Well, to be frank, the Irish government operates much like a church in that regard...it's skint with the congregants or parishioners, even if it's rich enough to pay for it. Like a reverend or priest they come smiling seeking charity. Like a church, it's quite successful at it too because it works. That's because many diaspora do care and want to help Ireland even if living abroad and many do a damn good job of it, for which ingratitude and a sense of entitlement by some--but not all for sure--is often shown in return for it.
This includes the essentials of foreign relations itself where use of the 'honourary consul' is commonplace. Take travelling in Central America for example. Here's who you contact if you seek consular assistance in El Salvador:
Department of Foreign Affairs - El Salvador
Here is who Roberto “Bobby” H. Murray Meza is:
Roberto Murray Meza – Entrepreneur Enticed by Politics | Latin Trade
Center for Responsible Travel
He's a successful person of Irish extraction who takes an interest in his heritage and I've seen him write articles on Irish history in Latin America. Whether he's even an Irish citizen by descent, though, I don't know. It's not a requirement, however, that an honourary consul even be a citizen IIRC. The government will pay costs associated with these duties, but it's pretty much done as a 'labour of love'.
Such consuls are the lucky ones. Most others are just asked to 'help out', if you will, and many do.
IMO, you raised very understandable arguments, and hence that's why the law is as it is. I'll raise some contrary concerns and reasonable speculations to them as I see it as follows.
I very much get the concern about the threat of having diaspora 'run' Ireland's affairs, especially where it might be done in bad faith. The hypothetical that, for example, a campaign be done that seeks to 'hijack' Ireland with 'granny rule' registrants for the nations where they reside is certainly hypothetically possible.
IMO, though, I think it's a largely unfounded fear. Those that do bother to pay attention to Irish politics and go through any registrations for citizenship are those with an actual interest in Ireland. Most I meet who have an Irish grandparent abroad aren't even aware of their eligibility, and for the few who do, they don't bother. Most couldn't tell you who is running for President now, or who is the President now, or anything other than the general shared cultural affinity with 'things Irish.' Some don't even care about their background at all. Moreover, it's hard enough to get people to bother to vote at home or in any nation. Plenty just aren't interested in voting. That's especially more so IMO regarding those who would have to go through the hassle of informing themselves about Irish politics, getting registered, ordering a ballot and posting it, etc. The ones who would vote IMO are those who remain keen and on top of Irish politics. In short, Ireland would be receiving informed and genuinely intended voters in reality. If for some reason, however, that proved wrong, it's also easily correctable. All that would be required is to rescind voting rights for Irish citizens abroad and make any changes to any laws, if any, accordingly without their input.
Of the types of likely participation, many do pay taxes in other manners and spend other money and invest or help with investments, etc. As noted above, not all Irish residing in Ireland pay taxes either and in fact some even choose to live as a drain on them. Any Irish citizen is also subject to taxation should the Irish government regardless of place of residency should they choose to do so, a point I'll expand upon now.
For every Irish citizen who lives abroad, what Ireland does affects them simply because they are citizens. That's true whether it's the Irish government or even other Irish people. For example, I have spent time in Latin America and still do have extensive relations with the Hispanic community and like to travel there. It wasn't exactly a great time being Irish when the 'Colombia 4' case erupted. FARC is widely hated there and elsewhere as a narco-terrorist group by governments and large population segments alike--including 'citizen militias' you don't want to run into if you're on their 'sh*t list'--and I made sure to take my due advisements given my Irish passport and citizenship status. Simply put, if and whenever Ireland ever chooses to get its foot in any sh!t, Irish citizens abroad are even more likely to get the hot ends of any and all 'blowbacks'. That's because it is likewise done in their name if done in an official capacity and otherwise are easy targets for anger at whatever else is done by Irish people.
Moreover, whatever it does also can bind Irish citizens abroad just like at home as explained above. They could require conscription for example, or income tax payments, or pretty much what else it wants. Most of all, the Irish Constitution binds me and affects me no matter my residence. That's because it's the fundamental charter of all its citizens. Yet, citizens are being denied a right to have a say in what binds them.
I prefer a balanced approach to this situation. Myself, I don't think citizen diaspora are entitled to vote for any Dáil or Seanad seat in the Oireachtas where they do not live for obvious reasons or even have a seat for diaspora there. The Oireachtas should, IMO, deal with matters relating to those at home and leave those at home with the primary duty of setting Irish policy. I do prefer, however, a vote for the President given they have symbolic power and represent the Irish people as a whole, which includes diaspora. I most certainly and fervently believe that diaspora citizens be allowed to vote on Constitutional referenda as that is the fundamental charter of the Irish people (of which all citizens form) and it effects each and every one of such citizens and acts in their name. Simply put, a citizen should have a say in what directly binds them and claims to speak for them.



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