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Dublin: 13 °C Wednesday 19 June, 2013

Column: Miracle on O’Connell St – what the Clerys rescue says about Ireland

An institution was saved – which just goes to show how badly Irish homeowners are being treated in comparison, writes Arthur Doohan.

Arthur Doohan

WE LIVE IN an age of wonders.

Just two weeks ago we saw Clerys executed and brought back to life faster than Jesus, courtesy of the laying on and writing off of taxpayer-provided bank capital.

The smooth and efficient process whereby the ‘execution’ of this artifact of Mammon was decided upon, a saviour obtained, an executioner… sorry, ‘receiver’ of the corpse appointed and a resurrection effected within the space of 24 hours – courtesy of a compliant judiciary – is a testament to our trust in shibboleths of our most dearly held faith, Capitalism.

Another such wonder is the transformation of legal fictions into ‘people’ by the prophets of the US Republican Party, by means of granting them rights such as ‘freedom of speech’.

On this side of the pond, ‘right-thinking’ people are inclined to roll their eyes in knowing awareness of our smug superiority when we hear the Republicans attempt to assert that notion. Indeed, the Republicans seems strangely conflicted in their urges to grant rights of personhood to corporations and foetuses in the name of liberty,while at the same time constraining the rights of humans in the cause of fighting terrorism.

Our smug superiority is based on belief that such gross distortions would never be allowed to exist in our civilized post-modern liberal economies with our fine human, civil and trade-unions rights protections.

The hypocritical reality of life in Ireland is that there is a brutal contrast between the modern privileges accorded to corporations and the Victorian morality implied in laws affecting persons; a sad illustration of the ongoing hypocrisy of our culture and inadequacy of our governance.

Resurrection

The resurrection of Clerys as a redeemed, forgiven and re-empowered business by means of Bank of Ireland’s realistic 50 per cent write down in its debts – all within 24 hours – stands in stark contrast to how all of the banks and all of the politicians and all of the courts treat the citizens of this republic. This level of write-down for personal debts normally implies bankruptcy for the sinner for eight years, which is a temporary financial hell despite its trade description as purgatory. Yet this level of debt write-down is exactly what is required by a large proportion of our young mortgage holders, if they and the wider economy are to have any chance of recovery and redemption.

This double standard is applied in many other areas of life.

We go to great lengths to bring foreign capital and corporations into this company but we erect barriers to migration despite the talents and qualifications of many of the migrants. We allow any kind of financial agglomeration but have only recently allowed divorce for humans and have relegated same-sex unions to a second-class status. We have a legal limbo where abortion is concerned with potential extreme legal and social sanctions but killing a corporation for private gain (to avoid loss or tax) is barely frowned on.

And last week the Governor of the Central Bank said that we needed to do more to facilitate the ‘restructuring of businesses finances’. Yet for the last three years his organisation – and the Dept of Finance and the Government – tried give more power to the banks (our most privileged corporations) at the expense of the citizens. The proposed new bankruptcy legislation puts the banks and not the courts in the driving seat when ‘restructuring people’s finances’.

That these absurdities are taken as ‘normal’ is a measure of the dysfunction of our society. We are engaged in a program of punishing the citizens for the mistakes of the banks and the administration in order to prop up the absurd property values the banks fostered so that the banks can escape the consequences of their greed and incompetence.

Welcome to modern Ireland where corporations have more rights and better rights than people. We are clearly second class citizens, and while we might not actually be the ‘slaves’ of the corporations… it sure feels like it.

Arthur Doohan is a banker by experience and a web consultant by choice. He writes at doohan.org.

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Comments (16 Comments)

  • How in hells name can this nonsense be allowed to happen? What happened to employees rights in this country? It seems that unless you’re lucky enough to work in the public sector, an ordinary worker is completely at an employers mercy. It won’t be long before everyone in the private sector becomes a short term contract worker. Just look at the unions in Cadburys for example. They sit back and protect themselves and their dwindling permanent members, while the company employ and sack temporary workers as they wish. It’s disgusting!

    Reply
    • Oh don’t worry. When the moratorium on recruitment is lifted from the public service, the only contracts they’ll be dishing out will be short term ones. So instead of blaming the PS, try to realise that the stability of all our working futures are under this kind of threat. The recession has been a brilliant excuse to erode the rights of ALL workers and their conditions.

      Reply
    • So someone who works in the public sector isn’t an ordinary worker, is that the point your making here? I work for a semi state body, you may have heard of it, its called An Post. We are regularly lumped into this private-v-public sector debate even though throughout the boom years our wage remained the same while others in the communications sector saw theirs rise as much as 50%, most of those being in private employment.
      An Post is set to make 1,200 people redundant in the coming months, the vast majority of those jobs will be those same safe jobs everyone in the media talks about, the ones we are all so very lucky to have. This whole media debate pitting private sector against public sector worker is a calculated divisive strategy from our government to keep us fighting amongst ourselves while the coalition and their friends in the E.U. continue to milk this state for all its worth.

      Reply
  • Im sorry but really comparing this to the resurrection of Jesus?! What about all the jobs lost in Clerys in Blanchardstown, lepardstown and naas? They were quickly dumped and forgotten about by the new owners without the slightest blink of a eye for years of service so excuse me for not jumping up and down for this miracle

    Reply
    • Xadovan 30/09/12 #

      I am guessing that you did not read the entire article or the point he was trying to make just went right over your head.

      Reply
    • The point he’s making is that there is a big difference between how corporations and (most) people are treated by the banks. Clery’s was financially dead, then resurrected with half it’s debt written off. People who’ve lost their jobs and have equivalent debts from mortgages don’t get this treatment, they stay financially dead. What’s impossible for (most) people can miraculously be whipped together in 24 hours for corporations.

      Reply
  • Across all of the world’s languages the term ‘banker’ is universally associated with the term ‘hypocrite’ and ‘halfwit’. This article is an exemplar of the kind of mindset that is a prerequisite to reach the zenith of professional incompetence. Accordingly a former banker embittered by his banishment from society hits back with an abusive diatribe with the sole purpose of massaging his battered ego and to create the internal illusion of self worth.

    The author also seems under the impression that the Victorian gave us only moral laws for the people which is either plain and simpleton ignorance or the downright Cuckooland omission of the Victorian origins of company law with companies given the status of protected legal entities. Look up the Limited Liabilities Act of 1855, renamed in 1862 as the Companies Act. VR

    Such hypocritical and stomach turning diatribes from a former salesmen of debt is all too common in the media these days. Citizens of this republic should stop and ask them, how many citizens did you enslave with debt? Did you get enslaved yourself? Is everyone else to blame for your own actions?

    The journal.ie should set aside a new section and call it the “Daily Spleen Venter” for such articles. It would be an invaluable resource for Psychologists in the quest to know how the mind of professional failures and outcasts actually works.

    Reply
    • Blathin..May I ask, what are you proposing or suggesting?

      That people should be left in impossible financial situations because a ‘former banker’ pointed out the inconsistency and ineffectiveness of our current legal framework and economic policy disposition? That amending that hypocrisy would be to augment my ‘self-worth’ and should not, therefore, be done? That I’m wrong because of a previous occupation?

      My point is that we have added to and modernized our ‘companies’ legislation many times since the Victorian era but have not done as much for personal rights (and what little has been done has mainly been at the behest of the EU). So we have an unbalanced set of rights and obligations between people and corporations. Following from that I suggest that there can be no recovery while the mortgagees of this economy are not afforded the same means of financial redress because personal debts are more than half of our assets. The last point I sought to make was that it is a strange and poor republic that treats legal fictions better than human beings.

      I’m sorry for whatever caused you to be so keen on ‘shooting messengers’ but since I was never an executive in any bank in this jurisdiction/market I know I had no part in any of the misfortunes that have been inflicted on this island or on you.

      Reply
    • I am blessed with the wit and intellect to be able to formulate an argument without the playground imperative of calling people or a society, hypocrites. I can cogently argue for and against most propositions without calling anyone a hypocrite or deploying other pejorative adjectives. I am also blessed with a secure self image that I have no need to engage in snobbery in real life, particularly the variety that seeks to denigrate individuals or groups of individuals in order to inversely boost one’s own relativist sense of status. Oh I do engage in snobbery through acerbic comments but only to return denigration to its source. Someone has to take a stand against the dull minds that label us all as hypocrites erroneously thinking that their derogatory labelling of a society to which they also belong (or once belonged), does not apply to them.

      A solid argument can be made for debt forgiveness on many levels and from many perspectives including economic, financial and social theory without using the old Irish ‘Bedgrudgery filter’. Yet ‘isolationism’ is the much favoured ‘analytical’ tool of those bereft of the wit to properly examine a global financial crisis and the role and options available to a small open economy. It might be a bit too much work in order to examine the history of financial boom & busts and see what causes such phenomena and what actions were taken to solve these crises. Thus it becomes obvious that the ease and comfort of faulty thinking is preferable to the hard work of controlling for cognitive biases, the imperative of quality thinking.

      Reply
    • “Blathin..May I ask, what are you proposing or suggesting?”

      I suspect you’re still none the wiser Arthur…..

      Reply
    • Ah Tomy, my old flower, flying back around to demonstrate for us the intellectual prowess of ‘qualified’ teachers. En Guard!

      Reply
    • No, I just don’t think you answered the question.

      Reply
    • Tomy, it has again escaped your notice that my original comment did not contain a proposal or a suggestion. Thus the ‘question’ is a diversionary tactic which only an unskilled observer would fall for. My comments are in relation the hypocrisy of calling others hypocrites. I reserve the right to debate the debt relief issue with those possessed of even a tiny modicum of skill in the art of discourse. i.e one who has outgrown the tendency for playschool name calling.

      Reply
  • Yeah the 1200 will be made redundant with huge packages. Private sector workers that are lucky enough to have had a permanent job are lucky if they get basic statutory. Can you imagine a public service or semi state worker accepting statutory redundancy?

    Reply

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