Private Members Motion on the National Recovery Plan 2011-2014 - 30th November 2010

Private Members Motion on the National Recovery Plan 2011-2014 - 30 November 2010
Senator David Norris: I welcome the Minister of State, Deputy Kelleher, to the House, with which he is very familiar. I do not propose to score partisan political points, but that does not mean I will not have some criticisms to make. If the Minister of State’s speech was his last in the House, he should note it was a fine one, although I did not agree with some of it. It was very clear that he spoke from the heart, particularly when he invoked the future of his family. Few of us in the House could remain unmoved by the genuine sentiments he expressed. However, I support the motion. I had not anticipated speaking at this point, but I am happy to do so.

The first point of the motion states Seanad Éireann “notes that the Government’s four year plan published on 24 November 2010 contains nothing by way of concrete measures to restore employment”. It does not contain very much and I am not saying this in a partisan way. The plan certainly does not appear to contain enough. I do not make this charge for the purpose of gaining political advantage in that this comment has been made by a number of financial experts. For that reason, it is worrying. It is a central point in the remarks made by Dr. Krugman who certainly does not share the Minister’s view on bondholders. He holds what appears to be a majority view which is shared by the directors of some of the largest bond-holding companies. All economists admit that what has happened here is unjust, immoral and indefensible on ethical grounds. I asked on the Order of Business whether it was possible to sustain an appropriate financial system, or a just and decent civil society, on grounds that were universally acknowledged as being immoral, unjust, unethical and, according to Dr. Krugman, a mistake. I agree with that point.

It is true the Government is feeling overwhelmed. Who would not? I certainly would feel under considerable pressure. I have a degree of sympathy with the Government members as human beings. All of us have seen repeated on a number of occasions in the past few days the extraordinary scanning shot of the Government Front Bench in the Dáil. Body language is very instructive. There is no doubt the Members shown were beaten people. One only had to look at the expressions on their faces to realise they were really concerned.

My Labour Party colleagues have called on the Government to establish a strategic investment bank to fund viable businesses. This is absolutely desirable and who could possibly disagree? However, from where will they get the money? I do not know. We have actually frittered away our resources. Therefore, this good idea is not sustainable. Like the Minister of State who was engaging in his frankness, I am not an economist.

I welcome some of the points made by the Minister of State. I did not have time to read his speec, but I was listening to it in my office. I am glad the issue of upward-only rent reviews has been addressed and is continually under review. I refer, in particular, to the working group on commercial rents. This is a vital issue. However, why is it taking so long to address it? I have been talking about it for years in this House. I highlighted what I had seen in our most fashionable streets. I walk up O’Connell Street and Grafton Street and through the Hibernian Way and could see what was happening. It was blindingly bloody obvious. It was insanity to have upward-only rent reviews. It was also insanity to increase our VAT rates when the British did not. We share a land border with a part of the disunited kingdom which was lowering its rate when we were increasing ours. There was a certain amount of daftness in that regard. Let me welcome the provision to address this issue.

I welcome the scrutiny of legal costs, in respect of which there is a scandal. The most glaring example concerns the tribunals. Some members are commanding salaries of €2,500 per day, day after day. Let us have itemised accounts from lawyers. The Minister of State should get his colleagues to consider this. One simply never receives itemised accounts. One receives a bundled-up bill referring to stationery, postage, research, secretarial work and so forth. It is a load of nonsense and only one bald figure is listed. Since we are down to our last brass farthing, let the unfortunate people who have to pay legal bills know how much is spent on stamps, correspondence and secretarial time. I am not making any charges against individual legal practitioners because the practice to which I refer is followed throughout the profession. One never receives an itemised bill. I have never received one, although I am a very litigious man. I have never in my entire life received an itemised bill from any legal source. Let us address this issue.

The interest rate of 5.8% does not represent generosity. We have been good citizens of the European Union throughout our membership. We have taken very hard medicine and are being rewarded with punitive rates. The interest rate is an average figure; the actual figure for part of the loan will be considerably higher. No good deed goes unpunished. Let the people in Europe read this and realise there is at least one person here who recognises the lack of collegiality.

I was listening to a German Green Party member doing his damnedest to say Ireland should immediately scrap its corporation tax rate of 12.5%. How neighbourly is that? The journalist Polly Toynbee is not a Member of Parliament, but the language employed by her in her article in The Guardian, a very good newspaper, was a disgrace.

Senator John Paul Phelan: Hear, hear.

Senator David Norris: It was a racist caricature and she should be ashamed of herself for describing us as beggars, cheats, liars and thieves. Is that the language used by a good neighbour? In spite of its not being so, Ms Toynbee’s view is widely held underneath the soft parlance of the British Conservative Party.

With regard to Mr. Chopra, in one jump we seem to have gone from snip to chop. His emollient tones did not fool me one bit, including comments to the effect that we were brave little soldiers and that the Irish had character. Why the hell should we accept the interest rate offered? We should be given the money by those concerned at a rate of 1% because we are saving their bacon.

I hope to God someone from the ECB reads this debate. The ECB flooded the market with cheap money. It did not care where that money went and, of course, it went into our half-baked banks. The ECB was then among those who carried out stress tests on those banks and it informed everyone that they were perfectly all right. Who is the ECB fooling? Why should taxpayers who had no part in what happened be penalised and placed in penury?

An Leas-Chathaoirleach: The Senator has one minute remaining.

Senator David Norris: That is just too bad. I wish I had more time. There are certain areas on which we can focus. I have just been listening to a news report on RTE regarding the Kerry Group, which is a splendid organisation. The Kerry Group began as a little co-op and it now provides 23,000 jobs worldwide. It is to businesses of this sort that we should provide encouragement.

The Minister of State said “It is clear the best way to support businesses and create jobs is to fix the banks”. He should return on Thursday when we will be debating the EU-IMF programme for Ireland and we can then discuss how to fix the banks. I know how I would fix them and I am aware of how the citizens of this country would like to see them fixed.

The Minister of State also referred to our export performance, which is fine. He also indicated that “the Government secured a commitment from the main lenders, AIB and Bank of Ireland, to make available not less than €12 billion in total for new or increased credit facilities to SMEs”. Is this happening now? Is it possible to believe a word those in these two banks say? Will the position in this regard be monitored? Let us consider the figures provided by Mr. John Trethowan in respect of current practice in the banks. These figures indicate that at least 25% of the applications from small and medium enterprises were improperly rejected. That is the only conclusion one can reach in respect of this matter.

The Minister of State referred to prompt payment by the Government within 15 days of receipt of invoices. It is about bloody time.

An Leas-Chathaoirleach: I ask the Senator to conclude.

Senator David Norris: I am doing so. What is being done with the National Pensions Reserve Fund is disastrous. There is a train crash coming down the line in respect of pensions and the EU and the IMF are being allowed to dip their nasty little fingers into this fund.

I had hoped to speak after my colleagues, Senators O’Toole and Mullen. I do not have permission to move their amendment to the motion but I am very interested in it. I would like a proper examination to be carried out in respect of the proposal for metro north. I hope this project proceeds and I was very much involved in progressing it in the early stages. The project must provide good value, however, and must give rise to the creation of the envisaged number of jobs.

The second part of the amendment in the names of Senators O’Toole and Mullen refers to the moral hazard created by narrowing the gap between welfare and wages giving rise to a need for an immediate reversal of the decision to reduce the minimum wage. I was not able to give my support to the amendment as a result of the inclusion of this stipulation. I want to protect people on the minimum wage. I have been lobbied by restaurant owners, however, who are going out of their minds in respect of this matter. If we could take account of the needs of the restaurant sector while protecting the minimum wage to the largest degree possible, progress could be made. An absolute disaster has been visited upon restaurant owners as a result of the kind of wages they are required to pay to, for example, those who work on Sundays.

Let us consider this matter sector by sector.

An Leas-Chathaoirleach: The Senator must conclude.

Senator David Norris: Is it not appalling that multibillionaires are buying petrol for their yachts in Monte Carlo at the expense of the weakest in society? This is being done by reducing the hourly rate of the minimum wage by €1 and it is an utter moral scandal. We in this House should stand for decency and principles and for those who are at the lowest point on the scale. From what he said at the end of his very moving contribution, I know that, in his heart, the Minister of State shares that view. I do not care if people read what I have said but I hope to God they do.

Senator Dan Boyle: I think the Senator just provided us with a preview of Thursday’s speech.

Senator David Norris: Senator Boyle has not heard the half of it yet.

Senator Dan Boyle: I look forward to hearing the remainder.

Senator David Norris: The Senator might agree with much of it.