Would Fine Gael's Economic Policy [Selling Off State Assets] Create Irish Oligarchs

[Covert2007]

I would be interested in hearing what other people think of Fine Gael's economic policy of selling off State assets, to raise money to try to run the country.

In my opinion, the plan would be a kin to the fire sale of national assests by the Russian Federation after the collapse of the USSR, that did little to create a healthy economy, but rather make those who supportered the new elite, very rich.

There are many similarities between Fine Gael's plans and those pursued by Boris Yelsin in the early 1990's. He managed to make some of his supporters very rich, through the selling off of national resources at very depressed prices. When the recovery came, these people sold out to foreign investors, looking to asset strip mines etc.

The national government did not benefit greatly from the policy, they sold very valuable assets, nationally stragetic assets, for very little return. Would Fine Gael's strategy to sell off state entreprises now not be a similary fire sale, that would see little return for the Irish nation?

One obvious result of this economic policy would be to create Irish Oligarchs that would owe their wealth to the new political establishment - Fine Gael. Would Fine Gael then expect these Oligarchs to fund their party, going into the future, the same way as the property developers funded Fianna Fail, because they owed their wealth to Fianna Fail?

Also, how many jobs would be created by such a policy? Sure more people would lose their jobs as new management would seek to slim down the newly privatised company by making wage cuts and laying off staff, something all governments fined hard to do. Also, it seems to me the only people who would have employment through this would be the law firms, stockbroking firms and banks who would be handling all the due diligence, buying, selling, and financing of the IPOs. Creating even more groups that would owe their wealth to Fine Gael.

Any thoughts?

[mmrebel]

No irish has person the kind of money to buy these assets , silly nonsense op

[adamirer]

Nope, I think they'd be sold a la Eircom. Before the anti privatisation lot jump down my throat, the mistake with eircom was not seperating the network from the wholesale arm. The sale and price was farily right, the price rose a decent % in the first 2 months, before the world wide dot.com crash exploded... stating with boo.com...

So, oligarchs? Naw...

[Endoftheworldasweknowit]

Thelast time FG flogged off an asset they made Denis O'Brien a very wealthy man. Oligoarch's go mega when they use the asset that they acquired for buttons to lever more cash elsewhere. Flogging of ESAT to O2 sent O'Brien seriously rich.
Subsequently he sent 4 cheques of €50K to FF, FG, PD's and Labour. Only Labour sent it back. So if it happened before it'll happen again.

[Covert2007]

Fianna Fail tried and failed to create more people who would owe their wealth to their policies.

As for your insight on telecoms, the problem with the privatisation of Telecom Eireann was that private companies do not owe any loyality to states or their strategic interests. I live in rural Ireland where the only braodband we have amounts to fraudband, it is not broadband irrespective of what they charge for it or what they call it. Eircom would probably be nationalised if the government had the money to do it. Spending billions subsiding the business interests of telecom companies is hardly a good return for the Irish taxpayer.

[adamirer]

Thelast time FG flogged off an asset they made Denis O'Brien a very wealthy man. Oligoarch's go mega when they use the asset that they acquired for buttons to lever more cash elsewhere. Flogging of ESAT to O2 sent O'Brien seriously rich.
Subsequently he sent 4 cheques of €50K to FF, FG, PD's and Labour. Only Labour sent it back. So if it happened before it'll happen again.

which asset do you mean???? Eircom and Aer Lingus (and Great Southern Hotels.. methinks) are the only assets sold to date. The mobile phone licence wasnt a flogged asset in the way new radio stations aren't...

[adamirer]

Fianna Fail tried and failed to create more people who would owe their wealth to their policies.

As for your insight on telecoms, the problem with the privatisation of Telecom Eireann was that private companies do not owe any loyality to states or their strategic interests. I live in rural Ireland where the only braodband we have amounts to fraudband, it is not broadband irrespective of what they charge for it or what they call it. Eircom would probably be nationalised if the government had the money to do it. Spending billions subsiding the business interests of telecom companies is hardly a good return for the Irish taxpayer.

No it wouldn't. It was looked at before. Broadband snt a right, even if it remained i state ownership, you'd not have it. Simply isnt cost effective as the great TE that people seem to pine after (what a joke!) split most of the rural lines in5 or 6 lines and split lines can't take DSL even if they are 3miles out from the exchange.

Privatisating eircom or not made no different to your broadband connection unless billions were invested. Its a white elephant.

[Covert2007]

No it wouldn't. It was looked at before. Broadband snt a right, even if it remained i state ownership, you'd not have it. Simply isnt cost effective as the great TE that people seem to pine after (what a joke!) split most of the rural lines in5 or 6 lines and split lines can't take DSL even if they are 3miles out from the exchange.

Privatisating eircom or not made no different to your broadband connection unless billions were invested. Its a white elephant.

It is a right if my government want this country to have any chance of recovery. It is economic suicide if you think that every thing has to be cost effective before it can be done.

It probably wasn't cost effective for the EU to give Ireland so much structural funds over the past few decades. Ireland inc probably isn't cost effective as a periphal location for anything. Electicricty, water, postal distribution etc. all of these services probably should only be available to those who live in urban areas. That would be great little country to live in. Oh and forget the roads and railways. Most of it does not make economic sense ... if profit is the be all and end all of what you are trying to achieve.

[factual]

I would be interested in hearing what other people think of Fine Gael's economic policy of selling off State assets, to raise money to try to run the country.

In my opinion, the plan would be a kin to the fire sale of national assests by the Russian Federation after the collapse of the USSR, that did little to create a healthy economy, but rather make those who supportered the new elite, very rich.

There are many similarities between Fine Gael's plans and those pursued by Boris Yelsin in the early 1990's. He managed to make some of his supporters very rich, through the selling off of national resources at very depressed prices. When the recovery came, these people sold out to foreign investors, looking to asset strip mines etc.

The national government did not benefit greatly from the policy, they sold very valuable assets, nationally stragetic assets, for very little return. Would Fine Gael's strategy to sell off state entreprises now not be a similary fire sale, that would see little return for the Irish nation?

One obvious result of this economic policy would be to create Irish Oligarchs that would owe their wealth to the new political establishment - Fine Gael. Would Fine Gael then expect these Oligarchs to fund their party, going into the future, the same way as the property developers funded Fianna Fail, because they owed their wealth to Fianna Fail?

Also, how many jobs would be created by such a policy? Sure more people would lose their jobs as new management would seek to slim down the newly privatised company by making wage cuts and laying off staff, something all governments fined hard to do. Also, it seems to me the only people who would have employment through this would be the law firms, stockbroking firms and banks who would be handling all the due diligence, buying, selling, and financing of the IPOs. Creating even more groups that would owe their wealth to Fine Gael.

Any thoughts?

It is unlikely to be on the scale of Russia, to be fair. FF have flogged most of the assets anyway!

[Fianna Fáiler]

It's unlikely to happen considering they'll either be in government with Labour or the Shinner's. Privatisation doesn't work, which has now been proven.