THE ANNOUNCEMENT of the reduction of the Ministers of State caused some surprise yesterday. The clean-out went further than anticipated. However, the sullen refusal by Oireachtas members to accept that the days of special payments, early pensions and unvouched expenses are over will continue to stoke public controversy.
The manner of their announcement over two budgets damages the credibility of the Government to provide firm, fair and competent leadership of this State.
The Taoiseach has been reluctant to tackle the bloated nature of the system he inherited. If Brian Cowen believes the inclusion of two new faces among Ministers of State will deflect attention from more serious economic issues and the failures of Government, he will be disappointed.
Matters of demotion and promotion can assume immense importance within Leinster House, but they carry little weight with a public that is struggling with rising unemployment, pay cuts, falling living standards and disappearing pensions.
The Government is operating under extraordinary pressure and the situation is unlikely to improve in the short term. In spite of that, the Coalition arrangement between the Green Party and Fianna Fáil appears to be holding firm and both parties are beginning to focus – with some trepidation – on the local authority and European elections in June.
Pending byelections could compound any negative fallout and there are suggestions now that the two Dáil contests may be postponed until the autumn. Opposition parties served notice on the first day of the new Dáil session that a bipartisan approach is not on their agenda. Traditional politics will apply.
Sharp differences are now emerging on the question of nationalising the two major banks. The Labour Party has seized on comments by the International Monetary Fund and 20 Irish economists to favour such a step. The Government is holding to its position of creeping nationalisation, in the event of further bank funding being required. Fine Gael is holding aloof. It is only a matter of time before the debate catches fire given the extent of financial exposure taxpayers will face. Protecting the residual interest of bank shareholders is understandable, but not at the expense of society at large.
The staffing levels and functions of the National Asset Management Agency, which is to be entrusted with the job of taking over toxic bank property and development loans amounting to €90 billion, at a discount, was at the heart of yesterday’s Dáil business.
Mr Cowen hoped the necessary legislation could be introduced before the summer as a Government priority. The new agency will be established on an interim basis but just how it will function and value its assets is unclear.
For the Government, facing the worst economic storm in decades and a ballooning national debt, it is only another work in progress. There is no clarity.