Madam, – For years we have been encouraged to “invest” our money in the now decimated pension funds, as tax allowable deductions etc. Similarly, we have been encouraged, by a coterie of mortgage brokers, bankers and financial gurus to buy our own homes.
As opposed to continuing to contribute to these “black hole funds” maybe we should be allowed switch this pre-tax income away from fiscal cremation to paying off some mortgage debt against our principal private residence.
The net cost to the Revenue would be nominal, as it is swapping one form of tax-allowable deduction for another.
Messrs Cowen and Lenihan could let us tackle negative equity with our incomes, giving us something to smile about. Not everything has to be as austere as random cut, slash and hook. – Yours, etc,
Madam, – I was pleased to read the article by economists (Opinion, April 17th) recommending nationalisation of a section of Irish banking.
Unlike them, I am ideologically committed to the banks’ nationalisation, because this will remove any danger of the taxpayer being caught by any mistake in the valuation of the bad debts.
Nationalisation will also enable the banks to remove the burden of fixed mortgages from those individuals unfortunate to possess them; it will eliminate current shareholders, who, with their support for speculative trading have brought us to the current financial impasse.
The change from a joint stock company whose only fiduciary responsibility is to shareholders will mean that taxpayers and employees can at least be considered as interested parties.
The takeover, with a notional value of €1 per bank would immediately restore to taxpayers through Government the funds already used last September to prop up their balance sheets. These actions would enable Irish estate agents and valuers to put realistic prices on these dubious assets, which can then be sold for the benefit of the taxpayer over the next five to 10 years as the market improves, and this could provide a realistic return for the taxpayer.
Finally, keeping the banks under State control would enable a reinforced structure of accountability to ensure such a fiasco could not recur. – Yours, etc,
Madam, – Last Friday’s submission by 20 leading academic economists (Opinion, April 17th) was clearly (contrary to the article’s assertion) an ideologically-driven document, as, by advocating full nationalisation it was also advocating the wiping out of existing shareholders in favour of the taxpayer.
It is staggering that no reference was made to the primary drivers of the current crisis — these being non co-ordinated planning policy; ineffectual (at best) financial regulation; and the taxpayer (through reckless tax incentives, rates and breaks) — these were all under the remit of the State. It is therefore mind-boggling that anyone could seriously champion having the State in control of the banks.
It is also utterly dangerous and irresponsible to present nationalisation as a panacea to the woes of this economy.
The solution is the immediate implementation of a revamped dynamic, non-tainted, financial regulatory body including a permanent European Central Bank representative (which at a stroke would restore Ireland’s financial reputation – possibly as a forerunner to an integrated euro zone regulatory policy).
This body could be given a mandate to sort out the banks as it would see fit (rather than the witch hunt currently being called for); and the Government (in the absence of any other means) could use a majority shareholding in the banks as a mechanism to enforce this process.
This, in conjunction with Nama, would transform our financial system.
The “taxpayer” got away with blue murder over the past 10 years; and it is utterly vindictive to single out those existing shareholders who have stood by the banks. Shared ownership between State and existing shareholder is the most equitable and desirable solution to this unprecedented crisis. – Yours, etc,
Madam, – I note that instead of declining the incremental €6,000 payment, some of our TDs are going to donate it to a designated charity.
I assume they are going to claim tax relief on the donation and benefit as well as have their pensions based on the higher amounts.
What a cynical exercise in self-righteous hypocrisy and self–promotion. – Yours, etc,