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Dublin: 16 °C Monday 20 May, 2013

Column: Ireland is a country that doesn’t know what it wants to be

First we blame our leaders for going one way, then the opposite. We need a grown-up discussion about where Ireland is headed, writes Aaron McKenna.

Aaron McKenna

Aaron McKenna wrote for TheJournal.ie about the ‘Lost Decade’ Ireland is facing into, and why we need a new vision for the nation to bring us through it. In this final part of his series on ways forward he discusses Ireland’s confusion about government – and the need to decide what we want from our leaders.

WE HAVE MADE the fundamental error in Ireland of mistaking what government can do with what it should do. It is often asked why government isn’t doing X, Y or Z but rarely is the question posed: What is the role of government? What is it for, and therefore how big should it be? And what should it avoid doing?

Is Ireland a country that rebels at the thoughts of paying a tax burden that is higher than the mid-30 per cent range? Or is it a country that wants Nordic (or even Germanic) levels of services and the accompanying 50 to 60 per cent tax rates that go with it?

The answer at this moment is: Neither. Ireland is a country that, even if it were freed from the shackles of bailouts and austerity, doesn’t know what it wants to be. We’re led by politicians who, when they had the money to throw around, would have had us believe we could live in a socialist paradise on laissez-faire tax rates.

We lack a very basic vision of what we want Ireland to be, and without that we cannot shape our future with any clarity.

Whether or not you agree or disagree with my thesis on what government ought to limit itself to, we cannot progress unless we have a real discussion in Ireland about what the role of government is. Today almost every spending cut and tax hike is criticised in equal measure.

In the past the troika parties of Fianna Fáil, Fine Gael and Labour most of all engaged in auctioneering politics; where today parties of the hard left engage in pseudo-economic theory to explain their odd math that leads to prosperity, spending increases and tax cuts for all but shadowy forces of greed.

Say what you like about the Socialist Party and their allies but at least they’ll tell you straight when you ask that they’re Marxist-Trotskyites who believe fervently in their somewhat historically disproven vision. The other parties believe in winning votes and, umm, something about the civil war.

‘You can have the nanny state, but you’ll pay for it’

What Ireland needs is real vision and leadership, that outlines and explains a truly unique idea of what this country will be in a decade, two or three after that. An honest political discourse that says you can have the nanny state, but you’ll pay for it; or you can have a less involved one, in which you can’t constantly turn to government to solve your ills.

This series on ways forward for Ireland has highlighted some areas where government inefficiency indeed means that we could get more for our money than we do today. It has also touched on areas where government has nothing less than a moral duty to provide for the safety and wellbeing of citizens.

There is no doubt that we could today and during the boom have got a lot better for our money. But ‘efficiency’ alone does not make up the gap between what Ireland spends and what Ireland taxes. Nor does it cover the more intricate gap between the supposed priorities we have and the actions our government takes when it preserves its sweetheart deals with special interests at the expense of frontline services.

I believe that the government we allowed to take root during the boom became too expansive, too unfocused and not at all effective at delivering on the core services we really need. The reason Ireland became the land of a thousand quangos is because there was political pressure from many corners to solve perceived problems, which really should lay outside of the direct remit of government control.

The ‘Role of Government’ seems to be defined by whatever you’re having yourself rather than any unified vision for what the nation should be, what it should strive towards and the role government has to play in that.

Politicians play to this gallery by promising whatever they feel will win them votes. They take your money and give it back to you, diluted, to solve whatever problem they perceive will win them favour.

This will always be a problem of democracy, more welcome than the alternative problems of more absolute systems. But it need not be a systemic, endemic and crippling problem.

The litany of problems presented for government to solve has become so ridiculous that the state is being asked to solve the rather interminable problem of the Atlantic ocean itself, which is eating away at the beach at Strandhill in Sligo. The locals, naturally concerned at the effect on Strandhill’s place as a tourist spot, would like the government to come along and beat back the sea.

‘One small step on the road to ending up with a bloated, ineffective and expensive state’

Not to pick unduly on coastal erosion at Strandhill – it’s but one example – but this instant request for government to do something about the problems of the world is but one small step on the road to ending up with a bloated, ineffective and expensive state.

If the local businesses fear the erosion of their beach then they should make a business case for investment in coastal protection and chip in their lot and demand from government an amount that makes sense for protecting tourism and the economy; rather than a blanket call for government to put mother nature in her place.

The sweetheart deals received by independent TDs to prop up the Fianna Fáil government following the 2007 elections also smack of both an unchecked role for government and careless political expediency interrupting good policymaking. When one steps back to considers the idea that our money should be diverted and spent without care for the political ego of small minded individuals, it is revolting.

We need to take a step back from this haphazard approach to government and bring more control to the way we deploy the resources from all of our pockets. We must demand true vision from those who wish to lead us. An honest vision that outlines what way they would shape the state and how much it would cost and where they would limit it.

I believe that government ought to get its nose – and our money – out of a lot of areas that it started poking into during the boom or that it has interests in for historical rather than rational reasons for the modern era. Government has a good track record in making a hames of a lot things it touches, from industries it monopolises to the regulation of sectors outside its control, like the taxi industry.

Meanwhile the Government under-regulated areas like finance that needed a heavier touch, and its lack of focus and drive has left our health and education systems in a backwards marching mess. It has refused to modernise and adapt.

We need a smaller, leaner and more efficient government. We also need to reconcile ourselves to the idea that when something goes wrong, it’s not always governments role to fix it.

Perhaps you disagree with me. But at least if you put forward an alternative we have something better to advance by way of competing visions for the future than the whatever you’re having yourself (that’ll win your vote) mantra of the parties that bankrupted this country.

Aaron McKenna is Managing Director of the e-commerce company Komplett.ie. He is also writing a book on the future of Ireland to be published later this year.

You can read his previous pieces on the way forward for Ireland on TheJournal.ie here.

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Comments (23 Comments)

  • I live in Denmark one of the so called nanny states with high taxation but a high level of public services. It is my belief that the system here works for the Danes because it generally reflects their national character. Therefore most Danes pay high taxes as they believe it is necessary to maintain a society that reflects their views.
    Perhaps the trick then is to be able to define national character and create a system that reflects its values. The Irish system was inherited from Britain and may reflect their character more than ours. One could argue that it is a relic of colonialism, outdated and ill suited for modern Ireland.

    We need to look at our basic values as a people first and then create a political system that reflects them.

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  • Too many people view government as the means by which they can live at everyone elses expense. I don’t believe Ireland is self governable, how often have we seen laws broken without any repercussions. Sean Fitzpatrick is still playing golf.

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  • Excellent article. Very lucid and to the point. I simply can’t believe that having lived through a boom there is still no free basic health care for under 16′s. I think Fine Gael even offered it maybe in 2007? But instead Kerry got €70m for their roads in a sweetheart deal.

    A sad example of how parish pump politics pollutes any clear thinking for the nations’ future.

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  • Great article!

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  • Excellent article and some valid points but sadly as a people it will take generations to change the way we work and get business done, we are cute hoorsss in general at every level. We don’t have the Germanic or Scandinavia work ethos, we are still a subservient race who are finding it hard , intentionally or not to remove the shackles of centuries of oppression, it begs belief that we cant run a country of our size with some efficiency but even as I write this, I even know what sculldugary is going on at local level, I see the complete waste of money put into unnecessary new roads to straighten bends, new roads been built when I think we can stick out the smaller ones, small pockets of land going under the hammer for a fraction of the original price been bought by original owners who sold them for millions. Local government buying land of farmers to facilitate the new roads, land that was given to them in the fifties under the ” land commission” for nothing. The proof of exactly how inept we are as a country of values and morals will be confirmed when the findings of that 500 million fiasco ( flood , Mahon ) tribunal are published today , it will reveal the absolute perverse moral fibre of our representatives and yet no one will be jailed. I for one will be leaving the cess pit when my business with the government in concluded, probably head to Colombia , should be a piece of cake fitting in there coming from here.

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  • In all business decisions you must have all the facts. The government led by Brian Cowan, probably the worst and most arrogant politician we’ve know bailed out the banking sector in a rushed decision that was made without the facts.
    That governed brought this country to its knees agreeing the banking bailout.
    Without doubt my grand kids will be paying for this dreadful decision.
    They had some cheek also to take us for fools with Ahearne and Dempsey lying to the country on the steps of Leinster House.
    Where are they all gone these selfish little people? Fat cats that should have been skinned.
    At least the present government is continually grasping the ramifications of the other crowd.
    Heads up everybody let’s show that we will survive but at our own pace making the right decisions along the way for the coming generations.

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  • I 100% agree with you Aaron, Ireland has no idea which way it is going, we lack an actual ideology and a direction, and are extremely short sighted, and short term political gains to win votes, and our politics reflects this system. I believe we are people that desire Nordic/ Scandinavian social welfare economy and services, but were are American with regard to taxes to be able to pay for it. High taxes for high services, or lower taxes for lower services. We unfortunately got the worst bargain ever, high taxes and low services.

    I am glad that you chose the example of Strandhill today. As a Sligo resident I am concerned with beach erosion and danger it poses to the public using the footpath there, but I baffled why this week that Brian Hayes is calling to Strandhill to see it, according to my local paper. There is already one TD from the village in government. I just don’t understand why he is needed to come down. Surely with basic geography, one understands that sea is constantly eroding the coastline, or is he just going to try and hold back the sea for us?

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  • It does know what it wants to be.

    Corrupt
    Greedy
    Deceiptful
    Fake

    And it’s doing a pretty good job of it sofar.

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  • PS – it’s amazed me for a long time the way people (whole and generations of families even) still vote on what happened to Michael Collins or how they might earn more money. It’s a sweeping generalisation but look at the household charge. It’s an unfair tax but it has to be introduced (as a condition of the bailout), it’s supposed to be made more fair when the property valuation system is in place but it has to be paid. No-one wants to pay or likes paying and a lot can least afford to pay but this is where we are thanks to the squandered and wasted boom years.

    We can no longer run services on fresh air and vote winning promises.

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    • Getting the whiff of FG from you- the usual rhetoric, the FF legacy, the conditions of the bailout, trying to empathize, then saying it;’s necessary (fear mongering). You’re not fooling anyone.

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    • Sorry about the smell.

      I can see why you’d think that but no not FG. Just trying to be pragmatic which annoys the hell out of me as I detest the fact that the rich got s into this mess and are doing next to nothing getting us out of it except forcing us to do our bit. Fat cats, penions, bonuses, ex-TD’s/Taoisigh should all be squeezed as hard as (if not harder than) the average family with one job (if they’re lucky), large mortgage, children currently are. Where’s this reorganisation of the Oireachtas?

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  • You’ve hit a nail on the head for me: people want world class services but not the tax regime that goes with them.

    The believe there is some rich ‘other’ group out there not paying their share, when in fact, if you earn between €20 to 35k (the biggest group of earners), it is you who is not paying your share.

    Also, the monies that we do spend are often done so extremely inefficiently and without a view to delivering a service to the people who paid for it. My personal bugbear in this department would be our 34 local authorities, all repeating administrative tasks that could be centralized with far greater efficiency.

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    • @ Donal McCarthy – Don’t forget along with 34 local authorities, there are 5 borough councils and 75 town councils as well. There are regional authorites too. Then throw in the VEC’s. We are an overloaded administrave nightmare, this is where the waste is.

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  • Nothing to disagree with there, Aaron, though you could have clarified the role that outright corruption has played in our political system-it has undermined society to an enormous extent.

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  • Another fine article from Mr McKenna, which gets to the core issue. Do we want an unfocused high tax/high spending state or a focused low tax/low spending state.
    There is a temptation to point to what is percieved as the scandanavian model as the way forward for Ireland but the Swedes have discovered that a high tax/ high spending state results in low growth and are moving away from this toward a Market economy.
    Ireland has a younger demographic than most other European nations and should be pulling out all the stops to go for growth especially when we are again seeing our best and brightest leaving in droves.
    An article on Swedens recent economic history.
    http://online.wsj.com/article/SB10001424052748704698004576104023432243468.html

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  • Compared to Nordic countries I pay more personal taxation, it is over 55% before my “after tax” income is pillaged with VAT, fuel duties, excise on alcohol, road tax, tv license, health care charges, doctors fees, etc etc.

    The top rate of personal tax in Germany is 45%, so please bear this in mind while repeating the wrong assertion were do not pay tax.

    We however undertax low paid workers(or not tax at all), and do the same for business profits.

    The entire burden of tax is being carried by middle earnings paying more than germany, and receiving second rate services by overpaid public workers with greedy entitlement attitudes with no understanding of where the money comes from.

    Excellent article but I had to make the above points.

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  • Who wants to contribute to a system that repeatedly screws it’s citizens and gets away with it?
    I’m hearing and reading theories as to why our most able and brightest are leaving this country, some saying it’s by choice others saying it’s through necessity. From what I read and hear it’s mostly because of disgust at what this nation stands for – the toleration of corruption and criminality in our government, state institutions and church bodies etc. and a preference to work in a country that respects and appreciates their contribution rather than squander it.
    What’s to blame for all of this? The Banks? The Church? Developers? Unions? Cronyism? Gombeenism? Yep, all of those, but if you keep throwing rubbish out the window you’ll soon have a rat problem and the more discerning residents will be moving out. I once lived in Vancouver and professional Irish immigrants of my acquaintance when asked by other nationalities what Ireland was like would reply ‘it’s green’ and nothing more. Nuff said!

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  • the reason we don’t have a stable economic philosophy is because we choose not to pursue the development of natioal identity upon which to base it.
    the reason countries like USA, Germany, UK, Japan, and other nations have such difinable economic structures is because they are based on very definable national identities.
    i would argue that Ireland’s long term economic woes are based on the very long established tradition,( or training), that economics hates conflict and “yes sir no sir ” will get you your “three bags full sir”,
    we need as a nation to fnally dtermine what is non-negotiable, now more than ever, as we continue to put everything on the table in the endless pusuit of what is,, and what always be,,by definition, short term economic stability.
    “Carrot and stick “politics only works on people who lack higher goals

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  • nicely written. and a very good premise.

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  • There’s way too much cynicism about politics and politicians. If you have a culture where the political class is routinely spoken of with contempt, only the contemptible will take part in it. There are many very able and creative individuals out there who won’t go near politics because it’s too much hassle. By all means let there be criticism of politicians, but let it be fair and justified.

    Reply

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