We all have mammies and daddies and uncles and aunts but not all of us have ones that were in a position to set aside large portions of their incomes in pension funds or to buy shares in banks or large businesses. Mine certainly didn’t. I remember being called back to my company HQ in Bandon during the late nineties to hear a talk about how we could all buy Additional Pension Contributions. My colleagues and I listened as the MD and HR Manager spoke enthusiastically about how tax efficient it would be. Then one of my colleagues spoke. He told us how he was being paid so little by this same company that he qualified for Family Income Supplement and he asked how he could ever be able to afford APCs. In fact he was loosing money by simply listening to this presentation as in being called back to his base he had lost a days on-site allowance and would still have to pay for B&B and his meals.
I have been reading and listening to whatever has come my way regarding the question of whether NAMA as proposed by the government is a good idea. I find myself beginning to draw some conclusions at last. Central to my thinking on this issue is the motivation of Fianna Fail and the senior civil servants involved. Why would they be doing what they are doing? I do not believe for one moment that this government gives a toss about the general population as such. They base their thinking on the consequences for the people they know, the people that make up their immediate circles, the people they consider to be their type of people.
That group is a very limited group of people indeed. Brian Cowen is not an ordinary man in the street no matter what the propaganda would have us believe. You simply don’t become Taoiseach unless you have spent a lifetime associating with the people who decide who becomes Taoiseach. He may well honestly believe otherwise but his thinking has been formed by people within Fianna Fail. So it will make no sense to him to do anything that does harm to his people. And his people include the top civil servants within each of the government departments. The Department of Finance oversaw the debacle of the last five years. The Secretary of that department must shoulder his share (and I assume it’s a man) of the blame for the failure to plan and/or regulate the Irish Economy over the last ten years.
Just listen to the representatives of ISME or IBEC or ICTU and it will soon become apparent that all these speakers represent vested interests. They speak from a particular and limited perspective. If they didn’t, they would not be allowed to represent their constituency. It is no different for any of the political parties. They represent the types of people who vote for them, who support them, who want them to see things from a particular perspective. Each in their own way represents sectoral interests within the Irish population. Ideally this would result in some degree of compromise. Some degree of common interest. But not in Ireland. And the reason is that over the years of the Celtic Tiger and under Bertie Aherne all the sectoral interests were bought off with borrowed money. Money that it was assumed would be earned in future years and on which tax would be paid.
Therein lies the problem. The assumption of future earnings was a false one. Or at least the assumption that it would be earned within a relatively short period of time was a false one. Basically lots of people bought goods and services today with the expectation that they could pay for them tomorrow. Now they can’t. The people from whom they bought the goods and services also bought goods and services from suppliers on the assumption that they would be paid for them. They used money provided by the financial markets. The financial markets got their money from people who assumed that all these people would be able to earn enough to repay their loans with interest. These people were the same people who bought the APCs and thought they could retire at 55 into the lifestyle to which they had become accustomed and that that lifestyle would be paid for by a never ending supply of double income families.
I have come to the conclusion that the same people who wanted me to buy APCs that I couldn’t afford in the 1990s are the people who have supported FF for the last 15 years, are the people who populate FF and the banks and the upper echelons of the civil service. They are the people who will do everything they can to protect their pensions, their investments, their money. They will never accept that they have made investments which have not returned a profit and that they must take the loss. They do not accept that they had an individual responsibility to ensure that those who managed their investments did so wisely. They wanted profits and their greed blinded them to the risks involved. They did not ask the question they should have asked. These are not doddery auld ones. They made their money in business, in their careers. They had a responsibility to police their own investments. Yet they did not. All they saw was the dividend popping through the letterbox.
These same people will ensure that the rest of the Irish people pay them what they believe to be their due. These are the same generation of people with the off-shore bank accounts. These are the Pee Flynns, Liam Lawlors and Charlie Haugheys of this world. And they are the people whose friends, sons and daughters, and in many cases ex-colleagues, are making the decisions. I have come to the conclusion that Nama is designed to protect the assets of this class of people. The rest is propaganda. The scary thing is that I’m not sure there is anything the rest of us can do about it.