Vested interests still hold sway over citizens

When the Irish people voted to join what was then called the European Economic Community we did so on the basis of how it would improve our lives — in other words what we would get out of the relationship.

That might sound mercenary, crude and even basic but it’s a reality.

We also wanted to get away from a virtually closed inward-looking economy controlled by a plethora of vested interests. We were looking for the Promised Land. So a reasonable question to ask is: have our expectations been met?

On a national level, we’ve taken out a lot more than we’ve put in to the EU. Our infrastructure has improved dramatically courtesy of Europe. The markets for our products have grown considerably and employment, at least up to the end of the boom, had grown enormously. The focus of our economy has changed. We have become more outward than inward looking.

But it hasn’t all been positive. European institutions’ response to our economic collapse, forcing us to support unsecured bondholders, was not the reaction we would expect from a friend. Whilst the EU was also lauded for financially supporting us, that support was not charity; it cost us a pretty penny as premium rates of interest were charged.

On a personal level, we expected greater competitiveness and prices more like those in Europe. That expectation was not met to any great degree. Pharmaceutical products here continue to cost multiples of their cost across Europe.

We expected car prices to fall, but they continue to cost less in the UK than here and are lower again on mainland Europe. Our Government introduced VRT in an effort to claw back the benefits that could have accrued to the consumer had we been allowed to buy without penalty in what is allegedly a ‘single market.’

The bottom line is vested interests, including government and public sector, continue to hold sway and dictate how this economy is run — not in the interests of the population at large, but often for the sole benefit of the vested interest.

It was therefore disheartening to read an article on Tuesday by Eddie Hobbs and realise nothing has changed. The article was entitled ‘Rigging of the market will hike food prices’ and was very aptly named.

If Fianna Fáil’s achilles heel was the Galway tent and its massive support for builders and property developers, Fine Gael’s is the farming community. A large part of the farming community, big farmers in particular, has always been staunch supporters of Fine Gael. Well, if Hobbs is correct, it is now payback time.

In a supposed effort to reduce the alleged ‘unfair’ power multiples have over food suppliers and producers, aka farmers, moves are afoot to set up a ‘grocery quango’ backed by an ombudsman. It will be dressed up as a code of conduct. It appears to be little more than a ruse.

The net effect, according not only to Hobbs but also the ESRI, will be to lead to higher prices for consumers. Indeed, the Competition Authority is reported to have stated that the code, as drafted, would increase the cost of doing business for both suppliers and retailers, costs that are likely to be passed onto the consumer.

The code is apparently being driven by the Joint Oireachtas Committee on Agriculture, Food and the Marine — where nearly half the members are farmers. In the past, the Competition Authority has been a pain in the neck for vested interests. It would appear this time it will also be reined in and its remit reduced.

When are hard-pressed taxpayers to get a break? Maybe we might get some focus from politicians now the local and European elections are looming.

After all, Labour has already started the auction politics with its commitment to reduce property tax by up to 15% if returned in enough numbers.