Saturday, March 13, 2010 Previous editions
Saturday, July 04, 2009
BANK of Ireland’s trading statement yesterday contained no talk about the green shoots of recovery appearing any time soon.
More to the point, outgoing chairman Richard Burrows warned an impairment charge of €6 billion in the three years through to 2010 could increase if economic conditions get any worse.
Earlier its trading statement, released in advance of the AGM, said the economic environment continued to be difficult and demand for lending was weak.
What the statement could not convey was the fear that persists that thousands of sole traders will be allowed go to the wall by the Irish banks in the next 12 to 18 months while this recession works its way through.
One source close to that sector said clients of the major banks, not just Bank of Ireland, are so disgusted with the lack of support from their banks they are moving funds to new accounts in other banks, to support their future business plans.
When you look at the awful state of the banking system — with Anglo likely to need a total of €7.5bn to see it out the other end — it is blindingly obvious that for the banks at this stage self-preservation is their main priority.
Presumably for that reason they are happy to promote the fiction that there is little demand out there for money from Irish businesses.
Well, when the Paddy Kelly’s, Liam Carroll’s and the Sean Dunne’s of this world are removed from the equation that is probably true, but there are thousands of businesses out there not in construction or building that are fighting against the odds.
The banks have proved beyond doubt that they have been at a serious remove from reality for several years, as they became besotted with the building sector and lost sight of the other forms of business and commercial life in this economy.
It is probably the case that they have lost whatever sense they had of the funding requirements of the rest of the commercial world outside construction and hence the bland assertion that there is little demand for money.
Whatever the truth of the situation, perhaps we need to realise the banks will not have that much to offer those struggling to survive in the current tough circumstances.
But the world continues to try and move on.
And at a one-off exhibition in Dublin on Thursday night young, designers and artists from across Ireland got together to highlight their talents.
The point was made that perhaps it is this kind of community endeavour that will ultimately lead to a better Ireland.
This wasn’t a "Yes we can" meaningless election slogan, just a search for some reassurance by young Irish people that, despite the cock-up the bankers and the regulators have made, we have perhaps reason to hope that the next generation will be motivated to pool their resources and endeavours to create a better Ireland.
The gathering of about 150 people, most of them not yet 30 years old, was an opportunity to show off their work and to build a sense that together they can and will succeed commercially, despite the many obstacles.
Full marks to Shane O’Driscoll, a fellow Bandonian, for his initiative in getting this event together.
There was buckets of talent on display and the drive behind it was the belief that as a community of young, talented citizens, they could achieve things, even if there was very little formal support from the Government or the banks.
The message also was that together we can achieve things if we pull together.
It was just a clear message that there is power in numbers and in community and that things can be achieved even when the banking debacle is threatening to suck the lifeblood and the will to succeed out of us all.
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