Ireland's cost of borrowing is continuing to rise this afternoon.

After briefly dropping below 8% earlier, the interest rate demanded by investors to lend money to Ireland for ten years stood at 8.14% this evening. The spread between Irish and German government bonds also set new highs for the seventh trading day in a row. Spanish, Portuguese and Italian spreads are also very high. Investor concerns over the euro zone peripheral countries' beleaguered finances have plagued the markets this week.

Bloomberg TV today focused its attention once again on the Irish debt and banking troubles.

Mark Grant, managing director at Southwest Securities, told Bloomberg TV that Ireland is going bankrupt. He said the country is running out of money and has only got about 60 days left of cash.
He said the issue is going to get down to whether the Government is going to pay the senior debt of the Irish banks or whether the EU is going to say enough is enough and let the banks go.

A spokesman for the National Treasury Management Agency described the claim that the country is running out of money as 'totally incorrect'.

'It is a matter of public record that this country is funded through to the middle of next year. To suggest otherwise is mischievous nonsense,' a statement from the NTMA said.

John Brynjolfsson, chief investment officer at Armored Wolf, also told Bloomberg that the Irish situation is certainly worse than originally thought and is continuing to worsen all the time.
But he says the sovereign debt problem is bigger than just Ireland and says it is an ECB problem. He says the weak point in the euro zone is the euro, which continues to weaken.

English law firm behind the petition to the have Irish Nationwide wound up

English law firm SJ Berwin is behind the petition to the have Irish Nationwide Building Society wound up.

The firm is representing two unnamed holders of subordinated bonds. The winding-up proceeding is the first legal step in seeking to have a company placed into liquidation by creditors, under English law.
Most Irish Nationwide subordinated bondholders have not backed the petition.

A spokesman for Russian billionaire Roman Abramovich's Millhouse fund said it was not behind the case. Millhouse previously threatened legal action over the plan to impose burden sharing on subordinated bondholders.

A larger group of Irish Nationwide subordinated bondholders being advised by law firm Bingham McCutcheon is also not involved in the case.

SJ Berwin took the case in the English courts because UK rules give enormous power to lenders, if a court can be convinced a borrower is in default. London-based lawyers said Irish Nationwide could fall under the jurisdiction of the English courts.

The building society has branches in Belfast and London, many of its creditors are based in London and its bonds were issued under English law. That could be enough of a legal connection for a case to proceed.
Even so, Irish Nationwide says the bondholders have no case to bring. It says bondholders have not suffered any losses and the borrower has not missed interest payments. The Irish Government has offered 20pc of face value for similar Anglo Irish Bank subordinated bonds.

NAMA challenge to go to Supreme Court

The Commercial Court has allowed one of two issues raised by developer Paddy McKillen in his challenge to the National Asset Management Agency to be appealed to the Supreme Court.

The appeal could go before the Supreme Court before the end of this week.
Under the NAMA legislation, there is an automatic right of appeal for Mr McKillen in relation to the constitutionality of the legislation.

The High Court had to certify that other issues he wanted to raise in his appeal were of exceptional public importance and it was in the public interest that the appeal be taken.

The court ruled today that the point raised by Mr McKillen's legal team that he had been denied his right to fair procedures because he had not been given the opportunity to make representations before a decision was taken to acquire his loans, was of exceptional public importance and could go to the Supreme Court.
However it refused to certify the point made by Mr McKillen that the European Commission's decision meant only impaired borrowers could be taken in to NAMA.

Mr Justice Nicholas Kearns said the relevant section of the legislation did not expressly exclude Mr McKillen from relying on issues that were not certified in his appeal. However, he said that was an issue solely for the Supreme Court.

Timing is everything.

Sean Lemass is rightly regarded as Ireland's greatest ever Taoiseach.  However, he was deprived of the leadership role by the unwillingness of his predecessor to relinquish leadership of the party. Nonetheless, he benefited from only being the sheriff for a short period of time.  It is forgotten that he was deputy during the toughest years of the 1950s.  This can be contrasted to the perceptions of Tony Blair and Bertie Ahern.

I strongly wonder what the general public's view would be of their respective Prime Ministers if they had not held on to power for so long. Tony Blair will remain in a good light with the majority of people in the Republic of Ireland due to his influence in the Peace Process.  However, the perceived poor judgement with regards to the war in Iraq and his slowness to hand over power to Gordon Brown will forever taint his legacy.  Bertie Ahern has suffered a similar fate due to his longevity, inability to explain his financial dealings and poor decision making after leaving office (drinking tea in a cupboard in order to advertise a cheap English tabloid).

Therefore, we must now look at the current government and ask the question as to when they should have handed the seals into the President with their ministerial Mercedes.  Indeed, should they not make the call now?  The hunger from the current government to hold onto power has probably been more damaging to their prospect of regaining seats around the Cabinet table after the next government runs its course.  Brian Cowen could have benefited more from an early election in his reign in order to rebuild the party.  We now have a situation in which Fianna Fáil is at it’s lowest ratings since the foundation of the State.  The rebuilding process will take many years and will take place with a complete reconstruction of the party starting with each cumman.  Ironically, it may invigorate the party as new young blood will have to be found and it may not be found from the traditional nepotistic constituencies.   However, my main concerns relate to the rebuilding of the Irish economy and not the internal workings of the Fianna Fail parliamentary party. 

We need the certainty of a long term government with a mandate to follow through with the necessary pain over the next four to five years.  The painful readjustments must be made by a government that is not looking over it’s shoulder thinking about damage limitation. Minister Lenihan has clearly not done when he has made tough calls but the pressure of backbenchers worried about theirs seats will not help his case in arguing for the necessary cuts when the backbenchers will argue for their vested interests.  

I have no doubt that Fianna Fail can regroup under the leadership of a new leader.  However, the country needs to make a total of €15bn in cuts and it may be time for a strong government with a long term mandate to make these calls?

IBM to discuss use of IT in renewable energy and energy efficiency with Oireachtas Joint Committee on Climate Change and Energy Security

Dr Lisa Amini from IBM will discuss her vision for the application of information technology in the area of sustainable and renewable energy and energy efficiency at the meeting of the Oireachtas Joint Committee on Climate Change and Energy Security in Leinster House tomorrow, Wednesday, 27 October. Chairman of the Committee on Climate Change and Energy Security, Dinny McGinley, TD, said: “Dr Lisa Amini is a distinguished engineer and the first Director of IBM Research's Smarter Cities Technology Centre in Dublin. Researchers at the Smarter Cities Technology Centre focus on advancing science and technology for intelligent urban and environmental systems. Our meeting with Dr Lisa Amini will provide her with an opportunity to highlight how innovative technologies can lead to greater energy efficiency and help cut down on carbon emissions, while Committee Members will have a chance to question her on the latest developments in the use of IT to gain energy efficiency.
Transformation in the way people and businesses use technology could reduce annual man-made global emissions by 15 per cent by 2020 and deliver energy efficiency savings to global businesses of over €500 billion, according to the Smart2020 report by The Climate Group.
The use of information technologies in smart buildings, smart electricity grids, smart transport and logistics - among other industrial uses - can help slash annual global greenhouse gas emissions. The biggest gains that can be made from better use of technology are in power generation and distribution, buildings and transportation – three areas which contribute to the bulk of greenhouse gases.”
This meeting will take place in Committee Room 1, Leinster House at 2.30pm tomorrow, Wednesday, 27 October.

Whenever Irish politicians fear the people they put democracy on ice

Whenever Irish politicians fear the people they put democracy on ice - Ryle Dwyerhttp://fb.me/MLDiP6Rx

Saturday, October 23, 2010  

 

SINCE Dáil Éireann was established in 1919 there have been 125 by-elections. All but 11 of those were held within six months of the vacancy occurring. But the current Dáil has three vacancies, two of which are already more than six months old and the third well over a year and heading for a record delay.

 

The first by-election that was held after a six-month delay was a disputed vacancy in 1928. James Larkin, the first avowed communist elected to Dáil Eireann, was disqualified due to bankruptcy.

His case took some time to resolve as the opposition resisted efforts to call a by-election. Larkin had lost a libel case taken by the labour organiser William O’Brien in 1924, and he had refused to pay the costs, with the result that he was declared a bankrupt by the High Court that year.

He was therefore deemed ineligible for election to the Dáil on September 15, 1927, because he had not discharged the bankruptcy.

Éamon de Valera, the Fianna Fáil leader, sought to delay proceedings by referring them to the courts and arguing that Kathleen Clarke, the widow of the 1916 leader, should be deemed elected because she was the unsuccessful candidate with the most votes in the constituency, but the Government forced through a by-election. Cumann nGaedheal duly won the seat on April 3, 1928 – six months and little under two weeks after the general election.

Prior to the 1990s more than 94% of the by-elections were held within six months. Only six of the 108 by-elections overran that timespan. The longest delay was almost 10 months – from February 7 to December 4, 1945 when five by-elections were held on the same day.

Since the beginning of the 1990s the longest delay of all followed the appointment of Pádraig Flynn to the European Commission on January 4, 1993. The by-election was not held until June 9, 1994, which was more than 17 months later. At the time Fianna Fáil were in coalition with the Labour Party. Was the delay because Fianna Fáil was afraid of losing the by-election? Michael Ring of Fine Gael duly won the seat.

The last by-election won by any government party was back on July 20, 1982 when Noel Tracy retained the Galway East seat for Fianna Fáil in a contest necessitated by the death of John Callanan.

At the time the Dáil was on a knife-edge with Charles Haughey in power, partly thanks to an infamous deal for the support of the late Tony Gregory. That by-election was called just 35 days after Callanan’s death. Two by-elections have been held during the current Dáil to fill vacancies caused by the deaths of Seamus Brennan and Tony Gregory.

Those by-elections were held in conjunction with the European and local elections of 2009. George Lee of Fine Gael won the Dublin South seat only to resign from the Dáil in disgust eight months later – in February of this year. Martin Cullen of Fianna Fáil resigned his seat on health grounds the following month.

There are, therefore, three vacancies in the current Dáil because Pat ‘the Cope’ Gallagher had to resign following his election to the European Parliament on June 5, 2009. His seat has remained vacant now for 16 months and 18 days, which means that even if the by-election were called next week it could not be held until after the record delay to fill Pádraig Flynn’s seat had been surpassed.

It is also well over six months since the other two vacancies occurred. Such delays really undermine the very essence of representative democracy and the republic. Will some twit in government suggest next that they suspend the Dáil altogether for a term as a cost-saving measure?

Senator Pearse Doherty appealed to the High Court to ensure that the date for a by-election to fill the Donegal South West seat is conducted without further delay. By comparison with the hypocrites in Fianna Fáil, even Sinn Féin is now looking positively republican.

The three current vacancies in the Dáil were caused by resignations. Prior to Fianna Fáil’s entry into the Dáil in 1927 all but four of the 21 by-elections held during the lifetime of the fourth Dáil were necessitated by resignations or disqualifications rather than deaths. Henry Coyle was ousted after he was jailed for fraud in 1924, while Alfred O’Rahilly and Richard Hayes resigned because they had become disillusioned with the Dáil.

O’Rahilly – who went on to become president of University College, Cork – never actually spoke in the Dáil before resigning on August 1, 1924. For his part, Richard Hayes later became film censor and director of the Abbey Theatre.

The greatest number of by-elections ever held on one day was nine on March 11, 1925. Little over four months earlier nine deputies had resigned from the Dáil in protest over the refusal of the Cumann na nGaedheal government to reinstate army officers purged the previous year following the Army Mutiny.

History tells us Cumann na nGaedheal was lucky to survive an early vote of no confidence in the fifth Dáil, after one opposition deputy failed to show up and the vote ended in a tie, allowing the speaker to save the government with his vote. There were two crucial by-elections the following week to fill vacancies caused by the deaths of Kevin O’Higgins of Cumann na nGaedheal and Constance Markievicz of Fianna Fáil. Cumann na nGaedheal won both seats and Cosgrave called another general election.

The first three by-elections of the sixth Dáil were due to rather bizarre resignations. Probably very few people know that WT Cosgrave resigned his Dáil seat in Carlow-Kilkenny in 1927. He had also won a seat in Cork Borough, so he resigned the safer seat to make way for a colleague to win that by-election.

AS I mentioned earlier, Jim Larkin’s seat was declared vacant due to his bankruptcy, and Alfie Byrne, the colourful Dubliner, resigned his seat when he was elected to the Seanad. The government won all three by-elections. Even in those difficult times the Dáil was able to hold by-elections within six months. So there is no excuse for what is happening now.

Fianna Fáil is the worst violator because it has been in power for no less than 10 of the 11 by-elections that were delayed by more than six months. Of course, it has done its worst with the cooperation of the Greens and the Labour party. Moreover, when it comes to self-interest Fine Gael is currently demonstrating that it is prepared to play the same game.

It could have moved the writ for the Dublin South by-election to fill George Lee’s seat, but it is playing procrastinating politics too because Labour would likely win that seat. On this issue, Fine Gael has essentially jumped into bed with Fianna Fáil and the Green party.

All of this confirms the need for the kind of legislation introduced earlier this year by Fine Gael for vacancies to be filled within six months, but the Government blocked it. Hopefully, the High Court will now have the guts and integrity to defend people’s democratic rights. Otherwise, we are in even more trouble because all of the parties have demonstrated that our democracy is expendable to party interests.

Ahern Opens new Kilkenny Courthouse

The Minister for Justice and Law Reform Mr. Dermot Ahern T.D., today officially opened the newly restored Kilkenny Courthouse. The restoration, overseen by the Courts Service and the Office of Public Works, cost in the region of €17 million to complete.

 Speaking at the opening the Minister said "The Courts Service, which celebrated its first decade last year, must be congratulated for the ambitious programme of new courthouse development and refurbishment projects which it has rolled out throughout the country over that period. This programme has physically transformed the courts infrastructure throughout the country. These new and refurbished courthouses are a lasting testament to the commitment of the Courts Service Board and the Courts Service staff to the delivery of improved standards and services to all its stakeholders."

The works provide new and improved accommodation for all Court users and include two new courtrooms, judges’ chambers, consultation rooms for legal practitioners to meet their clients privately, victim support room, improved jury facilities, office accommodation for Circuit and District Court offices and a holding cell area for prisoners.

 The Minister continued "Even though staff resources are scarce, through initiatives such as centralising the processing of payments and providing other e-government services including Small Claims Online and the electronic exchange of data with An Garda Síochána, the Courts Service will be able to continue to deliver high quality front line services to all court users."

The Minister concluded "The new courthouse here in Kilkenny is a great credit to the Office of Public Works and their architects who have once again done a magnificent job. I would also like to single out the conservation architects team from Bluett O'Donoghue who helped preserve the integrity of the past whilst sympathetically marrying the modernity of the new extension and atrium. The main contractor on the project was Michael McNamara & Co. who brought all the planning and design to fruition. While the traditions of the past have been respected and enhanced, I think you will agree the building is thoroughly 21st century. "

Oireachtas Joint Committee on the Constitution announces a review of the Parliamentary Power of Inquiry

Article 15 of the Constitution Should the Constitution expressly authorise the Houses of the Oireachtas to hold inquiries so that it may exercise its parliamentary accountability functions effectively and advisedly? This is the key question that the Constitution Committee will explore in its review of the parliamentary power of inquiry announced today at a Press Conference in Leinster House.

Commenting Deputy Jim O’Keeffe, Vice-Chairman of the Committee said:
“The challenge of growing executive dominance, and concerns over lack of accountability, have led to a renewed focus on parliament’s power of inquiry.
This review will allow an examination of the powers of the Houses of the Oireachtas to undertake in-depth investigations into matters regarding public policy-making, administrative affairs and cases of maladministration.
In particular, it will address the extent to which legal obstacles to the powers of inquiry have frustrated the work of Oireachtas Committees. The Abbeylara Supreme Court decision suggests that there are, at the moment, significant limitations on the power of Oireachtas Committees to hold such investigations. This shows that the Irish Parliament has much less power in this field than its equivalents in almost all other EU Member States.
Safeguards for witnesses will form a key element of our review. In any parliamentary inquiry it is necessary for the Houses to observe due process and recognise and protect the rights of witnesses and other individuals affected by inquiries.”
The Committee will hold public hearings in Leinster House with expert witnesses, members of the academic community and other interested parties.
The Committee will also invite submissions from members of the public and interested parties. Interested individuals and organisations are invited to submit submissions in writing to the Committee by 3 December 2010. Views expressed in the written submissions and presented at the public hearings will contribute to the Committee’s deliberations and will inform its report, including conclusions and recommendations, which will be presented to the Houses of the Oireachtas and the Government.

Apple Reaching for the Cloud with MacBook Air and North Carolina data centre

Steve Jobs says the MacBook Air is the future of the MacBook and the future of the notebook as well. But if that’s to be the case, the machine–and Apple’s ecosystem–needs to evolve a bit more to appeal to that strata of user tethered to the high-capacity hard drives that the Air has summarily dispatched.
This being Apple we’re talking about, that evolution is likely already well under way and perhaps–perhaps–being engineered at the company’s massive new North Carolina data centre. With its  500,000 square feet of data center space (currently, sources tell me that Apple is considering doubling that) the facility has been built for something. And what better use to put it to than the cloud services that might completely eliminate the need for high-capacity hard drives and give the Air storage to match its performance characteristics.

Were Apple to create the cloud-based version of iTunes that’s long been rumored–one from which users’ entire iTunes libraries could be streamed–and were it to bolster MobileMe’s iDisk and Gallery services with more-robust storage, even the 64GB Air might seem an attractive option to the high-end user. And Apple’s new N.C. data center, which is nearly five times the size of the one it operates in Newark, Calif., may well make both those things possible.

“We believe it makes sense to have a cloud service linking Apple devices to personal photos, videos, games, music and other entertainment–eliminating the limitations and expenses of excess storage,” writes Barclays analyst Ben Reitzes. “We believe such a service would only enhance the loyalty toward Apple and the benefits of using devices in its vertically integrated model.”
Saving to disk is slowly becoming a fixture of the past and, as Apple’s recently rejiggered Apple TV business model demonstrates, streaming is the future. Which makes perfect sense, when you think of the MacBook Air as the future of the notebook.

Judges back prenups for Britain: Traditional marriage laws are swept aside in landmark decision by Supreme Court

The Irish Times indicated yesterday that the Family Law Bill will contain proposals for the recognition of prenuptial agreements in Irish law.

The heads of the Bill are currently being prepared, but there is no date for their publication.

This week the highly publicised Supreme Court decision in London ruled that prenuptial agreements should have “decisive weight” in English divorce cases.  This ruling will have persuasive, but not decisive, weight in Irish courts.

The Supreme Court decided to uphold a signed pre-nuptial agreement by Katrin Radmacher which was challenged by her former husband Nicolas Granatino. She is a German paper industry heiress who is worth more than 100 million pounds and this was one case that was viewed as the pivotal test to see if such agreements and its likes can be enforced in English law.

This recent decision by the court will help the wealthy individuals to guard their money by signing pre-nuptial agreements which will be given “decisive importance” by judges in many divorce cases involving huge finances.

Prenuptial agreements are typically entered into when one party has considerable assets which he or she wishes to preserve in the event of a marriage break-up. Under both UK and Irish family law the combined assets of the couple are divided, though not necessarily on a 50/50 basis, when a marriage breaks down.
The UK supreme court case concerned a wealthy German heiress, Katrin Radmacher, possessor of an estimated fortune of £100 million (€112 million), and her French banker husband Nicolas Granatino, who signed a prenuptial agreement when they married in 1998.

The couple had two children. In the agreement he agreed to make no claims on her fortune if the marriage failed, which it did. They separated in 2006 and divorced in Britain. The settlement awarded him £1 million and the use of a home worth £2.5 million until his youngest daughter is 22.

Mr Granatino, then a mature student at Oxford University, challenged the agreement, arguing it had no status in English law. Pre-nuptial agreements are enforceable in US and European law, but have not been enforceable in English law, though they can have influence on settlements.
This week Lord Phillips, president of the UK supreme court, delivered its judgment, stating that the agreement should have “decisive force”. Lady Hale, the only woman sitting on the court, dissented, stating that a prenuptial agreement should be considered as only one of a number of factors which should be taken into account in a divorce settlement.
Lord Phillips also stated that courts would still have the discretion to waive prenuptial agreements if they are not fair or do not provide for the needs of the children of a marriage.
This case differs from most other British cases in that both parties were from other European countries where such agreements are routine, and also in that the wealthy party was the woman.