Skip to main content

Time To Plan For The Worst...

'FOR God's sake, Sarge, say something, even if it's only goodbye!" The old joke about the platoon of soldiers about to march over a cliff carries relevance for a Taoiseach and a Government out of step with everybody else and refusing to acknowledge the proximity of the cliff.

For much of the last week, the story of Ireland's trouble has jostled for prominence in the headlines with massive world events. It has preoccupied leaders at international conferences. It has filled the pages of the 'Financial Times' and attracted the attention of the media in Europe and the United States. It has provoked comment, almost unanimously gloomy, from leading economists.

But "Sarge" has had nothing to say beyond a reassurance that we have enough money in the kitty to last us until the middle of next year. After that, who knows? At any rate, Sarge thinks the cliff is a long way off.

Brian Cowen is reportedly "furious" about the reports that we may seek to access the European bailout fund. Justice Minister Dermot Ahern dismisses the speculation as "fiction". Fiction from the 'Financial Times' and the BBC? Fiction from European leaders who fear that "Irish contagion" could bring down the currency?

More oddly still, there could be an innocent and mundane explanation of how the reports originated.

The Government rightly hopes that we can continue to manage our own affairs and avoid subjecting our financial destiny to the European Commission and/or the IMF. Again rightly, it hopes that the Budget on December 7 and the four-year fiscal plan can enable us, at long last, to begin to get a grip.

But nobody can deny that a bailout may be necessary -- in six months' time, or tomorrow afternoon. It would therefore make sense to enter into preliminary discussions on the methods to be employed. It would also make sense to inquire how we could contain the costs, and how much of our independence we could salvage.

And it would make sense to explain to the public how the Budget can help. But taking the people into their confidence seems to be beyond the ability, or the thinking, of Sarge and his corporals. There is a by-election to be fought. There are hoops to jump through, to please independent deputies who support the Government. And there is still money to waste. For this Government, the cliff is still a forbidden subject.

Report - Irish Independent

Popular posts from this blog

More Allsop Fire Sales...

Allsop plans five fire sales a year... THE UK auction house Allsop and its Irish affiliate Space plans to hold up to five distressed property auctions a year following the success of its first auction last Friday when 81 out of 82 lots were sold for a total of €15 million. The next auction is scheduled for July 7th, when 200 lots will be auctioned, including apartments, tenanted shops, farms and houses. According to Space director Stephen McCarthy, his company is being inundated with requests from receivers, banks and individuals who want to sell their property fast. Many of the properties in Friday’s auction were sold by Bank of Scotland Ireland and it’s believe there is plenty more of this stock to sell. These include apartments in the Castleforbes development in the Dublin docklands, as well as units in Dublin 8 and in Castleknock. However, the agency is also considering taking on more agricultural land. One lot, a 55 acre farm in Co Wickow sold particularly well, making €42...

As Featured On Dublin Postcards, Ad's, U2 Video...

I see in the Irish Independent today an item concerning a favourite, Dublin landmark, of mine... "THEY have featured in numerous postcards and a very famous Guinness ad, but perhaps their most important cameo appearance came when they featured in U2s 'Pride (In The Name Of Love)' video. However, Dublin City Council does not believe the Poolbeg chimneys are iconic enough to place on their Record of Protected Structures. Following a request from Cllr Dermot Lacey (Lab) to have the landmark ESB chimneys placed on the protected record, city councillors heard that city planners had conducted a survey, history and full assessment of the chimneys. They concluded from this that while the Poolbeg chimneys were considered to be of a certain level of architectural, social and historical significance, they were not of sufficient value within the meaning of the Planning and Development Act, 2000. Complex The twin red and white chimney stacks measure 680 feet in height and were construc...

Property Ireland - Irish Land Values Go Up Like A Rocket & Fall Like A Stone...

Land values go up like a rocket and fall like a stone... SITE EVALUATION: Why would a developer bid €225,000 an acre in 1999 and €2.8m an acre in 2007? Bill Nowlan explains WHY HAS THE value of development land fallen so precipitously, by over 50 per cent in the past 12 months, when residential and other property values have only fallen by 25 per cent or 30 per cent? There is an old property cliché which says that "land values go up like a rocket and fall like a stone" and this seems to have been bourne out in Ireland over recent years. Why does this happen? To answer this question requires an insight into the way developers prepare their bids for development land and I set out below a glimpse into that process. Let me start by looking at how a developer in normal times estimates his bid for a plot of land with planning permission, which in estate agents' parlance is ready-to-go. The key starting point in a developers equations is the expected sale price of the finished b...