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    Information, unclear information, inconvenient information, disinformation and misinformation at the Equality Authority

    Despite Angela Kerins’ claims, targets have not been achieved. Michael Smith Public-sector cutbacks and unprecedented levels of unemployment are reversing hard-won gains on the path to equality for whole swathes of society.  In July 2009, the Equality Authority launched its Annual Report 2009. It is telling that Angela Kerins, chairperson of the Authority, chose to highlight a supposed “campaign of misinformation” which “purported to show that the Equality Authority was either no longer in operation or that it was no longer operating efficiently”. Certainly those championing equality of outcome will not have been enthusiastic about Ms Kerins’ chairpersonship but there does not in fact appear to be any misinformation, as opposed to its sister medium – inconvenient information – in currency. When questioned by journalists at the launch of the Annual Report, Angela Kerins would provide no details of this supposed campaign or its perpetrators. She went on to highlight that the Equality Authority had “worked on the essential principle that it is not what we spend but what we achieve that counts” and claimed that “our targets have been achieved”. Clearly the supposed ‘campaign of misinformation’ had little impact. However, her comments encourage a punctilious focus on the information circulated by this public body. Angela Kerins suggests all is well at the Equality Authority and that the Equality Authority delivered its ambitious plan with a significant cut in resources. She fails to point out that this ‘ambitious’ plan was launched in March 2009, five months after the cut in resources of 43% had been announced and three months after the cut had taken effect. So the targets set in this plan were set in the full knowledge of the cut in resources. It would not exactly be a surprise if the targets were achieved. But were they? In March 2009, Angela Kerins spoke to journalists at the launch of the Strategic Plan for the Equality Authority. She said that 38 new case-files were opened in January 2009, so Ms Kerins expected about 450 case-files in the full year. The Annual Report for 2009 states that in fact only 213 new case-files were opened by the Equality Authority in 2009. Her expectation was therefore not even nearly realised. Her communication with the journalists could hardly be described as a model of accurate information. There is a target set in the Strategic Plan that the Equality Authority would deal with 4000 queries under the equality legislation. The 2009 Annual Report shows that the Equality Authority dealt with 3370 queries under the equality legislation. This is 16% less than the target. To suggest that “our targets have been achieved” in this context would appear tantamount to misinformation. The Annual Report claims that 878 case-files were “processed’ by the Equality Authority during 2009. This would appear to exceed the target set in the Strategic Plan that the Equality Authority would “progress” 200 case-files per annum. However, we can only wonder at the careful choice of wording. Does “processing” mean “progressing”? Or what does “processing” mean? The terminology is unnecessarily voguish in either case. The question is: will Ms Kerins ever deign to elucidate? A one-liner in the Annual Report, presented without clarification, provides some indication of what ‘processing’ might mean. It states that “At year end, following a concerted effort to reduce a backlog, 658 case-files had been closed’. This is an extraordinary 75% of all case-files held by the Equality Authority. We are given no information on what happened to these case-files. This is in contrast to the 2008 Annual Report which provided a detailed table explaining the mere 268 case-files closed in that year. At best this announcement of the closure of 658 case-files constitutes em unclear information, at worst it indicates that the Equality Authority has taken to processing case-files without progressing them. There is further disturbing evidence in the 2009 Annual Report that the Equality Authority is in fact operating well below par. In 2009 only 27 case-files were considered for assistance by the Equality Authority, despite opening 213 case-files during the year. Only 13% of the case-files opened during the year ended up being considered for assistance. This is well below the figure of 71 case-files considered for assistance in 2008. Then the Annual Report 2009 is strangely silent on other targets set in the Strategic Plan. The Strategic Plan committed the Equality Authority to the publication of one review of casework per annum and to the use of one of its powers (to take cases in its own name, seek amicus curiae status  in court proceedings or present codes of practice  to the Minister for Justice that could be relied on in court proceedings) per annum. These targets are not mentioned in the Annual Report and are therefore unlikely to have been achieved. The Equality Authority suggests that it is the subject of a misinformation campaign. It claims to have achieved its targets despite the cutback. It clearly has not done so. Could it be that the Equality Authority itself has engaged in an instance of less than perfect information? The Equality Authority replies… A spokesperson for the Equality Authority rebutts the substance of Michael Smith’s article: the fact remains that the total target for responding to public enquiries was exceeded in 2009. The starting point is that 213 new case files were opened in 2009. This figure fluctuates year on year, with 234 case files opening in 2008 and 204 in 2007. There is no target in the Equality Authority Strategic Plan to reach 450 cases in any one year. While the comment that 450 case files might be opened in 2009, as reported by the Irish Times, is attributed to the Chairperson of the Equality Authority, this comment is disputed and may have been made by some other participant at the Launch of the Strategic Plan. It appears that it was – in any case – a year-end prediction based on case file activity for one month. Predictions are not always borne out in

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    Michael Noonan TD, interviewed by Colm MacEochaidh for our Sept issue

    What did you think of Brian Cowen’s infamous radio interview?
    I thought that he was asked questions about five or six of the fundamental issues that are now facing the country, and he failed to answer them with any clarity. My analysis of the present situation is that even though there are real economic problems, there is an underpinning problem which is to do with confidence, and unless the political leadership is decisive and makes decisions, that will continue. Whether he was drinking at night or not is immaterial to me.

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    International Tax-Dodging

    Global aid to developing countries is less than the $160bn lost annually by them to tax dodging by multinationals. Sorley McCaughey Every year, the world’s poorest countries lose billions of dollars in potential revenue through the tax dodging of unscrupulous multinational companies (MNCs). For example, between 2005 and 2007, Ireland contributed €95million to Mozambique, but in the same period €18.21million was lost in tax dodging. Abusive transfer pricing and false invoicing alone cost them $160 billion each year, according to Christian Aid estimates. These figures dwarf the total amounts provided in global development aid each year, and far exceed any estimates of what would be required to attain the Millennium Development Goals. This is money that could be spent on basic services – health, education, infrastructure etc. Indeed it is money that, in the long-term, has the potential to move countries away from a reliance on aid to a more sustainable and predictable source of income – legitimate tax revenue. Abusive transfer pricing occurs when related companies – subsidiaries of the same parent company – deliberately inflate or deflate the value of transactions in order to minimise their tax liability in a country. For example, 5000 tonnes of bananas were exported to the US in 2009 at a price of $0.20/ kilo, when the arms’ length price (or agreed market price) was $0.85/kilo. False invoicing, for its part, occurs when two unrelated companies agree on a bogus price for a commodity being sold between them with the effect of minimising tax liability. The profit accrued can then be split between them. Apart from being morally reprehensible, this clearly flies in the face of the international development approach. But this is not just a development issue. There are implications for the Irish Government in terms of the coherence of their policy agenda. Irish Aid is committed to ensuring that the actions or policies of other institutions do not negatively impact on its work. When the international regulations that govern multinational activities (which the Irish Department of Finance has a role in formulating) facilitate this, the incoherence at government level is contributing negatively to the plight of millions of poor people around the globe. In addition, Irish people have a right to expect – particularly at a time when every cent is being watched- that their money that is being spent overseas is not being undermined by other government departments’ inaction. The volume of money lost is in itself enough reason to be concerned. But an effective taxation system also generates additional benefits. An efficient taxation system also promotes good governance. It promotes mutual accountability between those who are paying tax and the government. So what should be done? Civil society recommends three connected solutions to the situation. The first is a requirement for MNCs to report their profits on a country by country basis – not only a global consolidated profit figure. Such information would be invaluable to countries (and not just poor countries) in identifying where possible cases of abusive transfer pricing have occurred. Secondly, civil society is calling for tax information to be exchanged automatically between jurisdictions. Existing bilateral tax information exchange agreements have failed to achieve the transparency needed to identify those companies and individuals who hide money in offshore tax havens. The burden of proof on those countries requesting information is so great that even wealthy countries have found them to be ineffective. Only a global agreement on a multilateral automatic information exchange will deliver the transparency that poor countries need to start clawing back the billions they are owed in tax. Thirdly, and critically, it is crucial to respond to the capacity needs of countries’ tax authorities, oversight bodies such as parliaments, and audit institutions – to process and act on the information that becomes available to them. Irish Aid is already carrying out important work in this area, but more needs to be done in the international tax arena where key decisions around financial regulation are made. In a way, campaigners on this issue are riding a wave of opportunity brought about by the recession and the associated demands for greater financial transparency. There is a recognition now that the characteristics that have contributed to crippling the Irish economy – light touch regulation, a lack of financial transparency and tax arrangements skewed in favour of the wealthy – are the ones that have allowed unscrupulous companies to shift billions out of developing countries. It can no longer be acceptable for profit to be pursued without regard for the negative social consequences for millions of ordinary people around the world. The results of such behaviour are all too evident both in Ireland and the developing world.

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    Ask the Experts

    Village’s technology team answer all your questions and make up a lot of stuff too What does it all mean? Answer: Mutualisation We live in the post-media age. Writing is on life-support; the media are dead. Nobody reads, they only blog. In ten years, there will be no newspapers: all news will be transmitted by iPad tablets. We just don’t know how they’re going to make money from these websites. But it is interesting to note that Rupert Murdoch has introduced a paywall on his newspapers and speculation is that hits are down something between ten and ninety per cent. Mobile phones mean that the message is the medium and you can never leave home. Facebook means that there is no need to say hello to anyone. Steve Jobs, who recently recovered from cancer, announces at the monthly iConferences where he addresses the industry, that having a Face is no longer enough. Search Engine Optimisation means only fools think. There is no such thing as an audience now, we all participate in and make the news. Shops have all been replaced and we only have Amazon. But Amazon has been bought by eBay because the book is dead. Reality has gone: only Youtube really is. The only – above all how will it affect advertisers – beauty now is technology. Apple is the new Warhol. You can train an iPhone 4 mG to have sex with you and then real-time text about it, a total game-changer. Android is Google’s smartphone platform. Above all, there may not be as many newspapers, but there will be plenty of journalism. It will have assumed a new form in which, to use Jay Rosen’s unmatchable phrase, “the people formerly known as the audience” will play a key role in the gathering and transmission of news events. They will surely do this on a local or hyperlocal, basis. Their work will appear largely online, on sites that are unlikely to be connected to the major publishing chains that have ruled the news roost in the US and Britain for so long. Call it the new news hierarchy. And only a teenager PC or Mac (?) can do it from his attic. 400 apps a second or we all die. The Irish Times diversified into jobs.ie and its New Media section app is now cyber-hacking but lost ten million Euro last year. So: where will the Smartphone end and what difference does it make to you? Nokia’s new Blackberry is actually smaller than a piece of fruit and ten mega pixels. Is your business registered on Foursquare? If not, it really should be now. Investigative journalism will always cost money; and opinion versus solid old-fashioned news values. You, the consumer, choose. The Wall Street Journal’s is the way to go. Journalism is long live so long live dead. Or whatever. A similar change will be wrought at the national level. – Microsoft, Apple, Google, Yahoo and Amazon, Mark Little will never go back to Prime Time for Tweet. There will be fewer print titles, though online audiences previously attracted by the strength of a brand name will ensure its survival. But there will be many fewer journalists in full-time employment. It does not mean the elimination of professional journalism, i.e. people paid to carry out daily journalistic work in order to hold truth to power to speak account, which is the prime task of our trade. Simple economic reality will ensure that news outlets – whether they are publishing brands that exist today or small start-ups – will not host large staffs on the old newspaper model. So What Are the Implications for the Print Media? Professional news “hubs” will work in concert with, for want of a better term, amateur journalists. Call it participation (iPhone) or collaboration or, to borrow a term coined by Alan Rusbridger, the editor of the Guardian , mutualisation. It is how news gathering is already developing and, in 10 years that will have become the norm. Time years twenty in around be still all will we if knows who. We must all have a website – defensively. And it won’t matter that much, since journalists have already been replaced by machines that write inane articles about the implications of technology for the written word.

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    The Staggered End of Western Civilisation

    Post-War consumerism and licentious liberalism are senseless. by Desmond Fennell “There were whispered arguments between our parents while we watched TV—arguments about changing the rules, we gathered, that applied to all of us, the dads and moms as well as the kids…” Naomi Wolf in Promiscuities (1997) on San Francisco in 1970. During the last ninety odd years Western civilisation has been coming to an end in three revolutions: the Russian and German revolutions, and the Second American Revolution which is still shaping life in the West today. Let me clarify three key terms. First, a civilisation. A civilisation is essentially a grounded hierarchy of rules covering all of life and making sense, which a community’s rulers and ruled subscribe to over a long period. The community is motivated to keep reproducing itself by the sense that it finds in its set of rules, its framework for life. Some of the rules are circumstantial and therefore changeable; others are essential, forming the civilisation’s defining core. European or western civilisation. Constructed in Western Europe in the twelfth century AD by Latin, Germanic and Celtic Christians, it later crossed the Atlantic and other seas and lasted into the twentieth century. Its set of essential rules of behaviour made sense to our ancestors for nearly a thousand years. A revolution. It begins with a group of people who adhere to a new ideology which they believe contains the formula for a good and just life. These believers take possession of a nation’s central government and by unconstitutional means increase its power. Using that augmented power, they preach their ideology, establish new rules derived from it, empower those who support these rules, and disempower opponents. This process takes at least twenty years, maybe thirty or more. Until the first half of the twentieth century there existed a tacit agreement of European nations, at home and overseas, that all political and military action must respect—or after a transgression re-assert—the essential rules of European civilisation. This tacit agreement applied also to revolutions: the new rules which a revolution enduringly established must not breach the essential European rules. The Irish Revolution and the Italian Fascist revolution operated within this framework. But three revolutions, in three powerful countries, Russia, Germany and the USA, rejected the rules system of European civilisation. The revolutionaries, finding that European civilisation unjustly limited their power to create the good life they envisaged, made new rules that, while forbidding certain behaviours, justified states and individuals doing things which European civilisation forbade. The Russian revolution maintained its post-European rules system for 70 years. The German Revolution was beginning to establish its rules when it was overthrown. From the 1960s onwards the second American revolution established its post-European rules system in its own country and, by proxy, in Western Europe. That rules system is still in force. The second American Revolution The second American revolution began in 1933 during thee Great Depression when Franklin D. Roosevelt became President. The American revolutionaries were Left liberals who called themselves simply “liberals”. Their liberalism required a big and powerful State shaping the lives of people for their good. Roosevelt brought them to power as advisors and colleagues because he was convinced that their demand for a “Big State” was the best means of tackling the Depression. His New Deal programme greatly increased the power of the Federal Government. When the Supreme Court pronounced twelve New Deal measures unconstitutional, Roosevelt, in effect, got a new Constitution by appointing left-liberal judges who declared the measures constitutional. In 1940, in disregard of American precedent, Roosevelt was elected President for a third term, and later, while America was at war, he sought and won election for a fourth term. The Big State which the left liberals created reached its apogee with the manufacture of the atomic bomb, its use against two Japanese cities, and the official justification of the resulting massacres. This justification of massacre signalled to the liberals that the State they had worked to create was likely to approve those elements of their programme that rejected other core rules of Western civilisation. The aim of their programme, given the Big State, was to bring about a perfect human condition. For that purpose, first, there must be an end to the tacit recognition of Christianity as America’s ‘national’ religion, and to the consequent role of Christian morality as a determinant of behavioural rules. Second, categories of citizens who were legally or otherwise unequal must be raised or lowered to legal equality, so as to bring about a fraternity of individuals, equal in law and in their treatment by their fellows. Third, all citizens must have access to education and health services and be equipped with buying power. And finally, with due regard to the rights of others, the desires of individuals must be recognised as rights and realised as far as possible. Implicit in that programme were Black civil rights and radical feminism; normalisation of homosexuals and of unmarried mothers and their offspring; political and financial empowerment of young people; maximal facilitation of the physically deficient; invalidation of intrinsic personal authority such as that possessed by clergy, males, parents, teachers and the aged; ample social welfare; unshackling of sex and of pornography; legalisation of abortion; and a blank cheque for science. Implicit, therefore, in their programme was a new collection of rules many of which would replace essential European rules, which were traditional in the USA and which they deemed oppressive or unjust. The culmination of the revolution Their chance to implement their programme fully came in the 1960s and early 70s. when the US Government and manufacturing industry needed to increase consumption, with its dual yield of revenue and profit. The Government, committed to reaching the Moon, was waging the Cold War and the Vietnam war. Manufacturing industry with the help of computers and automation was producing more goods than it could sell. First Government, then also manufacturing industry, perceived in the unfulfilled parts of the liberal agenda the means

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    Imagine

    There is a new generation of Irish theatre-makers. They are here, they have things to say, and they have exciting new ways of saying them. In a time where, more than ever, we need to take a hard look at our surroundings and imagine a way forward, these artists are here to help us along the way.

    The Dublin Fringe Festival (Absolut Fringe) has come to an end for another year, and a consensus is growing that it has been the most successful Fringe ever. A large number of new companies and artists

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    We are under-taxed

    Patriotic wealthy people should push for higher taxes. by Mark Lonergan As the impending day of  Fiscal Judgement arives in the form of the Budget, many Irish workers have resigned themselves to both increased taxation and significant cuts in Health and Education. The gap between Governmental expenditure and tax revenue is edging close to almost €18  billion so something radical is needed. It may come as a surprise but Irish workers are among the lowest taxed in the EU – according to the latest figures from the OECD. While the headline rate plus the income levy edge the marginal rate to mid 50% this is not a true picture of the  Irish fiscal landscape. Effective tax rates in terms of income tax and social contributions are very low by international standards.. A large portion of workers, equating to approximately a third of the workforce, do not pay any income tax  in 2007 because our income tax thresholds are high. The recent UK election campaign had Nick Clegg proposing to raise the tax threshold in the UK to £ 10,000 (€11,600) from the current rate of £6475 (€ 7600). In Ireland the threshold for a single worker is €18,300. For a married couple either of whom is over 65 no tax is paid if their income is less than €40,000. It make sense to bring more people into the tax net by reducing these generous thresholds. Surely they should be contributing at least some minimum level of tax? It is intended to combine PRSI, health contributions and the income levy into a single tax. Employers groups will protest that this is a tax on employment since it will increase employment costs. But in comparison with other EU countries the employment costs in terms of tax and social welfare are relatively low in Ireland. For each €100 that an Irish worker can take home, the employer has to pay out €140. This extra €40 goes on Income tax and employer’s and employee’s PRSI contributions. The average across the EU is  €72 for each  €100 and in Germany the figure is €100. A  historical comparison  with 2006 shows that even with an increased tax burden as a result of the health contributions and income levy the Irish worker is still paying less  income to the state than they were in 2006. The reality is that in 2006, any fiscal shortfall on income tax could easily be averted by bumper Capital Gains Tax, VAT and stamp duty – one-off transaction-taxes that have plummeted in the recession. The light income tax burden in Ireland is most marked for high earners. People earning between €200,000 and €500,000 paid only an effective tax rate of  13.63% in 2007 – after availing of the various tax shelters (many of which are property-related and have no equivalent in the tax codes of other EU states). It is imperative this low effective tax rate be increased by whatever means possible. Its ludicrous nature  is exacerbated when one considers who these people are: a significant proportion of them are earning their high incomes on the back of state largesse – Hospital Consultants, University Heads, Politicians, Barristers working for tribunals and Solicitors advising the state (€11million was recently paid for NAMA-related work to a top Dublin firm) and General Practitioners with large medical card patients. Studies have shown such professional groupings  to be paid way in excess of their colleagues in other EU states.  For example, some health professionals  earn up to three times more than there UK counterparts. Arguments from lobbyists that these high earners will leave Ireland if taxed too heavily are fanciful in the extreme. What has paid for the  40,000 new cars registered in the state to March 2010, when there is a scarcity of car finance in the domestic financial system? In Germany, wealthy individuals have begun lobbying for higher taxes. Dieter Kelmkuhl, a retired doctor who launched a petition for a wealth tax, says: “It’s time for the wealthy to come to the aid of their country”. The Irish élite are unlikely to promote such initiatives. Perhaps it is time for them to show their patriotism somewhere other than the yearly rugby match against England. Let’s not pretend that we are over-taxed in Ireland and let’s accept that the State can only cut so much. We all have to be prepared to pay effective tax  rates comparable to our EU counterparts if  we wish to have an acceptable level of  state services. The days of the Capital tax windfalls are over. Income tax must provide more Governmental Revenue.

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    Against the Grain – Constantin Gurdgiev

    Agenda for reform: a rightist programme. The events of recent months have clearly shown that current policies only serve to maintain the status quo. This is the sole and unavoidable conclusion currently being reached by all independent analysts and commentators, whatever their ideology. It is a non-partisan concern that informs the rising tide of discontent within the Fianna Fáil and Green parties, recent changes within Fine Gael, the positions of all other opposition parties, and indeed of the entire electorate, as reflected in the opinion polls. There is no longer any need to outline the facts that frame this reality – they are all around us. The tide of international opinion concerning the prospects for Ireland should the current policies persist has turned against us. The IMF (since April 2010), the EU Commission (since May 2010), markets-makers and participants – all have put out sceptical assessments of official Irish Government projections for the recovery. Irish banks – far from being repaired by Nama – just keep asking for more taxpayers’ bailouts with the frightening regularity of a drug addict returning to a methadone dispensary. It is, therefore, time to challenge the prevailing policy consensus. It is time to put forward proposals for reforms, to debate real alternatives and to provide those political parties and individual politicians willing to champion change with new ideas to energise the electorate. Here is my own set of ideas – the offshoot of the ongoing ‘Manifesto Project’ I have decided to run on my blog. Fine print aside, let me outline the backdrop to the policies – the backdrop of the specific crises we face as a nation. The Irish economy has been hit by a Perfect Storm that combines: a deeply-rooted crisis in the public finances; a structural collapse of the banking sector; an unemployment crisis stemming from the collapse of employment and jobs creation; a competitiveness crisis that is not limited to wages and labour costs, but the cost of living and doing business; the crisis in the quality and efficiency of domestic services – dominated and restricted by the excessive market power of the incumbent State-owned and State-regulated oligopolies. These crises have been exacerbated by Government policies since 2008. These policies have saddled ordinary families and individuals (regardless of whether they work in the public sector or private sector, are employed or unemployed, young or old) with the full cost of bailing out vested interests and élites. This manifested itself in a rising tax burden, falling provision of public services, and lack of reforms in the banking and public sectors. The resulting devastation of private entrepreneurship and businesses, contracting investment and availability of operating capital and a catastrophic lack of confidence in economy are the corollaries. The accompanying spikes in unemployment and businesses failures, and a hike in precautionary savings are additional manifestations of these. The current crisis has clearly shown that the corporatist State – where vested interests, including Political, Business, Social and Environmental sectors collude with the State to set economic and social preferences and priorities – is morally, politically and economically bankrupt. I believe that Irish democracy cannot be surrendered to these vested interests, no matter how broadly-based or high-minded they might be. There are only two possible futures. The first follows the path we are travelling – the path of a generations-long and painfully-deep crisis of stagnation and declining standards of living. The second one is a path of structural reforms aimed at realigning the current political system to serve the interests of the ordinary citizen. This path is also painful and disruptive. To counterbalance an existing system that promotes pressure groups and élites, an agenda for reform must include changes to our systems of politics and governance, to the provision of the public services, to the private markets and, lastly, to our financial system. For the sake of brevity, I will focus on the first two objectives. Changes to political and governance systems Transparency, accountability and social partnership The core changes to the political and governance systems must put transparency and accountability to the front. This will require the creation of systems of disclosure and control that are not susceptible to being tampered with by individual office holders. It also requires ending Social Partnership – delegating all authority and responsibility for developing, implementing and monitoring economic and social policies solely to the Legislative and Executive branches of the State. In terms of transparency, the default setting must be public disclosure and unrestricted free access to all data not subject to State-secrecy considerations. Sensitive data should be published – with the exclusion, if necessary, of sensitive information and identifiers until the time when it can be published in full. Accountability requires that performance and productivity metrics should be designed and refined through experience for all branches of the public sector. All earnings in the public sector should be linked to individual productivity. Local authorities Local authorities must be reformed, reducing the overall number of local authorities to, say, seven, covering: West & North West, South, Greater Cork, Greater Dublin, Greater Limerick, Greater Galway and the Border & Midlands. Seanad and Dáil The Seanad should be given the powers to be expected of a real upper chamber and be elected directly by the people of Ireland, with equal representation for each of the seven geographic regions outlined above. The Dáil should be reformed by reducing the number of TDs and to cover both local and national mandates. The former will preserve a number of seats allocated locally, while the latter would allocate some proportion of seats based on national polls. Both chambers along with the Executive should accord no privilege to their members that will put them above the ordinary citizens of the State. This will require the abolition of unvouched expenses, enforcement of the benefit-in-kind principle of taxation and removal of un-provisioned pensions entitlements. On-line purchasing All State purchasing should be effected on-line, made public and transparent, and subject to annual audits by an independent external board.

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