The front page of this mornings MetroHerald ran with a story claiming that the government had issued a “tacit threat” to Passport Services that the division could be outsourced if proposed strike action continued.  The article claimed “Passport Services could be shifted to another department or even outsourced, top Government officials warned yesterday”.  Tucked away on page 5 was a story about Brian Cowen’s backing of the board of Anglo’s decision to give salary increases to 78 staff.  The front page of the Irish Independent advertised two opinion pieces: One by Martina Devlin titled “My passport nightmare” and another by Brendan Keenan titles “Nursing the banks back to health”.  The rhetoric implied by these headlines is another example of the current trend of pitting ‘public’ and ‘private’ sectors against each other.

The image of Irish society that this paints is disturbing.  Are we living in a country where the ‘audacity’ of the public sector mobilising any sort of union power to assert their grievances is met with veiled threats, but where an obscenely inept bank which has guzzled tax-payers’ money to the extent of state ownership is allowed to give its staff pay raises while the same Government steps politely aside?  Responding to appeal by Eamon Gilmore to halt this salary bump, Brian Cowen suggested that “The board have my and the Government’s confidence”.

But what, pray tell, has inspired this ‘confidence’? Is it that the bank operates in the loosely defined ‘private sector’ and, like NAMA, can be trusted to make its own decisions with regard the mechanics of its operations?  Meanwhile, because Passport Services operate in the realm of the ‘public sector’ they must toe the line or face dissolution and privatisation.  Within the current climate of bail-outs and cut-backs just what actually defines the line between ‘public’ and ‘private’ sectors?  As suggested here recently, the Government’s position is disingenuous: on the one hand extolling the benefits of free market neoliberalism and on the other correcting any free market mistakes with tax revenue.  Perhaps if Passport Services was to be outsourced, the unit would then be in a position to dictate its own rates of pay, resist cut-backs, and siphon Government spending.  The inverse logic of this boggles the brain. The horror, the horror.

Cian O’ Callaghan

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Looks like Nama’s starting to get going. Good stuff. Now we find out how much we’re going to be paying. Then I suppose we can start planning. If it’s €10bn over ten years, that’s €1bn per year, is it? And if it’s more likely to be €30bn over ten years, then that’s €3bn. But, sure, isn’t the €30bn estimate more on the optimistic side of the realistic/pessimistic view? Could it be that we’re in for €40bn? (more…)