TheStory.ie

EDIT: [As pointed out by Dave Molloy in comments. “Sorry, but, ‘payments made last year’ and “earlier this year said he would forgo his pension” (from then on, presumably) seem compatible, no?”]. I got the relevant years mixed. Post left as was to show the world my foolishness and remind me not to post in such haste again. – Mark

Both myself and Gav are hectic with the day jobs (shocker, jobs!) and haven’t had the time to blog anything too significant of late. We’re getting around to it.

In the meantime; isn’t it amazing that a detail like the following doesn’t get more than 30 words, 12 paragraphs down, 17 pages into your newspaper these days.

Fiach Kelly in the Irish Independent yesterday;

Accounts published last night by the Department of Finance also showed pension payments made last year to former office holders including: former Taoisigh John Bruton (€100,027); Garret FitzGerald (€103,926); Albert Reynolds (€109,358); and Bertie Ahern (€98,901).

Mr Ahern, a sitting TD, earlier this year said he would forgo his pension while he was still serving in the Dail.

I suppose Ahern could argue he’s not actually a ‘sitting’ TD, if he had the neck.

(Eh I agree with Dave below Mark, have you read this incorrectly? – Gav)

… this letter on Conor Pope’s blog.

Stories about Ireland are leading both the Ft.com and WSJ.com.

WSJ:

Ireland’s deepening troubles raise doubts about the wisdom of the stringent fiscal austerity measures that the former Celtic Tiger and other European countries have put in place, which effectively hamper consumers and take cash out of the economy.

At the same time, Ireland’s gloomy prospects mean the government may have to make even deeper cuts this winter to reduce its budget deficit, which is expected to surpass 25% of GDP this year, the biggest in the 16-nation euro area by that measure. The possible doubling in the deficit—now about 12% of GDP—is due largely to the cost of bailing out troubled banks.

FT:

News that Ireland’s GDP fell 1.2 per cent in the second quarter added to the anxiety, as did rumours of a default by Allied Irish Banks. It should be stressed there has been nothing to suggest the latter is anything other than market scuttlebutt.

The markets are confused by Allied Irish Banks (AIB, known as AIB) and Anglo Irish Bank (‘AIB’ known as Anglo)?

Jesus lads, even a name change, just for the next day or so?

I hope to write something worthwhile later tonight. Until then I shall continue outsourcing comment to FT Alphaville.

In addition to what’s now being called the ‘Irish Panic’ — after the market punched Ireland credit default swaps in the face on Thursday, following fears that Anglo Irish will be brought down by its subordinated debt — here’s another Gaelic headache…

It must be some sort of economic indicator when a small country’s bloggers begin regularly outsourcing comment to the Financial Times. Suggested names for said indicator gratefully received via postcard or comment.

This was published nearly a week back but it’s still worth a read.

QUALIFIED solicitors and accountants have been applying for some of the 25 positions that have been advertised at the refurbished Supermacs fast food restaurant in Kilkenny.

Supermacs human resources manager, Jacintha Greene told the Kilkenny People that due to the calibre of the people applying, compiling a shortlist had become “a bit of a nightmare.”

She said that she had received applications from people with masters level qualifications in law and finance, even qualified solicitors and accountants.

Props to the sub on the headline.

There was a similar scene filmed for a 1985/86/87 news report, I recall, with a law graduate looking for a job in the [then] new McDonalds on the Navan Road in Cabra. I’ve two gummy bears and a melted Wham bar for anyone who can locate the footage.

With news stories like that and reports like this by Mr Singh The Clash’s questions remain relevant for far too many people my age.

Best leave two hours for Reeling in the Years 2010, Mr Scheduler.

CIÉ is funky.

The issue was so serious that CIÉ deemed that it merited an investigation in 2009 by external consultants Baker Tilly Ryan and Glennon. However, it did not think it worth keeping the department in the loop about the problem and more seriously, the executive chairman of the company, John Lynch, did not mention the issue in his annual statement on compliance by the company to the department. When tackled on the issue Mr Lynch acknowledged his mistake and explained that “as the issues arising were being dealt with, he felt that there was no need to make specific mention in that regard”.

[…] But the real problem – the failure of the CIÉ board and its executive chairman to disclose what at the very least was an embarrassing problem that did not reflect well on them – to its shareholder is not so easily fixed.

It might be possible to dismiss the issue as a once off, but for the fact that the C&AG’s limited enough study found other serious governance failures.

According to the report CIÉ was a month and a half late submitting its unaudited interim accounts to the department in 2009. It was also late with its draft unaudited annual accounts and over two months late in the submission to Government of its annual report and accounts.

The other issue raised by the C&AG was the failure of Lynch to submit his chairman’s report for 2009 under the 2009 Code of Practice for the Governance of State Bodies. He submitted it instead under the older 2001 code of practice and when requested to resubmit it under the new code, he did so in July 2010.

I’ve previously blogged on the Baker Tilly Report here in some detail. The only digital copy is available at that link if you wish to have a gander. John Lynch has got the odd mention or two around these parts also.

FOOTNOTE: CIÉ is not under FOI. I don’t know why either, guess various ministers never got around to it. The State is the sole owner. It’s a statutory corporation…

Irish bonds are at a new record high (6.250). Really should be watching closely today.

Update: Oh dear, AIB.

Update II: Alphaville again.

Update III: Alphaville again, again. See quote below.

Update IV: Record closing high today, having reached record trading high. Now lead story on FT.com. ECB intervened to prop us up. If you can’t access the story at that link head to Google and search “Irish bonds fall on bail-out fears”, then click through.

If the Irish real estate crash goes on, and the recovery rates on bank assets weaken – the Irish state is vulnerable because it’s pegged its support to certain levels of recovery in bank assets.

It’s a very uncertain process — but a dangerous one, because the extent of the bank rescue so far doesn’t give the Irish government much more room in 2011. So when you see things like this from the IMF on the wires:

RTRS-IRISH AUTHORITIES CONTINUING SUPPORT FOR BANKING SYSTEM HELPS MAINTAIN FINANCIAL STABILITY- IMF SPOKESPERSONRTRS-IRISH AUTHORITIES CONTINUING SUPPORT FOR BANKING SYSTEM HELPS MAINTAIN FINANCIAL STABILITY- IMF SPOKESPERSON

Know that this ‘continuing support’ is the entire problem.

Stuff you might find interesting to watch

Bloomberg; Irish ten year bond graph.

(Here’s the last year. See that high, team?)

This Property Pin Thread.

Comment on Twitter; Bondwatch. Ciara O’Brien of the Irish Times Online Business Desk.

And maybe the reasons why it kicked off? Alphaville picked up on this Barclay’s report (with the headline ‘Irish Government debt needs you’), which was then picked up by Zerohedge (‘Ireland Negotiating With Bondholders Over Anglo Irish Default, As Country Prepares To Call In IMF’) and the national papers this morning. Resulting in negative sentiment and ‘Irish panic‘.

—

Of course these new record highs are simply part of the ebbs and flows of the markets. Aren’t they?

Eek.