Category Archives: Housing

Karl Marx’s alternative to capitalism part 8 – crises and contradictions ii

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A view common among Marxists is that socialism will arise out of a crisis of capitalism.  This is believed for a number of reasons.  The most fundamental is the view that socialism will arise from the contradictions of capitalism and these contradictions give rise to repeated crises; crises of overproduction, of profitability and of class relations.  Economic and political crises point to the inevitable triumph of socialism as every such capitalist difficulty signals the possibility of an alternative and the opportunity to create one.

A more common sense way of understanding it is that if capitalism continued to deliver the goods then why would anyone fight to change it?

These contradictions include the contradiction between capital and labour in which capital accumulates and grows through augmenting itself with the value created by labour for which labour is not remunerated in wages.  These contradictions also include the tendency for the development of the forces of production to conflict with the relations of production within which they develop.  The productive forces of machinery, technology and other means of production and productive relations determined by the ownership of these means of production by capitalists and the exclusion from ownership of those who create and work with these means of production, the working class.

The contradictions are the tension between the more and more effective socialisation of production and its private capitalist appropriation. Production is more and more subject to a division of labour with hundreds if not thousands of components produced and shipped from all over the world before final assembly in one location.  This final product such as a computer can then join thousands of other products in creation of another final product such as a car.  The workers who produce this final product likewise consume commodities created from all across the world which are themselves assembled from products created across the globe.  A vast meshed network of companies, of communications and transport has been created by capitalism that requires an enormous degree of co-ordination and planning by millions of workers to ensure this all takes place, and takes place profitably.

Yet this production is sold on a market in competition with other similar products from other companies or in competition with very different goods that could equally be bought instead.  Only after the fact is it recognised whether the labour employed in producing these goods has been wasted.  If the prices obtained for them do not result in sufficient profit the capitalists will close down, reducing production and reducing the market for goods generally as workers are laid off and supplier companies equally reduce employment.  If this happens on a big enough scale economic crises result.

Were imbalances in production to arise in an economy under workers’ collective ownership this production would be rebalanced without making workers suffer for any misallocation.  It would be in the interest of everyone to reallocate this labour to produce goods or services for which there is more need.  With capitalist appropriation however, despite the socialised nature of production, despite the enormous cooperation and scale of planning required, it is only the private profit of individual capitalist companies that counts.  And if this means closing down productive assets, wasting resources and creating unemployment well . . production is only for profit under capitalism.  It is competition not cooperation which predominates, competition between companies for sales of commodities and competition between companies to extract the maximum surplus from their own and other workers.

For Marxists this global economic result arises from the very nature of the commodity itself and its simultaneous existence as a use value and as a value.  As a commodity it must have usefulness for it to be purchased by anyone but it must also have a value that can be exchanged with other commodities and money.  At the end of the day it is the value in exchange that matters for the capitalist because it is from this aspect of the commodity that profit is derived.

A more common way of describing this is that production is for profit and not for use; commodities are produced only in so far as they procure a profit but which are only purchased in so far as they are useful.  Goods and services are produced which are profitable but which only a tiny minority of the world’s population find useful while goods useful to millions are not produced because they are not profitable.

The craziness of this has been on display in Ireland, which has had an enormous economic boom largely built in its last years upon housing and other property production. A boom that eventually turned to bust not because everyone had a decent home, or the commercial fabric of society had been completely renovated, but because the prices demanded by developers and construction firms could no longer be afforded by those expected to buy or rent. Prices collapsed, building firms went bust sacking tens of thousands of construction workers; developers went bankrupt, their loans could not be paid and the banks that lent them the money then also went bust, unable to remain solvent given the scale of the bad loans on their books.

The capitalist State then stepped in to assure the banks’ solvency by guaranteeing their loans and when it was proved that it could not afford to do so it too went bust; so the European Commission, European Central Bank and the International Monetary Fund also stepped in to ensure that the State could make good its guarantees to the banks – in exchange for the State cutting the tripe out of state services, increasing taxes, lowering public sector wages and reducing public sector employment.  The State survived all this by spreading its debts across the generations so that even in 2050 the children and grandchildren of the boom generation will be paying for the boom and the bust.

At the peak of the boom 90,000 houses a year were being built by employing around 274,000 workers. Last year fewer than 13,000 new homes were built while demand is running at 25,000 a year.  There are over 1,000 families homeless compared to 400 at the beginning of last year while there are an estimated 90,000 families on waiting lists for social housing.  But this is happening in a country that has 230,000 vacant homes, some in “ghost estates” in far-flung towns where few Irish people now wish to live — if they ever did.

This is reported in Ireland and elsewhere as if this was a peculiarly Irish problem, but not only have there been property booms across the world but housing and property booms are only the most visible manifestations of classic crises of overproduction that have been a feature of capitalism for almost two centuries.  Visible because the commodities overproduced sit there staring everyone in the face for years.  This is not an Irish problem, although it has to be said that the Irish are very good at doing it with houses, but is a classic capitalist problem of desperate need not being addressed because to do so would not deliver the requisite profit.

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It has been reported by the Society of Chartered Surveyors in Ireland that it costs €330,000 to provide a standard family home, a figure that appears to have changed little despite the deep recession!  Construction costs account for less than half of this figure with the rest made up of fees, levies, site acquisition costs, finance costs, and tax and profit margins.  Developers would rather hoard land they over-paid for in the boom because to do otherwise would mean them accepting a loss.  This would then hit the banks who everyone is pretending are now fine and no one wants a repeat of the 2008 crash.  So the process of the previous boom and bust is repeated for the sake of avoiding another one.
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But very few people can afford houses at these prices and single people and those on even average incomes can’t afford them and would drown in a sea of debt if, or rather when, interest rates increase (although of course no one is thinking of this now). Instead the solutions put forward by the Government include grants to first time buyers, which will simply increase prices by the amount of the grant, or subsidies to developers, who will probably pocket the money while maintaining their asking price.  In short, the same policies pursued during the boom.  As the table below shows the huge debt already built up is a big constraint on any solution that seeks to stuff working class people with even more credit.

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The solution is to build affordable houses by expropriating the land holdings of developers and re-employing many of the construction workers who were made unemployed in the crash.  However, this calls for a radical break with the prerogatives of private property which is a more entrenched religion in Ireland than theCatholic Church.

From the point of view of our look at Karl Marx’s alternative to this sort of mess there is another striking question that arises.  Just how do such crises lead to replacement of the system that produces them with a new one called socialism?

Yes, capitalism leads to these crises and yes, they would not arise within a socialist society, but what is the mechanism by which this contradiction leads from the former to the latter? What leads workers from recognising there’s a crisis to understanding that it’s a result of capitalism and agreeing that socialism is the answer, and then fighting to introduce it?  All while their starting point is not so much a very conscious rejection of socialism so much as a recognition/acceptance of capitalism because it is the system that actually exists, works (however badly) and places them in a subordinate position within which, by and large, they are powerless to effect very radical change, either as individuals or even as individuals that are part of collective organisations.

A lack of understanding of what socialism actually is and little confidence that the world can be changed, or that they must do it themselves, are not even the first condition of this problem but the result of the more basic conditions within which workers live.  Is there a contradiction at this more basic level of workers’ everyday lives that can provide the experience that they can learn from either directly or indirectly; that capitalism does not have to be accepted and that an alternative can actually exist, already exists even if in an underdeveloped form that must be developed further?

In all this it is clearly the development of political consciousness that is key.  Only through its development will workers become active makers of their own future, seeking greater and greater control over their lives and thus greater and greater control over society.  But Marxists believe that it is material conditions that generate consciousness and it is not at all clear that conditions of crisis can generate socialist consciousness.  They have not done so in Ireland.  Some of the first posts on this blog were a record of how previous capitalist crises generated reactionary solutions and the growth of xenophobic and racist solutions today are testament to this.

Marxists do not believe that the rational superiority of socialism on its own will lead to socialism.  Or rather, to be more precise, Marxists do not believe that rational argument about the superiority of socialism over capitalism will bring it about.  It plays a vital part in the work of socialists in the workers’ movement but rational argument is ultimately only powerful if it corresponds to the rational development of capitalism itself.

If capitalism tended more and more to a state antithetical to socialism, to a position that was further and further away from the possibility of collective workers’ ownership of the means of production, then ultimately no amount of rational argument about the putative superiority of socialism would matter because it could not arise in the real world. And if it could not arise in the real world the argument as to its superiority would not be rational either. A world built on unqualified love between all members of humanity may appear a rational argument, as opposed to the hate and oppression of the existing one, but it is not rational because we all know such a society cannot exist.

Crises are ephemeral, they are the means by which capitalism resolves its contradictions, even if only temporarily. They generally weaken the working class and its movement and they often present opportunities to disorient them.  They invite immediate solutions when many workers generally experience capitalism as individuals or are not grouped in organisations that are by their nature capable of providing answers.  What attitude workers take to crises, how they understand them, who they blame and what solutions they seek are strongly conditioned by their previous experience prior to and outside capitalism’s difficulties.  Generally this experience does not prepare them for taking conscious control of society, which is the essential challenge posed by the greatest crises.

Capitalist crises therefore give expression to the contradictions of capitalism but are not themselves the contradictions upon which the alternative higher form of society will arise.  History is replete with subordinate classes’ willingness to fight against their oppressor classes, such as the countless rebellions by Chinese peasants against their ruling dynasties or medieval peasants against their feudal lords.  But even when the contradictions involved in their class antagonism burst through in successful rebellion no stable society was created by these victorious oppressed class because the class contradiction evoked no mode of production resting on the unified class interests of the victorious class.

Even when the class of feudal lords disappeared from history it was not a peasant mode of production that was eventually built on the bones of their feudal rule.  Similarly, when the working class in Russia succeeded in overthrowing the Tsarist state and the capitalist economy in Russia it failed to create a new socialist society because the material conditions would not allow a new socialist mode of production to grow and develop.

So basing the alternative to capitalism on the crises of capitalism is not enough.  Developing consciousness of the need for an alternative is not even enough.  The contradictions that exist must contain within them the potential for a new socialist society to arise out of them.  In other words, it is not enough that there is contradiction but that the contradiction is resolved, in this case in a new and higher form of society.  And for this to be the case the nature of the contradiction has to contain the potential for this to occur.

It is not that the contradiction creates a clean slate upon which something new can be built but that the new arises from within the development of the contradiction itself.  Clearly the nature of this is therefore key, for its development must not only contain the end of the old but the beginning of the new at one and the same time.  Consciousness by the working class of the necessity for a new society is necessary for it to happen because it must be its creation but this is only possible if the process exists in reality.

Back to part 7

Forward to part 9

Sectarianism in the North of Ireland and Republicanism

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the-triumpth-of-deathThe dysfunctional nature of the Stormont regime is widely acknowledged.  The two leading parties exclude the others in decision making while being unable to make decisions themselves; except not to expose each other’s most sectarian actions – employment discrimination by Sinn Fein minister Conor Murphy and moves to sectarianise housing by the DUP’s Nelson McCausland.

Other parts of the settlement are also exposed. The PSNI have lost much credibility with their facilitation of illegal loyalist flag protests while the Parades Commission, set up to solve the parades issue, is now part of the problem.  It is ignored even by the police, as during the flags protests, or has its determinations on how parades are to behave brazenly flouted by loyalist marchers, who the Commission then allows to parade again, with the same results.

Meanwhile spokesmen for the DUP partners of Sinn Fein in government blame the Sinn Fein Lord Mayor of Belfast for being physically assaulted by loyalists while visiting a park in a unionist area (DUP leaders were not attacked in the nationalist park earlier in the day) and a DUP member of the Stormont Assembly tweets her support for the killing of Sinn Fein leaders.

The DUP decision, announced by the First Minister from a holiday in Florida which appeared to last forever, that there will be no ‘peace centre’ at the site of the prison where the IRA hunger strikers died exposes the weakness of Sinn Fein.  A settlement that makes any change to the status quo dependent on the defenders of that status quo has been exposed once again.

In this situation it is not one religious group that primarily loses out, although the evidence in the first post shows that disadvantage remains unequal, but the lowest section of each working class that suffers most.  The old socialist maxim that sectarianism hits workers most, and the poorest at that, is demonstrated in the ways the new sharing of sectarianism works, or rather how it operates in its own dysfunctional manner.

The exposure that a homeless man in East Belfast on the housing waiting list with a points total of 330 (indicating level of need) was passed over in favour of a person with only 26 points caused a minor scandal (all scandals in the North are minor).  This flagrant breach of ‘rights’ was carried out by a housing association whose member includes a former Sinn Fein councillor.  Two of his nieces were allocated housing by the association, which is why, when the case appeared in court, the judge referred to nepotism.

A friend of mine has also reminded me that while he is recommended to go for a job interview with Shorts in East Belfast the social security staff tell him they won’t bother sending him for an interview in West Belfast, where he lives, because a job there is for ‘Shinners’.

In many Protestant areas the indulgence of loyalist paramilitaries by the state has made them more attractive to young Protestants who then end up with a career in violent sectarianism as opposed to a career on the dole or in part time and poorly paid employment.  These paramilitaries then feed off the local population in a wholly parasitic fashion – extorting protection money from small businesses; selling drugs and then claiming to be protectors against dealers; engaging in general criminality then ‘dealing’ with (other) criminals; and finally parading the reactionary politics of the local population while hiding their criminality behind their politics.  This reactionary politics in working class areas acts as another barrier to Protestant workers being able to escape the loyalist gangsters.

The situation is therefore complicated.  A political settlement exists that has the support of the State and Sinn Fein but which is more and more clearly just a stepping stone for unionism to return to unrestricted unionist rule.  At the moment this is simply not possible.  The reversal of the previous struggle against unionist and British misrule does not mean that history has gone backwards.

At the same time the sectarian demands of loyalism set the agenda.  Once more nationalist commentators call for loyalists to be ‘brought in from the cold’ despite their being treated as legitimate political representatives and special slush funds being created for their benefit.  It is vainly hoped that there is just one more Orange parade that is causing trouble and that if only it is sorted the other 3,000 odd will never cause a problem.

As this article is written the loyalists that everyone is invited to save from their supposed marginalisation by the peace process has, through a nomme de guerre, threatened everyone connected with three Catholic schools in North Belfast with ‘military action’.  In a throwback to sectarian assaults on Catholic primary school children in Ardoyne, primary school children are threatened because if loyalists can’t parade Catholics can’t go to school.

With such a mass of contradictions it appears that the whole edifice must crumble, and it is indeed crumbling.  But this could take some time – a decay that brings mutual ruination presided over by the British State but with no progressive force or alternative emerging.

In his eye-witness report of the republican anti-internment march Belfast Plebeian speculates on the revival of republicanism.  Not the new partitionism of Sinn Fein but a genuine movement committed to a united Ireland.  This anti-internment demonstration and relatively small electoral victories demonstrates that the movement has a small base of support.  But whether it has a progressive and realistic alternative is a different matter.

The support of a marginalised section of the Catholic population is one thing.  A programme that might promise an alternative to this population must go beyond gaining support from it to advancing solutions to wider society.  It is self-evident that there is no solution at the local level nor at the level of the Northern State and not, as recent events have so clearly shown, at the level of the island.

Republicans have to answer the question how they can unite the Irish people in order to unite the country.  Poor Catholics in Belfast would benefit from an ending of partition but workers in Dublin might want some alternative to the problems brought about by a capitalist economic crisis and political domination by a state in cahoots with imperialism – right now obviously subordinated by the Troika of European Union, International Monetary Fund and European Central Bank.

The challenges to the creation of this alternative even in the North are more complicated than those faced by the movement created in the 1960s.  While Catholic disadvantage persists the inclusion, even at a secondary level, of Catholic parties in the political administration, means, as has been argued, that it is not simply a matter of discrimination but of sectarian competition.  That Catholics lose out more than Protestants means the simple equation of their respective position and of the political expressions of the two sectarian groups is wrong.  That it is the workers and poorest of both that pay most does not mean that the sectarian division, and the political issues around it, can be ignored or treated as something without need of a particular political intervention that gives specific answers.

Despite their small base of support the republicans are not well placed to face up to and address these difficulties.

Firstly, and most obviously, but most importantly, this movement is confined to the Catholic population.  A strategy of seeking unity across the sectarian division is rendered particularly difficult.  These forces are weak among the rest of the Irish working class in the southern state so the mobilisation of the latter in a political alternative that can practically demonstrate to Protestant, and to other workers, the possibilities of their programme is itself presented with formidable obstacles.

All this assumes in the first place that these republicans, who are divided into a number of groups, regard the political contradictions of the peace process as the primary challenge and political task that they face.  Many in this movement have not broken from the militarism that so demonstratively failed in the 1970s, 1980s and 1990s.

The re-creation of a military campaign even approaching that of the Provisionals at its height in 1972, when the Official IRA also participated (‘ceasefire’ or not), is simply not going to happen.  This campaign fed off an elemental upsurge, British repression and extreme loyalist reaction.  The British learnt lessons in their counter-insurgency, which is one reason they won, although given the relative military resources they couldn’t really lose.

Some republican attempts to recreate a crisis, including British repression and loyalist reaction, through armed action (in the hope of sparking the third element of Catholic upsurge) might produce two out of three.  It is and will therefore be a reactionary project.

Some republicans clearly recognise this but no coherent, comprehensive or convincing critique of their previous military strategy has come from this movement.  Without this the option will remain open to large sections of it and with such an option failure is guaranteed.  Marxists do not favour premature armed action by revolutionary socialist forces never mind the action of republicans with no credible socialist credentials.

The character of the armed struggle was of an armed revolt by a minority of an oppressed Catholic population that was solely Catholic because the sectarian character of the State made it so. Nevertheless this situation meat that a premature armed campaign with no prospect of military victory was wide open and susceptible to political degeneration, which is what happened.  From mass gun battles lasting hours against the British army the armed struggle moved to blowing things up, like shops, bus depots, restaurants and hotels etc. without any rationale for doing so.

It meant the pursuit of soft targets and a wider and wider definition of ‘legitimate targets’; all to avoid the hard fact that the IRA could no longer engage the British Army, the army of occupation, in a serious guerrilla struggle.  The failure of the armed struggle and the impossibility of it succeeding against the military power of Britain were denied in word while accepted in deed.

This meant that the sectarian weakness of the republican resistance, its wholly Catholic character, was impressed on it through actions that more and more conflicted with its declared non-sectarian objectives.  Bombings were targeted at groups of Protestants seemingly without any regard to their political impact as if some spurious military logic was of primary importance.

So, for example, the IRA complained that the British caused unnecessary civilian casualties by not acting on bomb warnings.  The fact that the British had devised a way of discrediting republicans through exploiting one weakness of their bombing tactic did not prevent the IRA walking into this trap again and again for which many civilians paid the price.  This blindness to the requirements of a political struggle betrayed the undeveloped nature of the movement; one that still characterises those that would continue armed action today.

So we can say that while the republican struggle involved a progressive objective, fought for by an oppressed section of the population, it involved elements of sectarian practice that conflicted with this objective.  This may be contrasted with the armed actions of loyalists whose programme and actions didn’t contradict one another. Their programme didn’t occasionally involve sectarian murder but was sectarian murder.

I have never checked, but if the argument by John Hume – that more Catholics died at the hands of the IRA than British and loyalists – was even close to being true it would demonstrate the hopelessly misguided nature of the republican armed struggle.  This lesson needs to be learnt or many Irish workers will not trust today’s republicans with political leadership.  It has been said many times by many people that it is the threat of renewed armed struggle that has been one of the strongest arguments used to support the peace process and the current political settlement.

Today’s republicans are therefore an expression of the contradictions of imperialist rule and, in so far as they understand this and oppose this rule, they understand something important.  However the fact that this movement is so old in historical terms, going back to the late 18th century shows two other things.

One, is that its historical task has not therefore been achieved and two, that history has developed more fundamental tasks than the creation of an independent nation state within which an Irish capitalist system can develop and grow.

The development of capitalism around the world and creation of a world working class means that political programmes that put forward new independent states as the fundamental and first step to wider and deeper liberation are now backward looking.

The latest expressions of republicanism are old in another sense.  It is nearly 20 years since the first IRA ceasefire and the definitive surrender of the republican programme.  It is 15 years since the leadership and majority of the membership accepted partition and the Good Friday Agreement.  Time enough for those opposed to both to develop a programme that has learnt the lessons of this defeat and begun to construct an alternative.  It is not encouraging that this has yet to be done.

‘Sins of the Father’ by Conor McCabe – a book review

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downloadThis book sets out to explain why the banking crisis in the Irish state developed the way it did and how property and financial speculation has been so prominent a feature of its economic development.  It is therefore an argument against the view that the crisis has been the result of some sort of moral collapse in certain sections of society.

Along the way the author, Conor McCabe, disposes of some common beliefs about the role of property in the Irish psyche, convincingly demonstrating that property ownership is not hard-wired into the Irish but has been consciously and repeatedly promoted by the state and employed as a means of strengthening particular class interests.  Thus the first Cumann na nGaedeal government promoted – as a solution to the notorious condition and shortage of decent housing for the working class – better housing for the middle class!

In an earlier version of the recent bailout of the banks he notes that helping the middle classes and property speculators with state money was the way the first Government decided to deal with tenements and slums.  As if proving there is truly nothing new in the world he notes the development of Dublin suburbs in the 1930s with little or no infrastructure or amenities.

The effects of this over the decades was to create a situation in which if you wanted a house you needed to buy one.  Public housing was neglected, a choice of last resort, and the earlier desire of workers to rent was blocked.  Even so the relatively recent and rapid rise in the proportion of home ownership is surprising, rising from 25 per cent in 1961 to 75 per cent in 1986. So much for property ownership being in the DNA!  In fact, as the author shows, it has been consciously promoted as a means of preventing “social unrest”, “revolutionary change” and because “there is no greater barrier against communism.”

McCabe points to the argument that the property boom at the turn of the century crowded out investment in productive activities and shows that State tax breaks helped fund the speculation that fuelled it.  Just as the State helped pump up the bubble it then stepped in to prop up the same interests that were behind it when it burst.  In this sense the State’s response to financial collapse was no turning point.  He effectively shows that British landlordism of the 19th century was replaced by a native version for the 20th and 21st.  Government policy helped create huge overproduction: in 2010 the number of empty housing units was counted as 302,625 – excluding holiday homes!

Conor is aware that all this is a description of the property boom and bust but is not an explanation (see page 56).  To do this he then presents a fuller history of Irish economic development.  It is not the case however that further, fuller and more complete description is explanation either.

If particular and contingent historical factors are not the explanation of the deeper causes of the boom and bust, but rather the concrete form in which the underlying contradictions played out, then it is only these fundamental processes which can provide a satisfactory explanation.  Or at least one that seeks to advance an argument that the causes of the crisis were in some way more than accidental.  Being more fundamental they can explain similar phenomena in more varied, concretely different circumstances – in countries as different as Japan, Spain, the USA and UK.  In fact the very variety of situations giving rise to similar symptoms of crisis point to systemic contradictions.

What the book does do very well however is show the particular features of Irish economic development, including the weakness of an economy which was governed as if it was still a region of Britain but which was cut off from the potential supports that this might have involved.

Nor did this change with the election of a Fianna Fail government in 1932, which introduced tariffs: at this point the State was described as virtually the last free-trading economy in the world.  There was no introduction of a separate currency or Central Bank and parity with Sterling was maintained.  In important ways the economy remained a region of Britain no matter the declaration of a Republic after World War II.

The resulting failure led to the new policy of promoting multinational investment, which was seen by the State as the least disruptive way of responding to international pressures to develop while protecting the existing class structure and minimising economic change.   McCabe emphasises the limits of multinational investment and the fact that money flows from it enter and exit the State with relatively modest impact. He quotes an assessment that this foreign investment did not develop a manufacturing base ‘comparable’ other small countries and argues its real importance lay in the opportunities provided to native property developers and financial and banking interests which service the investment.  This process fed into a property bubble in the 1960s which burst in the 1970s, again fuelled by state tax incentives but also state demand for the property developed.

He gives examples of the extraordinary tax incentives given to foreign investment and how State policy allowed the companies involved to do more or less what they wanted including at Bantry Bay where, in 1979, over 50 lives were lost in an oil explosion.  It transpired that the necessary safety measures had not been implemented and Gulf Oil had been allowed to regulate itself.  The Treaty Ports had been returned from the Brits but the Irish State had connived in the creation of another; all under the banner of economic development.

The policy was held up as a success but it was still recognised that it was a qualified one and accepted that indigenous industry had failed to create self-sustaining industrialisation.  Foreign investment remained largely divorced from local industry and the government sponsored Telesis report noted that only 8 per cent of components and sub-assemblies in the foreign engineering sector were sourced locally.  However, like inquiries and reports before it (and after) the Telesis Report was “greeted with fanfare and followed with silence.”

The major innovation came instead in the financial services sector where State policy had always been to maintain the parity link with sterling.  For Conor McCabe parity also meant poverty: the value of the Irish currency was maintained at too high a level to facilitate the development of competitive industry.

He does not delve into what a lower level would have meant for Irish workers as a lower valued currency would also have meant lower wages and a lower standard of living, all else being equal.  All else not being equal would have depended on the Irish State having a successful policy of state-led industrial development, not just throwing tax breaks and grants at private capitalists. In part his history is designed to show the strength of those class interests in the State who made their money through agriculture, property and banking and for whom all this would have been, at best, an unnecessary experiment.

That this ultimately was a feature of continuing imperialist domination – expressed in the relatively weak native capitalist development; in state institutions and policy and in other cultural traits – is not developed in the book.  The book is relatively short so this is not a criticism.  This subject raises political questions that have bedevilled an understanding of the relationship between ‘national oppression’ and capitalist exploitation and it is no criticism that this is not gone into.  It was not the purpose of the book. The State maintained the link with sterling until joining the Exchange Rate Mechanism but devaluation drove home the lesson that the link was more than just a policy decision but reflected a deeper economic relationship.

The book repeatedly shows the linkage between State policy and class interests.  Conor shows that the setting up of the Irish Financial Services Centre (IFSC) represented no exception to the state’s patronage of banking and financial interests, or a radically new economic development, and accepts the case that the IFSC is a tax haven, reporting its reputation even before the crash as the “wild west of European finance.”

He records the almost forgotten fact that the bank bail-out of 2008 was not the first and that tax payers had already bailed out Allied Irish Bank (AIB) before – in 1985.  While it has become fashionable to excoriate Anglo-Irish Bank at least it only went bust once.  The Fine Gael led Government of the time included Alan Dukes who, in the latest banking disaster, reprised his role by impersonating a Director of Anglo-Irish supposed to represent the public interest.  In 1985 AIB was saved from going bust by the tax payer who then watched seven days later this same bank announce unchanged dividends to its shareholders!  There followed years of law-breaking by the whole banking industry for which not one banker paid any penalty.  Put into context, the bail-out of 2008 becomes both more shocking and less surprising.

The book pulls together the various aspects of Irish economic development to show how the State’s policies, especially tax breaks and almost non-existent regulation, came together in the 2008 crisis. Property speculation fed on a limited boom partly fuelled by foreign investment which, boosted by state policy, became super-charged by credit speculation.  It was, in this sense, not at all new but rather the culmination (until the next time?) of the sins of the father. And the sins were many.

The book ends too summarily and in doing so appears to endorse more state spending on infrastructure as part of the solution: a liberal, Keynesian answer to the crisis.  One is compelled to ask in what way this is an alternative to what has gone before.  In so far as construction paid for by the state is designed to boost private capitalist investment there appears no major difference. (This is by no means the only similarity.) It is yet another tribute to the forces and policies described in the book, the power of the existing system and status quo, that those who are popularly viewed as its most vocal critics often simply echo it.

In the conclusion Conor McCabe notes that the new state did not have an independent economy.  What he has done is give a good account of the internal structure of this subordination and the class and state that constituted its structure.  But this is obviously only half the story.  If the economy was not independent a full description or analysis would have to describe and explain the much stronger international forces on which this subordination rested.

This itself would only be possible by recognising, as we have said, that the Irish State was not the only one to suffer a financial crisis and that, whatever its peculiarities might be, other crises in the US and Spain and before that in Japan, and perhaps tomorrow in China and Britain, point to a systemic crisis; in other words a crisis of capitalism.  Explaining how the Irish crisis took the form it did is impossible to do fully without also explaining why there was a crisis in the first place, one shared with other countries with a very different historical development.

Although beyond the scope of the book it is nonetheless a necessary task for Irish socialists.  Conor McCabe is not to be criticised for not doing what he did not intend and which others have not done.  Rather it is to be hoped that he can play a significant role in this collective task.  It will therefore be interesting to see what he writes in future because while the bad news is that the first edition of ‘Sins of the Father’ has sold out the good news is that the second is on its way.

BBC Spotlight and the Housing Executive – what sort of scandal? Part 2

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Belfast Peace Wall (Belfast Telegraph)

Belfast Peace Wall (Belfast Telegraph)

By Belfast Plebian

Episode two commenced after the Assembly was recalled for a one-day public debate on the developing scandal on July 8th..  Once more it was down to Jim Allister to make most of the running, alleging that Red Sky had carried out work on the homes and offices of DUP members and that they even had the gall to charge some of the costs to the Assembly.  He tried to arrange for a motion calling for McCausland’s to be put up for vote but was rebuffed by Sinn Fein who wanted a less severe motion to be voted on.

It was also alleged that Nelson McCausland had an improper relationship with Turkington Holdings, a Portadown based firm that specialises in windows, doors and conservatory installations. The allegation was that he had agreed to delay the ongoing work by other rival firms with a view to favouring Turkington on the grounds of cost.  Before making his suspension order it was alleged that he met with Turkington, the chair of witch is a DUP member. But the heart of the second episode came down to final the motion and vote.

The motion asked that Mr McCausland step aside while the inquiry into the matter by the DSD committee was being carried out.  It also noted that the Minister may have purposely misled both the Assembly and the committee. The motion drawn up by Sinn Fein was supported by the Ulster Unionists, the SDLP and Allaince  plus the Greens and the new Unionist Party NI21. The motion collapsed even though 54 members voted for it and 32 voted against. This outcome was possible due to a safeguard inserted into the Belfast Agreement known as the petition of concern. It allows any 30 members to effectively veto a motion or law they feel is discriminatory, the DUP with 38 MLAs is the only party that can do this without votes from others.   

The reaction to the petition of concern in the press was interesting because for the first time there was a feeling of genuine alarm about the Stormont settlement that had been strongly endorsed from day one of the ‘peace process’. The political analysis in ‘The Irish News’ was pessimistic; the headline banner on the day after the DUP move to block the censure motion read ‘It was a bad day for democracy.’

The writer feared that the clause that was supposed to prevent sectarian majority rule was now being used to further it: ‘ Power sharing may be the concept the devolved institutions are built on but it seems power ultimately resides with the party that can consistently muster 30 signatures and lodge a petition of concern whenever it is unhappy with a particular assembly motion. The upshot is therefore not democracy but an inverted form of majoritarianism. It’s a system that leaves the majority party in a position where it can overrule the rest of the assembly even when outnumbered two-to-one.’

‘The Irish News’ editorial was a little less stark but still pessimistic, the final paragraph read ‘Many observers will have concluded that standards at Stormont have declined to a stage where basic democratic values have been largely abandoned in the interests of expediency. There will be little public confidence that the truth over Red Sky will ever be established property but it is the wider reputation of our key intuitions that is increasingly under the spotlight.’    

As for the ‘Belfast Telegraph’, their next day front page stated; ‘This was a bad day for democracy’ the three sub headings were ‘debate on Red Sky scandal ends with no action’, ‘parties in the pockets of big business-claim’and ‘Assembly rules misused by DUP to stifle debate.’ The editorial was less pessimistic making the argument that the petition of concern could be fixed: ‘Although the motion gained cross-party and cross-community support in the Assembly it was defeated by a petition of concern, a piece of political trickery which is meant to stop minorities being ridden roughshod over, which is increasingly is used by all parties if they find themselves in trouble. It is clear that thisparticular manoeuvre will have to be rethought as it is now being misused.’

The job of expressing the fears and frustrations of the small group of reformers who had hoped for a gradual transformation out of a sectarian conflict was left to Robin Wilson the one time editor of Fortnight Magazine ; ‘The Red Sky  episode is a flashing red light that something is very rotten in the mini-state that is Northern Ireland. It encapsulates a toxic cocktail of conservatism, clientelism and corruption, which, if notaddressed, will further discredit the pursuit of democratic politics as the public service it should be.’

At least Robin Wilson acknowledged in his article that the outrageous behaviour had a lot more to do with sectarian partisanship than with corruption, the last paragraph of his article stated: ‘the minister intends to dismantle the Executive, rolling back that four-decades-old victory of the civil rights movement against the old unionist order. The new one looks dispiritingly similar.’  

We should not pass by the media reaction without mentioning one other perspective on the Red Sky affair; three days after the Stormont travesty the Belfast Telegraph carried an analysis by trade union socialist Eamonn McCann, presumably to get an alternative viewpoint. The banner of his article was ‘Red Sky, red faces and the nightmare of privatisation.’

Mr McCann stated the proposition he was out to prove in his opening paragraph ‘None of the issues which brought MLAs hotfoot back to Stormont on Monday would have arisen if the repair and maintenance of public sector housing hadn’t been privatised. No privatisation, no meeting with Red Sky representatives in Nelson McCausland,s office, no Stephen Brimstone/Jenny Palmer  phone call, no dubiety about the stop-start progress of a double contract, no reason for MLAs to be recalled just days into their nine week summer holiday

Little thought is required to refute Mr McCann’s proposition, having public control over a central Housing Authority is a good thing provided at least one condition is fulfilled, namely that those in control are socialists.  If those in charge are sectarians, racists or state capitalists then if anything it is a worse arrangement than having it in many private hands.  Unfortunately those taking charge in this case are not socialists and may even be sectarian.

Comment and Explanation

We can certainly say that the Red Sky scandal represents something more than a scandal and something less than a political crisis. It is a mini crisis of the peace process, something that is hard to disguise. The first instinct of all of those in thrall to the peace process was to disguise it as a corruption scandal, a case of one party, the DUP seeking to do financial favours for the owners of a couple of small firms that happen to back the party.  The pro-agreement media was therefore content to run behind Jim Allister for he seemed to have enough inside information to make the corruption charge stick. The sectarian substance was reduced to a secondary quality

What might have come out of this allegation was a routine resignation of a wayward politician in an otherwise stable Executive. One small problem was that another DUP minister would have replaced the sacked one and we would have merely carried on from the point we had left i.e. the programme of dismantling the Housing Executive. Then the realisation dawned on some people that the minister had no intention of resigning because his party had no intention of letting little things like democratic norms get in the way of staying in charge of the big spending departments of government. The DUP standpoint was No Surrender to our critics!

The pro-agreement media began to wonder if the current political arrangements might make it impossible to address wrongdoing not only by the odd maniacal politician but entire maniacal political parties. It was kind of expected that an exposed politico would be cut loose by his own party. One step behind the fear of unaccountable financial corruption lurks of course the longer and deeper fear of sectarian competition over the spoils of government

Pro-agreement nationalist political opinion now realised that the safeguards they had long thought they had secured against bad government were not as sound as they had believed. They now had to face up to the fact that it is an anti-power sharing sectarian party they have to deal with in government and not some reformed unionist party. On the other side, the pro-agreement unionists had to confront the fact that you only need 30 votes to carry on like the DUP does when in government and Sinn Fein have 29 votes and destined to get past the magic number in the near future.

Pro-agreement unionists, who are in fact a minority within unionism, have zero confidence in Sinn Fein not doing the same thing as the DUP. Sinn Fein have been less strident about the scandal over procurement contracts than others expected; the party refused to accept an amendment to their own weak motion of censure as phrased by Jim Allistar calling for the resignation of McCausland.  Knowing what one knows about the building trade in nationalist political constituencies it is easy to conclude that they would not be too keen on a thorough going inspection and clean up themselves. They are up for an inquiry all right so all as it is confined to Red Sky.

We predict the two big political parties will continue on much as before, jockeying for position and biting into sectarian patronage and running down the public purse to no good end. The Orange Order, to give one example, is now subsidised like it wasn’t in the halcyon days of one party Orange rule; it receives money for its decorous band uniforms, to buy musical instruments, to pay for music lessons and there are more bands than ever. The local government even funds the bonfires, which used to be stuck up by nothing-to-do summer youths – now they are professional affairs put together by men using heavy machinery,  The mural painting of walls is also funded.

The Orange Order is renovating itself and building up a heritage with European Peace money to the tune of £7 million.  As for the paymaster of sectarianism in London, the real government has so far kept shtum and if things come to a breakdown they will invite in a prominent American to recommend some institutional changes probably along the line suggestion by the Belfast Telegraph i.e. make it harder for the main political parties to draw on a petition of concern to block a cross community majority vote. 

There is a mini crisis of confidence facing many of those well-educated professionals currently staffing the Public Sector. These people like to think of themselves as untouched by low-down sectarian squabbles. The Spotlight programme threw up a number of side issues that point in this direction.

It was pointed out in the programme that the first people to come under pressure was not the Housing Executive Chairman but the housing inspectors who had refused to give a pass to Red Sky’s shoddy work . The group development manager of Red Sky, one Pauline Gazzard, felt confident enough to write a letter to a senior Housing Executive manager with the expectation that the inspectors’ reports against Red Sky, put together by a conscientious district officer Gary Ballentine, an elder in the Presbyterian church, would be brushed aside: ‘It is also considered necessary to re-iterate our deep concern in relation to certain personalities who remain working in the West Belfast District Office and we trust appropriate actions will be taken to address this in the near future.’

The letter is address to a senior Housing Executive manager but was never seen by the Board or the Chairman when they were investigating the matter; the three West Belfast inspectors were in fact removed and sent elsewhere. What is abundantly clear is that senior managers at the Housing Executive were depriving the Board and the chairman of very relevant information.

The report that the chairman commissioned and delivered in 2011 discovered that 80% of the charging made by Red Sky was questionable. The upshot was that 8 managers were disciplined and some others retired early for allowing the overcharging to go on. The question to be pondered – were they in receipt of bribes or were they making a calculation that it would not be wise to rock the sectarian boat

If we next move on to the police, they have been asked three times to investigate matters pertaining to Red Sky.  Once in 2006 when several lesser Housing Executive workers were found to be taking gifts from Red Sky, no charges were preferred then.  The second time when Chairman Rowntree provided them with the evidence of criminal wrong doing in 2011, the evidence that was used to terminate the £7 million annual contract, and again the police sat on their hands.  Finally the Spotlight team asked the police were they thinking of opening up a new investigation; they replied not without evidence.

But if there was no evidence how come the Comptroller and Auditor General Kieran Donnelly says that ‘ a sample of 20 kitchen replacement schemes (out of a total of 242 schemes undertaken to date) found overpayments of £1.3 million out of a total cost for all schemes examined of £6.2 million. The potential total contractor overpayment since 2008 is estimated at around £18 million’

And there was other evidence; it came from Pauline Gazzard who no longer works for Red Sky/Totalis. When the administrator took over the running of Red Sky she wrote a 13-page letter to BDO explaining that she knew for a fact that the company she formerly worked for had bribed at least three procurement officers from the Housing Executive. The Spotlight reporter said ‘We asked the police ifthey had the letter now would they act on it now-they refused to comment.’

The Spotlight reporter then asked the Housing Executive Chairman, who had been keen to have the police involved, about the seeming lethargy of the police investigation and his reply was ‘I am absolutely gobsmacked’.   Then we have the administrators at BDO; Pauline Gazzard told Spotlight that she was surprised BDO showed no interest in her letter or her allegations. Not only that, BDO did not pass the information she gave them on to the Board of the Housing Executive or the police. When asked about the matter BDO claimed client confidentially meant they could not comment.

Here’s the rub. Did one small building firm have so much sway, over senior Housing Executive managers, over the police, over accountants and insolvency professionals, over politicians and then over the Head of the Government because of its economic weight, after all it was hardly BP or Shell Oil or is there another explanation?

The other explanation is a bit crude and may even sound offensive to some ears. The firm’s managers knew how to play the sectarian playbook to make other people quake a little.  The firm was quick to blame the Catholic residents for making false complaints, and then they said the inspectors were bigots even though this was patently untrue.  They then attacked the chairman of the Housing Executive indicating he was a dodgy nationalist, then they encouraged their work force to picket the offices of the Housing Executive, carrying banners with slogans like the Housing Executive is anti-Protestant, and finally they told the DUP that the firm had done no wrong and was being starved of work contracts because it was believed to be Protestant.

All those who stepped aside for Red Sky did so because they were conscious of the sectarian clouds that sit low and heavy over society. The politics is sectarian because the society is sectarian. What is more the sectarian cloud cover is thickening rather than dispersing due to the fact that sectarian politicians are taking over the basic departments of government. As for those working under the new dispensation, things are about to get a bit more complicated and choking.

In the more recent past, if you were a public sector professional you only had to contend with a subdued sectarianism, the police and the Northern Office of course was something different, now it is back and it is naked and outspoken.  What is even more disconcerting, the really green nationalists want you to bend in their direction too, overlook this misdemeanour, override a professional service protocol when instructed to do so by somebody with political connections.  How the hell do you bend in two sectarian directions at once?  Do you decide to bend with the Orange 60 per cent of the time and then bend with the Green the other 40 per cent?

The relationship between the relatively privileged professional classes who number a fair number and the sectarian society is about to get a bit more fraught. We can see clear evidence of this emerging from this case.  McCausland decided to wage a vendetta against the Chairman of the Housing Executive, so he asked for some evidence to get at his target.  Two senior DSD civil servants accompanied him to the infamous meeting with the Red Sky management at Stormont; the minutes of that meeting read like a party political conspiracy.  Is this what civil servants should be doing?

The DSD permanent secretary is busy trying to get Brian Rowntree removed from his other public service job with the civil service commissioners’ according to Spotlight he got his staff to trawl through thousands of e-mails hoping to find incriminating evidence against Rowntree.  What a truly poisonous atmosphere.

If a government department supervised by a political Orangeman hounds a career civil servant out of his post, will a department run by a Nationalist respond in kind, if you take out one of ours we will take out one of yours?  Legal threats are flying about left, right and centre.  No wonder the Spotlight programme began by saying that many people ‘we spoke to were scared to speak on the record.’ Most of these people were of the professional class. Welcome to the future sectarian society!  Mandy McAuley the girl that kicked the hornet’s nest.

BBC Spotlight and the Housing Executive – what sort of scandal?

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Housing Executive 2.jpg

BY Bellfast Plebian 

A little while ago (Jan 2013) this blog singled out Nelson MaCausland, a Minister in the stored Northern Ireland Executive, as a target for criticism.  This was no random selection of a minister in an improbable regional government that we happen to have little respect for. Nelson was a bit of a special case because he was the minister most likely to cause a commotion.

It was asserted that this neo-conservative Orangeman is about the least preferable person you could hope for in charge of managing the socially damaging CON-DEM policy of comprehensive welfare reform. We were sure his approach would be to offer minimum resistance to the drastic changes being proposed.  We were especially worried that he had been given overarching control over the Northern Ireland Housing Executive: the publicly funded organisation specifically mandated to allocate social housing on the basis of objective need rather than community and religious patronage.  The Minister we said was so ardent an evangelic Protestant and a strident Orangeman that he would be inclined to put the interest of promoting his own religious community above the important non-sectarian consideration that pertains to the neutral role required of a housing minister. Well it didn’t take very long for our worries about Nelson to be confirmed – the bomb exploded earlier than we anticipated – and a few days after we posted our account he began his political assault on the very existence of the Housing Executive.

At first Nelson’s spat with the Housing Executive was carefully phrased in the all too familiar neo-liberal one of saving the taxpayer money. The Housing Executive is managed and funded on the model of a department of the British Civil Service and because it is not classified as belonging to the private sector economy it is therefore almost by definition deemed to be inefficient and wasteful of taxpayer money by the major accountancy firms that aspire to set the standards for every social service. The new Housing Executive will work all the better if it is broken up and placed in the hands of Housing Associations that know the realities of private sector finance, so claimed Nelson.

Hardly anyone of influence objected to Nelson’s declared programme of privatisation barring a few union leaders that voiced worries over potential redundancies. To most tender minded folk (folk is the favoured term used by Nelson) the reasoning if not impeccable was at least normative for our current economic condition. More tough-minded types wondered if Nelson’s impeccable reasoning was merely a convenient cover to pursue an old style Orange vendetta against the Housing Executive. In certain quarters the Housing Executive is still thought of as an anti-Orange institution, something that was imposed on Orange society against its interest, a concession made in the past by a nervous Labour government running scared of the Northern Ireland civil rights campaign.

There is a certain type of Orangeman who resents the very existence of the Housing Executive, who would like to see it done too death.  I am certainly one of those dwindling number of suspicious types who still believe that there are plenty of unreformed Orangeman around, dreaming of taking back the little victories of the civil rights movement.  I suspected that Nelson was one of those unreformed Orangeman who was bent on returning to a long standing sectarian battle over the political control of social housing and I was aroused by the fact that Nelson was only into the job a few weeks when he began asking for the religious make up of the workforce, right down to the numbers in individual offices. Was he of the viewpoint that the Housing Executive had a pinko-management and a Catholic majority work force representing an earlier victory for the sectarian enemy?  Was he out to knock it of its previously set course?  I felt that he was one government minister that needed watching.

Last week the BBC Spotlight programme (3/7/2013) provided us with an insight into what Nelson’s real agenda had been since he became the social development minister.  Before the Spotlight programme was broadcast you could see the aura of hubris already taking shape around Nelson’s head.  On June 10 he had given the management of the Housing Executive a real roasting on the floor of the Assembly; all sorts of charges were flung against the former chairman Brian Rowntree.  He accused the Housing Executive of overspending on repair contracts to the tune of £18 MILLION on four contracts. He also said that one contractor Red Sky had been singled out by the Chairman for retribution for overcharging solely because it was perceived to be a Protestant firm. The unionist benches erupted with shouts of shame on the sectarian Housing Executive. What was also striking about Nelson’s performance was the pleasure he took in laying into the management of the Housing Executive and the satisfaction he got from seeing that the non-unionist parties offering only palliative opposition to his new plan to break up and privatise the public housing body.

Just four weeks later Nelson’s confidence took a punishing blow at the hands of a BBC television expose on what he had been doing out of plain sight.  It turns out that almost everything he said in the Assembly that day was so false that it might rightly called the opposite of the truth. He and his political adviser backed by his party leader had it seems been running a hate campaign against the ousted Chairman of the Housing Executive that smacked of venomous sectarianism. The BBC reporters provided more than enough evidence to allow for other Assembly members to demand his immediate resignation.

The story begins in April 2011 and a building maintenance company situated in the constituency of Peter Robinson goes into administration after a Housing Executive investigation into allegations of low standard work and overpayments. The Board of the Housing Executive felt it had no other option but to cancel the contract with Red Sky due to the facts put before them by inspectors pertaining to the poor quality of the work undertaken by the firm and also by the firms fraudulent charging of tasks not undertaken at all, estimated to be about £1.5 million. The decision of the cross community board was unanimous.

The management of Red Sky decided not to go quietly. In the middle of the April 2011 Assembly Election campaign they approached the leader of the DUP and First Minister Peter Robinson and informed him that the Housing Executive held a sectarian i.e. anti-Protestant bias against the company. Peter was furious about what he had been told about the Housing Executive decision and nine days later led a delegation to meet with its chairman Brian Rowntree to lobby on behalf of the firm. The minutes of that meeting record the First Minister stating that the decision to terminate the contract ‘reflected a sectarian bias on behalf of the Housing Executive.’ He also warned the Chairman that he could expect an enquiry into the Housing Executive after the election of May 2011.

After the Assembly election he appointed his own sectarian attack dog Nelson MaCausland to the post of minister in charge of Social Development, which covers supervision over social housing. A strategy meeting was held in Stormont building on 27 June to find out what could be done to get Red Sky back in the contract game. In attendance where the First Minister Peter Robinson, the Minister of DSD Nelson MaCausland, his political adviser Stephen Brimstone and the DUP MLA Robert Newton.  Crucially, neither the Housing Executive nor the Administrator for Red Sky was invited to the meeting. Three days later Nelson McCausland met with the Chairman of the Housing Executive to insist that the termination of the Red Sky contract be suspended for at least six months.

A letter from Housing Executive chairman Mr Rowntree to DSD Permanent Secretary Will Haire dated July 1, expressed ‘serious concerns and misgivings’ about the way Mr McCausland and his department were attempting to overturn the Board’s decision. Expressing the thought that both Mr Robinson and Mr McCausland may have broken the ministerial code of office by lobbying in support of Red Sky, Mr Rowntree added ‘We understand that meetings have taken place with the senior management of Red Sky in administration and the minister, first minister and other DUP representatives…. This raises the question of did these meetings constitute canvassing and lobbying for government contracts and in breach, not only of public procurement principles but basic codes of conduct in public life.’

Nelson McCausland later said that he took the letter to be like a declaration of war. Having failed to pressure the Chairman of the Housing Executive into overturning the Red Sky decision once, the DUP turned to one of its own councillors who sat on the board of the Housing Executive for a second go. The minister’s special political adviser, one Stephen Brimstone, made an eight-minute phone call to DUP councillor Jenny Palmer and more or less commanded her to change her vote at the next Board meeting called in July 2011 to re-examine the Red Sky decision.

Just ahead of the board meeting Jenny Palmer told the Chairman of the Housing Board about the DUP attempt to make her change her vote and he advised her to declare an interest and absent herself from the vote, which she did. When he failed to get the vote overturned Nelson McCausland carried out Peter Robinson’s original threat and ordered a comprehensive review into how the Housing Executive awards contracts to be carried out by chartered accountants ASM Howarth.  Four days before the ASM report is due to be delivered the Chairman of the Housing Executive resigned citing personal stress and a challenging relationship with the DSD and the minister.  At this point Nelson sensed a retreat, and then went on the offensive accusing the Housing Executive of failing its tenants across many fronts. In January 2013 he announced he intended breaking up the Housing Executive and passing on the ownership of the housing stock to privately run Housing Associations.

Public Reaction:

We will cover this in two episodes. In the first episode we got a party political reaction and a media assessment of a similar temper. Sinn Fein was in the best position to drive the questioning of the credibility of Nelson McCausland and his party boss. Their leader at Stormont is Martin McGuiness the joint first minister with Peter Robinson and their senior policy maker Alex Maskey just happens to be the chairman of the Social Development committee that is supposed to make the Minister accountable.  The first thing to note about Sinn Fein is the party did not call for any immediate resignations from the DUP led government. Some starry-eyed pundits in the media praised this restraint as showing their newfound political maturity.

Martin McGuiness made just two points; that the ‘statutory inquiry led by the DSD under Alex Maskey needs to begiven full support in its work’ and that it was necessary for the Parliamentary Standards Commissioner ‘to investigate the relevant matters raised in the programme as a matter of urgency, these allegationshave the potential to undermine public confidence in the public institutions.’ Two days after the Spotlight programme was broadcast Alex Maskey convened his investigative committee and Nelson duly appeared to face the music. It was the failure of the DSD committee to pursue Nelson that provoked the first episode of widespread negative media reaction.

‘The Irish News’, the main morning newspaper read by nationalists, headlined the report on the committee meeting as; Minister shrugged off Teletubbie Mauling. The chief reporter wrote ‘Chairman Alex Maskey seemed at pains to highlight the good relationship the Minister enjoyed with his scrutiny committee and beyond asserting that the public would be demanding answers said little to cause the DUP rep any concern.’ He concluded the report by stating that ‘all round it was an opportunity missed not so much a grilling as a friendly invitation to the minister to come and warm his toes by the fire.’ 

The Belfast Telegraph, a newspaper traditionally supportive of Unionism, was equally dismissive of the DSD questioning of the DUP minister.  The headline it ran on the 5/7/2013 was ‘Watchdog lets McCausland off the hook.’  The Telegraph reporter was struck by the deference shown to McCausland – ‘He spoke for 54 minutes without one interruption’, something that rarely happens in the equivalent British committees.  He suggested the members were discouraged by Nelson’s verbal dexterity in comparison to their own lack of education. Nelson walked away from the committee asserting that the BBC Spotlight broadcast was just a ‘hotchpotch of speculation, insinuation andinnuendo.’ He threatened the BBC with legal action, as did his boss Peter Robinson, and it should be said that we referred to Nelson’s animus against the local BBC news reporting in our previous blog – Nelson reckons it is moved by a strong anti-British bias.

Because of the general negative media reaction, Sinn Fein decided to take another step and asked for a summer recall of the Stormont Assembly for a one day debate.  It looked as if they felt they needed to perform a bit better than they did at the DSD committee meeting.  However there was still no demand for resignations, only for an investigation about standards of conduct.

It is important to note at this stage what the press and assorted pundits were saying was potentially wrong with what the DUP had been doing. One view was that there was a potential ‘corruption charge’ being levelled at the minister.  What this actually amounted to was difficult to pin down, there was no suggestion that Nelson had sought to make any personal financial gain from the Red Sky advocacy.  Then there was the Sinn Fein procedural charge of breaching the ministerial code of office by lobbying on behalf of a private firm for business contracts.  Peter Robinson felt able to dodge the ministerial code charge by a nimble use of procedural semantics.

On the 5th July he gave an interview to the Irish News claiming that he had attended the strategy meeting with Red Sky in his capacity as elected MP for East Belfast and not in his capacity as the First Minister ; ‘Could anybody expect that the elected representative of east Belfast would do anything other than get exercised about the loss of jobs andseek to do something about it’.  He also declared his annoyance at the BBC saying ‘ I’m no longer going to tolerate this kind of accusations that Spotlight throw out in the hope that nobody takes any action against them for it.’

So within two days of the programme the BBC Spotlight team were facing four legal threats, one from the First Minister, one from Social Development minister Nelson McCausland, one from the management of Red Sky and one from special adviser Stephen Brimstone. A couple of media pundits pointed out that the Executive had recently rejected British Government proposals to change the libel and defamation laws to lessen restrictions and now we know why.

The third area for media concern was about bullying – the attempted bullying of Jenny Palmer by male thugs.  Jenny Palmer was talked about in terms of being a whistleblower, a heroine in the making and she became the must have interviewee.  This was the theme of  ‘The Irish News’ political column by Fionnuala O’Connor – ‘DUP’s whistleblower gives cause for cheer’. The opposition Unionist party in particular made the bullying charge the big issue and their Ross Hussey appeared on the original Spotlight programme to decry the bullying.  Then in the DSD committee meeting Michael Copeland, another Unionist Party member, made the terrible treatment of Jenny Palmer the core of the issue.    

What was remarkable at this point was the fact that the elephant in the room of the evidently sectarian inspired onslaught on the Housing Executive went largely unspoken. This was so much the case that the critics of the media elevated the ultra right wing TUV leader Jim Allister to the role of champion of public morals.  Every time the media wanted a quote about the ‘scandal’ they looked first for one from Jim Allister.

‘The Irish News’ ran the next big story on the Red Sky affair on the 9th July under the front-page banner ‘Allister rounds on the DUP’ accompanied with a picture of him.  On the same day the ‘Belfast Telegraph’ ran their lead with ‘Corruption claims rock Assembly.’  Jim Allister had framed the criticism solely in terms of financial corruption and party political favouritism, and for now most of the political class and media were happy to let it all rest at that.  Jim Allister was afforded a guest column in the Telegraph on July 11th to present us with the heart of the matter: ‘while the party ‘s treatment of Jenny Palmer  is shocking, the most  damning portion of the programme was that which dealt with the glazing contracts after representations from a DUP-friendly contractor, Mr McCausland put on hold the glazing contracts.’

He also argued for a judge led inquiry under the 2005 Inquires Act because 10 of the 11 members of the DSD committee belonged to parties of the Executive.  Another media pundit Alec Kane actually found some comfort in the scandal writing in the Telegraph; ‘This is also the first major political story which hasn’t centred on a spat between unionism and republicanism or between the DUP/Sinn Fein and the smaller Executive parties. And again that is what makes it interesting, because it’s as close as we have come to a normal so called scandal.’ (5/7/2013)

to be continued.

Nelson McCausland, a little man with a big loud drum. (by Belfast plebian)

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47925243_3707225203_e18c6d4d4e-1It is a hell of a misfortune that at this time of a drastic need for some form of social protection for hard pressed working class families we are saddled with a social development minister in the Stormont Executive whose opinions accord well with the right wing government across the pond and who is also regarded by many as a hardened religious sectarian. This little man with the big drum is also proving to be the most active of the generally passive Stormont ministers.

It should be said at the outset that he took on the ministerial portfolio at a very awkward juncture when the Tory austerity plans where already in an advanced state. The SDLP of course vacated the crucial social development portfolio as soon as they caught sight of the content of the welfare reform bill and Sinn Fein screamed PASS to the chance to take over the department from the SDLP following the May 2011 assembly elections. Why Sinn Fein chose to take on the department of arts and culture, the one with the smallest budget and largely symbolic importance rather than one of the key economic departments stands as an interesting question without of course an answer.

Nelson McCausland is known for being an ardent Unionist, a formidable Orangeman and monarchist, a ‘pro-life’ evangelical Christian who is also a Creationist and of course a great enthusiast for something called the Ulster-Scots culture. Indeed it can be persuasively argued that he more than any other individual is responsible for the ideological mishmash called Ulster-Scots culture. When he was appointed to his previous ministerial post in 2009, in charge of dolling out money to the arts and science cliques, his primary mission was to raise Ulster-Scots heritage up a couple of intellectual notches to the status of ‘a traditional culture’ and therefore make it worthy of taxpayer cash. The small budget didn’t deter Nelson too much.

Before he captured the minister for arts and culture portfolio he was the director of a lobby organisation called the Ulster-Scots Heritage Council. Back in those days he had little or no money to promote Ulster Scots heritage as a rival to the Irish language and culture movement and so no one of any intellectual standing took him too seriously. It was only when he got his hands on the department cash card that the little man with the big drum had to be listened to by the typically anti heritage arts cliques.

For a brief moment Nelson attracted the attention of the middle brow Guardian newspaper, thus earning a wider notoriety and crossing swords with non-other than uber-scientist Richard Dawkins who declared that the minister was an unfit person to be in charge of science museums. This was after Nelson wrote to the Ulster Museum requiring that it display a range of Creationist inspired artefacts to offer the North’s naive children a legitimate alternative to the “unproved theory of evolution.”

It didn’t take much to put down poor Professor Dawkins, faced with the acuity of Ulster’s superior evangelical mind. “Dawkins is an arrogant and militant atheist who prides himself on his knowledge and reason. He loves to demean and disparage others but this time the mighty man came unstuck” declared Nelson on his personal blog.

Being anti-modern in evolutionary science has not stopped the little man with the big drum being a very successful politician, He is already into his second ministerial position and is easily the busiest minister. Some people think they know why he is so successful. The key to his lasting popularity they say is to be found in his very frequent sectarian public outbursts, something that goes down well in loyalist flag waving working class districts. Let’s run through just a few of his more recent efforts.

On the third of October the Belfast Telegraph ran a story -‘Fury after Nelson McCausland says there’s no need for more Derry housing funds.’ It emerged that the minister had refused a recent appeal by Derry City Councillors for additional funds for the Housing Executive to build more social housing in the city. The latest figures revealed that the number of families and single people on waiting lists had passed the 3,000 mark

Sinn Fein councillor Tony Hassan said ‘we get a letter back from the minister’s secretary and to me it was disgraceful.’ The SDLP councillor John Tierney called the statement of the minister ‘crazy’. And here’s a nice Nelson touch – ‘the minister’s letter also referred to Derry City Council in the address and throughout as City Council of Londonderry.’

On the 25 September he faced down an SDLP sponsored motion calling for a three month parliamentary suspension for supposedly breaching the ministerial code by failing to condemn illegal acts conducted by a royal black band parade as it swaggered outside St Patrick’s Church on Donegall Street in Belfast. The suspension motion attracted a lot of media attention and was voted down. And so the little man’s political stock went up within his own party. McCausland, more than most DUP politicians, gets a kick out of baiting both ‘republican’ and nationalist politicians. He runs his own blog just to keep the invective regular.

In mid-June we can pull out another two media stories, ably covered by the online newspaper the Detail. The story broke that Nelson McCausland had caused worry and anger among Housing Executive workers when he chose to provide fellow DUP assembly colleague Paula Bradley with the religious breakdown of staff employed in North Belfast in the most public way. The decision was strongly criticised by trade union officials who warned that publication of the religious designation of workers in specific localities might put them at risk.

Less than a week later a car belonging to a Housing Executive employee was destroyed after it was set on fire by masked youths as it was parked outside the agency’s district office in Newtownabbey. ‘The Detail understands that Housing Executive officials have been forced to review security measures at offices across Belfast as a result of the attack. In a series of questions to DSD ‘we asked Mr McCausland to explain why he decided to publish the figures against the advice of his own officials and despite staff concerns…We also asked DUP MLA Paula Bradley why she had originally asked for a religious breakdown of staff… she chose not to respond.’

Also in June McCausland was criticised for blocking plans to build 200 new houses for people deemed to be nationalists on the vacant site of the former Girdwood army base in North Belfast. ‘However the Detail can now reveal new evidence showing that the DUP minister held discussions with the Housing Executive to ensure that four loyalist areas in north Belfast were given preferential treatment to be included in a new housing building scheme despite having little or no sign of any significant homelessness.’ Nationalists make up most of the 1,300 people in homeless stress in North Belfast.

The Detail obtained evidence that emergency approval was used to ensure that the four estates were added three months after the three year building plan had been finalised by the Housing Executive. The change was all down to pressure from the DSD and was a clear breach of a 40 years old protocol that social housing should be allocated strictly on the basis of priority of need and not on the basis of political or religious affiliation. This incidentally dragged Sinn Fein into the mix as they had agreed to the decision at local level talks.

And here is one from this month, this time from Nelson’s personal blog. Under the heading Biased Broadcast Corporation he complains about a pro Sinn Fein bias at, of all places, BBC Northern Ireland . He thunders against a BBC documentary that he hasn’t even seen about the life of the youngest Lord Mayor of Belfast, who happens to be a member of Sinn Fein, councillor Niall O Donnghaile.

He notes ‘This is not the first BBC documentary on a Lord Mayor. There was also a documentary on Alex Maskey, who was Lord Mayor in 2002. In between there were eight other Lord Mayors and they were drawn from all the larger political parties, but the BBC has decided that the only party whose Lord Mayors merit a BBC documentary….There is an onus on the BBC to acknowledge that it was wrong to give preferential treatment to Sinn Fein, to determine how this happened, to ensure that it does not happen again and to take action to redress this balance.’ There is a lot of this type of thing on Nelson’s blog, most of it aimed at excoriating Sinn Fein, his partner in government.

So Nelson’s strong electoral success can be attributed to some degree to what appears to be his carefree sectarian mud-slinging that goes down well with his many loyalist followers. However this is not what I want to focus on so much, rather I want to show up his other prejudice, his right wing class prejudices that make him the emblematic leader of the main party of government at Stormont.

Nelson holds strong opinions on socio-economic matters but critics prefer to ignore them, all the more to encourage him to just get on with his ministerial post. If only Nelson would just do his job and not court publicity things would be fine say his newspaper critics. But Nelson is getting on with his job. In fact he has the two biggest policy initiatives of the Executive on his agenda, implementing the welfare reform bill and dismantling the Housing Executive.

We can pick up the thread of Nelson’s approach to welfare reform from his offering on the bedroom tax. The chief executive of the Northern Ireland Federation of Housing Associations (NIFHA) Cameron Watt recently called on Nelson to delay the implementation of the bedroom tax until the Universal Credit is actually ready to go. This would of course only mean a postponement of about six months, from April 2013 to October 2013.

According to NIFHA this is ‘necessary, realistic and fair.’ Nelson rejected the very meek proposal outright saying that ‘I intend to increase funding available for discretionary housing payments to be made to all social housing tenants.’ In other words if any of the 34,000 tenants experience problems with rent they might be able to get a discretionary payment to help them out. Housing officers are to be offered a new career path into becoming poor law guardians.

The public line of the Stormont Executive is that it is being blackmailed by the Con-Dem government into progressing the welfare reform bill. If it was down to them it would not happen but if they put obstacles in its way they would face financial penalties

Yet in his speech to the NIFHA conference Nelson says “Turning now to events at a UK level, everyone in the room will be aware of the welfare reform agenda which is progressing. We know that its implementation is unavoidable. I think most of us will agree that the key principles behind this legislation are positive and we should recognise the real positives and opportunities that can be achieved as a result of some of these reforms.”

The principle that Nelson likes most is the one that says a welfare system should promote personal and social responsibility. In fact Nelson being a keen evangelical is happy to edge the State out of welfare provision and get the churches in. His department has already licensed a couple of schemes to that end.

We find an article on his blog of 25 November 2012 called signposts for funding churches “The Minister for Social Development, Nelson McCausland, believes that there is a very critical role to be played by the faith sector in developing strategic partnerships with Government to help deliver practical approaches to tackling poverty. For this reason, the Minister funds the Faith Forum for Social Development …. Minister McCausland wants all faith-based groups to become engaged with the Department whether it is on local Neighbourhood Renewal Partnerships, benefit uptake or helping ensure the connections exist between vulnerable citizens and agencies such as the Social Security Agency or the Housing Executive. There is no cost to them and only benefits to be gained by those most in need.

Nelson’s DSD operates something called the Voluntary and Community Unit which doles out millions to agencies like the Law Centre, Citizens Advice Bureau and Northern Ireland Council For Voluntary Action. It also funds the Regional Infrastructure Programme which has an annual budget of 3 million to fund community groups. Some scope then for Nelson to put his own brand of welfare policy into operation.

The day Nelson became Social Development minister in May 2012 was the day the death knell sounded for the Northern Ireland Housing Executive (NIHE) and of socialised housing. Nelson has chosen to make social housing his battlefront. We already mentioned the clash over the abandoned Girdwood Barracks, the emails seeking knowledge of the religious makeup of the Belfast offices in February 2012 and the publication of Catholic numbers working in Newtownabbey.

There has also been his row with the senior management over a £7 million repair contract with a company situated in East Belfast, Red Sky. The contract was terminated in July 2011 following accusations that the company had engaged in a practice of overcharging. Huge political pressure was piled on the NIHE to overturn the termination of the contract

Three days into his post Nelson met with the NIHE chairman Brian Rowntree to ask that the decision be suspended for six months. The investigative magazine the Detail gained access to the emails. The NIHE chairman sent one to the Department for Social Development (DSD) Permanent Secretary Will Haire on July1 saying he had ‘serious concerns and misgivings’ over the pressure being applied by the DSD over the contract and asked that the minister take a step back. The DSD permanent secretary emailed back saying ‘I believe that you should withdraw the remarks you made.’ Four days later Mr Rowntree resigned as Chairman citing personal reasons.

Nelson knows a few things about the NIHE that are not to his liking. He knows that it came into being to end the allocation of social housing on the basis of religious affiliation and he knows it always has had a catholic majority in its staff. But putting the sectarian boot into the NIHE is not his only motivation. He does not like its social democratic ethos. He is in fact busy drawing up plans to have it broken up and privatised.

It is likely that the 90,000 tenants will be transferred to private Housing Association where rents are higher. A good number of redundancies will follow out of the 2,800 staff. For those who think he will face opposition from Sinn Fein – think again. In July Stormont announced that it had set itself a target of transferring 2,000 homes to Housing Associations and a number of British based Housing Associations are said to be taking soundings. The public justification for the change is stated in the consultation documents, which is the need to raise a billion pounds for repair work. The NIHE is not able to raise loans from private banks but Housing Associations can do so.

What is motivating the politicians in the Stormont Executive to break up and privatise the NIHE? Some might think it is pure sectarianism. But if it is, what about Sinn Fein? Do they also want a sectarian carve up? Is it simply a relentless falling into line to what is happening to social policy in Britain, with the varied the attacks on the social housing sector? Is it the Stormont Executive looking for one way to cut its own costs in this time of austerity? Or is it that nobody wants to rock the Stormont boat too much in case it sinks and so Nelson must be left to pursue his own private political agenda with a minimum of opposition? Maybe all the above motivations are factors? What do you think?