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Dublin: 10 °C Wednesday 19 June, 2013

‘Respectable case to be made for debt write-off’ – Pat Cox

In a wide-ranging interview, the former president of the European Parliament, Pat Cox also said that “the bankruptcy laws in Ireland are a crock”.

Pat Cox (file photo)
Pat Cox (file photo)
Image: David Cheskin/PA Archive/Press Association Images

A NEW REPORT, produced to coincide with Ireland’s current presidency of the EU and the country’s 40th year of membership, has been released today.

Containing interviews with Pat Cox, Lucinda Creighton, Micheál Martin and Peter Sutherland, the report – Forty Years A-Growing – An Overview of Irish-EU Relations – by Notre Europe – Jacques Delors Institute, was produced with the aim of grasping the “specificity and subtleties of the Irish debate on Europe, both historically and in its most recent developments.”

In his interview, the former president of the European Parliament, Pat Cox, looks back to a time when Ireland was seen as the “success story” of Europe, detailing what led to that view and how it subsequently changed.

The Maastricht Treaty

On the Maastricht Treaty in 1992, Cox said that as the director of the referendum campaign, he felt that it was important that Ireland looked beyond the financial gains that “though significant, are transient”, remembering instead that “one has to live with the formal content of the treaty”.

Despite this ‘pragmatism’, Cox said that he felt that the Taoiseach of the time, Albert Reynolds, focused on the financial aspect.

“We obsessed on the eight billion euros,” Cox said. “We voted for the eight billion.”

The Christian angle

Speaking of subsequent referenda, Cox said that one of the constant ‘battlegrounds’ that came to exist in Ireland was religion-related.

The Christian angle in the sovereignty school relies on a presumption that everything international risks, through treaties, corrupting the moral fabric of society.

Manifesting itself in the belief that voting yes “to any given treaty” would “introduce abortion in Ireland” and, in certain cases, euthanasia, Cox admitted that these beliefs, although “bizarre to the foreign ear”, became an obstacle each and every time there was a debate on Europe.

Irish neutrality

Cox believed that each European referendum was also weighed down by a fear that it would ‘oblige’ Irish people to be open to conscription.

Likening the neutrality argument to the film Groundhog Day, he said he found it hard to believe how this “same argument” continued to mobilise people time after time.

On European referendums and their frequency

“There is a growing popular unease that smaller states, like Ireland, count for less,” Cox said.

This was compounded by scaremongering in many cases, he believes. Where complex treaties are concerned, the “room to do mischief is unlimited.”

When a government holds a referendum, it owns the question, but the public own the answers to their own questions, which may or may not be the question put by the referendum itself.

When asked as to whether Ireland holds too many referendums, Cox believes that “risk aversion” has now triumphed over “constitutional necessity” in this regard.

Recalling the McKenna judgement and the impact it had on the spending of public monies in support of a yes/no position by the government of the day, Cox believes that the result has been ‘bland’ public information campaigns by the Referendum Commission, with individual partys preferring to keep the bulk of their financial resources for election time instead.

The impact of Britain, and their positions, has also impacted on Ireland, according to Cox, due in no small part to the “deeply Eurosceptic, high-penetration print media outlets from Britain” which have used Ireland “for their proxy war of words”.

Irish debt and Europe

Regarding the recent Fiscal Compact Treaty which came into force this year, Cox hopes that it “is a comma and not a full stop”, with a hope that it will be act as a “psychological insurance policy for creditor states”.

While noting that the Irish government is currently focused on debt restructuring, Cox believes that “there is also a respectable case to be made for debt write-off” due to Irish taxpayers being forced to take a big hit in order to avoid baking problems elsewhere in the EU.

Rebellion and bankruptcy

On the recent non-payment of the household charge by many, Cox believes that this “civil resistance” was partly explained by the manner in which government introduced it.

Believing that this resistance remains the exception rather than the rule, Cox said:

We are not Greece: Irish society is quite tax-compliant.

On the issue of Ireland’s bankruptcy laws, Cox believes that while businesses are not run “for the national interest”, those who run businesses in Ireland do benefit the country.

“The bankruptcy laws in Ireland are a crock,” says Cox, adding that the 12-year rule (for bankrupts) doesn’t make sense if you want a dynamic economy.

Ireland’s corporate tax rates

Believing that Ireland’s corporation tax can only be changed with Ireland’s consent, Cox says that “the risk of capital flight from Ireland would be very high” were it to change.

Much of what we have here is the kind of mobile, high value human capital, international investment that might well then go to Singapore or to other such locations.

In-full: The interview with Pat Cox >

Kenny: Irish have borne weight of bank debt with “courage, patience and dignity” >

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Comments (23 Comments)

  • They throw the whole country under the bus for generations to come when their mates the bankers are caught with their pants down.
    I seem to remember that when they themselves and their rich chums were caught out for tax evasion they rolled out a tax amnesty quick smart.
    The hypocrisy is truly SICKENING.

    Reply
    • Our problem was signing the Maastrict Treaty back in 1992 – it prevents us devaluing our way out of the crisis. The Euro straight-jacket means:

      1. we cannot devalue
      2. we cannot print money
      3.we cannot set our own interest rates
      4. we cannot set our own monetary policy

      There has never been a better time to consider reverting to the IR£.

      Reply
  • After a life in Irish politics, where he bounced from FF to the PD’s to FG. Mr. Smooth landed on his feet in Europe. He is a Brussels man now and his interests and concerns lie there, they certainly do not lie with the interests of Ireland.

    Reply
  • ” “there is also a respectable case to be made for debt write-off” ”

    Yeah, but whos going to make the case for us?

    Enda “europe first/paddy got greedy” Kenny or Michael bilderbergs boy Noonan?

    The current ‘deal’ that we may not even get involves mortgaging our kids future to pay debts that aren’t ours instead of paying debts that aren’t ours now. The only acceptable deal is a writeoff in acjknowledgement of our suffering in order to save europes banking system.

    Reply
  • He is a full member of the elite club of IRISH political lifers who mix up the public good with what’s good for them and his views on referenda tells me all I need to know. He believes we are all fools who don’t know our arse from our elbow. We twice saw through our Euro ‘partners’ plan for domination and his class put on the frighteners to reverse a sovereign decision of the people and who has benefitted most. Pat and the rest of the gang.
    They make me ill.

    Reply
  • Let’s make it our business this year to disappoint Mr. Cox mightily with our lack of compliance. CAPTA , the Campaign Against Property Tax and Austerity (formerly the anti Household tax campaign) is organising the fight against this unjust tax and the austerity program generally being imposed on the Irish people to pay for the gambling losses of the financial speculators. Please go along to your local meetings and get involved.
    http://nohouseholdtax.org/

    Reply
  • Ah yeh, just because we ain’t listening to the incessant rubbish, lets wheel out our most experienced m.e.p. Nope not listening or believing him either boys sorry.

    Reply
  • This guy missed his calling – he should hand out vomit bags before he speaks so condescendingly. Pee Flynn lives on in the clone.

    Reply
  • I hardly ever get my comments banned but my first attempt here did. Rightly so. There’s just something about this guy that inspires me to thoughts of violence

    Reply
  • Pat has also learnt the art of nudge. Irish people are tax complient……… unlike Greece etc.

    Reply
  • More Europe ass kissers being unleashed to quell the more strident anti EU questions that the euro lackey parties of FG/LAB & FF wish not to be asked. Part of the sell out brigade and the McKenna and Crotty judgements with regards to referenda may have been halted by the judicial view that matters of National importance can only be taken by TD’s is a worrying trend.

    Reply
  • Patronising sanctimonious bullshit of the highest order.

    Reply
  • I am not a Euro sceptic at all – this position tends to be an unthinking knee-jerk reaction. We only have ourselves to blame (I mean our Governments!) for the mess we are in and we need to be more assertive now and say we are not paying what should never have been a sovereign debt.

    I do not believe that there is more than a tiny vocal religious minority in this country who fear European social liberalism. I think most people care most about the money in their own pocket. I, for one, am glad of some of the liberal human rights and environmental laws that membership of the EU has brought to this country.

    Mr. Cox mocks Irish preoccupation with neutrality. Quite frankly, given the aggressive and deeply immoral foreign policies of some of our EU neighbours, like the UK, and the fact that we do not know what the future holds, I believe it was a mistake on our part to sign up to anything that meant we could be involved in some joint military action in the future – we have crossed a line and the problem is that you never know with climate and attendant water and food crises on the near horizon what scenario could lead to a future Irish Government getting us involved in joint military action to assuage European partners – war is immoral and I make no apologies for being totally against my country being involved in military action in Europe – even to ‘protect our interests’.

    In all else he says, Mr. Cox is singing from the same old hymn sheet of old style economics as though people didn’t matter – the times they are a changin’ Mr. Cox.

    Reply
  • Cat Pox: a condition that kills the patient by boring their head off.

    Reply
  • Yeah our corporate tax rate is awesome..in that it allows Google and the likes to make 9 billion in profit and not pay any tax on it…o yeah I forgot they provide afew jobs..while its great they provide jobs the 9 billion profit with no tax is a insult to any country, shows who really runs the goverments of the world, banks and big business.

    Reply
  • any chance we could write off pat cox?

    Reply
  • Pat Cox is a true master of understatement.

    Reply
  • comment deleted again. Waste of time here.

    Reply
  • mmmm who is this guy, never ever heard of him. MEP for Ireland, what does he do over there?

    Reply

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