Upcoming Events

National | Economics and Finance

no events match your query!

New Events

National

no events posted in last week

Blog Feeds

The Saker
A bird's eye view of the vineyard

offsite link The Russiagate hoax is now fully exposed. Tue Aug 20, 2019 16:24 | The Saker
by Eric Zuesse for The Saker Blog The last leg of the Russiagate hoax to become exposed was on August 16th, when Gareth Porter bannered at The American Conservative, ?U.S.

offsite link Moveable Feast Cafe 2019/08/20 ? Open Thread Tue Aug 20, 2019 13:00 | Herb Swanson
2019/08/20 12:00:02Welcome to the ‘Moveable Feast Cafe’. The ‘Moveable Feast’ is an open thread where readers can post wide ranging observations, articles, rants, off topic and have animate discussions of

offsite link ?Greater Lebanon?: where to? Mon Aug 19, 2019 19:06 | The Saker
by Ghassan Kadi for The Saker Blog Abou Omar, a close friend of mine, is one whom I have so much in common. Not only he was my boss many

offsite link All along the watchtower: The follies of history Mon Aug 19, 2019 14:49 | amarynth
The ultimate American imperial dream is to engineer a Chinese vassal state By Pepe Escobar, from Cambodia – Posted with permission There must be some kind of way outta here

offsite link China Daily investigation: Who is behind Hong Kong protests? Sat Aug 17, 2019 17:47 | The Saker
The China Daily reports: By Wei Xinyan and Zhong Weiping It’s not hard to imagine the United States’ reaction if Chinese diplomats met leaders of Occupy Wall Street, Black Lives

The Saker >>

Human Rights in Ireland
A Blog About Human Rights

offsite link Saudi Human Rights Violation Fri Aug 09, 2019 20:41 | Human Rights

offsite link China?s LGBT Community Mon Apr 15, 2019 19:19 | Human Rights

offsite link Declaration of Human Rights at Sea Mon Apr 08, 2019 07:31 | Human Rights

offsite link NZ Watchdog On Limits Of Free Speech Thu Mar 28, 2019 11:44 | Human Rights

offsite link US Abortion Restrictions Violating The Human Rights Of Women Thu Mar 14, 2019 15:33 | Human Rights

Human Rights in Ireland >>

Cedar Lounge
For lefties too stubborn to quit

offsite link What you want to say ? 21 August 2019 05:44 Wed Aug 21, 2019 | WorldbyStorm

offsite link Independents? 12:33 Tue Aug 20, 2019 | guestposter

offsite link Bleak 10:32 Tue Aug 20, 2019 | WorldbyStorm

offsite link Safety last 08:33 Tue Aug 20, 2019 | WorldbyStorm

offsite link Memorial garden 07:37 Tue Aug 20, 2019 | WorldbyStorm

Cedar Lounge >>

Dublin Opinion
Life should be full of strangeness, like a rich painting

offsite link Some Thoughts on the Brexit Joint Report 11:50 Sat Dec 09, 2017

offsite link IRISH COMMONWEALTH: TRADE UNIONS AND CIVIL SOCIETY IN THE 21ST CENTURY 14:06 Sat Nov 18, 2017

offsite link Notes for a Book on Money and the Irish State - The Marshall Aid Program 15:10 Sat Apr 02, 2016

offsite link The Financial Crisis:What Have We Learnt? 19:58 Sat Aug 29, 2015

offsite link Money in 35,000 Words or Less 21:34 Sat Aug 22, 2015

Dublin Opinion >>

Proceeds of AIB shares should be for public investment – TASC economist

category national | economics and finance | press release author Friday June 02, 2017 18:34author by 1 of indy - Think-tank for Action on Social Change Report this post to the editors

Press Release - TASC - 30th May 2017

reland must assert its sovereignty and invest the proceeds of the AIB shares in public infrastructure, according to leading economist, Paul Sweeney of TASC.

The main reason for investing this capital in Ireland, Mr Sweeney said, is that it generates bigger returns than the savings on the interest on the national debt. Furthermore, the extraordinarily low level of public investment is manifested in the housing crisis and hospital overcrowding.

The government has already received €6.2 billion from AIB from capital reorganisation, all of which has been used to repay the national debt. “It is now time that the next tranche of capital from AIB is used to invest in capital infrastructure,” said Mr Sweeney.

TASC first made the recommendation that the capital from the first share offer should be invested rather than used to repay the debt in a major investment report, “A Time for Ambition”, published in December 2015. (See https://www.tasc.ie/publications/a-time-for-ambition-en...h-in/ )

The report pointed out that in recent years public investment in Ireland fell to the lowest level since records began. The level of investment was so low one year that it did not even cover depreciation.

“This is very bad economics,” stated Mr Sweeney. “Most economists and international agencies like the IMF agree that public investment in infrastructure can repay substantially more in real returns to governments than the cost of interest. That is one reason for more public investment, with others being that we will have the use of assets and that it will increase employment, particularly in construction. Also such low public investment is damaging future economic development.”

Last month the government borrowed €500 million, the interest was minus 0.42% and this was almost three times oversubscribed. The average interest rate on all the debt was 2.3% last year – and it is lower today.

Mr Sweeney also was critical of the “bogeyman” who asserted that that the EU is stopping the government from using some of the AIB proceeds to invest in Ireland.

“It suits the suits who want to repay debt to say this. Ideological though the Commission is, it cannot really stop a sovereign government from investing its own capital in its own country. Furthermore, the EU has clarified the rules ( http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELE...R1185 ) on the Stability and Growth Pact in which indicates a more relaxed approach especially for an economy which is performing well like Ireland.

“In the longer term, the government should also retain a decisive shareholding in AIB, one of Ireland’s leading retail banks. Banks are too important to be left to bankers to run or ruin,” Mr Sweeney concluded.

Related Link: https://www.tasc.ie/news/2017/05/30/proceeds-of-aib-shares-should-be-for-public-invest/
© 2001-2019 Independent Media Centre Ireland. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by Independent Media Centre Ireland. Disclaimer | Privacy