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Dublin: 7 °C Thursday 23 May, 2013

Column: Hey Government, that’s not negotiating… THIS is negotiating

The Government’s method of pressuring EU leaders isn’t working, writes Fergus O’Connell. So here’s a suggestion…

Fergus O'Connell

ABOUT 20 YEARS ago, I managed the Irish subsidiary of a small US software company. Part of my job – apart from running the place – was to get the best remuneration (salary packages, stock options etc) I could for my staff.

Since I had no real power in this regard, the only technique I could adopt was schmoozing. Here’s how it worked. I would try to build cordial relations with the people who mattered. When they came to Ireland I would make sure they had a good time. In this case, the people who mattered were particularly fond of fine dining. So I would make sure they got to eat in good places – and that there was a steady stream of such places, each better than the last.

I also had to make sure that the subsidiary I managed performed outrageously well. We brought projects in on time or early. We went to extraordinary lengths to keep customers happy. Then, with all of this going on, I could strike and I would ask for what I wanted.

It wasn’t a very reliable method. In fact, it wasn’t reliable at all. Basically, I was schmoozing and asking for a favour. Sometime I succeeded, often I didn’t. And when I didn’t it was back to square one. Anyone who’s played the game Snakes & Ladders will know the feeling.

I mention all of this because the government refers to what it is doing with the EU as ‘renegotiating the bailout’.

No power

Now for me, the word ‘negotiating’ calls to mind an interaction between two sides, both of whom have some sort of power. A saleswoman and a potential customer, for instance. The saleswoman wants the customer’s money, the customer wants the saleswoman’s product. In the so-called negotiation with the EU, we have no power. So we should call it what it is – schmoozing and asking for a favour.

I have played that game. Now obviously, I have not played it at this level. I have never been a cabinet minister or a senior government official. But it is the same game. Exactly the same. We try to build cordial relations with the people who matter. We perform to the best of our ability. And then we ask for the favour.

It is as unreliable a method for Enda and Michael Noonan as it was for me.

But we have power we’re not using. And coming up is the time when we need to use it. We’re about to undertake the Presidency of the EU.

There’s a theory that EU membership has been good for Ireland. While this may or may not be true, there are definitely some who have benefited more than others. And clearly, the people who have benefited most are the people who negotiated the original deal and now, the people who maintain it.

These are the politicians and civil servants who take first class flights or the government jet, stay in top hotels, eat in fine restaurants, drink expensive wine, pocket generous expenses, and get lucrative assignments in different parts of Europe and – when it’s all over – retire on lavish pensions.

Doing things differently

And it is with these people that we have the power.

Next year, thousands of these same people are going to descend on Ireland and we’re going to bankrupt ourselves even further entertaining them. But what if we did something entirely different?

These visitors arrive into Dublin Airport but instead of passing them through the VIP area, they’re made go to the baggage claim in Terminal 1. Having reclaimed their bags they go outside to catch an Aircoach or a taxi. If they’re paying for their stay then by all means, let them stay at The Shelbourne or The Merrion or The Four Seasons. But if we’re paying, they should head for one of the many hostels or budget hotels that dot the city.

For the meetings in Farmleigh, they could again get a bus or a taxi. At lunchtime, the van from O’Briens or Café Sol or Insomnia would arrive with the sambos. In the evening, instead of a glittering dinner at Dublin Castle, the Department of Foreign Affairs would commandeer McDonalds in Grafton Street. Or if that couldn’t fit everybody, then a hotel that does cheap weddings. And instead of a seven course gourmet meal cooked by a Michelin-starred chef, how about vegetable soup, chicken and chips and jelly and ice cream? And as for the presents of silk ties that the Department of Foreign Affairs has gone to tender for …

If anyone questioned any of this, the explanation would be simple. Yes, we got ourselves into this mess, but really, you haven’t helped us. Rather, you’ve kept kicking us while we were down. As a result, it’s all we can afford.

Give them a day or two of this and then ask them would they like to renegotiate.

Would they what?

Fergus O’Connell writes about good management and productivity. His books are available here.

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Comments (55 Comments)

  • Hard to have faith in the negotiation skills of (any party) politicians in this country. They’re simply not equipped to do so. ‘Schmoozing,’ is a key skill needed to become an Irish Politician… negotiation is not.

    For example the HSE cannot even negotiate wholesale prices on generic prescription drugs to be used in our hospitals and make the huge savings versus branded that would free up funds to be spent on other areas where funding is badly needed. You’d imagine that given the quantities involved this would be a no-brainer. Maybe I’m just being naive and putting this down to lack of ability as opposed to vested interests or lobbying by the ‘Big Brands.’

    Play out this missing skill into other areas such as Public Sector reform, Social Welfare, tendering contracts for public spending and it’s not difficult to see that when the economy emerges from it’s current weakened state it will be in spite of the efforts of politicians, not because of them.

    Reply
  • Well, we’ve tried Plan A, and that sure as Hell isn’t working out too well for anyone, so in the absense of any other credible idea this is no worse than what we’re doing now.

    Reply
  • I would have thought this approach would preempt the begrudgers? The average person in my view has no time nor desire to pay for the expenses that will come out of the presidency. By avoiding this outlay we’ll eliminate all that whinging everybody will be doing when our visitors arrive. Sinn Fein will have a party about pointing this out.

    It wouldn’t happen in the private sector.

    Reply
  • I was reading happily until I seen the word schmoozing. I’m of the mind that there is always other options apart from the classic schmoozing tactics. You mention you had no real power to get the best remuneration you could for your staff, you see I think that you had the power but it was a more difficult route then the schmoozing route, that route involved getting the best performance from your staff and showing that the Irish subsidiary of that small US company was doing very well. The issue with that route would be long hours for your staff and probable behind your back being given out about for being a hard boss. The schmoozing option had your probable some what adored. In the last few years I’ve seen a change in managers and the schmoozing tactics of old being put by the wayside, and for me I have allot more respect for a manager like that.

    Reply
  • Just say we can’t afford to host the @uckers , but Edna loves all that crap , makes him feel sooooo important, he is just a go for , and Gilmore , where the @uck is he these days. 3 moths off and now a big trip to America , I want to see results to all the crap they are say they are doing, I have seen nothing yet

    Reply
  • @Paddy De Bop: Socialism is a fantastic idea in theory; BUT in practice is a very different matter, a system wide open to fraud, greed and personal gain at the expense of others. What you end up with is more or less the same as what’s being slopped out to us now – a very priveledged minority getting all the perks and benfits of upper party membership, while the ordinary working classes still obediantly bow to the wishes of their “comrades” in government.
    I’ve read and studied a lot about the history of Socialism; the theories do seem to make sense; but finding honest politicians unwilling to abuse their appointed posts is an impossibility.
    I WOULD love to see the whole Irish Political landscape changed and see a fairer, more open system in place where accountability and a huge cutback on Oireachtas perks and allowances cut. And i the TDs don’t like that they can blow off in the wind and either put up or shut up

    Reply
  • i enjoyed this article, on the surface it makes perfect sense but only if the people we elected adopted the same approach for their daily business.

    Reply
  • You cannot shoot the messengers,So you suggest we antagonise them. Hardly the way to go now is it? Wine and dine them well.Put your case to them and make sure you do so in clear unambiguous language. Have your facts straight. Listen to them.Try and understand their point of view. Look for common ground……Do you get the drift ? Your lighthearted piece is welcome.It is however in the real world we live in and we have real issues to deal with.A lighthearted piece such as yours is typical of the so called intelligentsia running out of ideas and trying to smile their way out of a fight. For the sake of this commentary contribution I am including you in the intelligentsia,though I would not normally ever dream of doing so.

    Reply
    • Can see that working Cy.

      Dublin Castle. Best linen, cutlery and glasses laid out, gentle music in the back round.

      Enter our esteemed leader.

      Enda: Ah, folks in case it has not come to your attention we are really broke and need some help here in Ireland.

      EU functionaries: Yes Mr Kenny we understand that but can we discuss that after the meal?

      Enda: Sure folks no real rush, would you like some more caviar while we are waiting for the first course? Mind don’t fill up to much. As we do have 7 courses to get through. The main course tonight is a really special creation by our chef olli. It’s called “filleted Irish tax payer” and is accompanied by a 18 billion side order just organised last year for our unsecured friends in the bond market. To round off the meal our pastry chef Joan B has created a special signature dessert. She has called it “minding the children of Ireland” and you will be glad to know that no children were hurt during the creation of the desert sure what would Irish kids or their parents do with a child allowance? Spend it on the kids school costs, cloths or food. No need for that sure as you all know our school system is totally free. Well except for 3rd level were Ruairí is busy tearing up that promise he signed pre-election. Enjoy your meal now.

      Reply
    • @kerry…and your suggestion for a course of action is?……

      Reply
  • I like it Fergus but here’s my suggestion. When they arrive collect them in a luxury coach and drop them at the gates of their new permanent residence Mountjoy.

    Reply
  • what a load of crap

    Reply
  • I wish we could be real Europeans. Being Irish Embarresed me sometimes when I see who represent me in positions of power. Between tax evaders, corrupt councillors and TDs, and ex terrorists I can’t but feel ashamed of where Ireland has got to.

    Reply
  • What a waste of space. An article about “negotiation” that doesn’t actually mention negotiation, instead recounting anecdotes from 20 years ago.

    YAWN!

    Reply
  • never heard so much crap…….and tell me did a lunatic asylum have a mass breakout and they all rushed down to the local internet cafe..socialism come on ..it isnt a good idea ..i dont want it..and of course it never works.capitalism but with regulations. and a government run by economists and a few joe public.. why do we think auctioneers and schoolteachers can run a country. being able to make speeches and have gift of the gab does not make a td.

    Reply
  • Your books must be amazing. Self promotion followed by nonsensical waffle.

    Reply
  • Negotiate?

    Forget the negotiating at this stage!

    It’s leaving the EU we need to do and the setting up of a real workers republic that the 1916 lads actually wanted.

    REVOLUTION!

    Reply
    • I think they are currently trying that model in North Korea….its not going so well apparently.

      Reply
    • Barry 02/10/12 #

      Enough of your let’s create even more more misery wet dream nonsense, you think we have it hard now….. It’s a walk in the park compared to leaving the EU

      You know those sewage works we have, bypasses, motorways, drainage schemes, farming grants etc etc etc all part funded by the EU

      Look at Ireland prior to its membership of the EU in the 1970s,much of the country was extremely backward and in massive need of modernisation and improvements which happened only because of the EU

      Reply
    • Ireland would be better off outside the Euro and will not see it’s economy begin to recover until this happens.
      However, opting for a Marxist republic would be more disasterous than the bank guarantee.

      Reply
    • The only clowns are those who think the EU aren’t milking us for everything to pay back the german bondholders.

      North Korea didn’t work out great but a true workers paradise will see everyone share in the profits of production equally. Why would anyone be against that ideal?

      Reply
    • You’re wearing a red nose, have green hair and squirt water out of a fake flower on your lapel, don’t you?

      Reply
    • Sean: A Marxist Republic done correctly with real democracy will work. The only reason it didn’t in other places was because the people let dictators take charge. We just need to make sure a dictator never gets power by having true local democracy where the people have the true power, not corporations like now.

      Reply
    • Vincent: Are you against ordinary people having a equal right to an equal share of the profits from the factors of production? Yes or No?

      Reply
    • It sounds idyllic Paddy…except the thoughts of having to queue for bread and rations in the rain puts a bit of a dampner on the whole idea…..then the whole saluting the “glorious leader” as you walk barefoot….nah you’re ok mate, ill stick with the devil I know…he mightn’t be great but…

      Reply
    • @ Vincent Dolan – Best comment I’ve ever seen!

      Reply
    • ” the thoughts of having to queue for bread and rations in the rain” – someone has watched too much american propaganda over the years!

      There will be no ‘great leader’ – there will be a workers democracy where the ordinary working class man and woman will vote who will represent them locally. the downfall of n korea, russia etc was the cult of personality. those mistakes will not be repeated.

      The day is coming, capitalism is on it’s knees and closer to failure every day.

      Reply
    • Paddy – what will happen to all the multi-nationals and banks etc that have factories and offices here? Will you force them to share their profits equally with employees? They would be gone like a shot if your dreamland did that and then where would your economy be? Companies can’t function and grow without profits and they need to grow to employ more people.
      Keep dreaming though, no harm in that.

      Reply
    • If they don’t want to share the profits then its very simple – we continue to produce the goods and the workers can sell them their selves. Sorted.

      Next question.

      Reply
    • @Paddy

      Socialism in theory is a great idea. But it is inherently flawed. As it doesn’t allow for human nature. The problem with human nature mixed with socialism can be summed up with this statement “What’s in it for me?”

      In order to stamp out this from a socialist idyll, strong leadership is required. And that leads to another problem which can be summed up with another statement: power corrupts; absolute power corrupts absolutely. Again caused by human nature. As has been evidenced in all the other Socialist/ Marxist/ Communist idylls.

      Reply
    • Ahhhmmm, not really, I think its common knowledge about food shortages in Utopia, anyway…I fear its you Comrade BeBop that is becoming mildly erect watching reruns of Deerhunter and Victory Day surrounded by posters of Pol Pot….I think you Paddy BeBop should lead this new nation….you alone…..and I will think of you in your new nation as I feast on a large Big Mac meal washed down with a bottle of bud as I watch the New England Patriots relaxing in my Lazee Boy Chair made by the good citizens of your nation all the while safe in the knowledge that I am not washing chickens arses in a giant communal farm in BeBopistan….

      Reply
    • EU funding modernised this country, providing grants for the majority of major infrastructure across the nation. Without the EU we would be in real trouble.

      Capitalism works, it fails because it is unregulated. Do it right and it can be prosperous for many.

      Time for us to pay our debts and sort our economy to become a stable nation within the EU.

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    • Geoff, we will be paying back more then we ever got from the EU in funding to cover bank debt that we were forced to accept. If you reckon it is your debt I’d suggest you should open an account with the EU and start paying it back. Me I’m just sick of paying back a debt that is not an Irish tax payers debt. I’d say its time for Ireland to stand up and say to hell with paying off others bad investments.

      Reply
    •      
      “There is all the difference in the world between treating people equally and attempting to make them equal.”
       Friedrich August Hayek

      Reply
    • Communism, no one else could make it work, but clearly no one else is as good at governing and running a country well as the Irish…

      Reply
    • @andrewtelford Well now, Andrew, everything is relative, isn’t it? We’re in a bit of bother now- but the UK had to go to the IMF for what was then its biggest ever bailout in ’78, so it would seem our neighbours aren’t much better. Also depends on ones definition of running a country. To my knowledge, since Independence we haven’t built any oppressive empires, nor have we started any World Wars, nor have we plundered the resources of whole continents nor invaded sovereign states. All in all, then, I would suggest that as countries go, our record of self governance would stand favourable comparison with Britain, Germany, the US, Russia, China. The Swiss, now- they know how to run a country.

      Reply
    • Exactly

      Negotiate ha he,s saying that since they rigged the fiscal treaty for a yes vote.

      The worst thing we done was joined the eu and now they have us tied to the like of the IMF and the Troika who have been proven to be the result of third world country,s and we,re just leaving the hole lot of them turn our lives upside down and standing back and doing nothin while they claim billions and billions of our money.

      What a disgrace of a government.

      R.I.P Michael Collins 1916

      Famine 2 – 2016

      Stop it now!!!

      http://www.change.org/petitions/supporting-the-irish-nation-step-down-from-government

      Reply
  • Why the hell are my comments all over the place? Journal? It looks like I’m replying to random comments….

    Reply
    • Hmm, not sure Ryan – sorry you’re seeing problems. I take it you’re submitting comments via the ‘Reply’ button? And are you on a desktop, or an app? Let me know and I’ll get our tech team to look at it…

      Reply
  • I still don’t get it why the government doesn’t make a stance and threaten them all with: “not paying your debts anymore, sorry lads, And btw we also leave the euro zone.” That’ll get them squirming.

    I am not saying we actually should leave the euro, but using it as a threat in negotiations would certainly give Ireland some bargaining power.

    Reply
    • What happens if we do that and they say “Ok, best Wisches, Sorry to see you go.” Issuing and ultimatum is never a good negotiating strategy. A far better strategy would, rather than presenting what we want, be to present what the other side of the table wants, and present a plan that could bring that about. It’s not “us” against “them”. Presenting it as that automatically places us in a weak position. A prosperous and solvent Ireland is good for both Ireland and for the EU. We’ve been passive and reactive up to now. If we want the other countries to listen to us, we first must have something worth listening to. Blackmail via threats of dropping out won’t cut it.

      Reply
  • So now we have a channel for bad news 24 hours a day ,,, brill

    Reply
  • Well I enjoyed the article, throw Angela merkel a pre-made chicken wrap from Insomnia next time shes here. Great idea. some comments here make the point that Ireland was backward pre-EU, well currently the EU is doing its best to make us third world again.

    Reply
  • Sounds like the old Irish Begrudgery filter is at it again.

    I am sure successful business people fly first class and drink fine wine but wait! Have they all developed a social conscience all of a sudden.

    Books based on Begrudgery? No thanks.

    Reply
    • Successful business people are by definition successful. When you’re successful you can afford to fly first class and drink fine wine. This is not a successful government, so can it afford to be flying first class and drinking fine wines?

      Reply
    • Communism, Marxism, Village idiot ism….call it what you will- it has never worked, anywhere at any time. True insanity is repeating the same mistake over and over again and expecting a different result. Communism is the preserve of Krusties who a). Don’t use deodorant and b). Feel realism has no part to play in politics.

      Reply
    • Z? 02/10/12 #

      @ Bloomy : You’re doing well, very well. your posts anony mehr intensely. So much respect. A bit of friendly advice; Focus. You’re still too general, to blurry, with your aim. It’s clear that you can do better; do so.

      Reply
    • My new book entitled “Beyond Bedgrudgery” is a must read for political and social analysts. It demonstrates how Mrs. Petty Jealously is a poor interpreter and thus her translation mistakes leads to almost hilarious but always buffoonish strategies, especially economic recovery strategies.

      Mrs. Petty Jealously is very attractive with large bosoms and thus those smitten by her create boobs in her honour. However these boobs do not make good computers, therefore their primary purpose it to get a few guys excited, agus sin sin.

      Reply
    • Shit book, go back to your day job…

      Reply
    • Ryan oneill, enlightenment is beyond people blinded by Bedgrudgery. Thanks for proving it.

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    • What a load of tripe from Fergus – I hope for his clients’ sake he’s better at the day job.

      But the most egregious bit is this:

      “….Yes, we got ourselves into this mess….”

      No, Fergus, ‘we’, as in the vast majority of citizens did +not+.

      Further, even the tiny few Irish who do bear some responsibility were merely fellow travellers of a deeply flawed monetary system & massive negligence on the part of the Euro’s major designer’s & system regulators. Prinipally, the financial sector elites & their partner insiders rolling thru’ the revolving doors of the public institutions.

      We should be making common cause with Spain, Portugal & others whose economies are being wrecked by this financial & currency system mess & seeking collective responsibility of all Euro states & serious reform.

      There is no ‘economics’ or monetary reason why ordinary citizens should suffer thru’ falling wages & mass unemployment. By definition, fiat, free floating currency system can +never+ be short of ‘money’. Money has not been a ‘commodity’ (subject to inherent limits) for decades. The only constraints on money issuance occur when we near full productive capacity & employment – we, & the entire EU/EZ, are miles away from such limits at present.

      The only reason the present mess persists is because the top few percent are able to increase their relative wealth (greater control/ownership of real assets) thru’ instability – during both phases of boom & bust. Perhaps even more so in a deep bust phase, such as now.

      If you want to know the truth, study the Post-Keynesian economists like Steve Keen & the MMT proponents.

      Reply
  • Blathin

    Reply

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