Analysis: So how is the Government really doing?
TOWARDS the end of the election and on the brink of power, Fine Gael outlined a series of priorities which they promised to achieve within the first 100 days in office.
It seemed inevitable that some of Fine Gael’s ‘100 days’ promises would be broken. The over- ambitious pledges were more like auction politics and were sold to voters just days ahead of polling day in February.
But as Irish writer Jonathan Swift once pointed out, promises and pie crusts are made to be broken. It was easy when out of power to promise the sun, moon and the stars. But with any new government’s hands tied by the restrictive terms of the EU/IMF bailout deal, it was always going to be a battle for the new administration to keep their promises to voters.
Enda Kenny himself recently found out and admitted to Ireland’s recalled ambassadors that the government coffers were more or less empty. He said: “It’s easy to be in government and have an amount of loot behind you to give out or you think you have to give out... it’s a hell of a different prospect when you find that that cupboard is bare.”
But many of the pledges did not require funding. So how well then have Mr Kenny and co performed on the 28 pledges made to voters?
Despite promises by Mr Kenny that he would use his position as vice president of the European People’s Party to help persuade EU partners that the bailout was a bad deal for Ireland, no major concession has been agreed. His supposed close relationship with German Chancellor Angela Merkel has also failed to achieve any significant results. Senior bondholders in the two main banks will not be burned — although bondholders in failed banks Anglo and Nationwide are taking haircuts.
In recent weeks, with attention at EU level focused on the euro crisis in Greece, even Ireland’s hopes of a cut to the 5.8% bailout interest rate appear to be fading. Fine Gael say a cut has been informally agreed but the public still await results.
Mr Kenny also admitted last week that, even if granted by our EU partners, any interest rate reduction would only be on the remaining loans to be drawn down and not on the €15.6bn already borrowed.
In the meantime, it could be argued that France has hardened its position on Ireland’s request, with Paris insisting we dilute our treasured low corporation tax in return for the cut in the bailout interest rate.
It also looks unlikely that the issue of a cut will come up officially at an EU summit of leaders later this month.
Furthermore, Mr Kenny was criticised for not requesting a cut in our bilateral loan interest rate with British Prime Minister David Cameron during his recent visit here.
Jobs Creation Bill: The jobs initiative, while it may take some time to see results, included plans for 6,000 new posts in areas of construction in the education sector, home fittings and the transport industry. Employers’ PRSI for workers on below €356 a week will be halved at the beginning of July. There was also a 4.5% VAT cut for hotels, restaurants and businesses in the tourism sector.
Abolish the travel tax: Under the jobs initiative and in keeping with the party pledge, the travel tax will go on July 1. The Government says it will reintroduce the tax unless airlines keep their promise to deliver greater numbers of passengers to Ireland.
Create national graduate internship places: Dole claimants will be offered an extra €50 a week to take on work experience, as part of 5,000 new places, as promised, for internees. But students warn it may not be enough to stem the huge numbers emigrating.
Economic stimulus and the establishment of NewERA (New Economic Recovery Authority): No movement has been made yet on this planned authority, which it was promised will oversee €7bn of pension funds invested in key state infrastructure. The Department of Communications says “intense work” is underway on setting up the new authority, which will address next-generation broadband and bio-energy projects among other areas. There is no timeframe for the roll out of the new authority.
Credit for small businesses: Plans for a government loans scheme for businesses are just that, with no launch date. This is despite promises to set up the scheme within 100 days of taking power.
Cutting red tape: The Department of Communications say regulatory authorities under its remit are reviewing costs in areas such as procurement, travel and energy costs.
The Department of Education say costs for authorities have been driven down. Student grants are now administered by one authority. More use by schools of online facilities has also lessened paperwork costs, it says.
The Department of Social Protection say the Pensions Board has been told to reduce, where possible, costs.
Supporting business start-ups: Cash-strapped entrepreneurs eager to get business up and running will have to wait until December for relief under a fund (€100m was promised) for start-ups. Proposals for any type of micro-finance fund will not come through until the Budget, the Department of Finance has confirmed.
Waste audit: The Government has ordered a full expenditure review, which will require departments to identify scope for savings, efficiency and opportunities to cut or merge agencies, as well as cut staff numbers. This waste audit won’t be completed until the end of September, however. It will also be another few months after that before any recommendations influence plans for December’s Budget.
Holding bankers to account: This has been a thorny issue for the Government, with Enda Kenny admitting the legal advice is that bank chiefs in now state- controlled institutions cannot be forcefully removed. Instead, there is expected to be a slow changing of board members — as they voluntarily depart — who led institutions before the bank guarantee of September 2008. A pool of new directors is now being examined by Finance Minister Michael Noonan. Most have already left, say department sources. But there has also been a public outcry over “golden handshakes” and lucrative pensions for departing bank chiefs.
Protecting bank customers: In a radical promise, Fine Gael had pledged to force state-supported mortgage providers to make an estimated €100m in savings. These savings would have then helped banks avoid a 25 basis point increase in mortgage repayments. No such plans are now in place, the Department of Finance says.
Transparency in banking: Despite pre-election promises to set up a commission of inquiry into decisions and actions leading up to the September 2008 bank guarantee, the Department of Finance has confirmed nothing is planned. Fine Gael had promised that the commission would be set up after the release of the Nyberg bank report, which was published in April.
Fiscal Advisory Council: The Government say this new body will be set up by the end of the month. The council’s role will be to provide an independent assessment of our public finances and provide forecasts of the country’s economic prospects.
Reducing pay for ministers and senior public servants: A cut in ministerial pay was one of the first actions taken by Mr Kenny. He reduced his own salary to €200,000 and senior ministers had pay cut from €181,283 a year to €169,275. The Tánaiste’s pay dropped to €184,405 from €197,486 while junior ministers now receive €130,042, down from €139,266. However, the thorny issue of cutting senior civil servants’ pay must still be decided.
Public Expenditure Minister Brendan Howlin is expected to bring proposals on senior civil servants’ pay to Cabinet later this month. But it is unclear if and when that pay might be cut.
Car pooling for ministers: The Fine-Gael led government fulfilled its promise to get rid of state cars for most ministers. Despite some private moaning from ministers about having to endure traffic delays or use public transport, the move has saved millions of euro for the Exchequer.
Abolishing at least 20 state bodies: Fine Gael said as 200 new government agencies had been created since 1997, many needed to go. Rather than break up state bodies in the first 100 days though, the Government has instead taken a far less courageous approach. The decision on which ones will go will now rest on the outcome of the Government’s spending review, due for completion in September. Elsewhere, a number are being amalgamated instead of being abolished, in the areas of education, health, tourism and enterprise.
Clear targets for ministers and civil servants: Mr Kenny pledged that ministers and the heads of departments would sign public service agreements setting out targets in relation to its own manifesto. According to Cabinet sources, no such targets have been set. No such commitment for such targets are in the Programme for Government either.
Transparency in public appointments: Proposed heads of state boards will now be required to appear before Oireachtas committees, laying out their plans and views on the future of the body.
The process of “screening” potential candidates will begin when committees are up and running. After a discussion, a minister will then decide on an appointment. But committees will be able only to advise, not block, appointments.
Abolition of the Seanad: Plans to abolish the Seanad remain but the referendum on the matter has now been delayed until next year. It is also likely the current members will last their whole five-year term, as the referendum result won’t affect the current Seanad. Seanad members know the survival of the second house in the long term would depend not just on persuading Enda Kenny but the public in general that their work is not a waste of time and, more importantly, taxpayers’ money.
A smaller Dáil: Fine Gael committed to cutting the numbers of TDs by 20 before the next general election. Under a new Bill, the numbers to be cut will be decided by a constituency commission which will begin its work in the summer.
The Cabinet will give a “band” or guide to the commission on the minimum and maximum TD numbers the group can agree on.
Open Government: While initially pledging to ban all corporate donations, the FG-led government are instead going to limit them to €200. Any company donating above this amount must register their details. The inability to completely ban corporate donations, says the Government, is because of protections under the Constitution.
Strengthen Freedom of Information service: Public Expenditure and Labour Minister Brendan Howlin has been charged with this overhaul, which at this stage includes plans to extend the service to sections of the gardaí, as well as the National Asset Management Agency and other bodies. No timeframe is agreed.
Establish a whistle-blowers’ charter: Mr Howlin is drawing up plans to roll out a charter, which was called for on the back of the banking crisis to give employees protection if they spoke out. Proposals on the issue are set to be put to the public in a super-referendum on the same day as the presidential election.
Set up a register of lobbyists: The Government can only say this is being looked at by Mr Howlin.
Establish a citizens’ assembly on electoral reform: Environment Minister Phil Hogan has plans for a “constitutional convention”, which is expected to include proposals for getting citizens involved in political reform.
Increase number of female politicians: The Government is preparing legislation which will force political parties to make sure women make up 30% of their general election candidates or they will see their funding cut by half. The quota will increase to 40% after seven years.
Extend Dáil sitting times and vouch all expenses: It has been agreed that the Dáil will now sit on Fridays, but this hasn’t begun yet. TD holiday times at Christmas and Easter will also be cut. No change to how expenses are claimed is proposed under the new Government.
Reducing waiting lists: Fine Gael made this one of its priorities ahead of the election. Plans are in place to form a special delivery unit which Health Minister James Reilly says will help reduce waiting times. The roadmap for the new system under Dr Martin O’Connor will not be in place until September.
Change at the top: Mr Reilly axed the old HSE board in May and an interim one will report directly to the Department of Health until a new board is formed later this year.
Protecting young people: The promise for a cervical cancer vaccination programme for secondary school girls will take effect from September
Avoiding a winter crisis: A strategy to ensure hospitals can cope with increased demand this winter is being “worked on”, the minister’s officials say, but nothing concrete is planned yet.
The stakeholders and renegotiating contracts: Mr Reilly has met with the Irish Medical Organisation and the Irish Hospitals Consultants Association in recent weeks about mapping out changes. He wants results by the end of the year.
Banning ministers from local constituency work for the first 100 days: Most would say this was an unrealistic pledge by Enda Kenny. Even the party leader himself has been involved in local events in his home county of Mayo, including the launch of a local website, turning the sod at a school opening and opening a development at a local GAA club.
Tourism Minister Jimmy Deenihan has launched a local business start-up programme in Tralee and opened a number of cultural evening events there too.
Recalling Irish ambassadors for a conference on boosting the image of Ireland abroad: The 76 representatives attended a two day gathering listening to business chiefs and ministers in Iveagh House. The talks included discussions with officials from Enterprise Ireland and the IDA, as promised.
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