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    The strong centre

    Paschal Donohoe is a decent man: modest, cultured, the cleverest man in the room, according to a senior Fianna Fáil figure who spoke to Fiach Kelly in the Irish Times recently: the man other politicians envy, and a safe pair of hands. At 43, he has graduated with first-class honours from Trinity college, lived abroad, pursued a career in the private sector and risen without obstacle from local politics in Dublin city council to the heights of government, and the Ministry of Finance. Unlike his even younger boss Leo Varadkar he doesn’t have the sheen of a cultivated image. he has never attracted any suspicion of impropriety, never been excoriated, even in the unpleasant role of frugal Minister for Public expenditure (which he sure-footedly merged with the Finance brief when he took it over). When Village interviewed him he was open, generous with his time, eloquent. He reads progressive Irish fiction, has some quirky tastes, knows what is going on in his constituency about whose substandard welfare he remains committed. He even says he reads Village. Village’s agenda is equality, sustainability, accountability and it is wide and all-embracing enough that any political force, as Mr Donohoe certainly is, can be assessed against its imperatives. He is certainly in relative terms a model of accountability and openness. But what of equality and sustainability? Paschal Donohoe serves the politics of Fine Gael faithfully. He implies that Fianna Fáil is economically fickle, not always pro-european or outward looking and, increasingly implausibly now, that its attitude to ethics is demonstrably inferior to that of Fine Gael. He believes in Europe, the Open Society of Declan Costello, in an embracing attitude to outsiders. He believes in a balance between the markets and the state and, creditably from the perspective of this magazine, thinks the momentum has moved too far to the markets and needs to move back to the state, globally at least. He takes a robust attitude, as did his hero Declan Costello, to the obligations of the state. It will intervene to incentivise or nudge those who do the right thing, it will not perpetrate evil itself. He was passionate in defending the coherence of this attitude, in his interview. Mr Donohoe believes in the rights of property but will interfere at the edges, as with site-value and sugary drinks taxes. The state needs to plan systematically for development of its own lands. On national planning he was reluctant to stay how he would stop unsustainable development – such as the sprawl of Dublin into counties Meath, Wicklow, Kildare and beyond, as opposed to merely incentivise and encourage sustainable development – for example of cities and towns outside Leinster. He does not seem engaged by the environmental and climate-change agendas, though he knows its rhetoric. He rarely acknowledges, in policy, that Ireland is the laggard in Europe on climate, plastic waste and many other environmental performances. He does not seem zealous to revive the across-the-board indicators of social and environmental success, not just economics, that even the Fianna Fáil and Fianna Fáil-Green governments toyed with a decade ago. Failing them, it is likely we will continue to be a model of unsustainable, joyless growth, a paradigm of how to nearly get it right. As to equality, Mr Donohoe is exercised by the plight of those who cannot put themselves in a position to benefit from the equality of opportunity that those with strength crave. He knows from his Dublin central constituency that intergenerational inequality is difficult to mitigate. But his credo is equality of opportunity and he and his party are never going to be forces for radical redistribution, for equality of outcome. He is a decent man of the “strong centre”. He and his party have done some service bringing back elusive economic success to this country bankrupted by the now shiny principal opposition party. It has been argued that Fine Gael, with its visceral fetish for the rights of property, so well-enjoyed by its protagonists and indeed its voters, is ill-equipped to deal with the crises of housing and homelessness that do much to undermine the fabric of society in 2018. It is ideologically too wedded to the private sector to provide homes on the scale required on public lands. Mr Donohoe, in fairness, claims that he has far-reaching proposals to do just that. We’ll see. Ireland is lucky to have such an open, decent, youthful and thoughtful politician in the Department of Finance as the risen fiscal pendulum suggests we can once again explore a national Vision. But it is impossible to be radical from the centre, however strong, and – for Village, Mr Donohoe would do well to address the social and environmental agendas as stringently and competently as he continues to promote and foster the purely economic agenda.

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    Paschal Donohoe: Minister for Finance, Public Expenditure and Reform

    I interview the charming, chatty and firm Minister for Finance in the Department of Finance on a bright Wednesday in late April. He has just benefited from a profile in the Irish Times which of course likes his supposed toughness, especially when public-sector-pay talks loom, and which quotes a senior Fianna Fáiler praising him as “the cleverest man in the room” (even when Varadkar is in it). It also notes that despite his “Hello, Everybody” manner, “Business and interest groups that come into contact with him leave impressed with his knowledge and command of his brief. These are the traits that other politicians note and envy”. Donohoe is, then, an Irish Times sort of guy. Arranging the interview was straightforward, and his handlers, particularly Deb Sweeney, efficient and unstuffy. He gave me more time than had been allocated, and a book, ‘The Value of Everything, Making and Taking in the Global Economy’ by Mariana Mazzucato (2018), as I was leaving. He was still engaging about his favourite works of literature as I was in the end ushered down a corridor and out into the sunlight. Mazzucato, in her book, claims that many advanced western countries, in particular the US and Britain, now confuse those who create value for those who extract it or destroy it, leading to impoverished and unhappy societies, soaring inequality and declining growth. I conclude the gift was well-judged. On his Political Philosophy… “My political philosophy is a politics of the very strong centre. I look at the opportunities and chances that I’ve had in life by virtue of the school that I went to and the upbringing that I’ve had. I believe that should be available to everybody in our country. I believe that, in order to make that happen, we need to have an open society and a diverse economy. I want to see an Ireland that is inclusive, that can welcome people and make them feel at home, and I strongly believe in a mixed economy. I believe we need both strong governments and strong markets and I think either on its own cannot achieve what citizens need”. On his Economic Philosophy… “My economic philosophy then springs from that. I believe in a resilient and mixed economy. I believe that markets can do some things well and I believe government can do many things well. If you look at the kinds of new economies that are being developed and the new challenges that are developing, we can only respond to them if both the State and markets play their role. We have seen, to the great cost of our citizens in particular, what can happen if markets become unbridled; and we have seen at other times in history what can happen if the State is expected to do everything; and I don’t believe either work. I believe the global balance needs further shifting at the moment – in favour of the State. I believe that we get the balance about right here in Ireland but I believe that we are going to need to continue to support supranational organisations like the European Union, like the WTO, like the OECD, to help nation states respond back to new challenges like artificial intelligence and to the de-globalisation agenda that is now beginning to develop. I believe very strongly in equality of opportunity but I’m very conscious at the moment that that credo is being challenged by developments within the market economy – if we keep on encouraging our citizens to believe they have equality of opportunity and then, generation by generation, that equality of opportunity is not realised, it poses very serious questions for citizens regarding how they feel about the State. Because if, from generation to generation, that opportunity is not realised or even offered the prospect of citizens either blaming themselves or the system and the State for not offering that agenda poses really grave challenges for how we organise our liberal democracies. I unfortunately believe some of those risks are beginning to materialise elsewhere at the moment”. On equality of outcome… “I think equality of outcome is something that is very, very difficult to achieve because I think it runs against the grain of initiative and individuality that I ultimately believe has a very important role to play in our society as well”. As to whether equality of opportunity is desirable… “I think equality of opportunity is more desirable than equality of outcome and certainly in the policies I try to follow and implement in the two jobs I do at the moment it is about trying to realise opportunity. But I’m conscious of the fact that an equality of opportunity agenda doesn’t speak to, or doesn’t help, citizens who are at the margins of our society; and for those citizens a more interventionist approach is necessary on behalf of the State I should say”. As to whether equality of opportunity can be unfair to the extent that people’s capacity for grasping opportunity is sometimes determined by luck and not entirely a product of effort or initiative… “And this is why I accompany my support of equality of opportunity with a strong support for the necessary role for an enabling and strong State. The difficulty that the equality of opportunity agenda has is when it runs into the chance of birth or runs into intergenerational inequality, and this is why I believe we need an active and enabling State alongside regulated and flourishing markets. I would be supporting the interventions that we have at the moment. I do not think that the agenda of positive discrimination is one that can command ongoing support here in Ireland and so this is why I support the State playing a more active role in the management of land, why I support for example property taxes. It’s why I support a a progressive tax code. Because without having those things in place you can’t offer the support that is needed to deliver the funding for an active State”. On difference in emphasis from Michael Noonan’s… “As

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    Conflict in Corner

    A situation is unfolding in the Northern Ireland Royal Courts of Justice which calls into question the integrity of the Administration of Justice, the right to a fair hearing and fair procedures on which the entire system depends. It is the worst kept secret in legal circles in Northern Ireland and yet not one media organisation has chosen to run the story. On 9th March 2017 Justice Mark Horner, a well-regarded judge best known for a recent liberal judgment on abortion rights in the North, was asked by a litigant-in-person to recuse himself from a case involving Bank of Ireland (UK) Plc as it had been brought to the litigant’s attention that Justice Horner had a serious conflict of interest which he had failed to bring to the court’s attention at any stage while he sat as Judge on the case. Justice Horner was a director up until late 2011 and is currently a shareholder in TMKK Limited which was a financially-troubled client of the bank. On 14 March the litigant-in-person made an official complaint to the Lord Chief Justice’s office and has yet not received a substantive reply as the office seems wrongfooted. The Lord Chief Justice’s office seems nowhere close to convening the Tribunal envisaged in the Code of Practice on Judicial complaints. On 27 March Justice Horner recused himself from the litigant-in-person’s case giving a statement saying that the reason he recused himself was because the litigant in person would not accept his judgment. This is judicial nonsense. No judge ever should doubt the acceptance of his judgment by a party. The Lord Chief Justice’s office told Village: “Mr Justice Horner stated in open court that he was recusing himself in the case involving the Bank of Ireland and the personal litigant. He said he was satisfied that there was no question of actual bias or that he had any conflict of interest in the case, but that it was apparent to him that ‘the party would never feel able to accept [his] verdict’”. On 4 April in a separate case involving the same plaintiff i.e. Bank of Ireland (UK) Plc, the bank itself, presumably sensing the dangers of compromise and appeal, actually instructed its own QC, Patrick Good, to request that Justice Horner recuse himself from that case. Horner had little choice but to stand down from this case also. The same legal firm, C & H Jefferson now DWF, represented the plaintiff, Bank of Ireland (UK) Plc in both cases described above. It is obvious that the plaintiff was aware of the conflict of interest with Justice Horner as the judge had for many years been a director and is currently a shareholder in TMKK Limited which was a client of the bank. However, neither the bank nor its legal team made the court aware of the conflict though, as solicitors are officers of the court, it is normally their duty to do so. The solicitor who acted for the plaintiff in both cases seems not to have fulfilled that duty. She is no longer acting for her rm in either of the cases. After that Justice Horner stopped sitting on any cases involving Bank of Ireland in the Chancery court but moved to the Commercial Courts in September and has sat on a number of Bank of Ireland cases. On 4 october 2017, as Village was going to press, a Bank of Ireland case was listed in the Commercial Court [image C, 1] (Interestingly another case was listed for the same day (not involving Bank of Ireland) where the defendant is the current master of the High Court in Belfast, Ian Thomas Hardstaff, who was in partnership with the Harrison referred to in the list who is still a shareholder and director of TMKK Limited) [image C, 7]. Moreover Justice Horner also has dealings with The Northern Bank Ltd through TMKK Limited. Here too he sat on many cases and did not inform the parties of this. The defending party in one such case is aware of his recusal in the two Bank of Ireland cases. That defendant is currently appealing a case involving Northern Bank Ltd in which Justice Horner gave a judgment against them. They brought his conflict of interest with Northern Bank Ltd to the Appeal Judges’ attention and the court remitted the matter back to the Chancery Court as it is the appropriate court to determine such matters. Justice Horner resigned as a director of TMKK Ltd before applying for appointment to the High Court – though he and his wife both remain shareholders. Indeed his wife replaced him as a director. Relevant accounts (page 144 section 4 [image A]) for TMKK Ltd available from the Companies office show that it is indebted to Bank of Ireland and Northern Bank (now Danske bank). However, much more dramatically the company is insolvent. The final paragraph of the accounts entitled “Going concern” [image b] clearly states that TMKK Ltd is only trading at the discretion of Bank of Ireland. By any standard this Judge should not be hearing any cases involving Bank of Ireland. He has immense power and has given possession orders in favour of Bank of Ireland and Northern Bank while he has been seriously conflicted. This could have involved both commercial properties and family homes. All of his cases are on public record. Anyone who has had a case under Justice Horner involving Bank of Ireland or Northern Bank Ltd/Danske Bank may be able to have their judgment set aside due to failure to disclose a serious and fundamental conflict of interest. The Lord Chief Justice’s office notes that while the judge may be considering Queen’s bench actions which are listed for mention he is not now “adjudicating on any commercial or Chancery cases involving the Bank of Ireland”. The Lord Chief Justice’s office said it was “unable to comment further as the Justice (NI) Act 2002 provides information on complaints on judicial office holders is confidential and must

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    Bud get real

    The Annual ritual surrounding the budget will come to an end on Tuesday 10 october when finance minister, Paschal Donohoe, unveils his first package of tax and spending proposals since his appointment earlier this year. Don’t expect too many surprises though, as most of the expected initiatives have already been well aired through inspired leaks from various government and other sources. Once again, and despite the faux outrage of some Fianna Fáil frontbenchers who are threatening to pull out of its confidence-and-supply agreement unless the USC is cut or pensioners given another ver, the reality is that the deal is already done. It will not take much to cobble what both parties will claim as a victory in relation to cuts to the USC for lower- and middle-income earners while also ensuring that the wealthy are not overburdened and indeed will also gain from fiddling with tax bands and rates. Varadkar has promised to reward those who get up early and those who create wealth and pay for public services in what is clearly a pitch to the middle-class and better off voters he needs to keep on board if Fine Gael is to regain power. Equally, Micheál Martin does not wish to alienate the same constituency which he hopes will return to the Fianna Fáil fold in greater numbers than the party managed in 2016. Ultimately, the differences on tax and spending policies between the two main parties are minuscule and any rows over tax breaks for builders, increases in stamp duty, inheritance tax or whatever other measures are largely manufactured. The real question of the ratio between reducing the tax burden at the expense of improving public services is of course ideological. This makes the contribution of the hardly radical Economic and Social Research Unit all the more interesting. It has warned against tax cuts while the economy is growing by around 5% this year and an expected 4% in 2018. It submits that tax cuts will only overheat the economy. “Given the pace of growth over the past number of years there is certainly no case to stimulate economic activity with the budgetary package”, ESRI economist Kieran McQuinn said. He added that, if anything, the Government might need to raise taxes in order to dampen consumption and in order to raise the funds for essential capital spending on infrastructure in housing, health and education. This is not the narrative that Varadkar needs, to boost his chances of retaining power after the next election which many expect will come some time after the third and final budget to which Fianna Fáil committed in the confidence-and-supply deal. This is subject of course to the upshots of other unexpected events which could prompt a rush to the polls earlier next year or following the abortion referendum. Others on the Left who oppose the tax-cutting agenda and argue that the housing and health crises, not to mind other social needs, demand that all available resources should go into public services. SIPTU president Jack O’Connor spelled this out at the union’s biennial conference in Cork on 2 October. In his final presidential address to the union after more than fourteen years in the job, he argued that there should be no tax cuts whatever between now and the centenary of the foundation of the State in 2022. Arguing that all available resources should be put into the construction of social housing, decent health and education systems and a mandatory second-pillar pension scheme, he condemned the main parties for promoting tax-cutting policies and “a value system that precipitated the crisis in the first place”. “It’s back to be looking the other way, while exponentially growing inequality reasserts itself in our domestic and social affairs. It is absolutely unforgiveable that thousands of our children are homeless, in the aftermath of the collapse of a credit fuelled property bubble”, he told delegates in Cork city hall. “It is appalling to think that this is happening within twelve months of the celebration of the centenary of the insurrection of 1916, which was fought on the basis of a Proclamation which declared the establishment of a Republic which would cherish all the children of the nation equally. And while this is unforgivable in itself, it is absolutely obscene that our major political parties are again promoting a tax-cutting agenda while children are homeless, in this, one of the wealthiest countries in the world”. It is unlikely that Donohoe and Varadkar will heed such advice or that Fianna Fáil will do anything more than pay lip service to such utterances. As O’Connor, who is chairman of the Labour Party, also said, it will require an alliance of all genuinely progressive forces in Ireland to achieve his ambition for the common good by 2022. And that is a big ask. Frank Connolly

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    Planning tribunal legal farce dissipates public funds and fails to address full truth

    Twenty years ago Colm MacEochaidh and I offered a reward of £10,000 for information leading to the conviction of persons on indictment for rezoning corruption. I had spent a year campaigning against a controversial rezoning of attractive fields in Cherrywood, Co Dublin, pushed through in murky circumstances by Monarch Properties which was subsequently found to have acted corruptly. I wanted to get to the bottom of it. We needed to do something dramatic as a) tribunals had been discredited following the weak Beef Tribunal report and b) there was a perception – following an Irish Times investigation by Frank McDonald and Mark Brennock (George Redmond’s son-in-law), billed as ‘Fields of Gold” which had managed to name one, but only one, dead (and therefore defenceless), councillor as corrupt – that planning corruption was a ball of smoke. Our anonymous stratagem was fronted by Newry Solicitor, Kevin Neary. He eventually received 55 separate sources of information. We threatenedthat, unless immunity was granted from prosecution to whistle-blowers and ultimately a tribunal – which we said should be cost-effective and streamlined like the British Scott Inquiry – instigated, we would start naming the people about whom we were receiving serious and verifiable information. We also introduced our informants to journalists who, once they verified the information, printed it. Our best informant was James Gogarty. We visited him in his house in Sutton. He was pleasant but a little cranky, determined to nail his employer for, as he saw it, shafting him on his pension. Gogarty had been persuaded to go back to work for Joseph Murphy Structural Engineering – a building company, after his initial retirement. He was particularly venomous about Joe Murphy Junior who he saw as an upstart. He was bitter that the then Minister for Justice, Nora Owen, was not taking his claims seriously enough and he ventilated about Seamus Henchy, a Supreme Court judge.What he said to us about Owen, Murphy Jr and Henchy had to be taken witha pinch of salt. But what impressed us was the information he had about a bribe he had paid one-time Environment Minister, Ray Burke. For us it was morally certain that the information about Burke was true, since it was backed by documentation and had to be extracted from him, while he really only wanted to moan on about his pension. He was disillusioned with the failure of the Irish Times to take his story seriously and it took some persuasion to get him to talk to any other newspaper but in the end he spoke to the Sunday Times on the eccentric basis it was not Irish. In the end this did not work out and he only really became confident when we linked him to Frank Connolly, then of the Sunday Business Post. A lot of the information we received was rubbish – one man said he knew the burial place of racehorse Shergar but several of the allegations resulted in criminal prosecutions or appearances before the planning tribunal. The pressure built up through Neary’s appearances on the media, Connolly’s articles in the Business Post, some pieces by Matt Cooper in the Sunday Tribune and an article by John Ryan in Magill, ultimately made a tribunal unavoidable, and it was duly established in 1997. In the end it established corruption against Ray Burke and Padraig Flynn and resulted in the resignation of Taoiseach, Bertie Ahern, who made up a cock and bull story about a digout in order to avoid questions about unexplained sums of around €200,000 that passed through his accounts. We never paid the reward as no-one claimed it. The £10,000 went in legal fees. Ultimately, the tribunal found systemic and endemic planning corruption in County Dublin. So far so good. But it had relied too much on two whistle-blowers, Gogarty and Dunlop one of whom was sporadically unreliable and the other of whom was serially mendacious. The judges and lawyers who cost so much and took so long simply didn’t have the nous to investigate the allegations presented to them, forensically. Particularly when Judge Mahon took over from Judge Flood the tribunal found both too much and too little. It found mostly against those whose reputations were already destroyed. It did not make some of the findings that it could have made not just against Bertie Ahern but also against many other senior serving politicians. It also perhaps made too many findings based predominantly on the evidence of the serially dishonest Dunlop. It did not find a street-wise way of analysing evidence where there was not a whistle-blower and much of its proceedings were ill-focused. In the Cherrywood rezoning, for example, a number of councillors had changed their minds and voted for rezoning, after they’d been paid money by the corrupt developer or corrupt Frank Dunlop. They weren’t even asked to explain their changes of mind though, even before we knew that there was any corruption, campaigners had (in 1993) hammered the mysteriously-changed minds as suspicious. Where the tribunal had failed to ask the right questions in several cases the report simply omits the issue, including the failed line of questioning, completely. Someone should research how much money and time was wasted pursuing issues that were never resolved. The judges and their legal teams fell short and were laid bare by an admittedly over-zealous Supreme Court. That is not surprising when you consider the same minds allowed the tribunals to go over budget and over time. The mentality is captured by the attitude of the judges when John Gormley, as Environment Minister, arranged for Mahon to be aided by two other judges. When he asked the judges how much time the extra judicial repower would save, on the assumption they’d divide up the material to be investigated in three, he was told that if anything it would take longer than with one judge only, as they were going to sit together in every case. In the end court decisions have resulted in the unravelling of all adverse

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