Thursday, August 26, 2010

Economics 27/8/10: Manifesto I (?)

I will continue posting on this and will aggregate all ideas in my Long Term blog, with a banner link on my main page as well. All suggestions welcomed & will be published, some will make it to the list as well (as always - with proper attribution). So engage with me on this one!


Given the current market and economic conditions and the dire lack of credible economic policies (from any political party) aimed at moving Irish economy out of the combination of:
  • deeply rooted crisis in public finances;
  • structural collapse of the banking sector;
  • stratospherically high and increasingly long-term unemployment levels;
  • lack of significant gains in competitiveness (not limited to the area of wages competitiveness, but including basic utilities costs, and costs of living and doing business relating to state-controlled sectors);
  • malfunctioning markets for provision of domestic services - dominated and restricted by the excessive market power of the incumbent state-owned and state-regulated oligopolies;
  • a clear predominance of policy measures that are designed to saddle ordinary families and individuals (consumers and taxpayers) with the full cost of stabilizing vested interests and elites (manifesting themselves in rising tax burden, falling provision of public services, lack of reforms in banking and public sectors); and
  • continued devastation of private entrepreneurship and businesses, contracting investment and lack of confidence in the future of the economy and broader social progress
it is now time to ask:
Is Ireland's electorate ready for an alternative political and popular movement that would put the interests of consumers and taxpayers at the top of governance and policy agenda?

Irish democracy cannot be surrendered to the vested interests, no matter how broadly-based, and elites (no matter how meritocratic or mobile they might be).

The current crisis has clearly shown that the corporatist state - where a group of vested interests colludes with the Government and state structures to set economic and social parameters for development priorities - is morally, politically and economically bankrupt.

The only two ways forward from this status quo are
  • a generations-long and exceptionally deep crisis of stagnation and declining standards of living, or
  • a path of structural reforms aimed at realigning the current political system to serve the interests of consumers and taxpayers - aka - the ordinary citizens and residents of this land.
Such a reform can only be achieved by creation of a radically different alternative to the existent structures. A new popular movement can champion the rights of consumers and taxpayers to counterbalance existent system that promotes the interests of the vested pressure groups and elites.

It is therefore, clear to me that at this point in time Ireland is on the cusp of either opting for change or electing to undertake decade (if not decades) long descent into the nightmare of economic stagnation.

In my view, the agenda of such a movement should include the following reforms:

1) Banking reforms:
  • Banks should be recapitalized following Swedish model (imposing haircuts/equity swaps on bond holders; accepting correct amounts of writedowns; equity taking by the State in the name of taxpayers; equity to be held in a Trust for individual taxpayers until disbursal; at disbursal - equity sales proceeds to be rebated, net of cost to the taxpayers)
  • Nama to be reversed
  • Anglo Irish Bank and INBS to be shut down and their liabilities and assets to be wound up within 5 years
  • All banks boards and senior management teams replaced within 3 months
  • All banks middle management teams reassessed and rebuilt within 12 months
  • FDIC insurance scheme to be set up for the future needs of the sector
  • No future bailouts constitutional amendment to be put to a referendum to prevent a possibility of any future calls on taxpayers wealth from any private sector firm
2) Fiscal reforms:
  • Flat tax to be enacted on all incomes (preliminary estimates suggest 15-17% tax rate) with no discretionary deductions, but a generous upfront deduction of 1/2 of the median wage to be made available to all earners, plus 1/5 median wage deduction per child.
  • Provision of strong (current level -10%), but life-time capped welfare provisions. Life-time cap will allow any able bodied adult in the country to have access to a cumulative maximum of 7 years of welfare provisions over their life time. Provision of welfare supports to those unable to work due to health or family circumstances (e.g caring for the disabled relative etc) to continue without life-time limits.
  • Strong support for the disabled and the elderly must continue
  • Wages for politicians and all senior servants earnings are to be tied to the National Disposable Income (NDI) on per capita basis (pcNDI): Taoiseach=3.5 times pcNDI; Ministers=3 times pcNDI; senior civil servants=max 2.7 times pcNDI; TDs/Senators=2.5 times pcNDI and so on. If the country earns more in disposable income, then those running it should get a reward, otherwise, they will automatically bear the same burden as the rest of economy. No bonuses to be allowed and all pensions to be converted to Defined Contribution plans.
  • Benchmark Government spending to 35% of GDP, with emergency spending not to exceed 37% of GDP in any given year, and a balanced budget over every 3 year period. This allows for small emergency spending boosts in recessions, but prevents spending sprees in elections etc
  • All quangoes, except those with immediate independent oversight authority (e.g FR and Competition Authority) are to be abolished and their functions transferred to respective departments. Responsibility for governance and management must rest with the executive branch of the state - i.e. Government.
  • There should be no taxation without representation - self-employed individuals who are fully tax compliant should have access to same unemployment benefits as anyone else.
  • Tax system should be fully reformed to simplify existent taxation and ensure full compliance. This will include, in addition to the flat income tax - abolition of all indirect charges and taxes, other than direct user fees which will be fully ring-fenced to provide revenue necessary to maintain specific service (e.g. bin charges, water rates etc). VRT will be abolished. Any excise taxes will be set at a level required solely to support provision of services directly associated with the underlying consumption charged. For example, petrol levy will apply only to the amount required to support environmental programme related to CO2 abatement and improvement of the environment. It will not be allocated into the general budget. There will be a fully transparent tax on land values (LVT), but not a property tax. The revenue from LVT will be split 50:50 between central & local authorities and local authorities will be allowed a discretion to vary their rate of LVT within reasonable parameters. For example, if LVT is levied at 1% pa, then local authority can be allowed to charge between 0.25% and 0.5% as it deems suitable, while the central government will collect 0.5%. CGT and CAT will be abolished for all investments held for 5 years or longer to encourage longer term savings and investment.
3) Governance reforms:
  • Core change to the Government model will be transparency and accountability based on automatic systems of disclosure and control that are not subject to tampering by individual ministers/politicians or civil servants
  • Transparency: all state data/decisions/discussions not subject to secrecy of the state considerations will be published on the web and made accessible free of charge to all residents of the state. Commercially sensitive data will be published with exclusion of sensitive information and identifiers, until the time when it can be published in full. All data requested under FOI will be released free of charge to the requestee and will be automatically published also on the public web portal to remove any need for future FOI requests
  • Accountability: performance and productivity metrics will be designed for all branches of public sector and wages and earnings in the public sector will be tied into these.
  • Any attempts by public employees or office holders to undermine the principles of transparency and accountability in dealing with the public will be punished on the basis of publicly available procedures. All disciplinary actions against aforementioned employees or office holders will be made publicly available.
  • Local authorities will be reformed, reducing the overall number of local authorities to 7, covering: West & North West, South, Greater Cork, Greater Dublin, Greater Limerick, Greater Galway and Border & Midlands.
  • Seanad will be reformed (subject to referendum) to give it real powers of the upper chamber comparable to the US Senate. It will be elected directly by the people of Ireland, with equal representation of 5 senators from each of the 7 geographic region outlined above.
  • Dail will be reformed - there will be no expenses, no additional pay for work in special committees (every TD will be required, subject to seniority to carry such work as a part of their duties). The number of TDs will be reduced to roughly 2/3rd of the current. TDs will be entitled to a defined contribution pension top up to their existent private pensions with the state matching 1:1 every euro they put into their pension.
  • Members of the cabinet will have no drivers, state cars and there will be no Government jet. Members of the cabinet will qualify for a car allowance equivalent to €10,000 per annum. All members of the Oireachtas and Government traveling on official business will be reimbursed only to the full cost of the ticket for economy flight on any flight under 5 hours of length and business class for flights of longer duration. No employee of the State will be entitled to any travel reimbursement in excess of an economy class ticket.
  • No member of the Oireachtas or employee of the state will be exempt from any of the standard tax codes or laws of this land. There can be no privilege for the servants of the public that the public itself cannot claim.
  • All state purchasing will be carried on-line, made public and transparent.
  • State will purchase services, such as health care, care for the elderly, disabled etc for those who cannot afford them, but the State will not own service providers. Instead, public companies will be mutualized or privatized and forced to compete directly for the custom of the people. Transition to such an arrangement will require significant reforms, but also support for current employees in training them in running a private/mutual/non-profit etc enterprises. This support will be provided.
  • Higher education will be fees-based, with fees set by universities and overseen by the Department for Education. The State will set up (with participation of charities and other private agencies) a number of funds that will administer financial aid to students based on need (with an objective of creating an equal opportunity for all qualified students to undertake studies) as well as merit (with an objective of rewarding real achievement).
In the name of sanity, I should pause for now. I will continue posting on this and will aggregate all ideas in my Long Term blog, with a banner link on my main page as well.

All suggestions welcomed & will be published, some will make it to the list as well (as always - with proper attribution). So engage with me on this one!

94 comments:

Anonymous said...

Abolish the link between county boundaries and constituencies. TDs should represent nation, not be in competition with other counties for limited resources.

TrueEconomics said...

We can have 1/2 elected locally, 1/2 nationally - any suggestions for the specifics/formula? First-past-the-hurdle?

Anonymous said...

Sam,
Very good manifesto.
I think the tax policy might need more detail however. I would think some form of increase rates for higher earners might be required for sufficient revenue.

Also you could link the minimum wage to the social welfare so that it is say double. Both could be linked to median wage (I never understand why politicians never try to put in place such metrics, those on the right want continuously lower taxes yet do not specify how low they would want them and those on the left want high social welfare and minimum wage but clearly there is a point where these can be way too high (we have passed that point here).
Benefits such as free medical cards, back to school allowance, child benefit etc should be abolished and the money saved used to increase the tax credit per child and social welfare top-up per child. This would avoid the situation whereby someone out of employment is better off than a full time worker, or a worker has no incentive to work harder for a pay rise because they will lose benefits. (I make these points as a average industrial wage medical card holder that is not sure if I want a pay rise).

Sandymount said...

Rather than the false dichotomy of a American vs UK/Canadian healthcare system I would suggest a Singaporean account style system. You have to pay a percentage of income into your own healthcare account up to a nominal total account limit. Every time you need medical care, you draw down from that account or you use money from an insurance programme you bought from that account. The money you don't use by the end of your life passes to your next of kin.
The poorest are provided for who don't have enough in such an account but it is surprisingly few and the standard ofhealthcare is excellent.
Of course, there would be no publicly run healthcare at all. All privately run without the U.S. litigous nonsense.

TrueEconomics said...

@Sam: my 17% is a preliminary estimate, very broadly based, that should allow us reaching 35% of GDP target (with other taxes alongside). Remember, there will be no loopholes left for the rich to exit tax net or to reduce their liability below 17%.

Very good point on linking minimum wage with social welfare etc. Might try and work that in as well.

@Jonathan: Yes, an interesting approach. With few modifications - will certainly use it as an alternative solution. I didn't mention universal insurance system, because I am not certain about its efficiency or effectiveness. Nonetheless, symmetry requires I deal with it.

Thanks for suggestions to all. Keep them coming.

Unknown said...

This is too sane. It borrows a lot from other successful models (in certain categories) around the world. The Singapore medical suggestion is a good one on health care. The pension reform sounds a lot like Chile....

Can't wait for future installments. Not a hope in hell that this will happen in Ireland, but why not try?

BriMcS said...

Suggestion to cultivate enterprise: A corporate tax "entrepeneur's exemption" for 1st 5 years of operation. Subject to clawback if the enterprise is sold within say 10 years.
The timespans are open to suggestion but the spirit of "cultivation of enterprise" needs to remain.

Incentivise employee-shared operations. There is strong evidence (http://www.ffw.com/211.aspx) that they out-perform other models. Not yet sure how best to do this. Thinking about it.

How can the acievement of Israel be targeted wrt their investment in R&D & education. Increase expenditure in R&D?. Incentivise the best international universtites/ITs to locate in IRL?

Anonymous said...

Great stuff. Away with the claptrap and nonsense of yesterday and let's give it a lash. Intelligent, innovative and very promising.
Johnny Mack.

Miriam Cotton said...

Re: public sector accountability - all workers should have explicit duty of care clauses where they are providing services for dependent people. Managers should additionally be held accountable for failures of oversight where hard-pressed people like social workers are having to try to compensate for lack of funding or of timely decision-making.

Nepotism: a HUGE problem in Irish politics. It should not be permissable for members of the same famiy to be on the same or proximate councils? The practice of co-opting people onto councils should end.

All due elections to be held within a specified time-frame.

No repeating of referendum votes within a ten-year period

A.K.A. Damo Mackerel said...

One senator per county, democratically elected by the people.

We have 1,600 councillors, slash that number by half. i wonder how many of these councillors were in bed with the developers?

One mayor per county. In Waterford we currently four.

Cut back on red tape to encourage entrepreneurs.

Introduce a negative outcome insurance scheme, where people can get this type of insurance prior to major operations or child birth. This will avoid lengthy court cases and reduce costs for the health service.

A.K.A. Damo Mackerel said...

Also introduce a voucher system for schools and hospitals, giving parents and patients greater choice. This will increase competiton,therefore reducing health costs and improving education.

If all else fails, how about signing ourselves over to the Germans? Lols.

John said...

Just some comments. In relation to self-employed people and unemployment benefits, I'd agree fully that they should be entitled to the same unemployment benefits as everyone else. However, they should also pay the same PRSI as those in the PAYE system.

On the governance side, the power of the US Senate does not come from its internal structures put its relationship with the executive. Both Houses of Congress can behave 'independently' of the executive, because there is no fear of brining the government of the day down. It is the power without responsibility. Furthermore, it is a power which is used in the most shameful pork barrel style - think the Dáil is bad, look at the deals done between the three arms of the US legislature when passing legislation.

On the comment on the expenses - I cannot agree with abolishing them. If a TD is from Donegal, and have to travel to Dublin to represent their constituents in parliament, why should they be paid the same as someone who doesn't have to travel? If you work in a company where you have to work in two locations i.e. Dublin and Donegal, and people doing more or less the same job are working exclusively in Dublin, there is some arrangement for the additional travel costs to be borne by the company.

On the travel costs of Ministers and TDs that seems a bit of excessive. If there is an emergency EcoFin meeeting, I'd prefer the Minister of Finance to be there, courtesy of the government jet, rather than having just the permanent rep in attendance and our man in Dublin waiting for a place on a flight two hours later.

I think aspects of your proposals like the above suggest too much attention to the minute. Create the broad picture of the country you want and work down, rather than expecting that focusing on the expenses of politicians will result in a changed country.

Charlie Haughey and TDs and Ministers of his era didn't have great wages. Worked well for him and Ireland, didn't it?

Des Groome said...

On the subject of Local Authority reform, I agree that 7 regional authorities could replace the existing county councils.County Councillors and Town Councillors would thus also be reorganised.
In tandem with regional authority restructuring I suggest Local Politics would reform to perhaps just 7 county Councils with regional committees of Cllrs replacing the town councils. There would be fewer Cllrs who would have larger LEAs and higher voter ratios. They would then probably need to be full time and reasonably well paid ( 2/3 a TD salary perhaps). Do you agree?

Anonymous said...

Reform of pension scheme along continental lines with universal guaranteed pension for both public and private sector (linked to median wage). Can be supplemented with non-profit solidarity based schemes that already can be found in e.g France or Holland.

Goal is to encourage entrepreneurship and to mitigate risks of people being afraid to leave their permanent and pensionable job in order to start a business. Also removes gaps between public and private thereby incentivising civil service to consider the whole population. Finally removes the financial industry from its wholesale fleecing of the private sector via PRSAs and other wasteful products.

The Skanger said...

Is there any merit in linking higher education fees to second-level fees (i.e., a student who attended a fee-paying secondary school would be liable for higher fees at third level than a student who attended a non-fee-paying school)?

TrueEconomics said...

@Skanger - ABSOLUTELY NONE!

higgz said...

Fantastic stuff! I couldn't agree more with EVERYTHING. Can't wait to see the other posts!

@BriMcS said...

Education reform:
Maths & Science teachers must have MSc & reward them appropriately.

Remove obligation to study Irish but retain an incentive (for those who genuinely want to study the language) in term of Leaving Cert points.

Incentivise Maths & Science students with higher bonus Leaving Cert points.

Public sector interns: Public sector & semi-state operations conduct internship programmmes hiring IT/Engineers students on contracts rewarded based on completion & grading of projects only.

Anonymous said...

Sam,
A big issue to addressed is pensions and redundancy.
We need equality. If during the boom the government had introduced a universal pension scheme for public and private workers similar to that in the public sector.
This would of course be completely unaffordable but would then have been cut for all to a reasonable level. The unions never call for equality in this area because they now if everyone had a similar pension it would have to be way less generous than that their members enjoy.
Also redundancy. Why do public sector and semi-state employees recieve more than the minimum redundancy. If the government believes that the statutary minimum is not enough, then change the law and make it better for all. More inequality supported by the unions to the benefit of their members.
Also redundancy should not be based on length of tenure. My proposal would be 1 week per year of tenure + 6 months salary.
The current system discourages people to move jobs (particularly between public and private sectors) and this is determental to all.
With a more mobile and flexible jobs market people would benefit more from eachothers experience in different sectors.

Anonymous said...

Sam,
Using the median industrial wage to determine politicians and public sector salaries is an excellent idea.
But this should be the median wage including all people in the jobs market, i.e including those on jobseekers benefit.
Politicians would therefore get paid more where wages are higher AND more of the population are in employment.

Anonymous said...

Interesting collection of ideas, shame you had to introduce populist nonsense such as getting ride of the Govt jet, which makes absolutely no difference to the overall finances of the country, and whilst it shouldn't be used as a personal taxi the way Dick Spring did, it have many genuine uses

Logically therefore there is need to reform the rules of usage, but not to deny the country it's advantages

CiaraScully said...

On Governance:
There should be minimum standards for senior civil servants & ministers also. TD’s have to be representative, absolutely, but there has to be some benefit in requiring that ministers & snr civil servants who are negotiating on our behalf have some expertise in the area’s they are charged with.

John, On TD’s travel expenses – you’re right it’s a small point but I think it’s the tip of a bigger issue. IMHO our TD’s should be a voice for their constituency but at a national level. Their focus should be on ensuring that national politics serves their constituents. They should not be spending their time sorting out local & personal issues. Leave those to local councils and the bodies responsible for them. Let our TD’s take care of national issues – in Dublin where our government sits.

Constantin, Great to see someone coming up with solutions & alternatives. A bold & positive step! I hope that it will be the spark that ignites real thought about what we want for our country.

Anonymous said...

I think ideas would need to be cogniscant of our EU and euro membership.
Monetary policy belongs to ecb,Fiscal policy increasingly appears to be determined by ecb and and the EU.(bond sales are dependent on being backstopped by ecb not the Irish State).

Political and social legislation also is primarily decided by Europe.
The recent bogus marriage scam here used by illegal immigrants is a result of Irish law overturned by a european court.
Personally I would prefer if we exited the eu and the euro,the benefits of membership to me and my fellow Irish citizens is well concealed.The benefits to illegal immigrants and eu migrants of Irish membership of the eu are obvious anywhere you live in Ireland.
Capital flows across the eurozone flooded Ireland with cheap money and massive asset inflation,the exit of that capital is now doing the opposite.Ireland is too small to maintain an independent fiscal policy whilest being a member of a currency board such as the euro.

Your suggestions are creative but there is the problem of the eu and the euro.Are we fully in as part of a Federal union,are we half in as now, or do we exit?

Bear in mind that recent surveys show less than half of eu citizens want the eu to continue.
81 % of Germans support their governments austerity policy and 50 % Germans want to exit the euro up from 40% a year ago.

There are seismic changes afoot everywhere and we wont stand still even if we want to.

Regards,
Sean.

Vincent Salafia said...

Good common-sense arguments, that everyone can agree on... But a little short on how we get from here to there. I would invite you to review our proposals for Direct Democracy Ireland, which aims to allow the people to reclaim their power, by introducing mechanisms of initiative, referendum and recall of politicians, who have failed in duties.

Anonymous said...

The Irish Constitution defines who is an Irish citizen and it also states that the people (citizens of Ireland) are the Sovereign.

Only Irish citizens have the power to change our laws,Constitution and political infrastructure through elections and referenda .

Your manifesto is a call for political change in Ireland.If you are a naturalised citizen your contributions are welcome.
However I have heard you introduced on radio shows or referred to as a Russian.
In the interests of dislosure can you please state are you a naturalised Irish citizen.

For the record,I believe only Irish citizens have the right to advocate political change here.

Regards,
Sean.

Norman Wyse said...

Constantin, regarding your local government reform, I see that your constituencies include the 'greater' areas of cities. We have five cities in Ireland: the four you mention, plus Waterford. I know there is not a lot of love for the less glamorous cinderella city in the south east among our "nationally"-minded elites, but the people haven't gone away you know.

A greater Waterford catchment, depending on the radius, would be comparable to or greater than Galway and would approach Limerick. The Atlantic Gateways initiative document (http://bit.ly/cZxU9F) p.16 gives 45min drive time catchments for the regional cities as (based on 2002 CSO):
City -- Pop. incl. suburbs -- 45min catcment pop.
Cork -- 186 239 -- 337 917
Limerick -- 86 998 -- 326 279
Galway -- 66 163 -- 175 836
Waterford -- 44 594 -- 267 359

Since I know you're a man who appreciates the numbers, it should be obvious that the south east is much better populated than the west, despite much higher funding, tax breaks, incentives, IDA favour and the benefits of a university in the region.

I'm more amazed that your 7 councils doesn't even include a clear south east council let alone a greater Waterford. Again, lest the usual 'parish pump politics' bat be wielded against me, we are talking populations here, and the south east is far more populous than the west and other regions, and far larger than the mid-west.

My own suggestion would be to have 5 greater urban councils and 7 regional councils (corresponding to the 8 regional authority areas minus Dublin). The Dublin council could be given additional powers. So there you have 12 councils emphasising the urban/rural divide, and 7 logical, rural councils. If within those rural councils, people want a little bit more democracy, then their could be a lightweight layer below it, with small funding and very limited powers.

At the end of the day, extending some form of democracy to people far away from the seat of power is fine as long as you push the real decisions upwards. Reform is needed, though, and I think the 12 councils I've suggested are logical and have some precedent.

madmayoman said...

Does your flat tax rate also apply to Corporations profit tax?
Otherwise, even if all reliefs are abolished, I can't see the tax base being broad enough.
Also, does the flat tax rate include PRSI?

TrueEconomics said...

@Sean - keep contributing. You might get beyond your personal views and start thinking about the better policies for the country one day. There's always hope.

Anonymous said...

Abolish the Council of State and engage a form of elected expert Constitutional officials to form a new Constitutional Compliance Review Group, just so NAMA doesn't have any babies.
Spaceba.
Furrylugs

laughingbear said...

@ Sean,

Coincidently, I was born in Germany, my parents have russian ancestors going back to 1150, however, I live in Ireland 12 years, but my german shepherd was born in Ireland, I am contributing on his behalf.

Governance:

The voting system in the dail might need an overhaul as well. It can not be accepted that votes are permanently rigged by using independent votes. The results of Votes in the dail are highly predictable and often a "majority" of three votes is all it takes.


Best,
Georg

Anonymous said...

@Sean

It might have escaped you but these days most of our laws are advocated by non-Irish citizens in Brussels.

Our Constitution is subject to EU law.

So perhaps your suggestion would be to invent a time machine and take us back to the 1950s?

Anonymous said...

Constantin,

You have called for transparency in your manifesto yet refuse to confirm whether you are an Irish citizen or not.
It matters.

If you are not a citizen of this country then you are organising a movement for political change within Ireland for which you have no authority.
You are in effect organising subversion of the Irish state .


Do you believe any immigrant has the right to organise politically to change Ireland if they are not citizens?
How would I be received in Russia if I started organising Russians to change their laws and political structure.?
In the past many people in Russia and throughout Europe have been killed because of such action.
So please dont be flippant as per your response.My life as an Irish citizen is nt part of a game.

With respect to the other comments regarding the EU,my contention is a major part of our problems relate to EU and euro zone membership whereby the laws enacted in Ireland are over ruled by Europe.
A return to national sovereignty is ,in my view desireable.
Throughout the western world such movements back to national sovereignty are gathering pace.the Tea Party in the US is a good example.

So once again,are you an Irish citizen?


Regards,
Sean.

Anonymous said...

Time machine it is so Séan?

I presume you also would have difficulty in non-Irish nationals paying their taxes here or indeed non-Irish taxpayers rescuing our economy?

A.K.A. Damo Mackerel said...

Also reform the law to prevent the government from interferring with the markets thru' tax incentives, cronyism etc.

laughingbear said...

Off Topic:

I was on a local resident meeting yesterday to inform people about the next government sanctioned / driven rip off scheme, "klondiking" clean green energy, yet another scam that which is hitting the entire country as we speak. Same old story, politicians and special interest groups bend rules and guidelines as well as breach EU directives for potential profits.

My presentation is based on facts that I investigated.

During that a gentleman made a remark that he was made aware that already some people were slandering and discrediting the group I presented my findings to. Foreigners would be on board and the whole thing would not be an Irish thing but foreigners interests, which of course is utter none sense.

@ Sean

Thank you for highlighting this important aspect!

On: Topic:

Electorate Rights:

Current situation is:
The right to vote is as follows:

Irish citizens may vote at every election and referendum;

British citizens may vote at Dáil elections, European elections and local elections;

Other European Union (EU) citizens may vote at European and local elections

Non-EU citizens may vote at local elections only.
Governance:

Proposed changes :
Abandon the special case concerning British citizens

Inclusion of: All EU citizens with their first residence in Ireland shall be able to vote on every election and referendum.

Best, Georg

kate bopp said...

I will encourage people to read this manifesto and add their comment. This is an enormously important discussion. It is dissappointing to see that an anonymous contributor feels it is necessary to dwell on the author's nationality. Focus should be on how we can best piece together what is salvagable after successive governmental failures to truly serve

CiaraScully said...

@Sean Dev was a foreigner! If you're going to be a nationalist at least know your history.

Good ideas are good ideas regardless of their origin and how dare you suggest that a member of our society is not entitled to an opinion on how we could better progress.

If you have something useful to contribute please, please do. Otherwise take your bigotry elsewhere.

CiaraScully said...

On education:
Current government policy is to subsidise 3rd level education (to the determent of those institutions) while they don't properly invest in primary & secondary level. While everyone should have equal opportunity to attend 3rd level - not everyone wants to (or should). Govt focus should be on providing quality primary & secondary education of a consistent standard for all. That, imho, would do more for improving equality in education than providing fees for people when it's already too late.

Unknown said...

I appluad your efforts to create a debate and also the effort and well thought out opening post.

I would suggest that we know what the problem is, we know what the solution is and all is needed is ACTION.

Debate is neccessary but pointless if little or no action will come of it.

I would further suggest that after 2-3 years of shock, disbelief, denial, anger and protests, we really need to take PERSONAL responsibilty and stop expecting those that got us into this mess will lead us out of it. NOT GOING TO HAPPEN.

I would dearly love to see "creation of a radically different alternative to the existent structures." and "A new popular movement can champion the rights of consumers and taxpayers to counterbalance existent system that promotes the interests of the vested pressure groups and elites."

However I fear that until a group of individuals (some of public standing) get together and stand up and show the much talked about and much awaited "leadership" we will be left with the less desireable option.
I am happy and willing to support & be involved in such a group, but will not waste my time trying on my own to force a herd of disinterested people away from the cliff.
I would plead and encourage you to use whatever influence you have to find a group that will stand up & would have some credibility with general public.

Enough talking and more positive ACTION (not the destuctive kind)

Thank you,
ThomasB

NOTHING happens when WE do NOTHING!!!

Anonymous said...

Constantin, what benefits are there to flat taxes - both social and economic?

Anonymous said...

In response to some comments:

Yes Dev was born in the US before the State came into existence. He became a citizen of the Free state post 1922 and a citizen of the Republic after the declaration of an Irish Republic (I think the year was 1948).

The usual canard has been put forward regarding paying taxes and rights to representation through voting rights.
Voting rights relate to citizenship not to whether you pay taxes or not.If voting rights excluded those who dont pay tax the electoral base would be less than half of what it is now.

If EU citizens are to have the right to vote in Dail elections as one person proposed then they must relinquish citizenship of their home country.Its illogical and undemocratic to have votes in two countries in the EU where they may vote on EU issues effectively twice.

The Irish people are Sovereign (as per the Irish Constitution).Thats the law and those are the rules .Depicting that as Nationalist or my reference to it as bigotry wont alter that fact.

Good ideas are one thing but political interference in another country if you are not a citizen are two seperate things.

As Constantin G. has not answered the question about his nationality then the natural conclusion must be he is not an Irish citizen.Remember I previously stated he has been introduced on radio shows as Russian.
I have been contributing on this blog for some time and believe Constantin G's analysis to be brilliant on the economy and proposals to fix it.
However he has now turned this blog into a call for political action(Thats what a manifesto is) and away from the intent of the site as below.

''True Economics is about original economic ideas and analysis concerning everyday events, news, policy views and their impact on the markets and you.''

Therefore he has opened the door to scrutiny of his motives when he engages in political action.There is nothing personal in my comments ,even if they are perceived to be so by him or anyone else.

Whether his ideas are good or would have the approval of most people are irrelevant if he is not an Irish citizen.
We have had the IRA for years murdering people in this country because they refused to recognise the legitimacy of the State and its security forces.At times they had the support of significant portions of our population. In one case they murdered detective Gerry McCabe, a member of the Garda Siochana.

Constantin G. is now organising (through this blog) political action against the Constitution of this State .If he qualifies for citizenship and has become a naturalised Irish citizen then I welcome his input.
However if he is a non citizen his action amounts to subversion of our state and he is playing a very dangerous game with our lives.

If I am wrong on the he facts regarding The Constitution,Sovereignty,Citizenship,political and voting rights and my factual assertion that the only legitimate authority to demand change to the political structure belongs to the Sovereign(i.e. Irish citizens) then please make that case.


Regards,
Sean.

Anonymous said...

In response to some comments:

Yes Dev was born in the US before the State came into existence. He became a citizen of the Free state post 1922 and a citizen of the Republic after the declaration of an Irish Republic (I think the year was 1948).

The usual canard has been put forward regarding paying taxes and rights to representation through voting rights.
Voting rights relate to citizenship not to whether you pay taxes or not.If voting rights excluded those who dont pay tax the electoral base would be less than half of what it is now.

If EU citizens are to have the right to vote in Dail elections as one person proposed then they must relinquish citizenship of their home country.Its illogical and undemocratic to have votes in two countries in the EU where they may vote on EU issues effectively twice.

The Irish people are Sovereign (as per the Irish Constitution).Thats the law and those are the rules .Depicting that as Nationalist or my reference to it as bigotry wont alter that fact.

Good ideas are one thing but political interference in another country if you are not a citizen are two seperate things.

As Constantin G. has not answered the question about his nationality then the natural conclusion must be he is not an Irish citizen.Remember I previously stated he has been introduced on radio shows as Russian.
I have been contributing on this blog for some time and believe Constantin G's analysis to be brilliant on the economy and proposals to fix it.
However he has now turned this blog into a call for political action(Thats what a manifesto is) and away from the intent of the site as below.

''True Economics is about original economic ideas and analysis concerning everyday events, news, policy views and their impact on the markets and you.''

Therefore he has opened the door to scrutiny of his motives when he engages in political action.There is nothing personal in my comments ,even if they are perceived to be so by him or anyone else.

Whether his ideas are good or would have the approval of most people are irrelevant if he is not an Irish citizen.
We have had the IRA for years murdering people in this country because they refused to recognise the legitimacy of the State and its security forces.At times they had the support of significant portions of our population. In one case they murdered detective Gerry McCabe, a member of the Garda Siochana.

Constantin G. is now organising (through this blog) political action against the Constitution of this State .If he qualifies for citizenship and has become a naturalised Irish citizen then I welcome his input.
However if he is a non citizen his action amounts to subversion of our state and he is playing a very dangerous game with our lives.

If I am wrong on the he facts regarding The Constitution,Sovereignty,Citizenship,political and voting rights and my factual assertion that the only legitimate authority to demand change to the political structure belongs to the Sovereign(i.e. Irish citizens) then please make that case.


Regards,
Sean.

Anonymous said...

@dmcl01

You could bring in a law analogous to Article 106 of the TFEU which prevents governement actions that distortion or are likely to distort the Irish market.

economyireland said...

its great to see people like Constantin try to push peoples thinking to bring around change in this country.
I think it is important that more people in high profile positions can come together and begin the proccess of change in this country, i am sure that with the right people a new way of polotics could evolve

CELTIC MELTDOWN said...

@ Anonymous
.
"If you are not a citizen of this country then you are organising a movement for political change within Ireland for which you have no authority.
You are in effect organising subversion of the Irish state."
.
Sounds suspiciously like the charge leveled against Roger Casement.
Unknown to yourself Constantin, your are being elevated to the company of exalted Irishmen.

BriMcS said...

More on cultivation of enterprise & FDI:
Guaranteeing x% of GDP to the Irish Innovation Fund every year.

Making profits from enterprises set up by returned scientists/innovators tax-exempt, provided that the operation is employee-owned. Tax exemption to be in affect for at least for a fixed-term period, then scaling up to normal rates.

Brendan Quinn said...

Great Post. I'm am attempting to start such a movement. The Irish Liberal Party would be socially and economically liberal. Many of the points in the manifesto are aligned with the thinking of the small group so far. Without money, connections etc it is difficult to get a momentum going. We need existing leaders from academic, business background to stand up and make a difference. There is wider sentiment for these types of policies to get us out of the malise we are in. Otherwise I fear for this state/democracy for next decade or more.

Brian Lucey said...

Constantin
Ignore the xenophobic drool dripping from Seans slackjawed lips.

Great initiative - I agree with many, not all, the proposals, and will take some time to do a longer response. One thing Ciara- Govt doesnt subsidise privately provided third level but does public. Now, why is that? I cannot understand.

Brendan Quinn said...

Great post Constantin. I am trying to start a new liberal party that would have policies aligned to your manifesto. www.irishliberalparty.org This is a next to impossible task without endorsement, support and leadership from business people and academics to bring creditablity to the movement. A new liberal group that is socially as well as economically liberal is critical. There is I believe widespread support for such a group if it got of the ground.

TrueEconomics said...

@ Brendan -

Brendan, the 'Manifesto' project is intended to provide a kind of a live forum for discussion of the ideas on policies and reforms.

I only ask the question as to whether now is the time for a new party or movement. I do not for a moment postulate that it has to be necessarily a new party.

Instead I offer a list of my proposals (and when I get to collate comments - the list of policies that others suggest and I find personally in agreement with or get compelled to agree with by their arguments).

These are my thoughts - for now. To be enriched by people commenting on them.

These thoughts do not subvert, as someone alleged, the current State or the Republic. They are advocating a democratic reform. Some of them have been advanced by myself and others for a number of years in public domain.

So in my view - anyone can be free to adopt any or all of them.

As my blog states on its disclaimer - my views "are not an endorsement to take any action or of any political position, figures or parties".

David said...

Great post Dr. Gurgiev.

I will certainly be keeping an eye on the updates to this manifesto.

If I might make a suggestion. How about a restriction on the legal jargon and heavy word counts of government legislation? This would improve transparency and help those of us without a PhD in law to understand new laws and amendments without relying upon interpretation from the media.

This might help the TDs too. They could then make the same vigorous contributions to economic policy as they did with the dog breeding and stag hunting legislation.

laughingbear said...

@ Brian Lucey,

you never cease to astonish me, you do have a powerful prosaic side as well apparently, something you would not expect in an economist per se.

Thanks for the reminder though, I also have to sit back for a while and compile my thoughts into a more useful document rather than bubbling out ideas.

As others closer to political daily work have expressed as well, I would also support the idea to overhaul the constitution of this state to better reflect the inevitable changes we all face in the coming years, and provide a better platform for social inclusion and care for the people.

As a general comment, gut feeling if you wish, I intend to think that the area and paradigm, well, even ideology, of constant growth has come to an end, hence, may be we should consider to slow things down?

Best, Georg

Anonymous said...

''These thoughts do not subvert, as someone alleged, the current State or the Republic.''

Fair enough,thats your opinion.
However Citizenship does matter.
Let me put this in economic terms.

Shareholders possess equity in a firm,Bond holders own the debt.

Shareholders are last in line for payment but have voting rights whereas bondholders although first in line for payment have no voting rights.

In simple terms the bond holders can't determine how the company is run.They can if they opt for a debt equity swap.

In Ireland the world is turned upside down ,the bondholders are effectively running the country while the shareholders have been gutted and emasculated from any decision making.The shareholders are the citizens of this country.

Perhaps Brian Lucey can pause the liberal stoning for a moment and reflect why Citizenship matters.

Regards,
Sean.

BriMcS said...

@Sean
Your citizen-shareholder analogy is inaccurate because not all Irish citizens are resident & tax-payers and not all Irish residents & tax-payers are Irish citizens.
Hence I do not believe the issue of Irish citizenship overlaps with this particular forum, which is a discussion/development of Constantin's draft manifesto.

CiaraScully said...

(This may be a duplicate - issue posting from iPhone)

@Brian Lucey - meant govt subsidise fees, rather than institutions.

Anonymous said...

BriMcS says

''Hence I do not believe the issue of Irish citizenship overlaps with this particular forum..''

It appears I am in a minority of one here.

However the ownership of Ireland and the power to change the society is the sole preserve of Irish citizens as per the Constitution.
I contend it is intellectually dishonest of anyone who asserts the above to characterise that as Xoenaphobic or bigoted.
If I turned up at a company shareholders meeting seeking change to the way the company is run I can reasonably expect to be challenged as to whether I am a shareholder or not.
Ownership is a key legal concept.In Ireland the Sovereign is the owner.
A challenge of Constantin G as to whether he is a citizen and posseses ownership rights is reasonable.
What this discussion shows is that most contributors do not acknowlege or appear to understand the sovereign and ownership rights of Ireland .
Payment of taxes by immigrants is presented by some as justification for voting rights.
Legal immigrants come to Ireland on a contractual basis.There is no commitment by the State beyond that .
I would contend that discussion about political change needs to be preceeded by some basic concepts as to who are the owners of Ireland.
With that in mind Irish citizenship does overlap with the intent of CG's manifesto.

Regards,
Sean.

Anonymous said...

@Sean has inspired me!

Postal votes for all temporary and permanent overseas residents who are citizens.

This would dilute the absurd localism and would represent a cohort of voters not so easily propagandized by Irish media.

In addition did anyone mention complete separation of church and state? If not then seizure by the state of all schools. Abolition of all religious instruction on state property. Abolition of both denominational and non-denominational schools on the basis that religious ethos including is incompatible with education.

Same applies to health.

Full equality of rights for men and women. e.g full paternity leave

economyireland said...

I think sean has some other agenda going on in relation to the questioning of Constantin's citizenship.
In my opinion i think this is a play to divert peoples reading of the agenda that has been set out and that this is the core of his constant challange not of what has been writen but of the " IRISHNESS" and the rights of the author to set out the manafesto

laughingbear said...

@economyireland

In my opinion, there are clear indicators, on many fronts, that the applied tactics of social division is at full swing. I observe that since some time.

Smoke screens, and deliberate distraction from the real problems, instead refocussing public attention on fears.

Who? Well, the very same who keep the propaganda machine, and it is happening everywhere. Look at the recent Stuttgart 21 demonstrations in Germany, how they are marginalized, discredited and slandered.

In my opinion, this was to be expected to happen. Peak oil, well I should say, peak everything, really, marks a major turning point in history and the future development of mankind, and whatever direction we will take, it will result in dramatic changes everywhere. Ultimately, it is up to the people, we have choices, limited choices of course, but we have them. There is no plan B!
Best, Georg

Merctrader said...

Constantin I agree with most everything except a few.
Social Welfare Caps:
It can`t work in a basic blanket form. There have been long term unemployed for decades. There will be so for decades to come. Literacy problems are near to 25% in Ireland with varying degrees of literacy. There are no jobs and no hope of seriously up-skilling except some useless FAS course with no hope of a job thereafter. A 7 yr blanket cap, would create untold hardship, social unrest, and vast social problems. Instead, real college places should be made available free of charge to mature students/graduates on SW. Perhaps to complete e.g. MBA whereupon then a cap can be introduced thereafter. If you can`t get a job with an MBA or a real degree in 7 yrs, then you never will and should be taken off the dole for an intermittent period. At least this way there is a chance to get real employment and an incentive to do so after graduation.
The Senate reform:
We would never seriously have any objective competent Senate that could actually do anything in this country. The entire senate should be abolished. It is a useless burden on the taxpayer that does not, and cannot perform any useful function no matter how it is reformed.
Tax rate: Corporation Taxes should be cut to 5% for 5 yrs to draw in international investors. Thereafter raised incrementally on a sliding scale targeted at profitability to keep them here. The alternative is no international investment, and no jobs anyway.
Complete restructure:
Ireland requires a complete restructure from the top to the bottom. In every department and in every sector. Nothing short if this will save us from generations of despair, and ongoing incompetence.
Your Irish Citizenship:
Comments on your citizenship are childish to say the least. You are one of the few people who actually have a brain in their head and have come up with sensible suggestions. I do not care if you come from Mars neither should anyone else. We would be better off with a government from Mars anyway. To suggest that you are being subversive to the State because you are exercising freedom of speech and actually have some competent input is ludicrous. As we say here, there always has to be one.
@ laughingbear----
I would prefer your German Shepard to run the country. Any chance you could put him up for election? Maybe Sean would have him deported before we got a chance to vote for him?

economyireland said...

I definately think that certain sections in this country are trying as hard as they can to discount at every opertunity any opinion that is not servant to there own agenda.

This can be clearly seen time and time again through many discussions that are happening at present with rediculus off the wall comments and statements to divert peoples attention away from the main objectives of the discussions.

Unfortunately in this country i fear that the vast majority will conform to the status quo either through there own self served interest or a pure lack of feeling involved in the society at large.

What i also fear is due to the economic pressures that many currently find them selves in that they are so caught up in dealing with there personal circumstances that they dont have the mindset to get involved to help bring the much needed change that is required within the country as a whole.

Maybe this is exactly what the powers that be want so that they have total control over every part of irish life.

What i feel is important is that if change is to come these people that are marginalised must be braught along in some way shape or form as these are the silent majority in this country at present and i think that with the right leadership and organisation this can happen.
WELL LETS HOPE SO

Gabe said...

I love your energy and your motive. I agree with a lot of your constitution but not all.
Another section of the constitution regarding the legal system and how to redress the fact that it is set up in a way which serves the elite in this country needs inclusion.
Will it need a new political party and a sea change within the Irish psyche to get it implemented?
Will it need people of a political persuasion and the ability to win the hearts and minds of that same electorate to implement it?
Keep up the good work!

ottogunsche said...

Constantin : Your entire input to the the True Economcs blog shows how badly the current system of banking/finance/economic planning stipulated by this and previous goverments, serves this State.

I very much welcome the notion of trying to put in place and alternative, more transparent and more equitable structure across the banking/finance/economic landscape of this country.

However in order to do this, the promoter of these new policies needs political support to gain access to our legislative system in order to implement any new policies.

Are you advocating the creation of a new political party?
I think a new party, unconntected to vested interests and which is independent (in the real meaning of the word) would garner electoral support.

What is clear is that the status quo cant, and won't, solve the problems that this country faces.

Fresh thinking and a new approach is what is needed.
And your ideas throughout this blog represent fresh and innovative thinking in my humble opinion.

Count on my political support!

ottogunsche said...

Constantin : Your entire input to the the True Economcs blog shows how badly the current system of banking/finance/economic planning stipulated by this and previous goverments, serves this State.

I very much welcome the notion of trying to put in place and alternative, more transparent and more equitable structure across the banking/finance/economic landscape of this country.

However in order to do this, the promoter of these new policies needs political support to gain access to our legislative system in order to implement any new policies.

Are you advocating the creation of a new political party?
I think a new party, unconntected to vested interests and which is independent (in the real meaning of the word) would garner electoral support.

What is clear is that the status quo cant, and won't, solve the problems that this country faces.

Fresh thinking and a new approach is what is needed.
And your ideas throughout this blog represent fresh and innovative thinking in my humble opinion.

Count on my political support!

Anonymous said...

I like a lot of what you are saying here, as indeed I appreciate your blog on a regular basis.

As someone with a background in design, I am a strong believer in the dictum 'form follows function' - I believe we need to think about what function(s) we require the state to perform for us (define the brief) and then shape the state into the form that best enables it to perform those functions. The manifesto provides at least a partial blueprint for this redrafting process.

The present form of the state (i.e. the legislation, institutions, etc.) has been designed by a very small group of stakeholders, we could call them an elite, and the key function of the state as they have designed it has been to enrich themselves and their associates. In this regard the state is performing exceptionally well. This may be cynical of me, but I believe that it's not the stupidity of our leaders which has led us to this situation, I think that from a certain perspective things are pretty much on brief.

It's only when citizens participate a bit more actively in the design process and start specifying the things which they require from a state (which lets face it is supposed to be how a democracy works) that we'll see any progress. The current leadership - and I don't just mean FF - just has not got the interests of the majority anywhere on their list of priorities.

The Manifesto is one atempt to remedy this and `i welcome it - more of this sort of thing!

Anonymous said...

Constantin,

Congratulations on this refreshing and energising initiative.

I commend you for your suggestions, in particular your ideas to create a framework to establish and maintain the more transparent, efficient and effective conduct of self government of this country by the people for the people.

I would encourage you to develop your ideas and I should be glad to offer my assistance in advancing this political initiative.

Every good wishes.

Peter Mathews

BriMcS said...

More on Cultivation of Enterprise:

Enforce State procurement constraints such that that a specific percentage will be through Irish small and medium businesses which are employee-owned (preferrably following partnership models).

Change unemployment benefits so that employers are subsidised to teach/train unemployed workers to be employable e.g. Apprenticeship schemes supporting employers during the period they need to make apprentices into productive employees.

Regrds,
@BriMcS

BriMcS said...

More on Cultivation of Enterprise:

I suggest the manifesto include that an explicit measurable objective of government should be to target the no.1 ranking in the World Bank's "Ease of Doing Business" index.
See http://data.worldbank.org/indicator/IC.BUS.EASE.XQ

Regards,
@BriMcS

BriMcS said...

More on Cultivation of Enterprise:

Allow seed capital, capped at €60K, which is invested in small Irish-owned businesses which are employee-owned, to be eligible to be offset against income tax.

An “Entrepeneur’s visa” whereby non-EU entrepeneurs are eligible to remain after starting a business provided they employ a minimum no. of Irish nationals & their business includes employee ownership scheme.
(Possibly subject to EU immigration law.)

Regards,
@BriMcS

Anonymous said...

As ever, a simple fiscal adjustment would do the job, but it's the only adjutment nobody ever accepts.

The tax system builds bubbles by favouring real estate gains at the expense of productivity.

So reverse it by taxing 'bads', not 'goods'. Abolish all taxes on privately-created wealth and levy a charge on publicly-generated land values.

Currently, big land owners claw back all the taxes they pay by increases in their land values. The middle clas and poor don't have this privilege.

A federal land tax has been proposed by an 18-month inquiry into the Australian tax system, but politicians won't touch it with a barge pole. They should.

BriMcS said...

More on Cultivation of Enterprise:

Incentivise the creation of spin-off companies which exploit MNC's or indigineous companies' R&D which is carried out in Ireland.
This could be done by allowing tax benefits on the cost of attaining the spin-off's IP from the R&D.
Again, further benefits could be made available if the spin-offs are employee-owned to any extent.

Regards,
@BriMcS

cbweb said...

I do agree with Constantin's reform suggestions, however I believe they are largely cosmetic surgery unless we take the big step of leaving the euro, the following originally posted by me 16/09/10 this AM on thread on David McWilliams site:

RE “.I know the euro ain’t a great idea but unfortunately its here to stay and we better get our heads around it.”

We need to free ourselves from this lemming like attachment to the euro completing eroding any bargaining position we may have with our political latchicos here in Ireland and in Europe.

It’s simply not true to say we cannot leave the Euro. Leaving the euro has many advantages for us none the least of which benefiting from an improved cost structure that is currently returning Iceland to growth. We have a large infrastructure ready to boost our tourism industry. A lower cost base can attract foreign investment rather than deter it with overpriced incompetence.

Our vassal state structural dependency with long term crippling debt reparations tied to an overvalued euro that is ruining our cost base is a recipe for economic disaster. However much our peacock incompetents at EC and European parliament level might attempt through propaganda to brainwash us Otherwise!

We need a true programme of economic recovery based on default, debt renegotiation and most importantly abandonment of the euro.

Otherwise its a basket case economy with Sheriff of Nottingham ‘give back the keys’, ruinous employment prospects for the young, emigration, punitive taxes, deteriorating social services particularly in health and education, more social disintegration through rising crime rates and more destruction of our economy.

http://bit.ly/cbHQpJ

@BriMcS said...

I suggest the manifesto include that an explicit measurable objective of the government's enterprise policies should be a gross domestic expenditure on R&D of 4% of GDP.

For comparison purposes; according to the CSO's "Measuring Ireland's Progress report" (See http://bit.ly/bgOT4V Section 2.3 & 2.4.), these were the expenditures in 1998, 2003 & 2008 respectively: 1.24%, 1.17%,& 1.43%.

Regards,
@BriMcS

BogMeadow said...

Too Many good ideas to comment upon.

Re: Us Senate Idea:
The US Senate was set up to provide a damper on popular/list swings in the House, hence the six year terms with 1/3 up for reelection every two years. It was also intended to balance the interests of the less populated states against the more populated states. It also serves as a check on Cronyism by 'approving' Presidential appointments. The whole thing works for a lot of reasons. With respect to Ireland, CERTAINLY the upper house should be elected with NO APPOINTMENTS but a bunch of other things are needed to prevent the kind of cronyism that has destroyed the country. Fixed terms of office -Dail and upper house, Cabinet members to have NO-Portfolios, all departments to be headed by Cabinet appointments approved by the upper house. Taioseach to be elected by national vote. NO ability to remove during fixed term beyond standard malfeasance. I would add the need for a VERY strong investigatory agency to monitor government and prosecute. We need terms in the constitution preventing the government from exempting itself from investigation and prosecution.

Re: Education
There are too many universities. Ireland can afford one or two really good ones or a host of second and third raters. The Universities should be PRIVATE institutions without subsidies of any kind. All subsidies, etc should go to the students.

Civil Service:
There should be public employee unions with the right to negotiate pay and working conditions but with no right to strike, engage in job actions (slowdowns, etc.) or engage in political action. This model seems to work elsewhere and will remove the Praetorian Guard and the pernicious spectacle of public service employees telling the government what the employees' job is, essentially demanding to be put in charge of policy.

Re: The size of Government:

The size of the government should be based on the population and the wealth available to support it. Ireland's government is ridiculously overpopulated with TDs., County Councils, Town Councils, etc. Nothing wrong with having them, except the cost and the sheer inertia it adds to governance. Although, the Swedish set up is beginning to look good.

Re: Taking Care of the Poor:

Yes, somehow we've got to take care of our brothers and sisters. At the same time we can't design a system that put their needs ahead of the more general welfare. That's a tough nut and cracking it is currently bankrupting the UK, France and shortly the US. Did I forget to mention Ireland?

Re: Sean:
Anyone, citizen or not can recommend, and encourage political change. Are non-citizens prohibited from expressing opinions or giving advice? The government seems to hire plenty of foreign experts. The general rule is that citizen or not, you can't advocate the VIOLENT overthrow of the government. It gets a bit more legally obscure as to whether you have to follow existing constitutional methods to alter the government or the constitution. I put it to you that the current system isn't working for a variety of reasons, a lot of them structural, reasons that entrench cronies and that aren't likely to change for the same reasons.

BogMeadow said...

Too Many good ideas to comment upon.

Re: Us Senate Idea:
The US Senate was set up to provide a damper on popular/list swings in the House, hence the six year terms with 1/3 up for reelection every two years. It was also intended to balance the interests of the less populated states against the more populated states. It also serves as a check on Cronyism by 'approving' Presidential appointments. The whole thing works for a lot of reasons. With respect to Ireland, CERTAINLY the upper house should be elected with NO APPOINTMENTS but a bunch of other things are needed to prevent the kind of cronyism that has destroyed the country. Fixed terms of office -Dail and upper house, Cabinet members to have NO-Portfolios, all departments to be headed by Cabinet appointments approved by the upper house. Taioseach to be elected by national vote. NO ability to remove during fixed term beyond standard malfeasance. I would add the need for a VERY strong investigatory agency to monitor government and prosecute. We need terms in the constitution preventing the government from exempting itself from investigation and prosecution.

Re: Education
There are too many universities. Ireland can afford one or two really good ones or a host of second and third raters. The Universities should be PRIVATE institutions without subsidies of any kind. All subsidies, etc should go to the students.

Civil Service:
There should be public employee unions with the right to negotiate pay and working conditions but with no right to strike, engage in job actions (slowdowns, etc.) or engage in political action. This model seems to work elsewhere and will remove the Praetorian Guard and the pernicious spectacle of public service employees telling the government what the employees' job is, essentially demanding to be put in charge of policy.

Re: The size of Government:

The size of the government should be based on the population and the wealth available to support it. Ireland's government is ridiculously overpopulated with TDs., County Councils, Town Councils, etc. Nothing wrong with having them, except the cost and the sheer inertia it adds to governance. Although, the Swedish set up is beginning to look good.

Re: Taking Care of the Poor:

Yes, somehow we've got to take care of our brothers and sisters. At the same time we can't design a system that put their needs ahead of the more general welfare. That's a tough nut and cracking it is currently bankrupting the UK, France and shortly the US. Did I forget to mention Ireland?

Re: Sean:
Anyone, citizen or not can recommend, and encourage political change. Are non-citizens prohibited from expressing opinions or giving advice? The government seems to hire plenty of foreign experts. The general rule is that citizen or not, you can't advocate the VIOLENT overthrow of the government. It gets a bit more legally obscure as to whether you have to follow existing constitutional methods to alter the government or the constitution. I put it to you that the current system isn't working for a variety of reasons, a lot of them structural, reasons that entrench cronies and that aren't likely to change for the same reasons.

BogMeadow said...

Too Many good ideas to comment upon.

Re: Us Senate Idea:
The US Senate was set up to provide a damper on popular/list swings in the House, hence the six year terms with 1/3 up for reelection every two years. It was also intended to balance the interests of the less populated states against the more populated states. It also serves as a check on Cronyism by 'approving' Presidential appointments. The whole thing works for a lot of reasons. With respect to Ireland, CERTAINLY the upper house should be elected with NO APPOINTMENTS but a bunch of other things are needed to prevent the kind of cronyism that has destroyed the country. Fixed terms of office -Dail and upper house, Cabinet members to have NO-Portfolios, all departments to be headed by Cabinet appointments approved by the upper house. Taioseach to be elected by national vote. NO ability to remove during fixed term beyond standard malfeasance. I would add the need for a VERY strong investigatory agency to monitor government and prosecute. We need terms in the constitution preventing the government from exempting itself from investigation and prosecution.

Re: Education
There are too many universities. Ireland can afford one or two really good ones or a host of second and third raters. The Universities should be PRIVATE institutions without subsidies of any kind. All subsidies, etc should go to the students.

Civil Service:
There should be public employee unions with the right to negotiate pay and working conditions but with no right to strike, engage in job actions (slowdowns, etc.) or engage in political action. This model seems to work elsewhere and will remove the Praetorian Guard and the pernicious spectacle of public service employees telling the government what the employees' job is, essentially demanding to be put in charge of policy.

Re: The size of Government:

The size of the government should be based on the population and the wealth available to support it. Ireland's government is ridiculously overpopulated with TDs., County Councils, Town Councils, etc. Nothing wrong with having them, except the cost and the sheer inertia it adds to governance. Although, the Swedish set up is beginning to look good.

Re: Taking Care of the Poor:

Yes, somehow we've got to take care of our brothers and sisters. At the same time we can't design a system that put their needs ahead of the more general welfare. That's a tough nut and cracking it is currently bankrupting the UK, France and shortly the US. Did I forget to mention Ireland?

Re: Sean:
Anyone, citizen or not can recommend, and encourage political change. Are non-citizens prohibited from expressing opinions or giving advice? The government seems to hire plenty of foreign experts. The general rule is that citizen or not, you can't advocate the VIOLENT overthrow of the government. It gets a bit more legally obscure as to whether you have to follow existing constitutional methods to alter the government or the constitution. I put it to you that the current system isn't working for a variety of reasons, a lot of them structural, reasons that entrench cronies and that aren't likely to change for the same reasons.

BogMeadow said...

Too Many good ideas to comment upon.

Re: Us Senate Idea:
The US Senate was set up to provide a damper on popular/list swings in the House, hence the six year terms with 1/3 up for reelection every two years. It was also intended to balance the interests of the less populated states against the more populated states. It also serves as a check on Cronyism by 'approving' Presidential appointments. The whole thing works for a lot of reasons. With respect to Ireland, CERTAINLY the upper house should be elected with NO APPOINTMENTS but a bunch of other things are needed to prevent the kind of cronyism that has destroyed the country. Fixed terms of office -Dail and upper house, Cabinet members to have NO-Portfolios, all departments to be headed by Cabinet appointments approved by the upper house. Taioseach to be elected by national vote. NO ability to remove during fixed term beyond standard malfeasance. I would add the need for a VERY strong investigatory agency to monitor government and prosecute. We need terms in the constitution preventing the government from exempting itself from investigation and prosecution.

BogMeadow said...

Re: Education
There are too many universities. Ireland can afford one or two really good ones or a host of second and third raters. The Universities

should be PRIVATE institutions without subsidies of any kind. All subsidies, etc should go to the students.

Civil Service:
There should be public employee unions with the right to negotiate pay and working conditions but with no right to strike, engage in job

actions (slowdowns, etc.) or engage in political action. This model seems to work elsewhere and will remove the Praetorian Guard and the

pernicious spectacle of public service employees telling the government what the employees' job is, essentially demanding to be put in charge

of policy.

BogMeadow said...

Re: The size of Government:

The size of the government should be based on the population and the wealth available to support it. Ireland's government is ridiculously

overpopulated with TDs., County Councils, Town Councils, etc. Nothing wrong with having them, except the cost and the sheer inertia it adds

to governance. Although, the Swedish set up is beginning to look good.

Re: Taking Care of the Poor:

Yes, somehow we've got to take care of our brothers and sisters. At the same time we can't design a system that put their needs ahead of

the more general welfare. That's a tough nut and cracking it is currently bankrupting the UK, France and shortly the US. Did I forget to

mention Ireland?

Re: Sean:
Anyone, citizen or not can recommend, and encourage political change. Are non-citizens prohibited from expressing opinions or giving

advice? The government seems to hire plenty of foreign experts. The general rule is that citizen or not, you can't advocate the VIOLENT

overthrow of the government. It gets a bit more legally obscure as to whether you have to follow existing constitutional methods to alter the

government or the constitution. I put it to you that the current system isn't working for a variety of reasons, a lot of them structural,

reasons that entrench cronies and that aren't likely to change for the same reasons.

BogMeadow said...

Re: The size of Government:

The size of the government should be based on the population and the wealth available to support it. Ireland's government is ridiculously

overpopulated with TDs., County Councils, Town Councils, etc. Nothing wrong with having them, except the cost and the sheer inertia it adds

to governance. Although, the Swedish set up is beginning to look good.

Re: Taking Care of the Poor:

Yes, somehow we've got to take care of our brothers and sisters. At the same time we can't design a system that put their needs ahead of

the more general welfare. That's a tough nut and cracking it is currently bankrupting the UK, France and shortly the US. Did I forget to

mention Ireland?

Re: Sean:
Anyone, citizen or not can recommend, and encourage political change. Are non-citizens prohibited from expressing opinions or giving

advice? The government seems to hire plenty of foreign experts. The general rule is that citizen or not, you can't advocate the VIOLENT

overthrow of the government. It gets a bit more legally obscure as to whether you have to follow existing constitutional methods to alter the

government or the constitution. I put it to you that the current system isn't working for a variety of reasons, a lot of them structural,

reasons that entrench cronies and that aren't likely to change for the same reasons.

BogMeadow said...

Re: What TO Do Now:
I wish I knew. It would be nice to have an HONEST and COMPETENT government but the choices in the next election don't look promising. Revolutions generally are messy, unpredictable and take too long. That leaves the tried and failed idea of a new political party - sigh - which may be the only game in town.

COLMORIAIN said...

All 3 reform columns show excellent radical thinking which needs to be debated seriously at a suitable public forum (Prime Time?)so can't understand medis frenzy over who should captain the Titanic! But core isssue remains as follows:
Question: How much will it cost in acceptable terms to the Irish people not just the Markets, to close down Anglo & INBS within 5 years? Estimates vary bewtween 35 and 70billion+ euro.
Solution: Set immediate limit on what the State (Irish People) are prepared to guarantee (maybe €30
billion?) and stress that any further amount will be treated as a default for bond holders or European Banks. This would give immediate clarity both to ECB institutions and the irish people alike and we could then plan for your reforms in a stable environment.
So grateful to hear your intelligent and cogent views but why oh why are they not debated more widely?????????

BriMcS said...

More on Cultivation of Enterprise (& Job Creation):

Evidence that tax policies that minimise seed capital gains tax (or otherwise incentivise seed capital) as opposed to later VC, results in a higher rate of job creation:
"To Create Jobs, Nurture Start-Ups" http://nyti.ms/9pSNFD

Regards,
@BriMcS

Anonymous said...

I welcome your efforts and the comments made. My one simple recommendation for your manifesto is to request Chuck Feeney to establish the Centre for Public Interest (CPI). The Insiders got their way and look what happened to this country.

Kof said...

Corporation tax, I really think our approach here is short sighted and can be best described as a “beggar thy neighbour” approach. Correct me if I'm wrong but if we doubled our corporation tax rate to 25% (as far as I can see this would be a competitive EU rate) the exchequer would currently take in another 12 billion or so. This would help cut the deficit nicely and would seem to me to be fair enough figure. What’dya reckon?

@BriMcS said...

More on Cultivation of Enterprise (& Job Creation):

On the downside, independent recent analysis has produced the following evidence:
1. Ireland has an attitude or cultural problem with respect to entrepeneurship. We are poor at identifying opportunities & new products. http://goo.gl/Jt5v

2. Dublin doesn't make the list of top 100 "Innovative cities". Cities such as Prague & Wellington are rated higher. http://goo.gl/Sb5i
Full List: http://goo.gl/3ief.

I'm unsure how public policy can affect this; but the issue should be raised & needs to be addressed.

Regards,
@BriMcS

Anonymous said...

Well done! I have been thinking along these lines for a few months and while I may not agree with everything you suggest it would be refreshing to see this type of debate on the national agenda.

The founders of the state put a governance/administration stucture together in a very short time and in very difficult circumstances. We are not in a similar situation with which is crying out for a radical reshaping of the state. We are a small open representative republic. I hope enough people can engage and act!

A couple of other ideas:

*scrap embassies in EU countries, we don't need them. Lets be the first EU country that really "talks the talk" and start to see some benefits from membership and integration that we have signed up for.

*scrap junior ministries, maximise number in cabinet to 6 or 7. Lets great real about the size of our representatio: we have the population of one average sized conurbation in UK, France or Germany.

*remove all religious organisations from running services paid for by the state (e.g. provision of mental health care services. WHY do the Brothers / Daughters of Charity still run these services in some parts of the country, sorry personal bugbear: I want the HSE to run this service not on arms length basis as it is at the moment. It should be a right for the service users that the state is directly not indirectly responsible for their care).

*equal fiscal treatment of all citizens (no artists', sportspeople's, racehorse breeding exemptions).

*pay caps in public and semi state sector. Is there a Marian Finucane equivalent in France or Germany earning EUR 500k p.a. for hosting a weekend radio show? I doubt it.

*Efficiencies in public sector: 1 vehicle registration / motor tax agency for the country (we can do it for passports, why not for cars?). 1 public sector payroll body => scrap all "HR" and "Finance" departments in ALL public sector departments, authorities, bodies.

...just a few hair-brained ideas.

John Boland

christy sinclair said...

Well done on the points put forward and most of the replies.
Its blatantly obvious that we as a people need to redefine who we are as a nation and the type of country we want to live in and pass on to our next generations.
I have spent more time trying to clear my own thoughts on the matter and then giving up at the vastness not of the problems which require to be remedied but the blockage created by the established parties who essentially share power on a rotational basis with the gravy still available to the "opposition" and the chance to be in the lead position every now and again.
Now, should you proceed to a policy and then campaign to have it put in place I feel that at this point in our history we can make a leap.

The first requirement is to form an approach to government that the people as a whole can can see is to their benefit while still being credible and realistic.
We do not need a swing either to the far left or right, we need a policy which looks to all sides and ensures a free market allowing enterprise to flourish without free reign for greed or lack of social responsability. Necessary provision for all who need it, from a social welfare aspect policy should be first to ensure that all who are in a position to do so are facilitated with the means to earn a living, not a false scheme which pretends people are working.
With regards to how government is paid we are living in a an unreal world where politicians have put themselves into the position of oligarchs, bloated and living with unrealistic perks and privilege. Government needs to return to a point where government is a public service reasonably remunerated and organised to best serve.
We the people are the basis for government and that if a politician feels that it is unsafe to travel to work on public transport without a Garda to mind them they should not be in government.
We need to trim our government and make it work better, smaller more efficient and focused on the tasks they should be carrying out and not on getting local favors done to facilitate reelection.
I am deliberately avoiding nitty gritty at this point as I feel that it is the big issues that people feel strongly are not being addressed. It will not turn the country around if we have sixty TDs, six ministers no senators no cars and no unreal pensions. It will however give government the moral right to do what needs to be done and still be supported by the mass of the people as they will believe that what is being done is being done for the right reason.
I have many ideas for reform of many aspects of the way this country is run as have many others above, however it is the putting in place of a real and sensible alternative alternative.

Christy Sinclair.

christy sinclair said...

Well done on the points put forward and most of the replies.
Its blatantly obvious that we as a people need to redefine who we are as a nation and the type of country we want to live in and pass on to our next generations.
I have spent more time trying to clear my own thoughts on the matter and then giving up at the vastness not of the problems which require to be remedied but the blockage created by the established parties who essentially share power on a rotational basis with the gravy still available to the "opposition" and the chance to be in the lead position every now and again.
Now, should you proceed to a policy and then campaign to have it put in place I feel that at this point in our history we can make a leap.

christy sinclair said...

The first requirement is
to form an approach to government that the people as a whole can can see is to their benefit while still being credible and realistic.
We do not need a swing either to the far left or right, we need a policy which looks to all sides and ensures a free market allowing enterprise to flourish without free reign for greed or lack of social responsability. Necessary provision for all who need it, from a social welfare aspect policy should be first to ensure that all who are in a position to do so are facilitated with the means to earn a living, not a false scheme which pretends people are working.
With regards to how government is paid we are living in a an unreal world where politicians have put themselves into the position of oligarchs, bloated and living with unrealistic perks and privilege. Government needs to return to a point where government is a public service reasonably remunerated and organised to best serve.
We the people are the basis for government and that if a politician feels that it is unsafe to travel to work on public transport without a Garda to mind them they should not be in government.
We need to trim our government and make it work better, smaller more efficient and focused on the tasks they should be carrying out and not on getting local favors done to facilitate reelection.
I am deliberately avoiding nitty gritty at this point as I feel that it is the big issues that people feel strongly are not being addressed. It will not turn the country around if we have sixty TDs, six ministers no senators no cars and no unreal pensions. It will however give government the moral right to do what needs to be done and still be supported by the mass of the people as they will believe that what is being done is being done for the right reason.
I have many ideas for reform of many aspects of the way this country is run as have many others above, however it is the putting in place of a real and sensible alternative alternative.

Christy Sinclair.

@BriMcS said...

The above ideas plus @DavidMcW's "manifesto" http://goo.gl/j4JyQ must be the centre of the general election agenda.

The challenge is to get the politicos to align their policies accordingly so that the electorate can make their choices.

Regards,
@BriMcS

Anonymous said...

Hear hear. However, given the generally supine nature of the Irish psyche (protest is for optimists (not an Irish trait)- and for poor people (we're too snobby to admit that)) and given the sense of alienation from the levers of power in our rotten little state, descent into stagnation is the most likely outcome.

http://www.firstirishrepublic.blogspot.com/

T Moore said...

Well done Constantin I would support most of what you propose and may I suggest that any constitutional change should include the return of articles 47 and 48 back into the constitution. The founding fathers of the Constitution of the Irish Free State of 1922 gave the powers of initiative and referendum to the Irish people, in articles 47 and 48. This was removed when the constitution for the Republic was drawn up. Direct democracy is a system of government that gives citizens the ability to have a say in government decisions, and allows them to propose or veto legislation or other initiatives. It also gives citizens the power to recall or sack elected representatives or ministers who are not working for the interest of the people. One of the oldest democracies in Europe at 600 years is Switzerland where any citizen can initiate a referendum if they want a law changed. For more details see http://www.directdemocracyireland.org/
Regards
Tony

Bob Ryan said...

I like your manifesto - put it to the testo!