Broken promises on ICC Bank
Fianna Fáil renege on state bank commitment
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The ``Nation's sovereignty extends not only to all men and women
of the Nation, but to ...all the wealth and all the wealth
producing processes within the Nation''
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``The Government will develop a vigorous third banking force from
the State sector by merging the ICC Bank and ACC Bank and by
seeking a merger of the new entity with the Trustee Savings Bank.
The new State Bank will also develop strong links with the
network of An Post for money transactions and banking services''.
This was just one of the many promises made by Fianna Fáil and
Labour in 1993 when entering into the so-called Partnership
Government. It is a promise ignored, passed over and quietly
forgotten by successive governments and ministers of Finance
This week the commitment to a third force state bank was once
again news. By announcing the sale of the state-owned ICC Bank,
Fianna Fáil Finance minister Charlie McCreevy delivered the death
knell to the state bank promise.
£200 million sell off
The 26-County exchequer will gain over £200 million and the Irish
people will lose ownership of an important national resource. The
decision to sell ICC Bank means that it is highly likely that ACC
Bank and An Post's bankings services will be also be put up for
sale and privatisation in the coming months.
So what has the Fianna Fáil/Progressive Democrat coalition turned
their back on this week. Apart from dishonouring an important
election promise they have also given the private banking sector
a free hand in the financial services market. Only the Credit
Union Movement will be in a position to provide social banking
services where the overwhelming demand for profit is not the
primary motive.
The coalition have turned their back on a chance to construct a
state bank which could take on the dominance in the market of
Bank of Ireland, AIB, Ulster Bank and National Irish.
Profit Margins
These banks are the most profitable businesses in Ireland. They
are also the most profitable banks in Europe. A survey released
in April by Datamonitor European Banking Database showed that
Irish financial institutions had the highest profit margins of
banks across 16 European States.
ICC Bank and ACC Bank were set up to provide financial services
to industry and farmers respectively. The idea behind these banks
was that they would offer financial services to those overlooked
by the mainstream financial sector. Now in a time of economic
growth the mainstream banking sector is going to be allowed take
over the business they previously would have spurned.
Today ACC Bank will announce its profits and no doubt discussion
over potential buyers for its branch network will dominate the
financial reports on the annual results.
Powerful Alternative
However a more important issue is being overlooked. The whole
impetus behind the third force state bank plan was that it would
provide a powerful alternative to the profiteering private
financial sector. Nothing has changed in the financial sector
since 1993 to lessen the need for a vibrant state banking
service.
Indeed the last year has exposed a morass of corruption in
private sector banking. On one hand we had the exposure of
illegal banking practices where banks were participating in tax
evasion on behalf of their elite customers.
Added to this are the ongoing scandals involving National Irish
Bank stealing money from their customers. Now more than ever
there is a need for a state bank.
The most powerful argument in favour of a state bank is the
commitment made in the 1916 Proclamation and again in the 1919
Democratic Programme that the ``Nation's sovereignty extends not
only to all men and women of the Nation, but to all of its
material possessions; the Nation's soil and all its resources,
all the wealth and all the wealth producing processes within the
Nation''.
This week Charlie McCreevy and coalition government have ignored
this fundamental commitment to the Irish republic. There is it
seems no role for social ownership of vital resources in their
vision of a republic. Their republic is one of profiteering and
self interest, where the rights of banks and private companies
come before the rights of the people.
Ryanair must recognise workers rights
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The IPC found that Ryanair's claim to pay their baggage handlers
better wages than other airlines did not hold true.
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What will it take to satisfy Ryanair management that they are
always in the right and that their baggage handlers, SIPTU, the
Labour Court, the Dublin Government, an independent inquiry team
and now the Irish Productivity Centre (IPC) are in the wrong?
Last January baggage handlers at Ryanair began to take industrial
action in protest at the company's refusal to recognise the right
of SIPTU to negotiate on their behalf.
Ryanair ignored the Labour Court intervention in the dispute.
They refused to take part in the industrial relations process set
up by the state, a process which favours employers. They then
rejected invitations from the Dublin Government to talks.
It was only when the whole of Dublin Airport was brought to a
standstill that Ryanair management entered a negotiations
process. The Dublin Government then had to create an industrial
relations process that suited Ryanair with an enquiry team
appointed to study the dispute.
Then the IPC found that Ryanair's claim to pay their baggage
handlers better wages than other airlines did not hold true.
Compared to British Midlands staff the IPC found a £5,000
difference in wages.
Now Ryanair are disputing the IPC figures and are seeking a
judicial review, threatening to start High Court proceedings. One
thing is clear from this dispute, that is the failure of the
industrial relations procedures and legislation.
Ryanair have shown unwittingly the flaws in the 26 Counties
industrial relations legislation. This legislation needs now to
be changed to keep industrial disputes out of the High Court and
force employers to recognise the rights of their workers. There
can be no more Ryanairs.
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