Madam, – Your editorial (April 16th) presents the wonderful wisdom of hindsight. Minimum exposure to regulatory economics would have provided convincing evidence to anyone who wished to take note that this model (similar to that applied in the UK) – and the corresponding models applied in other sectors such as energy – was seriously flawed, damaging and dysfunctional. But, of course, anybody with any knowledge or experience who pointed this out was either pilloried or ignored – or, even worse, accused of acting against the national interest.
I think it should be pretty clear to all where this lip-service to “better regulation” and to the “promotion of competition” has led us. I realise that there is an intense focus on the banking and financial sector at the moment, but a comprehensive reform of regulation across all sectors, of competition policy and of consumer protection policy is required. Without this Ireland will be condemned to a more damaging repeat of the GUBU decade from 1977 to 1987. – Yours, etc,
Madam, – So, now it is apparent they are secured mostly on practically worthless property and developers’ assets, the Government is proposing to take on up to €90 billion of Irish banks’ securitisation-related debt commitments to foreign banking entities.
Our banks entered into these contracts with other foreign banks at the height of the boom. Our Government, our banks and the counterparties of these loans – the foreign banks – think it’s only fair for the State to honour these contracts in the depths of the bust.
The EU has apparently helpfully offered unlimited funds at a low interest rate to facilitate our Government in taking over these privately-entered-into debt contracts.
How long will it be before Bono and Sir Bob can be expected to ride into town to win debt relief from this intolerable burden the Government seems intent on foisting upon us? – Yours, etc,
Madam Christopher McQuaid (April 16th) is shocked that so many innumerates are advocating nationalisation of the banks. The real innumerates are the bankers and policy makers who ignored long-term trends. The Government’s approach to the banking system is the financial equivalent of half-pregnancy as it involves nationalisation of bad loans and continuing privatisation of good loans. Even at this late stage, it should go the whole hog and nationalise the main banks. Reasons for not doing so, such as the need for transparency, coming from a totally opaque Government are pure hogwash.
Nationalisation would remove uncertainty, simplify matters, restore confidence and ensure that state funding is used to boost the economy rather than bale out bank shareholders. It would be much less risky as it would eliminate the need to price impossible-to-value impaired loans. These could cost taxpayers tens of billions if transferred at the wrong price to Nama in addition to billions of interest payable on bonds used to purchase the dodgy loans at the outset. The idea of applying a levy on the banks to offset any shortfalls is more hogwash as it will be simply passed on to customers. – Yours, etc,
Madam, – Mr Ronan Quinlan in his letter (April 15th) castigates Enda Kenny and Eamon Gilmore by saying they blame Mr Cowen for the recession and have no solutions as to a remedy. He may be right in saying they have no quick-fix solution. They did not cause it, and may not be able to address it at once, but at least they would have a clean start and like Caesar’s wife, would be above suspicion that it was not banker and builder friends that were being bailed out.
All experts agree that our problems are about 80 per cent homegrown and 20 per cent international. So Mr Quinlan who do you blame ? – Yours, etc,
Madam, – Am I alone in wondering how two budgetary policy directions – moves to tax or limit child benefits and retrospective payment of TDs’ long-serving allowances – need to be referred to the Attorney General for guidance as to their legality only after being announced in the Budget? What is the expensive Department of Justice for then, if not to advise on such strategy before any announcements? Or is it the case that the purpose of seeing to be doing something, which may not actually happen, being served here? Yours, etc,
Madam, – If I understand it correctly the proposed bonuses relate to TDs who have served in the Dáil over the last ten years. Given that the seeds for the current near- bankruptcy of the country would have been largely sown during this period, how can these people be seriously paid bonuses ? For what, a job well done? – Yours, etc,