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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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    Review: Faith in Politics by John Bruton

    John Bruton (Taoiseach 1994-7, Minister for Finance 1981-2, 1986-7) has a book out. His publisher, Currach Press, suggested journalists might like to interview the lively former Taoiseach. I signed up and an appointment was arranged. The morning of our interview the man from Currach texted to say Bruton was concerned it should be primarily about the book and then half an hour later to say there was bad news, Bruton would not do it and he would not say why. I said I’d do it by email and was mostly interested in the book. Currach said they would get back to him. But I heard no more. Rude. Maybe he was worried I’d ask him about Cherrywood. In 2006 Bruton told the Mahon (Planning) Tribunal that a donation of £2,500 to him as party leader was received from Monarch Properties in November 1992, during the general election campaign. At that time I was campaigning against a make-or-break rezoning scheme being pursued by Monarch for 234 acres in Cherrywood, Co Dublin. Most Fine Gael County Councillors had not supported the rezoning in 1992 but they would vote for it in 1993: in addition to Bruton, nine out of the 12 FG Councillors who would talk to their party’s internal Inquiry in 2000 admitted receiving money from Monarch or Frank Dunlop (or both) in the 1991-1993 period when I was concerned with the Cherrywood vote. Monarch’s boss, Phil Monahan, had told me he was paying Councillors for rezonings and that many of the Fine Gaelers would vote against it in 1992 but in favour (when it really counted) in 1993. Monarch was duly found by the tribunal to have obtained the rezoning corruptly. During the 1997 general election campaign, the party received a further cheque for £3,800 from Monarch Properties. Later Bruton said he had not tried to “whip” Fine Gael Councillors on 78-member Dublin County Council though he had pressured his 19 party councillors to act coherently when he met them in September 1993: Councillor Mary Muldoon told him that acting coherently would require the minority of non-rezoners moving to back the majority of rezoners. The Council rezoned the Monarch lands shortly afterwards, in November 1993. According to leaflets we produced at the time FG voted 7:7 on the up-zoning in 1992. By 1993 their vote was 12:5 in favour. Why did so many change their minds? The torpid tribunal never asked. Frank Dunlop informed the planning tribunal that he had told Bruton about demands for a £250,000 bribe made to him by a Fine Gael councillor, Tom Hand, to rezone the Quarryvale development. Dunlop testified that Bruton replied, “There are no angels in the world or in Fine Gael”. Bruton vehemently denied this but, following further inculpatory evidence at the Tribunal, returned and conceded that “it gradually came back to me”, that Dunlop, “did say to me something about a councillor looking for money”. He acknowledged that he did not investigate the matter because he had found the story told to him by Dunlop “exceptionally hard to believe”. Anyway the book: Faith and Politics: I couldn’t really see the connection. Bruton is is an intellectual by Irish political standards but he’s wrong to endorse GK Chesterton’s illogical comment that “When a man stops believing in God he doesn’t believe in nothing, he believes in anything”. It is good to see an assiduous Christian Democrat recognise that freedom is no alternative to ethics, as it says nothing about how we should treat one another. He’s right the Rising probably held back a 32-County consensual Republic, and that support for “our gallant [Axis] Allies in Europe” weakened our case for independence, at the 1919 Paris Peace Conference. He’s right that the obligation on Northern MLAs to declare themselves Nationalist or Unionist is now holding back a new politics that transcends history. He’s wrong to even contemplate that we can burn all the fossil fuels left in the world. I hadn’t realised how consistently the EU had emphasised the need for economic and monetary union and (as far back as the 1971 Werner report) that it would involve EU involvement in domestic economic policy. It’s interesting that a man of Bruton’s experience considers a third party in coalition can mitigate tensions. Sometimes he is demonstrably illogical as where he claims that 30 minutes daily spent on religion in schools has not reduced Irish educational attainment because we have been doing it for generations and the reductions are only recent; but then claims that teaching Irish, which we have also been doing for generations, has reduced educational attainment. Some of his articles seem hastily put together, like the ill-thought- through views on ‘waste’ and the half-baked views on Ireland’s “strengths and weaknesses”. And more generally it’s unwise for an ex-Taoiseach to preach the need for Irish people to do more with less when he has a public-sector pension of €141,849 and, perhaps because he’s getting a six-figure salary as president of the IFSC, to obtusely advocate reining in regulation of the banks. Michael Smith

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