The battle of Irish Water. Another reason to heed protesters.

April 14, 2016

By James Quigley, part one of a two part article

This article centers around Irish Water Ltd. It questions the political, economical and social agendas of the some of the playmakers behind the multi billion euro project and criticises the ever growing influence they have on the Irish political system.

The first article is a more generalised synopsis of what I believe are serious issues of political and social manipulation surrounding the setting up of the semi state Irish Water company. The second article will be more specific and will zone in on some of the playmakers' involvement in the saga, an elitist club of academics, professionals and multinationals forging what could be described as the equivalent of a masonic fellowship.

The 'one-arm bandit' may seem a bit misleading. It suggests an Irish system as a game of chance. However, the reality could not be further from the truth. What one hand giveth, the other taketh away. All gaming machines in fact are rigged. Gambling generally is manipulated to give the owners the upper hand, the odds and permutations are studied to give optimal profit. They are calculated to draw you in, keep you hooked but extract as much cash as they can. Otherwise they would not be in business. Everything looks legit but in reality it is an illusion, a trick, the razmataz of tinsel town.

Largest project in history of the state

In 2014 Bord Gáis Éireann described Irish Water in a submission to the Joint Oireachtas Committee on the Environment as “one of the largest reform projects in the history of the State”.

Another interesting report and one which is at the heart of this discourse, 'Delivering Ireland's Water Services for the 21st Century' was prepared in 2011 by The Irish Academy of Engineering and Engineers Ireland. . It was presented to the Oireachtas, by Mr Gerry Grant, Managing Director, RPS. Incidentally Mr Grant is now Managing Director of Irish Water Ltd.

It is not what the report advises that is important but it is the members of the report's taskforce that is revealing. It includes RPS, Engineers Ireland, Irish Academy of Engineers, State and Co Council employees and various individual private consultant firms. We will focus on these groups in the second part of this article. However, this group represents a quintessential example of the establishment joining forces with multinational corporations to set or influence the political and social agenda.

This multi billion euro Irish Water project, with approx €11bn of assets and nearly the same again in running costs, has indeed unearthed a can of worms. Intrigues abound. Not only is it because of the vast amount of money involved but probably more so because Irish Water is what has been described as the 'largest reform project in history' that has attracted the interest of a myriad of multinational corporations along with indigenous entrepreneurs and academics. Like a herd of sharks, they have tasted the potential of this bonanza.

To some the Irish Water project may be Shangri-La but to a lot of Irish people it epitomises how our political, economical and social system has been systematically manipulated by global and indigenous interests for their own ends.

From Irish Water's embryo stage some 16 years ago right through to the Troika supervised formation stage, 2012-2014, to the present day political impasse, Irish Water Ltd has a history of secrecy, controversy and political manipulation. It has seen the involvement of high powered multinational corporations and local Irish businesses in the affairs of the state. It is this relationship between the establishment, politicians, local businesses, academics and partisan group and multinationals corporations that is the driving force behind the Irish Water project. It is this relationship that is at the heart of the controversy where one could nearly describe the outcome as a coup.

The methods and techniques used by these elite forces are insidious, pervasive and relentless. Because of present day economics Governments and countries are entrapped by the lure of employment and a quick GDP fix. It is a catch 22 situation where the elite use politicians and vice versa politicians use multinationals corporations to further each others agendas. Instead of pursuing quality of life, self sufficiency and indigenous employment we are sucked into a dependency of multinational corporations. These corporations are by their very nature transitory, adversarial, secretive and self-serving and extremely powerful. They have no allegiances other than the stock markets and profits. Barriers to trade and borders are broken down, political systems are manipulated and politicians bought and sold.

Cultural diversity and political systems are harmonised to attain 'economy of scale', the be all and end all of the their economic structure. We all have to be the same, automatons, with the same needs and outlook in order to service this multinational imperialistic megalomaniac machine.

Great legions of lobbyists

Nothing as far as possible is left to chance, apart, of course, from the roulette wheel of the stock exchange. Countries, political systems, market trends and the public have all been thoroughly assessed, researched and analysed. A methodology and model is developed to conquer the market. Many of these corporations and even individuals have ready access to more cash than individual countries.

All our political, legal, educational institutions are used to further multinational corporations' goals . Great legions of lobbyist, solicitors, engineering, planning and economic advisers are employed to copper-fasten their agenda.

The illusion of democracy and freedom is churned out through the controlled media, puppet politicians and omnipotent public relations firms. We are led to believe that all the endeavours are for the citizen's own good and the benefit of society. There is never any mention of the vast profits to be made or the control of political systems. The public are constantly fed the idea of democracy and are told that they have a choice, a say in their affairs. Half truths and diversions hide the fact that the illusion of democracy comes around every 5 years where we dutifully hand over the levers of power to political prostitutes and the sugar daddies. It is a merry-go-round, a house of mirrors, flashing lights and the jingle of change. Maybe we might walk away with the teddy bear or maybe nothing at all.

Ireland, it's people and it's politicians have been thoroughly assessed, surveyed, our habits and markets researched and analysed. The elite have produced a model and a methodology to suit their philosophy. Such a model is Irish Water Ltd and an unmerciful propaganda war is now raging to consolidate the company and philosophy into the Irish system.

Multinational feast, of course, done through a competitive procurement process

Bord Gáis was chosen to oversee this project. In their 2014 submission to the Joint Oireachtas Committee they stated “Bord Gais was given a mandate to establish Irish Water as a key part of the water reform programme. We set out for Government our approach for delivering Irish Water back in January 2012......... Bord Gáis set out clearly, from the outset, that while the core capability to define what was required to establish Irish Water existed within Bord Gáis, it would require the use of specialist service providers to help implement this programme. In essence the Bord Gáis team in conjunction with secondees from the Local Authorities and the Department specified what was required. Bord Gáis used its experience and its existing systems and processes to define the requirements for Irish Water. ”

The external services and the costs were: IBM €44.8m, Accenture €17.2m, Ernst & Young €4.6m and KPMG €2.2m.

Up to 2014 Bord Gáis spent the guts of €2bn including the above expenditure, their own running costs and that of the metering contracts of over €1.2bn. All metering contracts went to outside multinational companies including Murphy Group, Coffey Northumbrian Ltd and GMC Sierra. GMC Sierra a subsidiary of the infamous and former Siteserv, (now Actavo). Last year Eurostat calculated that Irish Water expenditure to be €800m per year over a 8 year period until 2021. This figure will probably reach €1bn per year. Incidentally there is no mention in the report of the Siteserv controversy or the offer made by Siemens to provide meters at a much cheaper price. No everything was above board and contract awarded "through a competitive procurement process".

Bord Gáis Éireann has since been split up, the lucrative part privatised and sold to Centrica plc in 2014. The unprofitable part is now called Ervia, a semi state company. Irish Water Ltd, apparently is a subsidiary of Ervia. Even Eurostat, an EU statistical office was not able to define the make up of Irish Water Ltd. Isn't it ironical that Bord Gáis the parent company who used it's own model as a template for Irish Water has been privatised and sold off. A bad omen for the future.

So you believe we have a democracy?

A quote from Ernst & Young, one of the external corporations hired by Bord Gáis in 2012 to set up Irish Water, “We have one strong global leadership team that sets one single global strategy and agenda. To ensure we are efficient and effective, we have organized our legal entities into 28 similarly sized business units, called Regions, in terms of both people and revenues. These Regions, almost all of which are purposely not single countries, are grouped into four geographic Areas:”

What is Democracy?

According to political scientist Larry Diamond, democracy consists of four key elements:

(a) A political system for choosing and replacing the government through free and fair elections; (b) The active participation of the people, as citizens, in politics and civic life; (c) Protection of the human rights of all citizens, and (d) A rule of law, in which the laws and procedures apply equally to all citizens.

Democracy, he says, “must improve where it already exists before it can spread to other countries. He believes solving a country’s governance, rather than its economy, is the answer. Every democratic country needs to be held responsible for good governance, not just when it suits them."

"Without significant improvements in governance, economic growth will not be sustainable. For a democratic structures to endure – and be worthy of endurance – they must listen to their citizens’ voices, engage their participation, tolerate their protests, protect their freedoms, and respond to their needs.” The Spirit of Democracy

Shane Ross magnificent Dáil speech

“Irish Water symbolises what is so wrong with Ireland today and so wrong with this government. It embraces so many wrongs and so many attitudes that so many recent that it has united unusual and unlikely forces against this government and Irish Water” he goes on to admonish the government of political appointments to the board of Irish Water.” Shane Ross, 2014, Dáil Éireann.

Eddie Hobbs Deep State

“Democracy in Ireland partially exists every few years at election time when politicians and media make a little fuss and somehow cajole you into believing their myths. What they do not tell you or you don't seem to get is that you really do not have any power. Real power only exist in what Mr Hobbs calls 'Deep State'.” Buncrana Together

Can the battle for democracy be won?

Taking on such a force may seem futile. However, there is a chink in the elites' armour, an Achilles' heel. This vulnerability is the absolute arrogance, the flaunting of power, wealth and prestige, the condescension and the manipulation of political processes and not least corruption. Coupled with that there is a massive upsurge inpopular protest in Ireland against what is seen as corruption and wanton neglect. It is this political awareness, the amount of contempt and the anger against the Irish Water project and the forces behind it that has the potential to put a stop to the elite's plans.

Somehow democracy has to be salvaged and wrested from the grips of the power brokers. The last stand could be the battle against Irish Water Ltd. If the Irish Water model succeeds then it would be fair to say that corruption and anti democratic forces will have achieved their goals.

Bord Gáis 2014 Submission to Oireachas: https://www.water.ie/news/bord-gais-expertise-to-sa/Irish-Water-Submission-to-Joint-Oireachtas-Committee-14th-January-2014.pdf

Irish Academy of Engineers and Engineers Ireland report: Delivering Irelands Water Services for 21st Century

Eddie Hobbs looks at Ireland’s powerful, unelected forces who control decision-making

March 20, 2016

The message in this article hits the nail right on the head. Democracy in Ireland partially exists every few years at election time when politicians and media make a little fuss and somehow cajole you into believing their myths. What they do not tell you or you don't seem to get is that you really do not have any power. Real power only exist in what Mr Hobbs calls 'Deep State'.

It is surprising that this article comes from the pen of Eddie Hobbs who is an Irish financial advisor, a television presenter, an author. He is a member of Renua, what could be described as a very right wing party. That being said we will take the truth wherever we can find it and perhaps it takes an insider to know the goings on of the establishment. However, the answer to the problem will take a bit more than what Mr Hobbs suggests.

Article by Eddie Hobbs, March 18, 2016

Eddie Hobbs looks at Ireland’s powerful, unelected forces who control decision-making, upholding the status quo, and protecting their own interests at the expense of the general public, social progress, and the effective functioning of democracy

VIEWERS of the American political TV drama, House of Cards will be unsurprised by the risk of misallocation of scarce resources caused by excessive access and privilege afforded to powerful groups that comprise the Deep State — it is the stuff of human behaviour, the silent hand of soft power.

America’s Depression leader, President Roosevelt, didn’t mince his words alerting US citizens that “behind the ostensible government sits enthroned an invisible government owing no allegiance and acknowledging no responsibility to the people”.

President Eisenhower’s broadcast when departing his office in 1961 named part of the Deep State: “In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military–industrial complex”.

Speaking truth to power isn’t easy, neither is it rewarding in a country like Ireland whose own version of its Deep State appears entrenched and immune from a political system that remains mired in the shoe leather of constituency clientelism, selecting every few years those best at playing the local game to the national chamber in the uncertain hope that the long-term national interest will be served.

In truth, it matters not to the Irish Deep State who controls the Dáil chamber, so long as sufficient power rests outside it to allow the organism to fulfil its primary purpose, which is to survive and thrive.

The Irish Deep State is a nexus of relationships comprised of unelected government bureaucrats, bank executives, public trade union brass, top accountancy firms, multinational corporations, IBEC, agencies like RTÉ, regulators and quangos and is defended by an outer circle of those most dependent on it.

You certainly won’t hear about it on the State broadcaster nor among the panels stuffed with net takers, university lecturers for the most part, who find it hard to accept their role in a Deep State which stood by while the worst parts of the last depression were privatised, namely the job losses and emigration that devastated the indigenous Irish economy and emaciated its private working poor and most indebted.

You won’t hear President Higgins name it and neither, sadly, are you likely to hear it in a media nervous of a litigious billionaire, nor among Ireland’s conventional political classes who live in perpetual fear of upsetting it. But it’s there in plain sight, just follow the money, power and privileges:

Despite causing social devastation, the surviving bank officer class leaned over the shoulders of Government and ensured that the Insolvency Act maintained the chronic imbalance between creditor and debtor, ensnaring tens of thousands of Irish workers in open-ended stress while many of the most powerful got write-downs and, some, salaries.
Trade unions which ought to be principally fighting for the weakest and most vulnerable to exploitation by pernicious private sector employers, crossed to the Deep State lured by gains from ‘Benchmarking’ for which no notes exist, in deals linking their personal remuneration to the top echelons of the Civil Service and which are a multiple of those of ordinary workers.

In the last round, the drawbridge was pulled up, with open pricing against new teachers, for example. It’s why (and, despite constant demonisation) I’ve consistently named public sector trade unions, a price-fixing cartel.

Despite linking the dismantling of the last remnants of protectionism in the professions to the conditions of Ireland’s controversial bailout, the legal profession escaped the fulsome reforms that accompanied the removal of protective barriers in all others.

There is to be no fall in Ireland’s very high legal costs, leaving barriers for many consumers elevated. FOI requests reveal evidence of official lobbying by the Bar Council and Law Society but there will be no trace of the impact of the galvanised efforts of its most powerful members.

Irish society is within two decades of a chronic social crisis characterised by retirement apartheid as most of the private workforce face retirement poverty. The unfunded pension debt in the social insurance scheme is €324 billion but remains unspoken among the political class because to do so means grasping the nettle of the €100bn in the public sector scheme debt, the reform of which would most threaten the top echelons including long-serving senior politicians whose retirement benefits run into several millions and rank as the largest asset on their balance sheet.
No clearer example exists of the Deep State than the manner through which the early retirement scheme was fattened with benefits during the worst hours of Ireland’s depression and then immunised from taxation on its biggest pensions by ensuring the economic cost was understated and matched by free life cover to pay off Revenue debt on premature death for anyone unfortunate to be caught. Meanwhile over €2bn was appropriated from private pensions, by threatening the guardians, pension trustees, with daily fines of €380 for any delays.
Adjusting for its youthful population, Ireland’s spending on health relative to GNP is among the highest in Europe, with some of the worst outcomes. It’s not just about money. Eleven years after forming the HSE, it still has no centralised HR system or digitised patient files and over 50 different invoice systems — who’d stand to lose?

Bending to internal interests, the Government allowed the HSE a second outing to compress the huge National Children’s Hospital into the wrong location, the latest at St James expected to cost over €800m for which the Irish people could get both a children’s and a maternity hospital co-locating at the vast green field Connolly Hospital site, off the M50.

The 31st Dáil elected on the promise of reform, delivered the largest state agency since the HSE, with no efficiencies and conceived in a room comprising 33 local councils, trade union chiefs and the Minister for the Environment, a meeting without notes, the template for which was set by Benchmarking.

Irish Water is a shambles, rejected by the Irish people whose ownership of water, like all natural resources, was alienated in the 1937 Constitution by de Valera when he took ownership of it to the State and prevented the Irish people from challenging its guardianship through their courts which is why there are protests on the streets.

The attitude, especially to whistleblowers, those within the gardaí, exposed the cultural reflex in favour of secrecy and protection, behind which the Deep State gets its work done. The opposite is a culture of openness, engagement, accountability and a strongly independent, free-thinking press.

These, among many other reasons, are why I deem Irish democracy to be captive both externally, by EU rules and a credit market for highly indebted countries and, internally. It is evidently weak and chatter about breakthroughs driven by arithmetic following the general election lacks credibility.

Government of the Irish people, by the Irish people, for the Irish people, cannot properly exist, outside of short general election windows, without a polar shift in power, pushing down to local government and communities, empowering Dáil committees and replacing Punch and Judy politics with collegiate engagement and open debate, that depoliticises budget setting in particular.

The answer to balancing Deep State power is deep access, transparency, and accountability. Government in the sunshine, led by a fully modernised public sector energised by fresh leaders running teams driven by performance and not dampened by the secrecy, obduracy and conservativeness of an Edwardian legacy, where longevity and not merit is most treasured.

Meanwhile, to take the posturing, opinion and guesswork out of social progress, it ought to be measured at grassroots across a range of outcomes like literacy, education, health, crime detection and equality. These measures of social impacts could feed into a single annual measurement of social progress so that we do not stumble forward venerating GDP, praying for its trickle down, but instead utilise our best experts to depoliticise the debate by scientifically reporting to the Irish people how well or otherwise we are translating economic activity into a range of social outcomes.

An annual Social Progress Index can inform healthy debate about how tax transfers ought to be best weighted, using left of centre or right of centre policies — whatever works best.

Eddie Hobbs is a financial advisor.
Original article Irish Examiner, March 18, 2016