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    Accountability and Transparency – Report Card

    Result: C B+ on transparency; D on accountability. Not quite the democratic revolution we’d been promised. Political reform was high on the agenda of all political parties in 2011. In the heat of the worst economic crisis in the history of the state it was apparent to all that failings in our political structures were at least partially to blame. In the opening line of its 2011 Programme for Government the new coalition government wrote boldly of a “democratic revolution”. A series of political reforms was promised, particularly in the two most pressing areas: accountability and transparency: accountability in the sense of giving the Dáil in particular more of a hold over future governments; transparency in terms of opening government up to closer scrutiny. The scorecard on these two streams of reforms is pretty mixed overall. The good news is that many of the objectives (and a few additional ones) were met on the transparency agenda. The three main planks of an ‘open government’ agenda – freedom of information reinstatement; whistleblowers legislation, and a register of lobbyists – were all implemented, and there were more widespread initiatives to spread an open government agenda across government and the public service. Much praise for all of this goes directly to Brendan Howlin who showed, more than any other minister in this government, true reforming zeal. There were also initiatives emanating from the Department of the Environment, most notably those aimed at opening up party finance to closer scrutiny: however, as the annual reports of the Standards in Public Office Commission reveal a lot more work still needs to be done in this quarter. The lack of any serious intent to establish an Electoral Commission was a major implementation failure. The government’s record on accountability reforms was nothing short of dismal. A series of pretty irrelevant changes was introduced (cutting pay, reducing the number of TDs, Friday sittings, and so on), but reforms that would actually make a difference to the balance of power between the Dáil and the government were few. About the only reform of any significance was the introduction of a pre-legislative stage, giving committees greater potential to introduce amendments to bills. What clearly made the difference in this instance was the lack of a minister whose portfolio included Dáil reform. In 2011 we had the weakest parliament in Europe. Five years later – and despite the government having the largest parliamentary majority in the history of the state and cross-party consensus in favour of true Dáil reform – we are left with what is still the weakest parliament in Europe. Overall, the record is not good. The perennial Irish problem of prevarication continues apace. Distracted politicians (who all too easily take their eye off the ball of longer term objectives) combined with the dead hand of civil service mandarins (whose life mission is to preserve the status quo) have won the day again. While the government may have scored well (B+) on transparency, it receives a pretty dismal D on accountability, dragging down its average rating on political reform to a C – not quite the democratic revolution we’d been promised. Report Card – Accountability Report Card – Transparency Extras not in the 2011 Programme for Government The Public Sector Standards Bill is at an advanced stage and should be ready for completion in the next Dáil. This introduces a new Public Sector Standards Commission, whose remit is to provide a statutory framework governing disclosure of interests and other ethical obligations for public officials. Ireland became a full member in 2014 of the Open Government Partnership, an international initiative designed to promote an open government agenda. Among other measures this has seen the establishment of an Open Data Platform.

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    Villager February 2016

    Electi On Right, Villager thinks there’ll be a hung Dáil. Fine Gael and Fianna Fáil will struggle to work out whether they should coalesce, risking their exposure as ideological charlatans and the long-term growth of Sinn Féin. Another election within a year. The prognosis is tentative since around here there is no worse crime than a discredited prediction. Quite a bit at stake In which spirit… so Bernie Sanders and Donald Trump come out punching from New Hampshire and it’s cockle-warming to see the Bush and Clinton dynasties with their inequality-indulgent ideas formed a generation ago, in serious trouble, even if it does signal the return of the Angry White Man, and his supporters. Sanders’ agenda, of course, has obvious appeal in the right-on Village while Trump is dangerous in an old-fashioned FASCIST way. Assuming for the sake of mischief a Sanders-Trump election-off, for Villager the victor can regrettably (and terminally) only be Trump. Sanders is too ugly and Trump too rich for any other upshot. So what happens then? The only force in global volatility that is more unhinged than Trump is Islamic State whose principal religio-geo-strategic goal is dooms-day precipitated by a battle in Syrian city of Dabiq, near Aleppo. It is here, the Prophet reportedly said, that the armies of Rome (ie the West) will set up their camp. The armies of Islam will meet them, and Dabiq will be Rome’s Waterloo. After its battle in Dabiq the caliphate, already in 2016 nicely ensconced under Abu Bakr al-Baghdadi, will expand and sack Istanbul. An anti-Messiah will come and kill a vast number of the caliphate’s ghters, until just 5,000 remain, cornered in Jerusalem. Then Jesus (Jesus!) – the second-most-revered prophet in Islam – will return to Earth, whack the anti-Messiah, and lead the Muslims to victory. After a series of domestic putsches and foreign-policy cataclysms Villager foresees an insurgent Trump, toupée to the sun on a white charger leading the Crusaders into battle at Dabiq. He will lose but be revealed as the Anti-Messiah before final wipe-out at Jerusalem. It is not clear whether the Donald will consider the big new status recompense for the loserism. Jesus and Mohammed will together sort out the souls and the Bushes’ and Clintons’ Wall Street millions will be useless to them. Hello you Former Anglo CEO, David Drumm, is to wing his way back from breaking rocks in a Federal penitentiary, with Fintan O’Toole’s misplaced endorsement for a man incarcerated in the lucre-lionising country to which he has fled, blowing up a tail wind. Drumm has announced that he hopes to wear a tag rather than go to prison here. Villager has an idea. How about wewear the tag and he gives us back the money? Valentine wishes The words ”My heart is, and always will be, yours” from ‘Sense And Sensibility’ have been voted the most romantic line from romantic literature, film and TV drama. They are uttered by Edward Ferrars to Elinor Dashwood in director Ang Lee’s 1995 screen version of Jane Austen’s classic novel with Emma Thompson’s Oscar-winning screenplay,. It was the top choice of 2,000 inane British women who were polled for the cliché-blind TV channel ‘Drama’. Villager resolves to try it out on Mrs Villager. The scene in the 1997 epic ‘Titanic’ where a frozen, fearful and (Villager was happy to note) doomed Jack, played by Leonardo DiCaprio, tells his effervescent Rose played by Kate Winslet, ”promise me you’ll survive” (inevitably) came third. Bliss and the insolvent luxury-car company ‘Former Model’ Glenda Gilson opened up to ‘VIP’ in a February cover photoshoot about her life a year since marrying ‘Rob McNaughton’. The cover (Villager claims never to get beyond it) gushes: “After 18 months of wedded bliss the gorgeous star of Xposé reveals that staying in is her new going out”. Admittedly the former vainquese of bearded developer Johnny Ronan has a lot to stay in from. Gilson mystifyingly fails to mention that during her blissful year she was barred from acting as a company director for five years. Glenda and her brother Damien were in charge of Gilson Motor Company Ltd until 2011 when it was wound up by the High Court for failing to pay €141,937 to the Revenue. Judge Paul Gilligan said Glenda was “deceived” by her sibling in the “improper way he ran the affairs of the business” which traded in high value vehicles and operated a car parking and valeting service at Sir John Rogerson’s Quay. Some of the money is owed to Ronan, who has – in other news – expressed the view that NAMA operates on the spiffing principle of Arbeit Macht Frei. you get the Tsar you deserve Ronan and his former business partner in Treasury Holdings, Richard Barrett, are back in business and back in the media, as if they had never cavorted malignly around boomtown threatening all-comers (Barrett once said he “had his foot on the throat” of poor Chicago-nurtured Garrett Kelleher) and in the end cost us all a packet. Barrett was even allowed to drawlingly pontificate on the Marian Finucane radio programme, about his vision for social housing something he has in the past been very reluctant to provide in Treasury schemes. He told Marian, always agog at a bit of developer vim, “There is an enormous humanitarian crisis of epic proportions which is causing a great deal of human suffering. It is proportionally much larger than the Syrian refugee crisis” with up to 300,000 people on the housing list. Barrett also tells a provocative anecdote of a local authority renting “a house at €8000 a month on one of Dublin’s two best roads to house a homeless mother with four children, costing the state a fortune”. But, intriguingly, he has the answer: “I have formed a series of investment companies, (in Housing, Social Housing, Health Care, Renewable Energy) [all, for some reason, called Bartra]. We will build these facilities renting them to the Irish Government”. He sees it as a sort of “social

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    Election 2016

    In 2011 we wrote in this space, “You would think from our recent history of some of the most notoriously bad governance on the planet, that we would have learnt that our political classes need to be replaced. In fact, this election time we see no new ideas”. Sadly democracy in Ireland needs an overhaul every bit as much now as it did in 2011. Village is disappointed at the quality of politics, across the range. It’s easily diagnosed: Fine Gael is open to regressive policies and cronyism. However, at least on its own terms it deserves credit because it has consistently stuck to its agenda of (unimaginative) economic orthodoxy and because Enda Kenny has proved relatively competent, in the face of scepticism, including from this magazine. In 2011, we stated, “ Perhaps it is a unique merit of Fine Gael that if it is elected with a mandate, this time it may actually govern as it has campaigned. The electorate will be able to assess whether what it voted for was what it wanted”. This edition of Village explores at length the extent to which the coalition government delivered on its Programme for Government. It’s a fair test and it shows that, beyond promoting economic stability, the Government has been a disappointment. Labour certainly does not have the Fine Gael appeal of consistency. It never does what its manifestos promise. Worse, a number of its senior TDs have allowed themselves to appear smug and ideologically jaded or even, in Alan Kelly’s case, dangerous. Because of the elasticity of its conscience Labour has long attracted the wrong type of representatives. Fianna Fáil is tainted by its reckless past and the incoherence of its platform. It believes serving the people, parish and business in equal measure is viable. It has learnt little beyond the need to regulate the banks. Sinn Féin’s commitment to a Left agenda is unclear bearing in mind its defining preference for irredentist nationalism over ideology, its centrist pragmatism in the North and its willingness to coalesce with Fianna Fáil. Its performance at local-authority level is not impressive or particularly leftist. It is cultist, and ambivalent about democracy and transparency, and its leaders lie casually about its, and particularly its leader Gerry Adams’, past. Renua seems like a somehow unendearing chip off Fine Gael’s Christian Democratic block, with a penchant for propriety. The Independent Alliance (dubbed Shane Féin) is utterly incoherent of policy and membership. If ex-stockbroker Mr Ross and turfcutter Michael Fitzmaurice ever breathed an atom of the same political air, Village cannot imagine where it was. Village has a weakness for the Social Democrats, whose mild platform is essentially the same as Labour’s, though strangely more pro-business, but whose small membership is more prepossessing. Its antipathy to water taxes is expedient but regrettable. The radical Left offers the huge appeal of integrity and seriousness but its opposition to property taxes is inexcusable, and its focus on opposition to the loathed water taxes rather than a broader anti-inequality platform, including opposition to the iniquities of Nama, corruption and the resurrection of the developer classes has diverted its revolutionary ideology. The Green Party’s policies are often radical, and its agenda mature, but it is not hard-minded and it achieved so little in the last government that it is difficult to be enthusiastic. To the extent that we have not afforded space in this edition of Village to the policies and protagonists of most of these parties, it is because they simply don’t offer enough to justify it. Village believes equality of outcome, sustainability and accountability are the most important policies; and it is difficult to be optimistic about their immediate Irish prospects. Laboured machinations over the fiscal space are ephemeral, though most of the other media address little else. Reflecting the need for a vision of society as well as economy this edition focuses on the coalition’s delivery across a number of departments that promote equality, sustainability and accountability, though we do have articles by Constantin Gurdgiev, Michelle Murphy and Sinead Pentony on the iniquitous handling of the fragile economy. We consider Education, Health, Social Welfare, Environment including climate change, Small Firms policy, and Accountability. These departments make life worth living. We systematically assess whether they achieved the goals set by the Government for each of them when it took office. In the end the conclusion is that they have underperformed. And so therefore has the unimaginative, regressive and stolid Government behind them. Against this backdrop, we would again not presume to advise readers where to direct their votes. However, we can say the non-ideological, non-visionary parties of the pragmatic centre hold little appeal, even when mitigated by somewhat more thoughtful ones. A coalition of the parties of the Left, radical Left and the Greens would, as always, best promote Village’s agenda, if no doubt imperfectly.

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    Enda Kenny: not so lite now

    Enda Kenny has defied those detractors who have claimed for many years that he is not up to the job of leading the country. Or has he? His supporters claim that he has brought the country, and the economy, from the brink of complete meltdown to steady recovery and is now set to be the first Fine Gael leader to claim the title of Taoiseach in successive elections. Others say that timing and luck have played a huge part in his belated success after more than 40 years in the Dáil and that victory in this month’s poll is by no means certain. Kenny never forgets his friends even when the going gets tough Over the past five years, Kenny has displayed many of the characteristics that marked the career of his long-term adversary, Bertie Ahern, including the ability to shake off, or at least postpone, controversies that would have caused terminal damage to other party leaders. His claim to have secured a significant debt write-down from his EU partners in June 2012 proved to be untrue. His siding with the ECB and the Bundesbank against the struggling Greek people who put the radical leftists of Syriza into power was self-serving and opportunist and arguably undermined any prospect of Ireland getting some early relief on its enormous legacy of banking debt. His instruction to the Secretary General of the Department of Justice, Brian Purcell, to make a late-night visit to the Garda Commissioner, Martin Callinan, leading to the resignation of both senior public servants and of his own long -time supporter, Alan Shatter, in mid-2014, is all a fog of obfuscation. Similarly, the manner in which the Commission of Inquiry he announced to examine the purchase of Siteserv by long-time party supporter, Denis O’Brien, and other IBRC sales in mid-2015, was allowed to run into the sand due to its restricted powers and inadequate terms of reference bears all the finger prints of his senior handlers. His outrageous and inaccurate remarks from Davos to Madrid to Paris on Ireland’s crisis and his government’s role in recovery have confirmed that he has not lost the habit of appearing the clown, unintentionally, at the most unexpected moments. Enda Kenny also merits opprobrium for his broken promise to fix the health system, the failure to deal with a deepening housing crisis and the widening of the income divide between the richest and most vulnerable during these past few years. Yet the stars, and international factors, including a strong dollar and sterling, unpredicted multi-national tax payments and the dramatic oil-price collapse have combined to see Kenny emerge as the architect of the fastest-growing economy in Europe and the cheerful bestower of a fistful of promises to simultaneously cut taxes, improve public services and recruit thousands of nurses, teachers and gardaí. Kenny has luck on his side. He was fortunate to lose the leadership contest against Michael Noonan after John Bruton lost the 1997 general election to Ahern and before the 2002 poll when the Fine Gael vote imploded. Kenny survived with his lowest ever first preference vote in Mayo and Noonan resigned. The Mayo TD took over the party in June 2002 after a battle with Richard Bruton. Kenny was helped by transfers from his soon-to-be key ally, Phil Hogan, in the run-off and after the elimination of Jim Mitchell. He faced into the 2007 general election as the blitz of his bizarre financial arrangements threatened to take out Ahern but failed to convince voters that he could do better than Fianna Fáil in managing a faltering economy. Once again, luck was on Kenny’s side as Brian Cowen replaced Ahern a year later and was engulfed by the banking and property collapse. In 2011, after two failed heaves against him, the Fine Gael leader hauled his party to an historic victory and into government with a resurgent Labour Party, after the Fianna Fáil/Green administration collapsed in acrimony and the people gave it an unprecedented battering in the February election. He merits opprobrium for his broken promise to fix the health system, the failure to deal with a deepening housing crisis and the widening of the income divide between the richest and most vulnerable during these past few years There is no doubt that he has rid himself of the ‘Bertie lite’ tag that dogged him for years, although his closest aides still do not trust him enough to let him out on his own too often. Kenny maintains a quirky, hail-fellow-well-met style that makes him seem like a country bumpkin but disguises a more ruthless political streak and shrewdness.. In mid-2014, Kenny publicly distanced his party from its key strategist, and his close friend, Frank Flannery who was embroiled in a financial scandal which erupted after details emerged of enormous salaries and other payments involving the Rehab charity and its senior executives. Flannery who had left the charity some years previously was still being well paid by Rehab for consultancy work which involved lobbying his colleagues in Fine Gael. He had a pass for Leinster House and free parking which the public was informed was being removed. It was a humiliating experience for the suave PR man and no doubt difficult for Kenny. A few weeks later the pair sat down for lunch in Dobbins restaurant near the Dáil along with another old friend and party elder, the late Bill O’ Herlihy. Kenny expressed a degree of regret that Flannery had been shafted and was sorry that he had to withdraw his valuable Dáil pass. “Don’t worry about that, Enda”, replied Flannery, or words to that effect, as he pulled the pass from his jacket pocket, to laughter all round. Kenny never forgets his friends even when the going gets tough. Kenny was gifted a Dáil seat for Mayo west in November 1975 after the premature death of his father, Henry, from cancer. The young teacher was a newly appointed principal at Knockrooskey primary school near Westport and followed in his father’s footballing

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    “FF has always been centre-left and for equality of opportunity”: John Gormley interviewed Micheál Martin about the past and the future

    I interviewed Fianna Fáil Leader Micheál Martin in Leinster House and he was unfailingly cheerful and warm throughout though under time pressure. Before the 2011 General Election Martin told Village, “I am a constitutional republican and believe strongly that economic growth and social progress are closely linked. I believe the old left/right ideological divide has no real relevance for the 21st century”. He said his political philosophy was very similar to that of the revolutionary generation of Fianna Fáil,which understood the need for radical change. He said he believed in equality of opportunity, part of which is the necessity for social supports which enable this. However, “I don’t believe that there is a single example of a society which combines respect for human rights and high standards of living with enforced equality of outcomes”. He claimed, “Fianna Fáil has always represented ordinary people. The organisation is made up of ordinary people who work in their communities and take nothing from politics except a sense of making a contribution”. As to the original Fianna Fáil, having studied them, Martin says he’d slot them overwhelmingly as left of centre. He has a master’s in history from UCC. Occasionally he asks questions before answering them, recalling his background as researcher and briefly as history teacher, in PBC Cork. His thesis, elements of which he intermittently scrupulously recalls, was about how political parties evolved in Ireland from 1918 to 1932. He is passionate about the lessons of the period, particularly for Fianna Fáil. He claims, “When it was set up in 1926, Fianna Fáil in a sense represented the dispossessed, the outliers, the people who didn’t get involved in the mainstream after the Treaty and yet they picked themselves up. They did bring on a business element in the late 1920s. Once they accepted the Treaty and once they accepted the political norms they opened up to new potential support. Most particularly to what we call the ‘Irish Ireland’ business community, meaning people who believe in Irish industry, who believe in protectionism; believe in growing our own industry. The likes of Dowdalls margarine manufacturers moved to Fianna Fáil. The Cumann na nGaedheal Party was split between protectionists and free traders. Patrick Hogan the Minister of Agriculture was a classic free-trader but JJ Walsh, for example, actually defects from Cumann na nGaedheal and decides not to run in the general election of 1932 saying, ‘I’m no longer running for this free trade party’. Cork seems to have been a hotbed of protectionism. They produced their own newspaper, the Tribune. People like Professors Stockley and O Rahilly (who later became the president of UCC and drafted the Free State constitution) were writing articles ideologically promoting self reliance for Irish industry and they’re getting brassed off with Cumann na nGaedheal by the end of the 1920s. O’Rahilly actually stood for Cumann na nGaedheal and briefly in a kind of a George Lee like moment, he gets elected a TD. I came beautifully across his correspondence. He says ‘I’m wasting my time here. Cosgrave doesn’t understand how bright I am. And I have no intention of remaining on here as a negligible automaton’. And he resigns. Lemass demonstrated a capacity to change. His mind was elastic. He could understand shifting trends in the world in his times. So he was a protectionist in the 1930s who became a believer in removing tariffs and barriers. He got the bit about how Ireland needed to become an open economy to export its produce. However, there is no doubt that modern governments are far more constrained and restrained than previously because of global free trade; and the work of Piketty and others is important in demonstrating the growing gulf between the corporations and the wealthy and what they’re earning, and the middle-class and lower-income groups. Because the middle class is shrinking in developed societies. That in itself is posing a threat to democracy. Governments have to intervene more. I spoke to the former head of the ESRI recently before she’d left office, informally. She was making a point to me that one of the biggest political issues of the next decade would be the degree to which governments can intervene in the market on incomes policy. To be young today and to go into the labour market today as a young person is not pretty in terms of certainty, security, capacity to borrow money. The market is certainly controlling that to a degree that’s very, very worrying. Even in the state sector now, there is no certainty for a young teacher who could be ten years waiting for any security. Primary teaching is different but even their rates of pay are lower than people who are working with them in the staff. Morale in the Garda is shocking. They had to reverse the cuts to new recruits in nursing because they couldn’t get the nurses. They’ve all gone abroad. And then there’s the whole zero-hours contract issue. And the whole regional pull to the east coast and to Dublin which is very lopsided. I think the resolution is not easy and I think there has to be engagement between governments and corporations. Essentially what’s happened in the last 20 years, is that the West shifted an awful lot of manufacturing to Asia. It did help lift a lot of Asians out of poverty but their levels, their conditions, are reminiscent of 19th century industrialised Europe”. So how does all this position Fianna Fáil politically? “Now, I would put 2016 Fianna Fáil in the centre of the political spectrum. Somewhat left in terms of – what do I mean by that? I think you have to be careful of these labels. But it’s certainly centre in the sense that Lemass (his hero) and the whole industrial thing was always a feature of the party and probably became stronger in the 1960s, 1970s, and 1980s. Lemass didn’t mind whether it was state development or private development. So Fianna Fáil never had an

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    Tax: Limited Public Appeal

    THE Department of Finance disregarded arguments by the Revenue Commissioners and its own civil servants that all tax appeal hearings should be held in public. Finance Minister Michael Noonan instead signed off on legislation whereby those involved in tax appeals can decide to have their hearings held privately … a choice that virtually all seem certain to take advantage of. The decision to allow these optional private appeals was made despite Revenue advice that open hearings would help public confidence and show that tax law was fair and “even-handed”. Such hearings are held in public in the UK and that a similar system already existed within Ireland for the Employment Appeals Tribunal A ministerial submission obtained by Village under Freedom of Information legislation explained that the Revenue Commissioners had been fully in favour of holding tax appeal hearings in public. It explained: “Revenue favour the replacement of in camera hearings with public appeal hearings. Its view was that public hearings could enhance public confidence that the tax system was being administered and the law being applied in an even-handed way. It considered that the current appeals system was established many years ago and its in camera hearing of appeals now appears to be out of line with modern developments in both international and Irish law”. Revenue had pointed out that such hearings were held in public in the UK and that a similar system already existed within Ireland for the Employment Appeals Tribunal. The submission, which dates from late 2014, also pointed out that there was a “mistaken public impression” that people’s tax affairs enjoyed “some special degree of confidentiality”. The document explained: “Revenue is not bound by such confidentiality in the case of legal proceedings”. The proposal for public hearings was also supported by Minister Noonan’s own officials, despite the “conflicting views” that had emerged during the consultation process for the new legislation. Representative bodies – including tax accountants and lawyers – had argued that public hearings would discourage individuals from appealing and see the release of commercially sensitive information. They had also argued that information about third parties can be divulged during such hearings and that the constitutional principle of court proceedings being held in public does not apply to tax appeals. However, the Minister’s officials still remained in support of public hearings, saying that “in camera tax appeal hearings [should] become the exception rather than the norm”. It suggested that specific safeguards could be put in place for certain types of appeals. The submission explained: “Thus, for example, public hearings would not apply in the case of appeals that might have implications for public order or national security or involving sensitive matters other than a person’s financial affairs. The Appeal Commissioners would also have the flexibility to hear part of an appeal ‘in camera’ and to exclude certain parties from proceedings or part of proceedings”. They said this would bring the tax appeal system into line with best practice both internationally and nationally and strengthen the independence of the Appeals Commissioner. A second submission was also prepared for Minister Noonan after discussions of the proposed tax appeal system took place at the Oireachtas Joint Committee on Finance, Public Expenditure and Reform in January of last year. It explained how members of that committee had questioned the justification of ending in camera hearings. The Committee members had asked if “this would in fact add value to the process, and whether it would discourage taxpayers from appealing, and particularly militate against smaller taxpayers”. The Revenue Commissioners were again contacted for their input in March last year and again emphasised their preference for appeals that were open to the public. They said: “Revenue supports the move to public appeal hearings on the basis that it will result in a more transparent process and enhance public confidence that the system is independent”. By April, Minister Noonan was presented with another submission, taking into account the concerns of the Oireachtas Joint Committee. It explained: “The Committee concludes that, while the default position may be for public hearings, it is preferable, on balance, that if the appellant requests it, the hearing be held in private. The Committee considers that transparency can be enhanced and clarity provided to taxpayers and the general public if all hearings are accompanied by written determinations, as is proposed. Appropriate redactions should be made to protect privacy”. By Christmas Day when the new legislation was signed into law by President Michael D Higgins, provisions for all hearings to be held in public were gone. The final legislation allowed taxpayers to opt for a private appeal, and when decisions relating to their case are published – all personal details will be excluded on the same basis. The new legislation provides for the establishment of a tax appeals commission, which will formalise existing arrangements and detail how commissioners will be appointed. It will become the first option of appeal for taxpayers unhappy over Revenue decisions, rather than the existing appeals mechanism within the Revenue Commissioners, as happens currently. Asked about the removal of the automatic public hearings from the legislation, the Revenue Commissioners said they had “nothing further to add”. They said: “Responsibility for taxes legislation rests with the Minister for Finance and the Government. Revenue’s responsibility is for the fair and impartial administration of tax legislation in place”. The Department of Finance in a statement referred back to a speech given in the Dáil by Minister of State Simon Harris in September explaining the rationale. “While public hearings will be the default arrangement, part or all of a hearing will be held in private on application by an appellant”, he said. “I consider that this will meet the concerns of stakeholders, and particularly concerns voiced by Deputies on behalf of small business people. Concerns were expressed that small shopkeepers, for example, could find themselves involved in a public hearing, perhaps with customers in attendance, and with material from the hearing being reported locally. Such publicity could undermine their business,

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    Striking conservatism of opposition parties

    There is no surprise that Budget 2016 was an election budget. The budget will play an important role in framing the economic debate in the run up to the election. It is worth looking at Budget 2016 and the pre-budget submissions made by the opposition parties, to gain insights into the parameters of this debate. While there were some good suggestions in these submissions, it must be noted that some of their figures could not be considered credible. The most striking conclusion from any such exercise is the lack of vision, from all sides, on how the budgetary process could help to put us on a different path, a path towards a more equal, inclusive, and sustainable society with an economy that benefits all. A new narrative about the future direction of Ireland is much needed. We can only hope that this will emerge in the coming months. The economic climate is much improved and this should have offered room for new vision. Ireland is the fastest growing economy in the EU and GDP is forecast to grow at 5-6% (and some suggest more) for the year, with strong growth predicted for 2016. However, the current strong growth rate is being helped by the weak euro, low oil prices and historically-low interest rates. These are external factors that we have no control over. Changes such as rising interest rates and energy costs could have a dampening effect on economic activity. The former Governor of the Central Bank, Patrick Honohan, urged caution in a letter to the Minister of Finance before budget day. He said: “The rate of economic growth is being exaggerated and may be leading to overconfidence in planning for the future”. The business activities of multinational companies were affecting the figures, he said, creating a risk that Government policy would not be based on a realistic view of future prospects. Still, employment is growing strongly. The numbers at work are expected to exceed 2,000,000 next year. Unemployment is falling. It stands at 9.1% (203,000 people). However, long-term unemployment remains high, with over half (54%) of those who are unemployed being categorised as long-term unemployed. Budget 2016 had a 50/50 split between tax cuts and increases in public expenditure. It failed to focus on increasing investment in our social and economic infrastructure to the scale required to support our growing and ageing population and create the conditions for productive and sustainable economic growth. Budget 2016 was not as regressive as previous budgets. However, it failed to address income inequality and provide the range of supports needed to reduce poverty and deprivation in any significant way. Would the opposition parties have done better? An overview of their pre-budget submissions provides insights into their priorities and an indication of the economic policies for their election manifestos. Their figures are taken at face value. The overall increase/decrease in taxation and expenditure is calculated as the submissions included a range of measures that increased and decreased the tax take and the expenditure level. What is of particular interest is the areas that they focus on and the balance between taxation and expenditure. Sinn Féin The main proposals in the Sinn Féin pre-budget submission included an enhanced capital investment programme; investment in homelessness and refuge services; investment in health and education services; supporting parents and investing in childcare; tackling income inequality and establishing an equality and budgetary advisory body; protecting communities; and making provision for frontline workers, the Haddington Road agreement, and demographics (growing and ageing population). It proposed a range of tax increases and cuts resulting in an overall increase in taxation of €292m, which includes a reduction in the USC, and the abolition of the property tax and water charges. Its expenditure proposals came to an overall increase of €1.8bn. All the political parties, with the exception of People Before Profit, who presented a balanced budget, cut the budget by €1.5bn   Fianna Fáil Fianna Fáil’s key proposals were to reduce the tax ‘burden’; tackle the housing crisis; invest in services; and support families and older people. Their proposed taxation measures would reduce overall taxation by €557m overall, with almost €400m of this coming from cuts to the USC. Its expenditure proposals would increase spending by €888m. Social Democrats The main proposals outlined in the Social Democrats’ pre-budget submission included a new capital programme; a focus on housing; supporting parents, children and childcare; addressing child poverty; enhancing education; supporting The Budget had a 50/50 split between tax cuts and increases in public expenditure. It failed to focus on increasing investment in our social and economic infrastructure CHART 1: PROPERTY TAX IN IRELAND AND THE EU (2012) enterprise and improving health provision. The submission included a range of tax increases and cuts that would result in an overall decrease in taxation of €3m, which includes a reduction in the USC, the abolition of water charges and reductions in the property tax in certain circumstances. Its overall expenditure increase came to €1.5bn. People Before Profit The priorities outlined in the People Before Profit pre-budget statement included the abolition of the property tax, water charges and the USC for salaries below €35,000; the reversal of cuts to social welfare; an expansion in health funding; the restoration of jobs and public services that were cut; investment in social housing, education and childcare facilities. Their budget costings were presented as a balance sheet with an opening credit balance of €1.5bn called ‘fiscal space’. The ‘credit available’ is €8.8bn, with total expenditure coming to €8.7bn, thus presenting a ‘balanced’ budget. All the political parties, with the exception of People Before Profit, who presented a balanced budget, kept within an overall package of tax cuts and expenditure increases that amounted to a value of €1.5bn. While there was variation in taxation measures, there was common ground in the expenditure measures, including housing, education, health and social welfare. All parties proposed cuts to varying degrees in the USC, property tax and water charges. New taxes included a wealth tax,

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    Why we shouldn’t care about university rankings

    University rankings are released every winter. It gives the media a few free stories. One or two universities go up the rankings, and one or two go down. University presidents rush out to the media to congratulate themselves and their staff on the hard work and innovation that led to the rise, how they are doing more with less etc. The stories write themselves. Alternatively the presidents remark gravely that the fall is the inevitable by-product of unsustainable funding cuts, and if the government doesn’t intervene it will only get worse. Of course if either were true we’d expect to see trends. The universities of hard work and innovation should be improving consistently, and the funding losers dropping. In fact we see that Irish universities are not moving in any particular direction. There’s a dramatic fall in some rankings: the Times Higher; but a hardly noticeable one in the QS one. In the Shanghai ranking Irish universities have improved. Surely if a change in performance is dramatic and real all rankings should pick it up? This gets us to the problems with these rankings. First is using rank at all. Rankings are inherently unstable. The rank a university comes in can change dramatically even if the performance of the university hasn’t changed that much. Think of the rank of someone in a marathon with 1000 runners. The top 10 runners will be spaced apart, the first and the tenth runner could have quite different performances. And these will be quite a way from the 100th runner. But we usually see that after a while bunching happens. The 100th runner and the 200th runner might not be that far apart, but the rank indicates a big difference. In the main middle bunch, between the 250th and 750th runners, small differences in performance will yield huge differences in rank order.   Students might be better off with mediocre researchers who are fantastic teachers   What are these scores based on? The different university rankings (there are about seven of them) use a variety of components to measure university performance, but they tend to rely heavily on one: university reputation. It accounts for between a third and a half of the score in each of the different rankings. Reputation is often based on some real differences, but it means that big, famous universities are scored higher because, well because we’ve heard of them. If you’re asked what is the best university in the world, some names come to mind, and these are the names that come out on top. Are they the best? They’re probably close to the best, but our assessment is based on nothing more than name recognition. This is a bit like using opinion polls far out from an election. Well known candidates perform best in these because voters have heard of them. After a campaign, in the real election, these advantages are reduced and the less well-known candidates perform better than expected. One ranking, Shanghai, rejects these repetitional criteria. But it replaces it with possibly more obscure criteria. It looks at the number of students and staff who won a Nobel Prize. These prizes aren’t plentiful, so most universities in the world will score zero. But do they really measure anything a student would want to know? That Samuel Beckett went to Trinity and then won a Nobel Prize is as much a matter of luck (for Trinity) as anything else. Does it reflect the contemporary student experience? Research output and citations measure less obscure things. Research is a core university activity, and it can be measured pretty reliably. A journal article that is published and relied on for further research makes some difference. But it is not clear that it makes a great deal of difference to the student experience. They should be getting taught by genuine experts in the field, which is good. But does it mean they are taught well? The busy researcher may be less engaged with teaching pesky undergraduates, who eat into research time or, more likely, the time they can spend chasing grant income. And teaching itself is remarkably difficult to measure. So the ranks rely on the staff-to-student ratios. We know that good teaching relies on interaction, and it’s easier to be interactive with small groups. But it’s also possible to be mind-numbingly boring in small groups. Students, and these are the core source of funding for Irish universities, might be better off with mediocre researchers who are fantastic teachers, who give them hands on experience doing whatever it is they are there to learn. There are few German universities in the top 100 of any rankings, but no one thinks German graduates deficient. One of the reasons there are so few German successes there is because research is often done in independent institutes, but it’s also because Germans spread resources so as not to create a few small elite universities that teach few students, but to make all universities pretty good. The path some are suggesting of ‘picking winners’ to create at least one Irish elite university by targeting resources may not be such a good idea.   The UCC president Michael Murphy rather clumsily instructed staff to ask academics they knew to think of UCC when assessing reputation   A further criterion used by most rankings is the internationalisation of the institution. Universities with a large number of foreign staff and students are given a higher score. But measures of internationalisation tend to favour small, open countries. Ireland is one of the most globalised countries in the world mainly because it is one of the smaller developed countries in the world. A small number of foreign students make a big impact here. We also benefit from speaking English, so it’s easier to move here. I’m not sure this reflects anything meaningful in the performance of our universities. Measuring university performance is difficult. The existing rankings capture something. If Harvard is in the top ten in all rankings, it is

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