the middle of Dublin’s business district. If you pan out from Mount Street, you will find tents here and there in nearby streets and alleys. There were a good few tents in an alleyway off Sandwith Street about 500 metres away.
For more, read this week’s Connacht Tribune.
Connacht Tribune Digital Edition App
Download the Connacht Tribune Digital Edition App to access to Galway’s best-selling newspaper.
Click HERE to download it for iPhone and iPad from Apple’s App Store, or HERE to get the Android Version from Google Play.
Or purchase the Digital Edition for PC, Mac or Laptop from Pagesuite HERE.
Get the Connacht Tribune Live app
The Connacht Tribune Live app is the home of everything that is happening in Galway City and county. It’s completely FREE and features all the latest news, sport and information on what’s on in your area. Click HERE to download it for iPhone and iPad from Apple’s App Store, or HERE to get the Android Version from Google Play.
World of Politics with Harry McGee
God that was a dramatic and historic weekend in England, wasn’t it? So much excitement, so much change, so much hype, so much out with the old and in with the new, and what looks like the coronation of a new leader. Yes, the local elections in Britain were something else weren’t they!
Apologies for not going on about King Charles III but the contract I signed when I became a lifelong republican forbids me to discuss the topic!
I know the British local elections sound a bit boring by comparison, but the results were stunning.
The Conservatives lost nearly 1,000 seats, the British Labour Party gained almost 500 and both the Lib Dems (with 350 gains) and the Greens (gaining over 200) also had amazing days at the polls.
It was Labour’s best day since 2002 but its victory was only partial. The Greens and the Lib Dems actually made gains at the expense of Labour in more affluent areas, and in parts of Britain where there were high numbers of graduates.
It was in the Red Wall constituencies in the North of England where the Labour recovery was strongest. These are working class constituencies with pockets of deprivation where people voted for the Labour Party forever. But all of those constituencies voted for Brexit and then voted for the Tories in the next general election. Labour is now winning back some of those votes.
Local elections are classified as second-tier elections which essentially means – from a national perspective – they are not life-or-death affairs, and not everything turns on them. Of course, it’s really important to have good local representation. But they are not an amazing weather vane for who rules the country.
For more, read this week’s Connacht Tribune.
Connacht Tribune Digital Edition App
Download the Connacht Tribune Digital Edition App to access to Galway’s best-selling newspaper.
Click HERE to download it for iPhone and iPad from Apple’s App Store, or HERE to get the Android Version from Google Play.
Or purchase the Digital Edition for PC, Mac or Laptop from Pagesuite HERE.
Get the Connacht Tribune Live app
The Connacht Tribune Live app is the home of everything that is happening in Galway City and county. It’s completely FREE and features all the latest news, sport and information on what’s on in your area. Click HERE to download it for iPhone and iPad from Apple’s App Store, or HERE to get the Android Version from Google Play.
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