Trade union leaders support austerity? Oh yes they do!

Pantomime season is upon us, where actors go through well rehearsed and sometimes laughable theatrics to keep us distracted in the chilly season, performing roles we have seen so many times we could write the script ourselves.  Familiarity creates half the fun for the adults and innocent gullibility the mirth for the children.  Or at least for some.

A number of years ago a work colleague reported a conversation between two young boys sitting behind him while he was watching a panto with his kids.  “He’s behind you”, roared the children in the audience, only for the object of their warnings to turn round and miss the actions of the dastardly villain about to carry out the nefarious deed.  “Oh no he’s not” exclaimed the gormless actor.  “Oh yes he is!” screamed the children in the audience.  “He’s behind you!” they would roar again and so again would the witless actor turn round to see nothing amiss.  This obviously went on at some length until my friend heard one very well-spoken boy behind him tell his companion to shut up about the “he’s behind you” stuff – “be quiet Roger, the man’s obviously a fool.”

This story came into my head when I read the latest statement from the Irish Congress of Trade Unions (ICTU) about the “Fresh Start” agreement between the British Government, Irish Government and Northern Ireland parties.  The agreement was a stunning exposure of the hollowness of Sinn Fein’s opposition to austerity as it agreed and subsequently praised its agreement to Tory austerity, with less mitigation of the cuts than they had previously denounced as harmful to the most vulnerable.  The rest and larger part of austerity, including job losses, it had simply ignored as it happily implemented the cuts without a murmur of protest.  Shame and embarrassment are fundamentally important human emotions but there is something that Sinn Fein and the Tories share – they don’t have any such feelings.

The ICTU statement is a staged event which acts out opposition that is without even the merit of being funny and which could only be bought as serious if one was a small child, or rather the vast majority of small children.  It sets out ICTU’s support for the agreement even though this agreement is an agreement to implement austerity.  How then do ICTU hope to oppose austerity while supporting the agreement that implements it?

Why, you may as well shout “he’s behind you”, because austerity lies inside, behind, beside and in front of the ‘Fresh Start’ but ICTU will pretend not to see it – “Oh no it’s not! – it’s over there”.  “It’s inside, behind, beside and in front of you!” you might cry, to no avail.  And so it might go on.

As you can see, not half as funny as your regular panto.

The ICTU statement is full of lies and pathetic, vapid declarations of opposition that are a tiny leaf protecting its extremely modest pretence at opposition.  Not so much the naked emperor as the emperor’s naked servant.

So we can’t get past the first line of the statement before we get untruthful nonsense – “Given the critical role of the NI trade union movement in promoting and securing a peace process, Congress views it as essential that our devolved institutions remain intact.”

As a matter of fact it was not the trade unions and their large rallies that created the peace process but the secret negotiations between the British Government and republicans plus the unionists.  Everyone knows this.  All the rallies organised by ICTU did was reinforce support for the view that peace lay with those responsible for the violence.  It is only in the sense that ICTU continues to support the same sectarian politicians that can it claim to continue to “secure” the peace.

As I pointed out before, the demand for local sectarian institutions was justified by the erroneous claim that this was required to end the violence, while now acceptance of violence is justified by needing to do so to save the institutions.  Now ICTU claim that the existence of the sectarian institution is necessary to oppose austerity – “The imposition of Direct Rule would have unimagined consequences for the most marginalised in our society, as well as for trade unionists”, when in fact it has just been demonstrated to all but gullible children that austerity is necessary for the survival of the sectarian institutions.

In order to avoid reality ICTU is required to peddle the same nonsense as Sinn Fein but because it cannot be seen to be politically partisan it has to go further and cover up for all the political parties, including those whose policies are to the right even of the evil Tories and who make little pretence about their support for austerity: “Congress accepts the validity of the statements made by political parties that they pressed the UK Government for additional financial resources for NI to no avail  . . . Congress in this context recognises that our political parties are facing up to their responsibilities to ameliorate the negative impact of welfare reform.”

Other embarrassing aspects of the agreement are hard to just ignore so instead they are ‘noted’ –“Congress, while noting the insertion of a clause in the Fresh Start Agreement which specifies that the cut in Corporation Tax can only occur if the NI Executive’s finances are on a ‘sustainable footing’, will continue to oppose the cutting of CT in the unconditional method as advocated in the Agreement.”

I don’t know what this means. Is cutting corporation tax ok if finances are on a ‘sustainable footing’; does ICTU oppose “unconditional” cuts only but support cuts with conditions; what would these be?  Does the agreement not already state conditionality – finances on a ‘sustainable footing’ – so does this not therefore mean it supports the agreement on this issue as well?

ICTU claims it will oppose the terrible austerity but only in so far as it is the responsibility of the Tories in London, without accepting the responsibility of the local reactionary parties for agreeing to it and implementing it.  All so that ICTU can pretend that the face of austerity is not in front of them when they go to lobby the local parties but is “behind them”.

ICTU pledges that it will “continue a vibrant opposition to austerity” but this opposition rests on a platform of “actions” that read not as solutions to austerity but as a list of “actions” that provide jobs for trade union bureaucrats.  Their alternative policies consist of economic strategies, models, policies and quangos that culminate in a plea for the notorious patronage in existence not to pass them by – “That the membership of the trade union movement, as the largest civil society organisation in NI, be reflected in the composition of public bodies proposed under the Fresh Start Agreement.”  So while thousands of public sector jobs disappear ICTU wants jobs for their head boys and girls.

The duplicity of the drafting of this rotten statement is exposed by the first lines of the statement being contradicted by the last – “Congress advises all of its members to note that the Fresh Start Agreement is not a trade union agreement but one reached by democratically elected political parties and both governments.”  Having claimed credit for the process at the beginning they deny responsibility for its results at the end, from embracing it they state it’s nothing to do with them.

Which of course implies that one of their claims is actually true.  And since I’ve just said that the opening lines were a lie, this means their concluding lines are correct.  But only in the literal sense that the deal was made by the local parties and British Government, and the Irish government were in attendance as well.

The political purpose of the statement however is clear – don’t blame us for the consequences of the deal we’re supporting, we didn’t negotiate it, the “democratically elected” politicians did.  More bluntly – you elected these people so you’re getting what you voted for.

This is also true and explains the ability of the two main parties to come out of negotiations confident they will still be the two biggest parties after the next election.  But this does not excuse ICTU or its rotten statement.  It simply means they lack the courage of their declared convictions.  Most crucially it means they provide no alternative to austerity but are unable and unwilling to admit it.

But doesn’t the fact that the majority has voted, and repeatedly voted, for these sectarian parties that are imposing austerity mean that there really is no alternative?

Well, yes and no.  Yes, because there is no political alternative at present to the collective plans of the British and Irish governments and the sectarian parties – no one can credibly claim that there is even a semi-coherent practical alternative being debated, or even ignored.

No, because these agreements always erupt into crises because the parties just don‘t agree on what their agreements are. ICTU backs every rotten deal that comes along and then they fail; so there will at some point be an alternative.  The problem is that there is no progressive, working class one on the horizon.

No again, because the statement not only fails to oppose the agreement and the austerity that necessarily goes with it but endorses it.  Exposing the austerity that resides in the heart of the agreement would begin to weaken it on grounds that are minimally progressive.  When the leaders of ICTU can’t even oppose austerity then what we need is to oppose the ICTU leaders.

ICTU Congress Ennis 7th and 8th July – David Begg & ICTU should answer for his role on Central Bank Board‏

ICTU_david_beggs_Dec282009When the Irish financial system collapsed in 2008 bringing down the finances of the State with it there were plenty of people to point the finger at.

The banks who lent recklessly; the property developers who speculated wildly, the politicians for having encouraged and benefited from the bubble, the Regulator for having fallen asleep at the wheel, the Finance Ministry for having fuelled the fire with tax breaks, the auditors for having signed off on bankrupt organisations and sanctioning absurd valuations, the European Union for making us pay for  the bankers, the IMF for not warning about the danger, the economists who saw nothing wrong and assured everyone of a ‘soft landing’, the press and media for eulogising the Celtic Tiger miracle economy that fed it ever growing revenue from property advertising, and of course  the current Taoiseach Enda Kenny who told the people that they were to blame – “What happened in our country was that people simply went mad borrowing” he told the rich and powerful at Davos in 2012.


Have I missed anyone?

Well actually I have.

The following appeal was sent by a reader of the blog in Dublin.

“There is an opportunity to highlight the need to end the culture of collusion between full time trade union bureaucrats and Government/Troika at the Irish Congress of Trade Unions biennial conference on Tuesday and Wednesday next week. We the victims of austerity should let the bureaucrats and delegates attending know the collusion must end. They have sold out Irish workers.

It has been rumoured that David Begg former General Secretary of ICTU who sat on the Central Bank board for 13 years and never uttered a word of warning to Irish workers about what was happening will be receiving a send off as he retired last year. Mr Begg was formally representing ICTU on the CB board and crucially was chair of the Central Bank Audit committee during the crucial years of the boom and subsequent bust.  He’s due to appear before the banking inquiry on 22nd July.

Activists could leaflet delegates to demand that Mr Begg compile a report answering to Irish workers and their families for his failure to alert us about what was going on and for which we’re now paying. He and ICTU had a watchdog role on the CB and owe us an explanation for their failure in fulfilling that role. Some of the responsibility for water charges, cuts, misery, poverty, homelessness and plundering of resources falls on their shoulders because of their inaction in the years leading up to the crash and bail out.

ICTU have other questions to answer –Mr Begg’s role on the Central Bank board was raised on RTE’s Liveline, following the programme ICTU complained and RTE immediately took down the podcast of the programme and issued a disclaimer the following day.

Can ICTU now reveal what their role was in this episode of censoring entirely legitimate questions and debate on Mr Begg’s role on the Central Bank Board? Perhaps Denis O’Brien has just been following in their footsteps in demanding censorship. In case anyone wants to get in contact I have a page Stop Union Sell out which I’m promoting and would be more than happy for you to post on it.”

Revealing the truth about Anglo-Irish Bank – RTE censorship and ICTU complicity

David BeggThe release of the tapes recording the Executives of Anglo-Irish bank conspiring to rob billions from the Irish people has led to a clamour for an enquiry so that the full truth can be revealed.  In my last post I argued that this truth includes the plain and obvious fact that it has been the State that has made the reckless gambles of Anglo the burden of the people.  These Executives showed no great concern that the organs of the State would prove any barrier to their plans.  In this they were of course proved exactly right.

I argued that what is required is that workers should fight for their own inquiry to reveal this and other truths that remain obscured, not least by the media that presents itself as the vehicle for revealing the truth.  I suggested that workers should fight in their trade unions to launch such an inquiry.

I have just received an email that throws light not only on the role of the media but also that of the trade unions.  In particular it shows that the leadership of the trade union movement in the person of its General Secretary, David Begg, has questions to answer over his complicity in the complete and utter failure to regulate Anglo-Irish bank.

The text below recounts the intervention of a reader of the blog into RTE’s Liveline radio programme, which addressed the Anglo tapes.  She questioned the role of David Begg, which subsequently led to a complaint by him and the removal by RTE of the podcast of the programme.  The alacrity with which Begg moved to defend his reputation can be compared to his apparent inactivity in ensuring the Central Bank performed all the roles it was responsible for and which he presumably was on its Board to ensure were discharged.

Anne has written a draft letter of complaint to RTE and has asked for signatures to a petition, both of which are set out below.

This episode highlights the need for a workers’ campaign to highlight the full truth of the banking collapse and hold all those guilty to account.  Not least the system itself.


On Liveline 27th June I got the opportunity to speak about my reaction to the Anglo tapes. I mentioned the protests organised each Sunday by ‘Dublin says No’ and encouraged people to attend protests that are organized around the country by the ‘Say No’ campaigns. So listen in to a podcast for the item. It is the first on the play list. Overall it was a good programme and showed the anger people feel.

I mentioned a few issues. Firstly that in Feb 2009 a group of teachers picketed Anglo-Irish bank in protest against the bail out of the bankers/speculators and to show our anger at the massive cuts that were taking place in our schools and in public services. I said a group of us went into the bank briefly to ask workers to tell us the truth about the real state of the bank as we were supposed to own this bank yet we were not allowed to even know what was going on.

I mentioned that David Begg head of ICTU sat on the Audit Committee of the Central Bank during the most damaging years of the credit bubble. He had access to what was going on in the Central Bank and that Mr Begg knows the true story and should make a detailed statement of what went on. He was supposed to be representing our interests.  Either he was happy the way the Central Bank was fulfilling its obligation to oversee the banks or he was sleeping on the job and knew nothing. Either way he should RESIGN. Begg then should have acted like the whistleblower Edward Snowden today, and in that case we might not have the present devastation to our lives.

I also mentioned that at the time of the Anglo take-over public services were being massively cut; huge cuts in education, my area of work, in our pay and pensions and that at the time Waterford Crystal workers were occupying the company as it was closing but there was no rescue for them. Mr Begg did nothing to organize a national campaign to save a flagship company while the nest of thieves in Anglo was being bailed out by the organisation of which he was a leading figure.

I contrasted what had happened to 1913, when Dublin workers stood up against the employers. They were able to gain their dignity and build the trade union movement as a real force while today when we are being ground into the dust and the trade union leaders are committed to working within the injustice and tyranny of the Troika programme. I said it was time to stand up for our right for a civilized way of life for ourselves and our children and that people should come out and join the ‘Dublin says No’ to the Bailout protests. I commented on our small numbers and the thousands of Brazilians who were protesting on O’Connell St 2 weeks ago against corruption in Brazil. It was time for people to act for themselves.

I also said that the contracts of public sector workers were torn up and emergency legislation enacted to steal our pay while nothing is done to take the massive pensions off the politicians such as Bertie Ahern. He should be stripped of his pension and the assets of the perpetrators of the crimes against us seized.

Letter of Complaint to RTE

I wish to formally complain to RTE regarding the disclaimer statement carried at the beginning of the Liveline programme 28th June 2013. It stated that RTE accepted that comments on the Live Line programme of 27th June relating to ICTU General Secretary David Begg were wholly untrue and without foundation and we also accept that Mr Begg was never a member of the Banking Regulatory Authority. We want to make clear that there was no suggestion on Live Line part that David Begg  is or was responsible or aware of any of the wrongdoings of Anglo Irish Bank which he condemned in the strongest possible terms.

RTE in acting in the manner in which it has are neglecting their duty to deal with a perfectly legitimate call from me. They are curtailing an important discussion on the role of people who held senior positions on the Board of the Central Bank leading up to and during the nationalisation of Anglo. A major scandal has blown up regarding Anglo Irish Bank where we are learning day by day of the deeply scandalous behaviour of senior executives at the bank.

Mr Begg made his complaint on the narrow base that he was not a member of the Banking Regulatory authority but I made no reference in my comments on Live Line to this.   It is a matter of record that Mr Begg had a number of major responsibilities as a member of the Board of the Central Bank, of which he was a member between 1997 and 2011. These are outlined below and as such he should have been aware of what was going on in Anglo.

Report of the Central Bank and Financial Services Authority of Ireland for the year ended 31 December 2006

Board Procedures (Page 62)

The Board holds eleven regular meetings each year. A quorum of seven normally applies for all meetings. The Governor approves the agenda and papers, which are circulated to the Directors one week in advance of meetings. Additional Board meetings may be called by the Governor at short notice either on his own initiative or at the request of any two Directors.

The Secretary of the Bank keeps minutes of meetings.

The agenda for meetings typically includes:

_ Reports on monetary and financial developments;

_ Reports on various issues relating to the Irish economy, the European economy and the international economy;

_ Reports on regulatory developments to keep the Board informed on policy issues and where decisions by the Board are required;

_ Management of the investment assets of the Bank;

_ Substantial financial contracts to be placed by the Bank for the procurement of goods and services;

_ General management, planning and budgetary issues;

_ Quarterly and annual financial statements and results.

Board Sub-Committees

The Board established three sub-committees on 30 June 1994 as follows:

_ The Audit Committee; The Remuneration and Budget Committee; The Investments Committee.

Board regulations detail the terms of reference of each sub-committee and membership in each case is comprised of Directors — of whom one is appointed as Chairman — and a further member of the Regulatory Authority with observer status. The Secretary of the Bank, or a nominee, minutes all meetings of the subcommittees and, when approved, these minutes are circulated to the Board. The members of the sub-committees, as at 31 May 2007, were as follows:

The Audit Committee members; David Begg (Chair), Martin O’Donoghue, Deirdre Purcell*, Alan Ashe**

( *Members of both the Board and the Regulatory Authority. **Members of the Regulatory Authority who are not also members of the Board but who participate at meetings of the above CBFSAI Board committees with observer status.)

It is clear from the agendas of the meetings that the Board members had a responsibility in overseeing the state of the banks which would have included Anglo Irish Bank, the 3rd largest lender at that time.  It is inconceivable that Mr Begg was completely unaware of whether the Central Bank was fulfilling its obligation to oversee the banks considering the agenda of Board Meetings and also given that he was Chair of the Audit Committee.

As General Secretary of the ICTU he is expected to represent the interests of workers/ordinary tax payers and I called Liveline as a long time trade union member concerned at the devastating consequences of the bail out of Anglo and the shocking revelations in the tapes.

RTE as a public service broadcaster should be to the forefront in lifting the veil of secrecy that has surrounded the bail out of Anglo, instead it has in this instance censored an important discussion and is failing in its duty to investigate or allow discussion on how the members of the Board of the Central Bank have fulfilled their role the role.

The refusal to podcast the programme is a further example of failing in its duty

Furthermore the disclaimer statement is an attack on my integrity and the truthfulness of my contribution to the programme. As you can see from the above excerpt on the operation of the Central Bank, I did not stray from the facts surrounding Mr Begg’s role on the Board of the Central Bank.

I request a copy of the transcript of my comments on the Liveline programme as my good name has  been brought into question by the disclaimer.

I expect an apology for the aspersions cast on my character on national airwaves.


Statement condemning RTE censorship on the role of General Secretary of ICTU David Begg in his capacity as a Board member of the Central Bank

We the undersigned strongly condemn the censorship of discussion by RTE of comments and questions raised as to the role of the General Secretary of ICTU David Begg in his capacity as a board member of the Central Bank and chair of the audit committee of the Central Bank during the period covering the boom years and the subsequent collapse of the banking system.

This gross self censorship by RTE on these legitimate questions and the subsequent erasure of the podcast of the Liveline programme of 27th June 2013 is a shameful and disgraceful episode for RTE as national broadcaster.

The role of the ICTU in demanding a disclaimer on the narrow basis that David Begg was not on the regulatory authority, (a claim that was never made) is an issue of concern for trade union members and all those affected by the criminal activity within the banking sector.  The role of a senior member of the trade union movement in these catastrophic events should not be and cannot be censored.