Madam, – I heard much that was heartening in Brian Cowen’s keynote speech at the Fianna Fáil ardfheis on Saturday night. It contained many positive messages but it lacked one important ingredient – an acknowledgement of, and apology for, the role of successive governments, most of them led by Fianna Fail, in leading us into our current difficulties.
Mr Cowen could have given his own example of “new thinking”, rather than trying to cover up the sins of the past by repeating the now morally and intellectually debased mantra that “during the good times we could afford it”.
Without such an acknowledgement and a demonstrable commitment to change for the better, neither he nor any of the other political leaders will be able to win the support of the bulk of the people of this country. – Yours, etc,
Madam, – My goodness, our former minister for finance, Charlie McCreevy (February 28th), is getting a little thin-skinned in that bubble they call Brussels. Has it come to pass that where he comes across an error by a commentator, he seizes upon it, despite his protestations to the contrary?
This is a man whose reputation is rapidly going south. The actions he took while in office cannot be divorced from the financial crisis that Ireland faces today. The paint has all but peeled away, the folly of his policies is exposed, and the vanity that conceived them has been revealed.
Would it not be great to hear a simple “mea culpa”? Maybe then we could start to build an economy that has substance, and a government that has the trust of the people. – Yours, etc,
Madam, – Reading Stephen Collins’s report last Friday about five TDs refusing to pass a picket put on Leinster House, I couldn’t help wondering how much better the country would run if all TDs refused to pass. – Yours, etc,
Madam, – So Bono is “stung” and “hurt” by criticism of U2’s tax avoidance practices (The Irish Times, February 27th). He compares U2 to the companies in the IFSC availing of favourable tax conditions. But there is one big difference. The companies in the IFSC don’t harangue the Irish Government about foreign aid.
U2 as a band can make their own decisions about tax, but if Bono the campaigner is to maintain credibility he needs to pay his full share of tax in this country. Personally I would like the Irish Government honouring the promises made in our name regarding foreign aid, but I’m getting tired of lectures about charity from some very rich people who go to great lengths to avoid paying tax in Ireland. – Yours, etc,
Madam, – Your edition of February 28th tells us that the theft of €7.6 million from the Bank of Ireland on College Green was “the biggest robbery in the history of the State”. Er, really? Isn’t €7.6 million mere “walking around money” for some of our robber barons? – Yours, etc,
Madam, – Only €7.6 million? Clearly white collars are far more effective than black balaclavas when it comes to robbing banks. – Yours, etc,
Madam, – I notice considerable confusion about “light touch” regulation in commentary on the banking crisis. I believe greater clarity would be helpful to the discussion as to what has gone wrong and what is needed now.
The is a role for principles-based regulation, which is at one end of a spectrum, with rules-based regulation at the other. To take a simple example, regulation in respect of road safety refers to dangerous driving, which is a general principle, and also to driving with more than a specified level of alcohol, which constitutes one of many specific rules.
Principles can be more broadly, simply and clearly stated and should be more generally applicable even in novel situations, while rules are devised to cover specific situations. They can be seen as an invitation to find ways round them, and can become dated relatively quickly in industries with a strong innovation culture. Most regulatory frameworks need both principles and rules to work effectively. Many regulatees seek principles-based regulation – and then ask for “certainty” – additional detail as to what exactly will apply in specific circumstances.
Secondly, there is the issue as to what penalties may apply. When I started as telecoms regulator in 1997, there were very limited penalties in respect of telecoms law in Ireland, but after a number of years the case for much more significant penalties was accepted and included in legislation. In my view, substantial penalties are needed to achieve compliance. It is no accident that the earliest form of market regulation – competition law – has very heavy penalties available for those found to have broken it.
One can have principles-based regulation with heavy penalties – in particular, administrative penalties (e.g. fines, but not prison sentences) – or with limited penalties, and rules-based regulation with heavy or light penalties, or a combination of both.
Thirdly, there is the issue of ensuring compliance. This can involve a range of measures from checking all compliance all the time on the basis of more or less detailed reporting and/or site visits or IT audits, or relying on audits carried out by others to a greater or lesser extent, and/or doing random audits or risk-based audits of a selected percentage of cases, or self-certification.
Fourthly, there is good internal operations management to ensure that information obtained is brought to attention at the appropriate level and used at that level effectively and promptly.
This brings me to the fifth point – that regulators are not appointed to be popular but need to gain respect. That respect will partly reflect the framework they have been given to work in and partly their own leadership and management. – Yours, etc,
Madam, – I heartily agree with Dermot Sweeney’s suggestion (February 25th) 2009) that the National Lottery should modify its prizes policy in line with the current economic situation.
I find it quite obscene that a State-owned organisation should offer individual citizens prizes of €2 million and more when so many people are suffering huge economic losses. The same is true of prizes offered by RTÉ. Surely Late Late Show viewers who win an all-expenses-paid holiday abroad could be content with a modest amount of spending money – far less than the €5,000-€10,000 currently offered. – Yours, etc,
Madam, – To paraphrase Winston Churchill – “Never has so much been owed by so few to so many.” – Yours, etc,