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Madam, has been kind enough to publish some of my letters over the years with one or two exceptions. Looking through my sent correspondence, I came across two which she didn't, that included some interesting observations. I would certainly welcome the views of p.ie contributors regarding the proposed nationalisation of Anglo-Irish Bank, for there are certainly some pertinent (impertinent questions) that need to be asked of the Government.
(1) What precisely is the level of bad debt in Anglo-Irish Bank (commercial sensitivity is not an excuse, now the bank is in the public domain)
(2) Who are companies / individuals who hold the largest amount of debt?
(3) What guarantees were put in place at the time credit was sourced, and on what terms.
(4) Have representations been made by debt-holders regarding the nationalisation of Anglo-Irish bank since October 2008.
(5) Are the largest debt holders / or have they been, contributors to Fianna Fail in the last five years, either at corporate or individual level.
(6) What proposals are in place to secure or repay the loans to Directors discovered by the Financial Regulator last January.
(7) What explanation has been given / or indeed sought from the auditors of Anglo-Irish Bank concerning the loans given to Directors, and transferred from the balance sheet.
__________________________________________________ _____________
October 2008
"Madam,
I note that House Oversight Committee held a hearing yesterday to examine the regulatory mistakes and financial excesses that led to the bankruptcy filing by Lehman Brothers, questioning Dick Fuld, the former chief executive of that organisation in detail as to how this bank collapsed.
I further note that today the same committee will hold another hearing into the regulatory mistakes and financial excesses that led the American government bailout of AIG. Given the nature and extent of our Government's guarantee to the banks under the Credit Institutions (Financial Support) Act 2008, perhaps it is time that the persons responsible for the running of the financial services in this country gave a true and accurate account to the Oireachtas as to precisely what caused the crisis that almost led to the collapse of two banks last week.
The public through its elected representatives have a right to know what exposure they have in terms of bad debt, otherwise I envisage a situation where one or more of our banks will be nationalised, and the public left in the dark as to the true nature of the crisis in the financial services, and the exposure of the taxpayer.
Yours sincerely
LeFronde"
__________________________________________________ ______
"Madam,
Frederick the Great once wrote that "No government can exist without taxation. This money must necessarily be levied on the people; and the grand art consists of levying so as not to oppress.'' In an earlier letter to this paper on the ____ day of ____ last, I highlighted my concerns that the Government would raise taxation to meet the shortfalls in exchequer receipts, furthermore I emphasised at the time that this would have a terrible impact on the economy in general as households and small businesses struggle to make ends meet in this recessionary climate. Whereas I welcome the government's attempts to exercise some degree of fiscal prudence on the state's finances, I fear they have failed to tackle public sector reform in any meaningful way; thus placing a disproportionate burden on the middle class who contribute most to the state and who receive little in return.
From a cursory examination of the budget, I fear that I am not alone in raising concerns over the continuing efforts to shore up the property market, giving added incentives to a sector which has contributed much to the current malaise. If the government is serious about returning the economy to health over the next few years, then they must focus on driving down their own cost base while simultaneously stimulating export driven enterprises which contribute more to the economy, and which are more adept at sourcing income from emerging markets.
The government (and Fianna Fail in particular) must free itself from this antidiluvian attachment to the construction sector which in 2006 accounted for 24% of GNP compared to an average of 10% in other developed countries; otherwise I fear its support base will wither away and who in turn will vent their spleen against an administration which has singularly lacked any imagination or vision in delivering or maintaining sustained economic prosperity for all its citizens.
Yours sincerely
Louis Lefronde
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Originally Posted by Lefronde
