Category: Government

The inequality and high cost of a failed state

Letter in today’s Irish Independent.

Ordinary taxpayers pay price of failure

AT least 12 middle-income earners have to work for one full year to provide sufficient income tax just to pay for the pension of failed Financial Regulator Patrick Neary.Similarly, another 12 middle-income earners have to work one full year just to pay for the pension of Rody Molloy, former chief executive of FAS.

Approximately 44 middle-income workers had to toil for one full year to pay for Mr Neary’s golden handshake. Similarly, another 44 middle-income earners had to slave hard to provide for Molloy’s golden handshake.

Therefore, in their first year of “retirement”, it will require the total income tax of over 112 middle-income earners to provide for their golden handshakes and pensions. Assuming that both gentlemen survive for another 20 years (God willing), some 570 middle-income earners will have beavered away to keep them in the lap of luxury.

This simple calculation can be used to put other Government wastage into perspective.

For instance; more than 5,000 middle-income earners had to work one full year to cover the outrageous wastage of Martin Cullen’s infamous e-voting machines, not including on-going storage.

Ordinary working people see these — and the many other unjust and unsustainable payments/wastage — as the real barriers to achieving any consensus in the concept of “shared pain”.

Unless Cowen and co grasp the nettle, through emergency legislation if necessary — and address these issues immediately in a fair, sustainable and transparent way — we will certainly face social unrest and turmoil.

John Leahy
Wilton Road, Cork

Another hidden perk exposed

Letter in today’s Irish Independent.

Reading a recent taxation publication I came across the following regarding PRSI:

“The following are excluded for PRSI purposes: Payments received by a person in respect of the following offices: income related to a member of the Dail, An Seanad, or the European Parliament, the judiciary, public offices under the state such as Labour Court members, the Comptroller and Auditor General, Harbour Commissioners etc.”

Surely this is a scandal at any time, but particularly in the present climate. How do they justify this?

Joe Kennedy
DUBLIN 13

Hurley: Stating the obvious

“The State was facing a difficult year in 2009.”

This was one of the gems of wisdom from John Hurley, governor of the Central Bank, a man who receives but doesn’t earn; an outrageous salary of €368,000 per annum (Irish Times).

Every child in the land knew years ago that the situation was serious when the likes of Hurley was saying there was no problem.

Hurley: A government lapdog

I’m delighted to see that the cowardly and dishonest ramblings of John Hurley, governor of the Central Bank, to the Joint Committee on Economic Regulatory Affairs last week have been exposed.

John McManus, writing in the Irish Times, effectively concluded that Hurley was/is nothing more than a lapdog for a government that didn’t want to know about the very dangerous bubble that was building, a bubble that was bound to burst with dire consequences.

Government warning: Brian Cowen is not a drunken buffoon

My instinct is that you need to go easy on Brian Cowen as it might be perceived to be a bit personal at this stage. You should spread the attention around as much as possible.”

“This is not a reaction to any pressure from Government; we have not received any objections or complaints on behalf of anybody in Government. This is about fairness.”

So wrote the producer of the Gerry Ryan Show, Siobhan Hough, to satirist, Oliver Callan, regarding his increasingly controversial portrayal of Brian Cowen as a drunken buffoon (Sunday Independent).

Not a reaction to any pressure from the Government? Yes, of course, Siobhan, we believe you.

We're looking into it…

Fianna Fail TD Thomas Byrne was asked questions about TDs pay and expenses on Saturday View.

On expenses.

“That’s a good question actually. “We certainly have to lead by example and I would have no problem with a fully vouched expenses system (They keep saying that but nothing happens).

On the €61 for just turning up for work.

Yes, that has to be looked at…proposals have been put forward to the Minister for Finance and he has been slow to come back on them and think it’s because he probably wants a much more radical approach to expenses and we may see that before the supplementary budget.

On junior ministers.

“I’m not going to start criticising my colleagues but certainly in this day and age…there’s certainly an argument to reduce junior ministers…but let’s leave that for the budget

On payments to chairmen of committees. (Chair 20k, vice chair 10k and conveners on 5k).

“I think they should be reduced…certainly the money should be reduced…it’s alright when the money’s there but at this stage it will all have to be looked at, we have to show example.

“I’ts alright when the money’s there.”?? Pure Fianna Fail.

Politicians and bureaucrats – Over inflated sense of own importance

Letter in today’s Irish Examiner. (Incredible figures)

Central Bank chief paid far more than US equivalent.

WHEN the governor of the Central Bank, John Hurley, appeared before the Oireachtas Committee on Economic Regulatory Affairs on March 10 he explained that the public exhortations of the Central Bank that highlighted risks to financial stability from August 2007 were “not as effective as they might have been and they did not lead to a sufficient or timely change in behaviour”.

The committee was reminded that the governor is paid an annual salary of €348,000, a figure that reflects the voluntary reduction taken by him last October from the €368,000 that he had hitherto been paid.

It is interesting to compare the salary for this position with those whose influence on global economic affairs is absolutely pivotal and whose utterances and nuances hugely impact the world investment climate and the effectiveness of economic recovery initiatives.

The US Federal Reserve system consists of 12 federal reserve banks located in major cities throughout the US supported by the Federal Reserve Board based in Washington DC.

The system as a whole employs almost 20,000 people and the board employs 2,053. The annual salary of the chairman of the Federal Reserve Board, Ber Bernanke, is $191,300 (€150,000).

It was approved by the US Congress in February 2008.

The president of the European Central Bank, M Jean-Claude Trichet, oversees a staff of 1,499 and was paid €351,816 last year. He is also provided with a residence, in lieu of a residential allowance, but his salary is subject to EU tax, pension, medical and accident insurance deductions.

The Oireachtas committee observed that the Canadian banking system “had operated quite well with prudential supervision of a high standard”.

The Bank of Canada governor, David Dodge, whose seven-year term concluded on January 31, was paid a salary scale the maximum point of which was $407.900 (€250,000).

The Central Bank was founded in 1943 and Mr Hurley is the ninth governor. He and seven of his predecessors formerly held the position of secretary general of the Department of Finance. The exception was Maurice Moynihan, co-drafter of the 1937 constitution and formerly secretary of the Department of the Taoiseach.

The salary of the governor is therefore influenced by the salary of the secretary general of the Department of Finance. This was set at €303,000 in September 2007 by the Review Body on Higher Remuneration in the Public Sector, a figure that may have been reduced voluntarily by the current incumbent.

Myles Duffy
14 Bellevue Avenue
Glenageary
Co Dublin

It is the norm in corrupt jurisdictions for puffed up politicians to award themselves massive salaries, drive around in expensive cars and fly to ‘very important meetings’ in jets and helicopters. It is also inevitable that bureaucrats in such corrupt jurisdictions will also develop an over inflated sense of self importance.

Pride in your country – Irish style

In a debate on the relevance of Seanad Eireann on Today with Pat Kenny yesterday Joe Higgins and John Drennan were very critical of the institution and called for its abolition.

Fianna Fail senator John Hanafin was not happy with the views expressed and accused the two gentlemen of being cynics. “Have they no pride in their country at all”, he thundered on today’s show (Thursday).

A Councillor from Limerick called to say how a senator had told her that the Senate was ‘the best club in Dublin’. Subsidised Restaurants and bars, free parking in the city centre, all the perks.

A Mr. Liam O’Kelly called to say how he brought five school children to the Senate to show them democracy in action but not a single senator was to be seen. He was shocked and outraged and, I’m sure, the children were more than a little puzzled.

The chairman, two ushers, a stenographer and two clerical assistants sat there twiddling their thumbs. (Waiting for democracy to show up?)

Pat Kenny, with information from a reliable source, provided the answer. They were all in the bar drinking and placing bets on the races in Cheltenham.

Now that’s having pride in your country – Irish style.

Copy to:

Senator Hanafin

Healy Rae gravy train

Last year taxpayers gave Independent TD Jackie Healy Rae the following:

€106,000 in salary.
€89,000 in expenses. (Many, if not most, unvouched).
€40,000 for a secretary.
€41,000 Independent TD allowance.
€10,000 for acting as a committee chairman.

Total: €287,000

No TD should be paid more that €75,000 in absolute total. There should be no other payment whatsoever with the exception of expenses which should be vouched and very carefully checked.