Gross and willfull financial mismanagement:
Light touch regulation.
We never had light touch regulation in this country, merely a regulatory regime that was ridiculously inept and inefficient. This article explains why now we now need a proper system of light touch regulation more than ever before.
Populist polices:
Increasing PS numbers.
Increasing PS pay / Benchmarking.
Linking PS Pensions to benchmarked pay increases.
Increasing Mortgage Interest Relief.
Increasing Children's Allowance.
That other children's allowance thing.
Decentralisation (to Ministers constituencies)
Vanity projects:
National Convention centre.
E-voting.
Terminal 2.
National Aquatic Centre.
Decentralisation (gets in twice).
Gross and willfull financial mismanagement:
Light touch regulation.
Tax breaks, tax breaks, tax breaks. (Construction)
FAS.
Gross and willfull social mismanagement:
Planning.
House regulations brought in after the boom.
Water meters not installed during the boom.
The HSE.
Gets it's own category:
TD's unvouched and unjustified expenses.
TD's pay.
TD's perks.
Every TD, Senator and Councillor the length and breath of the country with their snout in the trough.
I suppose this sums it all up
Tax receipts are around the same as they were in 2003, yet public pay and pensions have increased by 17 billion ............
http://www.independent.ie/business/...ll-has-risen-euro16bn-since-2003-2368677.html
I'm trying to understand how were such unsustainable increases allowed to happen, was it like the government giving into unions ?
Ireland's total tax take (29.3% of GPD) is well below the european average(39.3%) and according to figures publised by Eurostat in June 2010 we have the lowest tax take in the entire EU.
but we all know that ireland's gdp figures are distorted by the sales output of the foreign multinational sector. As a result, statistics based on those distorted figures are flawed.
Ireland's total tax take (29.3% of GPD) is well below the european average(39.3%) and according to figures publised by Eurostat in June 2010 we have the lowest tax take in the entire EU.
Indeed, some excellent points made by Howitzer.
One thing that hasn't been mentioned and I believe will be proven to be the biggest mistake is bailing out the bond holders in Irish banks.
I'm with you on this. Article is interesting and concise. Maybe a little bit too concise but it makes valid points.
Anybody ever wonder why there are constantly new types of companies created in ares where there is no or "light touch" regulation, most notably technology? Yet when is the last time you heard of a small bank being created with one branch and a simple deposit and loan book for local people. The cost of the regulatory burden to enter the financial industry is so large, that someone with €500k cannot set up a simple loan bank to make 500 loans to businesses with a very simple contract of 12 monthly repayments plus interest. The regulatory costs would far exceed the €500k. And if that person operated outside the regulatory system they would be branded a loan shark.
One of the main reasons the fallout from bank failures is so severe is because of lack of alternatives. When you remove the burden of entry into a market place you make it easier for new competitors to enter and thereby spread out the risk of an entire industry, rather than concentrate it in a few.
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