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In
an
article published on this website almost a year
ago, this author gathered data to show how people
with money have a disproportionate influence on the
political life of the twenty six counties. New facts
and figures recently published in Sunday newspapers
make it possible to update this article.
An
article in the Sunday Independent revealed that the
one hundred wealthiest Irish people’s combined
fortune is worth 23 billion Euros. This is equivalent
to one fifth of the 26 counties’ GDP. By contrast,
the one hundred richest US citizens are valued at
one twentieth of all US economic activity. “The
ten richest people in Ireland are each sitting on
an average fortune of 800 million Euros. The average
industrial worker would have to bank his or her entire
27 000 Euros salary every year for 30 000 years to
amass the same wealth.” (Sunday Independent
14 March 2004) Among those super rich are Sir Tony
O Reilly (fortune estimated at 1.3 billion Euros),
JP McManus (790 million Euros), Margaret Heffernan
(490 million Euros), Michael O Leary (470 million
Euros), Larry Goodman, Tony Ryan and Dermot Desmond.
In global terms, Ireland may have the reputation of
the Celtic Tiger, but only two people with links to
Ireland are included in Forbes most recent
list of the world’s richest people. (Forbes
15 March 2004).
Last
year’s article noted that of the top 100 richest
people in Ireland, 27 came from the construction and
property sectors, 12 from distribution, 8 from hotel
and pubs, 7 from the food industry, and 6 from sport
and entertainment. Only 11 came from a manufacturing
background, 5 technology and 5 from finance. This
trend hasn’t changed. Among the top 50 private
companies in the 26 counties, the most featured industry
is still the property and construction sector (18
companies), retail (7), builders’ providers and
services (6) and car distribution (5). Thirty one
of those companies are either owned by a family or
a couple. (Sunday Business Post 28 March 2004)
Is the Leinster House still “nothing but a
committee for managing the common affairs of the whole
bourgeoisie” as Marx wrote of the modern
state?
The
rich may not govern, but they still rule. Through
what mechanisms? Anthony Sampson noted in the Observer
that the rich in Great Britain “can feel politically
more secure”: “New Labour has proved more
sympathetic to big business than any post war government
except Margaret Thatcher’s. Tony Blair is careful
not to mention inequality, enjoys the company of business
leaders and holidays in the houses of rich friends.
Gordon Brown is never publicly critical of the rich.
Wealthy individuals and corporations no longer need
representatives in parliament or governments to safeguard
their interests and swing votes. A few rich men sit
in the Commons… Yet most can rely on lobbyists
and pressure groups to push their cases for reduced
taxation, regulation or planning restrictions, while
multinational firms hardly need to make the point
that if they are not granted special terms they can
take their money out of Britain. New Labour is especially
mindful of the need to oblige rich individuals as
donors. The explosion of personal fortunes has made
all parties more dependent on a handful of individuals
than on company donations.” (The Observer
28 March 2004)
All
this could also apply to political life in Ireland,
as the Flood and Moriarty Tribunals have shown. Not
a week passes without some new revelation about the
corrupting influence of money in Irish political life.
For example, between 1994 and the end of 2000, tycoon
Denis O Brien gave political parties almost £300
000. Just in 1999/2000, he gave Fine Gael over £55
000. Few would doubt that the award of mobile telephone
licence to his company Esat Digifone has nothing to
do with this. (Sunday Business Post 28 March
2004) Last week Senator Martin Mansergh lambasted
what he called “unpatriotic” tax
exiles, Irish business people who flee the country
rather than paying taxes. Mr Mansergh should have
known better. The capitalist class owes its allegiance
only to its money and self-interest.
Also
very worrying is the huge power of a very small number
of multinational companies. Figures released by the
Revenue Commissioners demonstrate the Exchequer’s
massive reliance on foreign multinationals: ten multinationals
together accounted for more than a quarter of the
total corporation tax take last year. The ten contributed
1.38 billion Euros in corporation tax, representing
27 percent of the total corporation tax take of 5.16
billion Euros. And one company, who paid 510 million
Euros in corporation tax, accounted for ten percent
of Ireland’s total corporation tax take in 2003.
Those figures suggest that these top ten multinationals
made combined profits of 11 billion Euros on their
Irish operations in 2003, while the top multinational
taxpayer alone made profits of about 4 billion Euros.
Nine out of these top ten companies are foreign owned,
while the tenth is an Irish company. The eleventh
largest corporation taxpayer was also a foreign owned
multinational. The majority of them come from the
pharmaceutical and ICT industries. (The Sunday
Business Post 29 February 2004) Given the huge
importance of this small number of companies in Irish
economic life, their influence is immense. The American
Chamber of Commerce in Ireland notes that among the
reasons they are in Ireland for, are the ‘pro-business
environment’, the ‘favourable corporation
tax rate’, and the ‘flexibility’ of
the labour market. (ibid) These companies,
because of their weight in the Irish economy, constrain
all decisions that are taken in Leinster House. They
do not need to make the point that if a more pro-worker
(rather than pro-business) environment, higher corporation
tax and less ‘flexible’ labour market are
created, they can always go to India, China, or Eastern
Europe. Monopoly capital is indeed dominating Ireland.
Report
highlights inequality in Ireland (RTE)
April 4, 2002
A report published today suggests that Ireland has
become one of the richest countries but also one
of the most unequal.
The report by independent social researcher, Brian
Harvey, found that human rights standards are below
international levels and corruption is a central
theme of life here.
It said Ireland has lost substantial foreign investment
because of its reputation for corruption.
Among its other criticisms are the inadequate treatment
of refugees and asylum seekers, the lack of an independent
police complaints procedure and the difficulties
for poor people getting swift access to justice.
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