Rebuilding Ireland - Idealism was never more important

THE morning after the night before, as we all saw recently, is never the best time to be too definite about anything of real importance.

Though it may be a tad flippant to describe Thursday’s €50 billion reality check as the bill for a decade of bingeing it’s not too far off the mark either. Anyone who has overindulged at some point or other – which of us has not? – may remember the morning-after self-reproach and the determination to never again pay for a few hours of fun with a two-day hangover. And that’s where we find ourselves right now. Two days won’t quite solve our problems, but, our position is not beyond resolution.

Neither is it without opportunity.

Never before in the history of this state have we been in a position that demands such a dramatic rebuilding of the systems we use to run our affairs. Never before have we been in such a strong position to pursue new, more authentic ambitions for this society. Never before have we had such leverage to insist on a new honesty and equity in our affairs.

In the remaking of this beggared country we have an opportunity to make it what we want it to be, not what it was. Most of this can, despite that appalling €50bn bill, be achieved by learning the lessons this betrayal has taught us. In the simplest terms we must build a state strong enough and determined enough to control those institutions – financial and representative – that revealed the immorality at their core and their indifference to the common good. And unless politicians can articulate that kind of ambition and idealism we should not support them. After all, what else are they for?

Paying the bankers’ bills will be more than difficult and there’s no point in doing it just to end up where we are. Something more, something better and more hopeful is needed if we are to get through the next few difficult years.

Responding to Thursday’s admissions Sweden’s Finance Minister Anders Borg encouraged us not to defer the unavoidable. He argued that the only way to rebuild confidence, domestic and international, was to immediately accept measures we might prefer to defer. His undeniable argument was that without confidence nothing will change and without realistic cuts and reform there can be no renewal of confidence.

Mr Borg’s position echoed EU economics commissioner Olli Rehn’s shot across our bows. His call for a four-year package of budgetary and reforming measures articulates deepening concern in Brussels over our great difficulties. Mr Rehn’s remarks can also be seen as a thinly veiled slap on the wrist to all politicians, especially those who might long-finger corrective action. He did, however, offer a crumb of comfort suggesting that emergency aid from the EU and the International Monetary Fund should not be required, although this is far from definitive.

Though they were not needed two events this week confirmed the depth of the crisis. The first was the National Treasury Management Agency’s decision not to seek further international funding until next year. The second was yesterday afternoon’s response from Taoiseach Brian Cowen when he was asked about corporation tax. Previously he was certain that we could continue to offer a lower rate than many of our European neighbours but yesterday he was less forthright than a man sure of his position might be. Though the guarantee protecting our rates incorporated in the Nice Treaty offers considerable comfort it may not be enough if the worst comes to the worst. But it need not.

We can continue to be delusional about the simple things that underpin functioning societies – water charges, property taxes, half the workforce not paying income tax, public sector pay rates well beyond anything comparable in Europe, insane pension commitments, tax breaks and loopholes which often are no more than rewarding people for having capital – or we can hope to build a system that works.

There is not a household or a business in the country that will not be affected by December’s budget – and its successors – but we all know that pain is unavoidable. The task now is to focus on the parallel projects that will give a meaning beyond economics and balance sheets to the changed circumstances we are facing.

The way to do this has been, to a large degree, defined already – the Commission on Taxation and the McCarthy reports – but they will remain economic exercises unless we involve ourselves in the processes that can bring about change – community work and politics. Be angry but get involved in rebuilding Ireland.