Ireland Bailout

[pompeyfaith]

Re: Ireland Bailout

One of the main reasons for Ireland's parlous state is it's extremely low corporation tax which was reduced to 12.5 percent in an effort to attract big businesses to the country. While it might have lured in the likes of Barclays who base their UK PPI business there (to avoid UK corporation tax at more than double Ireland's rate), all the existing Irish businesses now pay far less to the Irish exchequer than they did.

This risky strategy is predicated entirely on growth and volume and clearly only works in the boom times.

Indeed Exc and is also why MBNA and many others are there too

[EXC]

Re: Ireland Bailout

They're stuck with it now. They can't sell Ireland as a low tax state, attract big business and then put the price up. Big business would simply walk away in a way that small business couldn't.

[Angry Cat]

Re: Ireland Bailout

One of the main reasons for Ireland's parlous state is it's extremely low corporation tax which was reduced to 12.5 percent in an effort to attract big businesses to the country. While it might have lured in the likes of Barclays who base their UK PPI business there (to avoid UK corporation tax at more than double Ireland's rate), all the existing Irish businesses now pay far less to the Irish exchequer than they did.

This risky strategy is predicated entirely on growth and volume and clearly only works in the boom times.

And, MBNA et al.

In fact most of the Banks take/took advantage, of the 'Irish Advantage'. Together with the fact that, many securitised debt via the RoI...!

[The Debt Star]

Re: Ireland Bailout

Perhaps the Republic of Ireland should not have left the United Kingdom in the first place? It certainly wouldn't be in the Euro Zone now and that, imho, is what lies at the core of this disaster. What saved the UK was the ability to control our own exchange rate mechanism and to bail out our own banks, whereas as I understand it the Euro Zone states could not do this?

[righty]

Re: Ireland Bailout

I posted this earlier Legal Beagles Consumer Forum

[The Debt Star]

Re: Ireland Bailout

I agree, what is happening in Ireland is the next 'phase' of the bank bail out.

I returned from working abroad 2 years ago at the height of the recession in the UK. Out of work for 6 months. When I did find work it was temporary for a further 6 months. An utterly desperate and horrible time. On the plus side it has changed my perspective forever on unemployment, loss of self-esteem and poverty. No longer am I a child of Thatchers Britain.

I can't recall a recession as deep and long lasting as this (and we are in recession whatever the stats tell us - there are still few jobs and confidence / security just isn't there).

Anyway, what is happening to the ROI is a nasty wake up call and much closer to the UK economic position than the disaster in Greece - as posters have pointed out - since we invest heavily in Ireland and share a land border with the ROI.

My view is that the Euro is partly to blame for the mess (if not the cause then at least the remedy). Attempts by the EU to bounce the UK into the Euro in the late '90s are backed up by aJosé Manuel Barroso who has allegedly said something along the lines of "the people who matter in Britain are currently thinking about membership of the Euro." WRONG. The people who matter in this country are the people, not the politicians and other 'gravy boat' freeloaders like the Kinnocks.

In the UK membership of the Euro would have meant lower interest rates in the boom. Bad. That would have made the deficit even more enormous - like Ireland's.

It would also have meant higher interest rates now, making the recession deeper.

Do I like this country bailing out another which voluntarily chose to leave it? No. Do I think we should? I suspect we have to - same we had to bail out the banks.

[Sapphire]

Re: Ireland Bailout

Perhaps the Republic of Ireland should not have left the United Kingdom in the first place? It certainly wouldn't be in the Euro Zone now and that, imho, is what lies at the core of this disaster. What saved the UK was the ability to control our own exchange rate mechanism and to bail out our own banks, whereas as I understand it the Euro Zone states could not do this?

If thats the case and they are nothing to do with us now, why the hell are we bailing them out, surely that priviledge should fall on the Euro Zone, or am I reading it wrongly ?

[The Debt Star]

Re: Ireland Bailout

Fair point. I suspect there are a few reasons. One, an unstable Ireland is bad news for the situation in Northern Ireland. Two, the Irish economy is still very closely linked with our own, albeit less than it was, and if that goes into meltdown it will impact on jobs and growth here too. Three we retain some influence in Ireland if we help out e.g. policing and anti-terror co-operation etc.

It must be for these reasons.

Oh, and its also all part and parcel of the continued bail out of the banking system per se (whether Irish or British).

[Angry Cat]

Re: Ireland Bailout

The cause is: Irresponsible Lending by the Bankers themselves!

[The Debt Star]

Re: Ireland Bailout

The cause is: Irresponsible Lending by the Bankers themselves!

The cause is PARTLY that of the banks' greed but partly the fact that Euro zone countries were operating fiscal policies working towards a "one size fits all" basis, whereas these are countries with distinct economies - not large regions of a European superstate. Those countries that retained their own currencies have weathered the storm far better. However grim it is and appears to be in the UK it is far worse I should imagine (or potentially far worse) in Spain, Greece and Ireland.

[Angry Cat]

Re: Ireland Bailout

The problem has been caused by; IRRESPONSIBLE LENDING!

And, the RoI Banks are up for sale:
http://www.cityam.com/news-and-analy...its-banks-sale

[The Debt Star]

Re: Ireland Bailout

The problem has been caused by; IRRESPONSIBLE LENDING!

Like I said, I agree it has been partly caused by this but not WHOLLY. Other countries around the globe are now out of recession and, like the US, had severe banking crises. For reasons stated I will never be convinced that the Euro will be any good for this country.

Its certainly stuffed Ireland good and proper in time for Christmas.

[middenmess]

Re: Ireland Bailout

And, the RoI Banks are up for sale:
http://www.cityam.com/news-and-analy...its-banks-sale

From that article......

The details came as central bank governor Patrick Honohan said Ireland’s nationalised banking system was for sale. “I have been an advocate for a number of years for small countries to have foreign owners for their banks,” he added.

Anyone care to explain the logic behind that idea as it's beyond me?

[Guest]

Re: Ireland Bailout

The problem has been caused by; IRRESPONSIBLE LENDING!

Is there no such thing as irresponsible borrowing?

[The Debt Star]

Re: Ireland Bailout

Is there no such thing as irresponsible borrowing?

That equally applies to the British and Irish Governments as well