Johnny Fallon

Irish Political Commentator

Archive for the tag “Anglo tapes”

Anglo Tapes – Ireland, Banks, Politics, Has anything really changed?

The summer break can’t come quick enough for many politicians. It has been another long year. No doubt some will point to progress but the public are unlikely to be too convinced. When Brian Lenihan set out his four year plan many people were fuming and quite understandably so. The Lenihan plan set out four years of hardship and sacrifice and even at the end of that 4 years we were only to be looking at things stabilising. As it turns out that’s exactly the picture that’s emerging.

Now, that is not necessarily praiseworthy. The Irish people have suffered immensely for years now and the EU has been paralysed in acting. The EU that does hold the answers and can fix the problem whenever it gets around to sorting out its own petty differences and growing up enough to actually face the problem. In the meantime hapless governments in bailed out states are just trying to bob along like victims of a sunken ship desperately scanning the horizon for a rescue boat.

The Anglo Tapes will increase the fury of even the most level headed citizen. The attitude displayed on the tapes is appalling. While you and I and so many families, fall behind in our mortgages, struggle to pay the food bill and continue to sacrifice we are reminded, by these tapes, that some guys thought it would be ok to fool the state and have them pick up the tab. We are paying the price for a society that at its top level believed lying was ok, that it’s normal and that sharp practice is a victimless crime so long as the victim is only an ordinary punter. We are paying the price for a system that lauded such disregard of people. Perhaps we should not be surprised. A casual glance at TV programmes like the Apprentice seemed to show us that an attitude of being an obnoxious asshole was a pre-requisite to work in business.

We are paying the price for a regulatory system that was run on the cheap and believed that the people who know best about a business are those who run it. Don’t interfere. We are paying the price for a culture where the ‘providing of jobs’ was paramount and an excuse to allow a business free rein to do as it pleased, to breach rules or avoid paying simply because …well…think of the jobs.

Finally, we are paying the price for a political system that lacked courage or conviction. A system that accepted any information it was fed, that failed to question for years before the crisis. Politicians and government ministers stood in awe of the great captains of industry. A fool’s trust was exercised on golf courses and dinner functions where if someone says it’s ok then it must be ok. As David McWilliams continually points out we were suffering from extreme groupthink and nobody wanted to appear the fool in front of the group.

The problem is that I am not so sure that much has changed. The EU seems no closer to facing its issues, in fact the EU still seems to carry a candle of hope that the problems will go away themselves if the US and China sort it out and the bailed out states can eventually grow in their own time. The EU still does not want to lead and still procrastinates on any action while an option exists to stay put. The suffering of ordinary people does not matter, that is but a fleeting page in a history book that will instead focus on legacies and long term plans.
What about our banks? Have they learned? Definitely not. Their approach to their business remains the same as ever. Humility or regret is not part of their make up. The salaries at the top just prove that all believe that the world can and should continue as normal for them. This week thousands of mortgage holders are in distress. The banks have failed utterly and completely to engage, their plans for dealing with mortgage debt are hopelessly inadequate and the offer little or no real solutions that would allow the borrower to pay off arrears and get back on their feet. They are swamped in paperwork and hike up the interest and charges on the borrower while taking months to come to basic decisions on interest only payments etc which are in themselves pretty ineffective. Why is this? It’s because the banks want stronger rules on repossession and they are getting their way. That’s because it might take work to meet and discuss with mortgage holders and arrive at a solution. They don’t want that, they want a form filled in and put into a computer and rejected then move on. Mortgage holders are ordinary people, the banks are professionals, therefore when it comes to government policy, the banks get their way. Nothing has changed.

What about politics? Well I doubt anyone is shocked to find it’s the same old story. Fianna Fail took a hammering and we were told it was a sea change. It was a sea change for us political nerds. It was a sea change in terms of names of political movements. That was all. Brian Lenihan famously said ‘We all partied’, the quote, often taken out of context, was referring to all political parties whom he was accusing of making rash promises about the economy in order to get votes and he claimed all were guilty. All parties were. Fianna Fail were the ones at the wheel though and they must take the blame, they cannot look at the opposition or others and say ‘you made me do it’, they lacked courage to question, the lacked conviction and they were not brave enough to accept losing in order to do the right thing.

The current government must now accept its share of blame. It cannot continue saying ‘FF made us do it’. This government has also lacked conviction and belief, we know that there may not be much scope in terms of many policies, voters even accept that, but what has shocked them is the fact that the personality of the government is no different. In fact at times it has been even more arrogant, tied closer to business interests and displayed the same awe of those at the top as any of its predecessors. If politicians cannot look at the last government and see where that led what hope is there for us? Surely it’s now evident that long term governments are not naturally correct? That staying in power is not always the brave thing to do? That voting against what you believe does not automatically mean you are putting the country first?

According to the polls Labour will suffer most. It’s hardly surprising. What is surprising is that this party which showed such strength and conviction in opposition, being the only ones to vote against the bank guarantee, is now a party utterly lacking in belief or direction. No doubt some supporters will point to me of several things they are trying to achieve, the latest of which will be the ‘X’ legislation. I am unconvinced that the hard pressed voter will feel a labour capitulation on economic matters was worth it for ‘X’ legislation, but perhaps I’m wrong. It seems however that courage has deserted their ranks and instead they will await a good opportunity to change. No new leader will emerge to rock the boat until awkward elections are out of the way or difficult budgets are made. A strategy that’s nothing to do with what you actually think, nothing to do with bravery and nothing to do with the people, but everything to do with supposedly being politically smart. They should ring Bertie he might tell them where that leads.

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