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Dublin: 14 °C Sunday 19 May, 2013

Column: We’re all in this together? Yeah, right.

Politicians tell us we’re all in the same boat – but their expenses and other wasteful decisions tell a different story, writes former trader Nick Leeson.

Nick Leeson

I’VE WRITTEN BEFORE about the strange willingness of the Irish public to accept their lot.

There has been little organised protest to effect change or rebel against increased austerity. The lack of any visible displays of discontent or unrest is really quite strange. There are always injustices in society which a traditional opposition or socialist party, look to champion – but without an effective opposition party in this country the injustices are mounting.

Granted, the ‘Occupy’ movement may have taken control over very small areas of certain cities, but they are far from representative and even further from succeeding in any of their aims. I genuinely believe that the general apathy that exists is because there is no real opposition voice in government. Fianna Fáil shot themselves in the foot repeatedly over the last ten years, lack any credibility for the repeated abuse of the nation’s trust and will likely not be a worthwhile voice in opposition for many years to come. There are a number of good, hard talking sensible TDs but as they are Independent they lack the cohesion to really be heard.

That leaves us with a coalition government that is failing us all, because it is just that: a coalition. Whether it’s in the United Kingdom or here in Ireland, a coalition government promotes consensus rather than meaningful debate. That is why the opposition party takes on far greater importance, to really be the voice of the people and challenge everything that is happening by consensus. How often do we hear that ‘We are all in this together’? How on earth can they possibly understand what the majority of people are experiencing in this country? Financially, politicians all exist on a very different level and none experience the day to day struggle to provide for their families.

The average salary for a TD is €92,672. This is roughly four and a half times the average yearly income in Donegal, according to figures from the Central Statistics Office. There is only one group of people in danger of transgressing that demoralising breadline status. These same politicians claimed €6million in expenses in only nine months last year. While the rest of us are being urged to take the pain of the austerity cuts, you have to question where the pain is for our TDs.

‘Phoney men of the people’

We should be far more upset than we are letting on! They are phoney men of the people, and unless our voices are heard the injustice will continue for many years to come. The taxpayer forks out more than €20,000 for every day the Seanad sits. The 60 senators, many of whom have only spoken in a handful of debates, managed to share a staggering €1.65million in expenses in just eight months. None of the senators have designated constituencies and as long as I have lived in this country I have struggled to fully understand the purpose that they serve.

So as the majority of us count the pennies and suffer the strains and stresses of austerity, we have to demand that the Government do better. We know that the Government’s hands are tied where the bailout is concerned, but by turning their attention closer to home there are many things that can be done better. While many struggle to make ends meet, there are still thousands being paid salaries by the now defunct Anglo Irish Bank. Many still receive six figure salaries to sit at the same desks where they presided over a decision making process that was at times questionable, and more often than not reckless in the extreme.

There has to be a better solution. I’m told that there are two types of bankers at the defunct Anglo – those that play golf, and those that go to the gym. Anglo should be firmly and finally consigned to history. There is no incentive for any of the employees that remain to fulfil their job efficiently. Winding down the loan book will ultimately see them losing their own jobs. The government should be looking to advance this process considerably as well as advancing the redundancies at the other state owned bank, IAB. Why pay salaries to bankers that the country no longer needs?

In times of austerity we all have to make tough decisions. TDs’ expenses should have tougher scrutiny – nobody else gets paid for going to work – the existence of a costly Seanad should be severely questioned, and the state should stop paying out for bankers that are surplus to requirements. Transfer the remaining loan book to Certus or a similar organisation to clear the remaining portfolio and be done with the legacy of Anglo, once and for all.

Read more from Nick Leeson on TheJournal.ie>

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Comments (59 Comments)

  • I always enjoy reading articles by Nick. At least he has some first hand insight into the financial world, despite whatever circumstances it was under. He has more experience and sense than the whole of our central bank and dept of finance.

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  • The anger is Growing Nick, the government pr machine has trying to deflect attention to welfare fraud and other easy targets, but that is now starting to wear away. We need open books, transparency and honesty which would be a first in Irish political history.

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  • jrbmc 07/02/12 #

    The same Boat ???? It’s more like we’re in a Boat, and they’re on Cruise Liner.

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  • What are you on about?
    Nick’s actions in the past are well documented, he has served his time.
    Concentrate on the message, not the author

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  • Attended a Can’t Pay, Won’t Pay meeting last night to be honest I was very surprised at the level of anger expressed by the people who turned up. The house hold tax / water charges / septic tank ‘registration fee’ seem to have stirred up people. It was interesting to see the people who were there – a total spread across Irish society from farmers to socialists. Possibly the government may find out they are holding a tiger by the tail come March.

    Good article Nick.

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  • Anger isn’t growing. We’re a nation of lapdogs. And I’m one of the lapdogs. This post is the nearest ill get to throwing rocks at TDs going into the Dail which is I what I would do if I had a pair of balls.

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    • Danny , you are a prime example of an earlier reply I just sent.Anger is growing and some lapdogs are discovering their balls.So why bother posting if you just want to share the FACT that you are an impotent little man.How can we get anywhere when people are happy to accept that they are just spineless passengers, or maybe Trolls like it that way.

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    • Ok Danny , so you feel impotent .
      So did I .Then I just got angry and I found my voice .
      Get to your nearest public meeting for the Campaign Against household and water tax. Listen to what they have to say . Join the campaign.You will feel you are doing some thing and I guarantee you will feel better . Empower yourself. E mail your local td’s . You and me and all of us do have the right to peaceful protest. Find your voice and use it.
      Regards.

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  • I think there is a reluctance to protest because a fear exists that scum and anarchists will use a legitimate protest as a cloak for violence. That and have you been outside???? It’s freakin cold out there.

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    • Ciaro 07/02/12 #

      I think that people are afraid of the type of violence that the gardai can dish out at protests.

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    • People are frightened to protest because they are scared what will the Bishop or neighbours think, even if they aren’t religious or know their neighbours.

      Protest doesn’t have to be violent, 99% of them never are, protests don’t have to be on the street, if people even emailed or phoned their TD’s to complain.

      It’s not the politicians that are the problem but it is the people, the electorate that are the problem. The people here are just walk over’s. No self respect.

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    • @ Tim, True for you, peaceful protest is the only solution. I am as angry as can be and have’nt contemplated violence. The people out there are so disappointing and weak. Who cares what the neighbours or clergy or babysitter think when you are being lied and talked down to. If people want a quality of life or honest representation they better take steps to ensure that happens. Being a commentator and never taking that comment further makes you a weak empty hypocrite, and thats what’s wrong with so many people out there. If you just engage and talk to people other than tweeting or commenting you will find support with like minded people.To make Tim’s point again “It’s the electorate thats the problem”. What have you to gain if you dont open your eyes to the many many campaigns out there and choose one that appeals to you and get involved, theres so many wonderful people just like you and me who will welcome and listen attentivley to you, your thoughts and your ideas. What will come from people making a stand will save this situation, Not politicans. They dont even know or care that you exist because you have not made it known how important you are. Dont sit on your arse complaining, dont be afraid, just take a positive active roll in something that is saying “we are being treated like morons, by morons that are licking up to bigger morons that dictate and legislate for a homogonous moron worldwide culture”. Nicks piece is true and to the point, Thanks Nick and thanks for never being afraid of saying what you think.

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    • In this instance ,we can all protest by doing nothing.
      Don’t register, don’t pay, don’t panic.

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    • The last thing we want now is violence, Paul.

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    • Tim H
      Thanks for that wonderful comment above . Well said . I do think people are afraid . I was . I am not any more since I decided enough is enough. I am tired of being spoken down too and I got up and out . Lovely people and people with the same feelings as myself and just as worried as myself ..and we are making a difference :) :)

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  • Not as much apathy as there used to be Nick.. Attend a few Anti Household /Septic Tank Charge meeting and you will see and hear the anger.

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  • This is not about Nick, it’s about overpaid public representatives destroying our country while telling us to tighten our belts ( remember charlie haughy ). These people have no qualifications for the jobs they have, that’s why they waste huge sums on advisors, the same advisors who got us into this mess. The only actions they will take notice of are mass protests outside the dail. The only violence that may occur will not be instigated by the protesters but by the cowardly politicians ( remember the shell protestors. This country should be run as a society and not a business.

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  • I despair at the level of apathy in this country. We should be out there telling them what to do not sitting at home accepting what is going on. We need to be more visible and stop accepting our lot. Not sure about the violence side of things (although I’m beginning to think that they wont listen to anything else) but there is a definite need for the anger out there to be channelled in a focused way. We need someone unsullied by politics and banking to lead a new movement. Know anyone?

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  • The answer to our country’s economic woes is to improve Ireland’s competitiveness at home and abroad. ‘Competition’ is a word that is floated about in the media without many really understanding what it means. Just like austerity having a viscous circle effect, competition has the opposite. Greater competition gives the consumer more choice and makes sure consumers get value for money. It also encourages greater innovation which drives productivity growth and allows for new ideas to bring us forward into the future. Competition brings down domestic prices which not only benefit domestic consumers but also enhances Ireland’s reputation abroad as a tourist destination and makes our exports more attractive to foreign consumers.

    The benefits of enhanced competition have a cumulative affect greater than any “jobs scheme” the Government can conjure up. Despite this, the current government continues to starve the Competition Authority of funds. The Competition Authority is the one agency whose modes operandi is to ensure competition works effectively in our economy. In 2004, Dr John Fingleton, as head of the Competition Authority, stated (grossly understated in my opinion) to the Public Accounts Committee that effective competition enforcement could save the Irish economy circa €4 billion annually. . If one takes the number of households as per the most recent census, then that equates to approximately €2,400 per household. Yet the Competition Authority’s budget each year is a mere €5 million. If there are possible savings to the Irish economy of over €4 billion each year, why are we severely underfunding the one agency which has the power to enforce competition and help grow our economy out of this current crisis?

    The only possible reason is for the protection of many big corporations who flaunt competition laws and have significant lobbying power with the Government. Granted they are viewed as providing numerous jobs for the economy but the fact of the matter is that many of these corporations are costing the economy millions upon millions through their anticompetitive practices. Historically, Ireland has protected big business instead of the consumer. One has only to look back on the bank guarantee to realize the significance of Ireland’s love affair with big corporations. It is not only the banking industry which the Government protects but also industries such as the construction materials, pharmaceutical, drinks, ink, health insurance and the list goes on. Successive governments have put the requests of a few ahead of the needs of many.

    The recent Competition Bill making its way through the Oireachtas will not ensure effective competition enforcement. In fact it is merely a camouflage for the present Government to pretend they are taking competition seriously. The Minister for Jobs, Enterprise and Innovation, Richard Bruton has refused the introduction of civil fines into the Bill stating that civil fines were unconstitutional (even though the rest of Europe has already introduced them into Law). Minister Bruton further refuses to publish the Attorney General’s advice on civil fines which is contrary to Fine Gael/Labour’s promise of transparency and accountability. Yet another promise broken, by a Government which has lost touch with reality. It must also be noted for the record that Richard Bruton is a former employee and current shareholder in a major construction materials company which has cost Irish economy dearly through its anti-competitive practices and corporate eviction strategy. He is the Minister responsible for funding the Competition Authority and it is no wonder why the Competition Authority will not investigate the cement and concrete industry. An industry which has extracted its profits from fueling the housing boom and overcharging for public infrastructure, all to the detriment of Irish taxpayers and consumers. It is crucial for job creation and Ireland’s economic recovery that the Government ceases its protection of cartelized industries.

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    • Ardo Ci 07/02/12 #

      You’ve pointed out very well another brick in the wall.

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    • No one reads long messages

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    • dave™ 07/02/12 #

      tl;dr something about bricks was it?

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    • ”Successive governments have put the requests of a few ahead of the needs of many……The recent Competition Bill making its way through the Oireachtas will not ensure effective competition enforcement. In fact it is merely a camouflage for the present Government to pretend they are taking competition seriously. Minister Bruton further refuses to publish the Attorney General’s advice on civil fines which is contrary to Fine Gael/Labour’s promise of transparency and accountability. Yet another promise broken, by a Government which has lost touch with reality.” Thanks Padraic Burke .A very insightful commentary .

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  • This expenses thing is an issue that absolutely disgusts me!! I’m fairly level-headed, I can see the need for austerity, household, septic charges etc, we need to balance the books, but to pay these fatcats bloated wages!!
    My local TD’s received an average of 40K to travel from Kildare!! A yearly ticket on the train is about €1200 and is offset against tax. These guys will tell you they are doing up new offices etc, the offices have been there for 15 yrs in some cases!!
    There is no explanation for expenses on the websites of Martin Heydon, Jack Wall or Sean O Fearrghaill. “Who??” I hear the rest of the country shout. A bunch of bloated no-hopers thats who!!
    As for the opposition!! They haven’t said a word on this, and why would they??
    My point is I’d love to protest on this, but when and where?
    On a side note the coverage of the journal on these expenses has been excellent compared to the paltry coverage by mainstream media. If it wasn’t for websites like this and bloggers like NamaWinelake and the chattering magpie alot of these issues would be brushed under the carpet.

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  • Ardo Ci 07/02/12 #

    Cut the crap! Get the message or are you the son of a party member?

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  • I agree with your rage Stefan ,the level of corruption that exists in ireland is frightening ,no investigation of any real meaning into what s gone on in our banking system which in itself must send out a warning to all potential invest ors in this country ,the word i have is cover up, but it is the scale of it that frightens me

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  • Good article Nick, and spot on about the Irish poodle mentality, “ah sure aren’t they all as bad as each other, they’re all at it” a common refrain when you speak to people about why they allow crooks and thieves to run the country! I have a theory that the Irish have been so brow beaten for so long by colonialism and catholicism that they are now a broken people with about as much fight in them as a bunch of sheep. So willing to to be shit on by the various nepotist clans who rule over them like feudal lords of the manor that they are just serfs and modern day peasants who will take anything their overlords throw at them, how else can you explain the way TD’s and Senators are able to pay themselves lavish salaries and expenses, unvouched, unaccountable and open to massive abuse and fraud, how else can you explain the obscene pensions that they, the tax payer are paying the likes of Cowen, Ahern, Harney and all the other incompetent fools who encouraged and presided over the bankruptcy of the country, the civil servants, regulators, semi state quango bosses who have never made a profit in their lives but all got big bonuses and massive payoffs, how else can you explain why reckless bankers who destroyed the country with their greed and idiocy are still uncharged with anything and still living in their mansions and enjoying their vast sums of money, laughing at the little people whilst ordinary families are being crushed and their lives and those of their children torn apart in order to pay for gambling debts run up by them and the speculators who backed them in their madness and to pay for the profits of hedge funds who have bought up bank debt at rock bottom prices in order to make a killing at the expense of the Irish people. How is it that after all the horrific child abuse and cover up’s, Cardinal Brady is still the ‘leader’ of Irish catholics, that Irish people still go to these churches and hand over money to an organisation that abused so many of their children and who still refuse to cooperate and refuse to pay compensation to their victims! It’s almost as though the whole country is suffering from some kind of Stockholm syndrome, the gombeenism that spawned a culture of cute hoorism and the blind eye is still there. Until the majority of the Irish people have the balls to stand up and say enough is enough then these people will just carry on as usual just like they have before and nothing will change because the only way these parasites are going to be stopped is if the Irish people take them down and take them down hard, somehow I can’t see that happening anytime soon, you don’t see very many angry sheep!

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  • Ardo Ci 07/02/12 #

    Well articulated, Nick. I too am puzzled why there’s no protest. Which is it…
    It’s a fallacy about Irish courage?
    Chemtrails?
    Fluoride in the water?
    Too many diversions such as the Internet & drugs now that the gov have crucified pubs with drink-driving laws thereby preventing riotous assembly?
    Love the people – hate the management. Stop the rot and don’t vote

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    • By not voting you are playing into the hands of these dictators. What we need is every constituency to put forward their best honest credible smart wise person at the next election or even two such persons and they won’t even have to canvass – people are so sick of politics as it is now, they will ignore those who are politically involved and vote for people from the community.

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  • It think its time for Sinn Fein, this article doesn’t mention them, but to me they are the only meaningful opposition that I feel can inflict great change, I hope their talk isn’t cheap with what they have being voicing their concerns about and what their propositions are but I think they at least need a chance for us to find that out. I didn’t go near Fianna Gael in the last elections and I can’t believe the majority of the country actually voted for them, although I have to admit I did fall for Labour with their false promises. I feel now though that if we really want change and to show our discontent with the old ‘regimes’ its time to start voting Sinn Fein.

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  • @Damien Brennan. Just wondering…have u actually physically DONE anything bar posting disgruntled from Tumbridge Wells type stuff on message boards?

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    • Yes I have Danny, I’ve more time on my hands than I would like and Im putting it to great use. I dont want to vindicate myself on an open forum, but I have gotten over my slump and seething anger and redirected my energy. You are more than welcome to contact me and I will let you know what Im doing and how you can help or join in with others.
      You are either a genuine person or a messer, and I hope it’s the former. You can get your comments down in words why dont you take the next step and get involved. It’s liberating and oppurtunity opening by just getting out there and living in the real world.
      So get in touch, all it takes is a quick message on facebook.

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  • Brilliant article! Yes we all need to wake up & take action now!!

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  • i started reading The Journal a couple of weeks ago
    i am impressed with the news coverage it appears to not be government controlled
    [great] however what hits me between the eyes is what .s not reported namely
    there is never any reporting on the ongoing campaign of non-payment of the unjust
    household tax/propertytax/water charges/septic tank charges this is a nationwide
    campaign by people who are being exploited and intimidated by a government which
    has turned its back on the ordinary man in the street they preach austerity to us but
    apparently it doesnt apply to them
    kevin
    Rathnew
    Co Wicklow

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  • ps
    please join the No Household Tax etc on NO HOUSEHOLD TAX >ORG

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  • Unfortunately the amounts in question here will make no impact on the black hole FF and Anglo has created. Obviously from a fairness pov these practices need to b stamped out. Pain is not being shared.I plan to pay the house charge coz I can’t risk court. Hav FG kept any election promises? Thing which puts me off marching is it getting hijacked by people who outlook r methods I don’t agree with. We need a new way.

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  • I’m sure he’s a lovely guy, but lectures from the archetypal reckless banker is kinda hard to take.

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  • You think what we have is painful now ?
    just Put Sinn fein in power & watch us become a proper banana republic 3rd world shithole dictatorship .

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    • Yes it is painful now and with the current government things just seem to be getting worse, there’s only so much you can squeeze out of people the previous and the present governments are about as painful as things can possibly get. We are a banana republic already and because of the governments this country has voted for we now have the debt of a ’3rd world shithole’ and sometimes it can feel like were in a dictatorship with the way they ignore the people and bow down to the european elite, we need people to be able to stand up and negotiate for this country and most of all we need serious change in this country and as far as I can see that change is coming from Sinn Fein.

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  • I don’t think this author should be critical of other peoples wasteful decisions. His own brought down barings bank. Hypocracy!

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    • De 07/02/12 #

      I admire Nick Leeson for his article, and he’s mostly right with the exception if a meaningful opposition. The Shinners, although not my cup of tea politically, have become in some parts, the voice of the opposition. Whether that opposition can become meaningful in the Dáil is another question. they’ve a lot of history to shake off.

      I see nothing hypocritical about Nick’s article, he exposed the system for what it was and he has paid his dues.

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    • He also paid the price Conor. Nick is now older and I believe wiser. In my opinion he has a lot to say that is worth listening to.

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    • Agreed Joe, Nick saw the inside of a prison cell for his crime. I’m fact, I believe the total losses he accumulated was about a billion pounds. How much has fitzpatrick cost us so far and he’s probably out on the golf course this morning.(I’ll stop writing, the rage is rising)

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    • You don’t need to go out & protest on the streets, just Don’t Register & Don’t Pay! Stay the course, people!

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    • Spoilt Schoolteacher Blueshirts!!!

      What the F@@k would they know about ”Being in this together”?

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    • Bullshit.
      Read what the man has written, will you?

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    • He has paid price! Good point. Now that larry murphy has done his time he can advise on women’s rights

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    • Pat Ryan 07/02/12 #

      And what, dear Conor, is your point? That Nick Leeson has made wasteful decisions in the past does absolutely nothing to change the fact that the last few successive irish governments, current one included, have made, and are making, staggeringly poor and wasteful decisions and try to rally people with a ‘we’re all in this together’ attitude which appeals to those who caused the bust while alienating those who didn’t. Nor does it change that the irish people have no true opposition to represent the interests of those who do not agree with the current governments policies. Fianna Failure have still been as bad if not worse than the current shower, sinn fein have only recently taken up any policies more developed than a mythical ‘united ireland’, and the independents are at best disorganised and at worst as corrupt and deluded as those in power.

      Ad hominem attacks are useful only to discredit the person making an argument, but they do not help counter the argument and just about anyone reading this is already aware of Nick’s history.

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  • Party member??? Hardly
    Rofl copter

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  • I suppose greed and dishonesty is his area of expertise.

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  • Ed Moran 07/02/12 #

    I’ve got 2 words for the people praising ST. Nic. Galway United. You should check out how he almost destroyed the club and ask the local business of Galway what they think of Nic. Don’t be duped by this man. He may have paid his time but not learnt his lesson.

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  • the irish tendency to give all and sundry a second chance should not apply to nick leeson. you may be able to fix past mistakes, serious character flaws- not so much.

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  • I’m sure he’s a nice guy, but taking lecture from the archetypal reckless banker is kinda hard to take!

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