This document summarizes a presentation given on February 18, 2014 on finance and equality in Ireland. It discusses the closing or reduction of budgets for several Irish equality bodies between 2008 and 2012. It then provides details on Long Term Refinancing Operations by the ECB that provided over 1 trillion euros to banks at low interest rates in 2011-2012. The remainder discusses the implications of greater financialization and mobility of capital for inequality and economic growth.

1. Mandate Training Dublin
18 February 2014
Finance and Ireland
Dr. Conor McCabe
UCD School of Social Justice

2. [Lehman collapse, 15 September 2008 - headlines 16 Sep 2008]

13. Closing down of Dissent - Attacks on Equality in Ireland
Equality Bodies – closed down or with reduced Budgets
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Combat Poverty Agency –closed 2008 incorporated into the Department of Social Protection
Equality Authority – 2009 43% cut and now being merged with the Human Rights Commission
Women’s Health Council – closed 2009
Crisis Pregnancy Agency – closed and merged with the Health Service Executive
Irish Human Rights Commission -Budget cuts since 2009 and merged with Equality Authority
Equality for Women Measure - co-funded by EU Operational Programme ---budget partly transferred out of
this area and now under Dept. For Enterprise, Trade and Employment
National Consultative Committee on Racism and Interculturalism (NCCRI) _Closed 2009
Gender Equality desk at the Department (Ministry) of Justice, Equality and Law Reform – Desk Closed 2009
Gender Equality Unit – Department of Education – Closed early 2000s
Higher Education Equality Unit – UCC -Closed and merged into Higher Education Authority (early 2000s)
National Women’s Council of Ireland -158 member organisations- budget cuts of 15% in 2008-11 and 38% in
2012
Traveller Education cutbacks 2011 and 2012 – all 42 Visiting teaches for Travellers removed*
Rape Crisis Network Ireland – core Health Authority Funding removed 2011
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SAFE Ireland network of Women’s’ Refuges - core Health Authority Funding removed 2011
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People With Disabilities in Ireland's (PWDI) - funding removed 2012
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National Carers’ Strategy – abandoned 2009
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Kathleen Lynch, Equality Studies UCD
School of Social Justice
13

16. Long Term Refinancing Operations
(LTRO)
21 December 2011: €489.2 billion to
523 banks – 3yrs @ 1 per cent
29 February 2012: €529.5 billion to
800 banks – 3yrs @ 1 per cent

17. Long Term Refinancing Operations
(LTRO)
21 December 2011: €489.2 billion to
523 banks – 3yrs @ 1 per cent
29 February 2012: €529.5 billion to
800 banks – 3yrs @ 1 per cent
“Some banks, particularly in Spain and Italy, used
portions of those funds to buy higher-yielding bonds
issued by their governments at a time when most
investors remained skittish, and it helped reduce
government borrowing costs.
But many banks primarily used the funds to pay down
maturing debts or simply deposited the money at other
banks or with the ECB itself, even though they yield less.
The infusion fell short of some politicians' hope that it
would stimulate bank lending to customers in struggling
European economies.”
Wall Street Journal, 1 March 2012

20. Over the last quarter of a
century something
fundamental seems to have
changed in the way in which
capitalism works.
The tendency since 1970 has
been towards greater
geographical mobility of
capital.

21. Rather than being a modest
helper to the capital
accumulation process,
[finance] gradually turned
into a driving force.
Speculative finance became
a kind of secondary engine
for growth given the
weakness in the primary
engine, productive
investment.

26. “Part of the reason people get less giddy
about the Dow than they did five years ago
is that they have learnt a bit about
inequality.
what looks like a recovery, a rally or an
increase in consumer confidence may just be
the effect of elites passing money among
themselves.“
Christopher Caldwell, FT 9 March 2013

47. One company –
200 employees
One employee–
200 companies

77. Irish Executives in the six
lenders must have been
rubbing their hands with
glee as the State-sponsored
€400 billion insurance
policy covers commercial,
institutional and interbank
deposits, and investors who
have bought some of their
debt.
The State guarantee allows
the six lenders to borrow
more freely and more
cheaply for short-term
funding that had become
scarce due to the global
credit crunch.

78. Mr. Lenihan said on
Tuesday that the
increase on the cap on
deposit guarantees up
to €100,000 from
€20,000 last month
covered 97 per cent of
customer deposits so
the guarantee has
clearly been included
for the benefit of the
banks rather than the
savers…

79. “Denis Casey, chief
executive of Irish Life
and Permanent, said
the guarantee would
allow Permanent TSB
and the other Irish
banks covered to
borrow more cheaply.
“The oxygen supply for
Irish banks was being
cut off and healthy
banks were starting to
gasp for breath. This
guarantee turns on
the oxygen supply.”