Department of Finance Report..

Posted: March 1, 2011 in General

DOF Ireland logo
I dont post as often as I should, so firstly apologies for the essay, but after the last Decade of political antics here in Ireland I had to post this as it it really puts the cream on all the actions of our past Fianna Fáil govt , I should mention that I was raised in a family that supported this political party but at an early age I veered against the family political flow, with the Final blow for me, in being in the presence of a group of children, where one was accosted by one of this parties faithful.

to Quote Breaking News.ie  A damning report has found that advice from the Department of Finance, which raised red flags over the danger of Government economic policy over a 10-year period, was consistently over-ruled by Cabinet.
The independent review has found the Department provided clear warnings on the over-reliance on the property sector, increased spending and tax cuts, and the economy’s vulnerability in the event of a downturn.
This report, complied by independent experts from Canada and the Netherlands, examined the performance of the Department of Finance over a 10-year period.

Read more: http://www.breakingnews.ie/ireland/cabinet-ignored-department-advice-on-economy-report-finds-495577.html#ixzz1FNwti8iH

What is Ironic the outgoing Minister of Finance whose actions were dammed in this report is stated as follows

The Minister for Finance, Mr Brian Lenihan TD, today welcomed the recent report of the Independent …..

“I welcome the Panel’s report. It provides a very fair and thoughtful assessment of the Department’s performance over the past ten years. While a number of recommendations are matters for the new Government and require further consideration, a significant number relate to organisation, skills set and work practices – many of which are being implemented without delay.  The implementation of these proposals will assist the Department in taking on the complex challenges arising in the coming years. I have no doubt but that the Department will address the issues highlighted in the report with vigour and enthusiasm.”

Some Items of note

2.6.8 From 2000 onwards, the Irish economy began to lose competitiveness. This reflected both currency movements and wage and cost developments.  Because growth was driven by domestic factors, the loss of competitiveness did not register sufficiently with policy makers despite repeated warnings by the National Competiveness Council.

The underlying dangers were either missed or ignored.  Ireland was by no means unique in this, but the size of the hidden imbalances was greater and the subsequent correction more severe.

“Fiscal policy heightened the vulnerability of the economy.  At the macroeconomic level, it should have done more to dampen the powerful monetary and liquidity impulses that were stimulating the economy.  Budgets that were strongly countercyclical could have helped to moderate the boom, and would also have created fiscal space to cushion the recession when it came.  But budgetary policy veered more toward spending money while revenues came in.  In addition, the pattern of tax cuts left revenues increasingly fragile, since they were dependent on taxes driven by the property sector and by high consumer spending.  Ireland was also unusual in having tax deductibility for mortgages, and significant and distortive subsidies for commercial real estate development, yet no property tax.”

to read more on this or to read this your self here is the PDF Document , sadly if this minister had read this I am sure he would be have been more aware of its content

Considering this is directed at 2 former Taoiseach (Irish PM) and to add to this the final actions of a dying party to sign the rights final pipeline agreement with Shell,  it is not surprising to see one of the newest TD’s (members of  the Irish Parliament) comparing the eradication of FF from irish politics to that of a gardener removing a Dandelion but sadly not fully rooting it out completely.

Interview with this Breath of Fresh air in the Halls of Dail Eireann

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