Anglo Irish tapes are only the tip of the iceberg when it comes to other banks

A woman protesting outside the former Anglo Irish Bank in Dublin

The bravado of it all was shocking and scurrilous, but we should suspend full judgement until the Anglo bankers give us their side of the story, writes Paul Allen.

Their laughter and nonchalance brought the blood of a nation to boiling point. Not surprising given the fact that while former chief executive of Anglo Irish Bank, David Drumm, and his senior executives, Peter FitzGerald and John Bowes, joked, mocked and cursed at the Irish tax payers’ expense, their reckless behaviour was crippling our economy and forcing their financial burden onto us all. A financial burden that today still casts a long shadow.

But even though their behaviour in those now notorious phone conversations has left the Irish public red with rage, there are far bigger issues at hand than the galling behaviour of a bunch of bankers as they dragged the Irish economy down a sinkhole.

Every source has an agenda, so why has the content of these recorded phone calls surfaced now? Every dealing and trading desk in every bank in Ireland has their phone calls recorded as a matter of strict procedure, not just Anglo Irish Bank, and this material has been available to the Irish government and the Gardai for a very long time. So why, as the content of the tapes is drip-fed to the nation by the Irish Independent, are politicians suddenly jumping up and down?

The other fact that needs to be considered is that while everyone seems shocked, the reality is that these tapes reveal little new.

The fact is people are playing politics rather than getting to the bottom of this debacle. This is underlined by the fact the government is planning to launch a banking enquiry on the eve of the next general election.

The Irish people need to know who the source behind these leaks is and what their agenda is. Why did they surface now? Who has to benefit? What is the end game?

Further more, it is not that they laughed while hammering the final nails into the coffin of the Celtic tiger that should cause us concern, but that they were able to dupe the Financial Regulator and Government into believing their lies.

Because while they joked that they were sticking two fingers up to Britain and Germany, they were actually sticking their two fingers up at the people of Ireland.

However, no matter how hard it may be to contemplate at present, every story has two sides. And while the snippets of their recorded sniggers still sting, we need to hear the full story.

The truth is that many bank officials were telling lies, and not just those in Anglo. And it is only when we hear the full and frank details of how Drumm and his fellow cronies felt this was not only possible, but that their lies were believable to the government’s financial ‘experts’, will Ireland Inc be able to ensure such skulduggery never happens again.

Indeed, while such an understanding is critical for both government and regulators, opening up and confessing all is the only option left open to the central protagonists at Anglo if they want to walk the long and lonely road towards redemption.

There is no point hiding like rodents lurking in the gutter. They have more value in helping making sure it never happens again rather than just being national punch bags on which we can relieve our pent up anger.

In fact, their full, open and frank cooperation could not only help solidify banking regulation here, but provide an invaluable service to the Irish people by finally giving them the inside scoop of how such a mockery was made of the Department of Finance and the Financial Regulator.

Regardless of what intrigue is at play here, it is time that we turned the leak to the benefit of the Irish people and found out how Anglo and other banks were able to pull off what is tantamount to the biggest financial fraud in our nation’s history.

Because until we know the full details of this latest scandal, Drumm and Co will not be the last ones to laugh at us for being gullible fools.

Irish are just smarter about multinational tax issues than other countries - U.S. and Europe are being taught a lesson as Ireland reaps the benefits

Rotten Apple?  Ireland simply enviable for their canny tax dealings

While U.S. politicians were eager to take a bite out of Apple’s reputation over its tax affairs, they also seemed only too happy to chew up and spit out Ireland’s.

But with the Irish Government denying the iPhone maker got any preferential tax deal, all this ‘tax haven’ subterfuge simply goes to show Ireland is envied for its ability to have solved the multinational taxation puzzle.

The only reason there is a gnashing of teeth in the US is because poor tax legislation allows major American corporations to file minimum tax returns at home while funneling taxable profits through operations overseas.

British authorities have also being huffing and puffing at foreign multinationals that seem to pay pittance in the UK even though they have substantial business interests there.

But while politicians play to the crowd, the simple fact is that these corporations are not breaking the law, but using the system.

And Ireland is also playing the game to its benefit rather than simply sitting back and watching from the sidelines as money flows elsewhere.

Indeed, this strategy has been a resounding and often remarked upon success. Our 12.5 percent corporate tax rate, not only kick started the Celtic tiger, but is helping propel the Irish economy back to growth after a ruthless recession.

The figures speak for themselves — in a country of just over four million people, over 115,000 work for US companies and countless others are involved in ancillary support operations. While many may argue that these profits will eventually leave our shores, the knowledge transfer to the local economy and boost to the exchequer will have long term payoffs.

However, even in an era of ecommerce and the growing global presence of massive multinationals, Ireland’s approach to attracting overseas business has raised the ire of not only the US but also our EU neighbours.

But as a tiny economy, operating in a tiny country, with a tiny population, situated on the most westerly point of Europe, Ireland needs all the home advantages it can muster.

Our tax rate compares with 35 percent in the US, 33 percent in France and 23 percent in the UK. But our multinational tax regime is open and transparent, unlike many other European countries.

Starbucks, for example, clocked up sales of £400m in the UK last year, but paid no corporation tax. Amazon, which had sales in the UK of £3.35bn in 2011, felt only legally obliged to file a ‘tax expense’ of £1.8m.

But the reason senators in the US were shaking their fists at Ireland is because, at 35 percent, America has the highest corporate tax rate in the world. So companies are effectively ‘encouraged’ to export jobs, investment and intellectual property to foreign soil.

It also discourages the repatriation of profits made on foreign soil back to the US. The most recently available figures show that US companies held $1.7 trillion in unremitted profits.

So rather than bash Ireland or the companies who legally use the tax system to their benefit, maybe the US, UK and our other European neighbours should focus on tax reform rather than moaning at how Ireland is, for the moment, one step ahead of the game.

* Paul Allen is Managing Director of Paul Allen and Associates PR, www.prireland.com.

Irish politicians would have been better off staying at home for St. Patrick's Day

Enda Kenny and his wife sign a girder at the World Trade Center (Photo: James Higgins)

In the supposed year of the Gathering, and with the country’s coffers still struggling, our politicians would  have been be better off welcoming the world to Ireland, rather than jetting away for St Patrick’s Day.

But as the world turned green to celebrate St Patrick’s Day, the swanky five-star hotels and exotic locations in which many of the Government’s Ministers were raising a toast to St Patrick were be enough to make the rest of us green with envy.

While our politicians larged it up abroad on March 17 this year, more than any other, the spectacle is even more ironic.

The country is broke and we are all paying the price. Nonetheless, Leinster House, where parliament resides was almost empty.

Property tax, water charges, pay cuts — everyone has to feel the pain. But the Government still felt the need to scarper.

Yes, of course, they are going forth to tell the world that Ireland is still open for business. The platitudes glided off their tongues.

They told anyone who would listen how Ireland is the best little country around. But in an era of belt tightening, surely the best place for our politicians was to be by our sides weathering the storm we are all facing.

However, when it comes to those in power, it always appears to be a case of — ‘Do as I say and not as I do.’

In the year of the Gathering we have all been asked to mobilize the Diaspora to entice them to come home and embrace Ireland, while helping to boost the local economy.

So, given the year that is in it, surely it would have made sense for the Irish Government to invite dignitaries from around the world to join them in Ireland to celebrate St Patrick’s Day?

But this is not the way the ruling classes do business in Ireland.

Remember — ‘Do as I say and not as I do.’

This philosophy was underlined beautifully by Luke ‘Ming’ Flanagan this week. The independent TD loves to fight corruption, except when he is looking in the mirror.

He had the chutzpah to lambast “a cohort of Gardaí” who he has accused of asking people if they want their penalty points cancelled, while at the same time begrudgingly admitting that he had points wiped off his license — twice.

Not only has he previously denied having points quashed, but he has also been merciless in his criticism of the ‘nod and a wink’ culture that permeates the country, which he now admits to benefiting from himself.

Again, as far as Mr Ming is concerned it is a case of — ‘Do as I say and not as I do.’

While the past few years have been painful, Ireland has received its biggest wake up call since the formation of the State. Our sharp economic shock is something that has forced us to get our house in order, no matter how painful it has been.

But now it is time for our Government ministers and even Ming, to take a long look in the mirror, because if they expect us to continue to ‘put our shoulders to the wheel,’ we should expect them  to be standing solid right beside us.

However, it seems some politicians love to dish out advice as it compensates them for their ability to set a bad example.

* Paul Allen is Managing Director of Paul Allen and Associates PR, www.prireland.com.

Ireland is bouncing back despite all the naysayers -- It is time we stopped wallowing in despair and started cheerleading

Tanaiste Eamon Gilmore

In a media environment hungry for scandal, sensation and skulduggery, good news often seems like no news at all. Especially in a country stuck in a boggy mire of fear and self-loathing.

But just like the Mayans were proved to be overly pessimistic about the long-term survival of planet earth, the merchants of doom cheerleading the negative and ignoring the positive when it comes to Ireland’s revival look likely to be proved wrong in 2013.

Just several days into the New Year and many who have cut a figure of dourness over the past several years have now a noticeable pep in their step.

Tanaiste (Deputy Prime Minister) Eamon Gilmore, who is not know for his exuberance, was telling all who would listen that we will finally be waving goodbye to the recession come the end of the year.

Jobs Minister Richard Bruton believes the flood of job losses we have suffered has finally been stemmed. While, to top it all off, a rise in tax returns means that the Government coffers got an unexpected boost of €2.6bn.

Ireland is recovering. And while it will be a slow, gradual recovery, our economy is very well placed for long-term sustainable growth. And while we won’t reach the insane highs of the bubble, nor will we overly rely on the property and construction industry to over-inflate our expectations.

Indeed, over the past year the rest of Europe has been looking at the Irish economy with envy. We have learnt from our mistakes, took the harsh actions needed and now we are on the comeback. But Bill Clinton was right when he said that the world thinks more of the Irish than the Irish think of themselves.

“I know a lot of people in Ireland are discouraged,” President Clinton said back in 2011, “but the rest of the world thinks you’re pretty great.”

And now it is time for the rest of us to embrace this positivity and realize that post-Celtic tiger Ireland will be a leaner, and far fitter economic machine that is primed to thrive.

The core fundamentals of the economy are strong and will soon fuel growth once the burden of the banking crisis is eased. Foreign direct investment is also still as strong as ever, with a who’s who of the hi-tech and pharmaceutical elite doing business in Ireland, much to the envy of our international competitors.

And they are not just here for the tax breaks. With our well-educated, flexible and skilled workforce, companies like Google and Intel would not waste their time making such huge investments in innovation here. Indeed, while we were all crying a river for our demise, companies such as Twitter were busily setting up shop in Ireland confident of our bouncebackability (to rob a sporting term).

The Gathering will also provide us with the platform to embrace and strengthen our ties with the Irish Diaspora, whose importance has for too long gone unrecognized  This will give us the opportunity to re-energise and look to the future.

The rest of the world has been recognizing our success in turning things around. But while our Taoiseach was gracing the front of Time magazine and being presented with the Golden Viktoria European of the Year Award in Berlin, the rest of Ireland sneered.

But the fact is that despite our failings Ireland is the greatest little country in the world. But tell that to an Irish person and, sadly, they’ll ridicule you.

Paul Allen is Managing Director of Paul Allen and Associates PR, www.prireland.com.

Has Gabriel Byrne lost the plot by attacking the Gathering? -- Criticism of the tourism initiative completely misses the point

Gabriel Byrne

Damned if we do, and damned if we don’t. That must have been the thought running through Enda Kenny’s mind as his ears were stung from Gabriel Byrne’s tongue lashing.

The Hollywood star lambasted King Kenny and the Government’s marketing centerpiece for the tourism industry next year, The Gathering, which aims to bring an extra 325,000 visitors to Ireland.

Rubbing even more salt into the wounds was the news that The Gathering had actually part-funded Today FM’s Last Word programme’s visit to New York on which actor Gabriel Byrne lambasted the tourism initiative as a “sham”. From Byrne’s perspective it was probably tantamount to shooting a man with his own gun.

The acclaimed actor has made his living creating dramas, but his role in this charade was no Oscar-winning performance. Yes, it was full of passion and came from the heart, but in the end Byrne simply lost the plot.

The Gathering is little more than a global PR and advertising campaign. Indeed, in a time of beleaguered budgets, it is a clever ploy to try and boost much needed tourism revenue. So rather than being an attempt to unscrupulously profit from Irish Americans who, according to Byrne are fed up with being “shaken down,” it is merely a tourism campaign — no more or no less. It is, as they say, what it is.

Byrne is right that “the bridge between the diaspora and the people is broken.” Indeed, it is questionable whether a bridge ever existed at all. Once people leave these shores we tend to turn our backs on them. That needs to change. But The Gathering has never been about trying make up for years of neglect. It is however a beginning. And while next year will see whether The Gathering works to its full potential, it has already been successful.

In September it helped host the American Football game between Notre Dame and Navy in the Aviva Stadium, which saw 33,000 people travel to Ireland. This was the largest movement of American citizens during peacetime for one event. The day following the game was Dublin Airport’s busiest since it opened in 1940 and the visitors who travelled to see this unique sporting event spent an estimated €100m-250m in the Irish economy.

And rather than feeling as if they had just been ‘shaken down’ many extended their stay in Ireland for up to two weeks travelling around the country and soaking up their Celtic origins.

But it is not all about shaking shamrocks and being proud to be Irish. The historic game also attracted a Who’s Who from corporate America’s leading companies, which included nine of the top 10 pharmaceutical companies, more that 50pc of world leading financial services firms, 17 of the top 25 medical devices companies, 8 of the world’s leading ICT companies and 10 of the internet’s top companies.

So I don’t think the Irish people, the Irish government or, indeed, Enda Kenny should be making any apologies for trying to forge such links. Do you Mr Byrne?

Paul Allen is Managing Director of Paul Allen and Associates PR, www.prireland.com.

When suicide beckons what can a friend do to stop it? Dreadful dilemma as Irish prevention services slow to act

Suicide is still a taboo subject in Ireland

It should come as little surprise that the stigma attached to mental health is still stopping people accessing the necessary support, according to a survey released as part of Suicide Awareness Week.

However, knowing where to look for help can be just as big a barrier as any associated stigma.

I learnt this the hard way when I heard two words I will never forget.

At the other end of the phone line was a friend who had called me in a state of panic. He could barely get the words “attempting suicide” out of his mouth. Someone close to him was self-harming and in dire need of help.

With suicide being so prevalent in Ireland I wondered why this person whom I knew, but was not so close to personally, was calling me when his loved one was in need of urgent help.

When I began frantically making phone calls trying to help I found out why.

While he was on the other line telling me he had rang several hospitals, I used my landline to dial the Mater.

I was transferred several times before I was put through to A&E. The nurse who answered told me to tell the person to come in, take a ticket and wait for the psychiatrist on duty who would then assess the patient.

I immediately wondered, with little time to spare, how long that would take. So, I then decided to ring any psychiatrist that would answer the phone and ask if they could help.

Despite the urgent nature of my request, the earliest appointment I could get was in two weeks. They told me if it was urgent to go to A&E.

Luckily, through a close contact, a professional thankfully gave us advice to cope in the short term and saw the person who was in desperate need the very next day. They are now receiving the necessary help and support to help them on the road to recovery.

However, it appears when people are confronted with such a nightmare situation there seems to be little to help or guide them. In a country where such situations are sadly arising more frequently this is a disgrace.

The problem when someone is self-harming is that it falls between two stools — medical and mental health. The problem for the person left trying to cope is there is no clear course of action, because it is not something we openly discuss or are educated about.

Suicide is sadly still a taboo subject in Ireland, because for a people that love to talk, the last thing many of us want to discuss is our mental health.

While 186 people were killed on our roads in 2011, the latest official statistics show there were 525 deaths by suicide last year.

And even though suicide in Ireland can only be described as an epidemic, there seems scant support for those contemplating taking their own life.

Indeed, if we invested as much energy into suicide prevention as we do curbing fatalities on our roads the figures would be far lower.

While Suicide Awareness Week, which comes to an end on September 17, is certainly helping to raise awareness, the dialogue must continue.

Because, the fact is, if we remain silent when it comes to suicide any services provided by the health service, while much welcomed, will ultimately be tantamount to the sound of one hand clapping.

Paul Allen is managing director of Paul Allen & Associates.

The politics of anger rules in a recessionary Ireland as political debate turns nasty

Dr James Reilly

Reasoned, insightful political debate is being overthrown by mob-rule. But he who shouts loudest is not always right, writes Paul Allen

The country is once again in the grip of the ‘politics of the angry.’

Indeed, even as Tánaiste Eamon Gilmore declared confidence in Minister Dr James Reilly, the smell of blood is in the air as people cry for another political scalp.

It is the era of the loudmouth where the ‘politics of anger’ shouts down the ‘politics of the answer’.

But with the heat being turned up on the Minister of Health we would do well to remember in any sport it is easy to shout from the sidelines. And it is no different when it comes to the greatest, the dirtiest and most gruelling sport of them all — politics.

The former GP, who was listed in Stubbs Gazette over an unpaid €1.8m debt, says he did not break any rules. Indeed, he set up his business affairs when he became Minister in line with advice from the Standards in Public Office Commission.

While there are obvious questions arising from the affair, if the Minister is found to have followed the rules, then blame the game not the player.

While the Committee on Procedure and Privileges (CPP) is still yet to start probing the propriety of the political classes, the need for such rigorous referees to ensure fair play in politics has once again been highlighted.

But the illusion that it is only the members of the main political parties that need this type of supervision has been recently shattered.

For years the members of the holier-than-thou Technical Group have been taking swipes at the mainstream parties, attacking their ethical records and constantly questioning their integrity. And, sometimes, rightly so; every parliament and political party needs to be held accountable.

But when the deeds of master tax cheat Mick Wallace finally made the headlines, it became obvious that cheating the system is not only in the gift of those belonging to Fianna Fail or Fine Gael.

The Independent Wexford TD has now refused to answer several questions from the Members' Interests Committee regarding the matter, casting an even longer shadow on his deeds.

However, while Wallace’s credibility rapidly crumbles, so does that of Socialist Party TDs Clare Daly and Joe Higgins, along with United Left Alliance TD Joan Collins after being found to have used their travel allowances to attend anti-household charge meetings outside their constituencies.

How can elected representatives spend public money trying to encourage people to break the law?

You would imagine that if one of the main political parties was found to have engaged in such highly questionable behaviour (to put the most positive spin possible on the actions of Daly, Higgins and Collins), the backlash would have been swift.

The fact is these members of the Technical Group have shown by their actions that while they might have been viewed as champions of the people, they are just as flawed as many of those they have berated over the years.

Pointing the finger of blame is easy, but holding a mirror up to your own actions can bring home many unwanted truths.

It would be amusing to think that the biggest impact these politicians who wanted to shake things up in Dáil Éireann will have made is underlining that even those with seemingly irreproachable reputations can fall foul of the high standards in political life.

Just like goal line technology will help referees and linesmen tighten up on the proper and correct regulation of soccer, the Irish political system will hopefully receive closer scrutiny from its new investigation committee.

So rather than having mob rule crying for heads to roll every time questions are raised over the activities of a politician, calm and reasoned insight will allow all to clearly see and assess if rules were broken. This will improve politics for all and make our system even more transparent. Because when it comes to playing dirty, being a member of a major political party is not a prerequisite.


*Paul Allen is Managing Director of Paul Allen and Associates PR