McWilliams -taxpayer should buy up Waterford and SR Technics

davidmcwilliams.ie/2009/03/2 … f-the-past

Hint, hint…

He has totally lost the plot. It would be hard to come up with two worse companies for the State to buy.

Lost it a long time ago…

Thats right, lets buy them up, create artificially high wages like certain parts of the Public Sector…

And he is an Economist…

Im glad I gave up reading this crap…

God help us. He’s lost his mind.

I don’t understand this mechanism. Can someone explain how being forced to devalue your currency lowers the amount of domestic debt?

Explain please. These are 2 previously profitable companies with skilled workforces, each of which the local communities are highly dependent on. Why should we just allow these long standing employers to collapse with the inevitable repercussions of mass unemployment in Waterford and North County Dublin?

When was the last time WW was profitable?

How is SR Technics likely to be profitable without any contracts?

You need justify why we **should **do something not ask others to explain why we shouldn’t.

These companies are not profitable and if there was any possibility of them becoming profitable they wouldn’t be shut down. The current owners like money just as much as anyone else.

As for “The communities are dependent on them” part - that’s the road to hell. What about Dell? What about all the architects being laid off? What about the taxi drivers? What about the solicitors?

Anyway, back to Iceland:
Central Bank monthly economic indicators:
sedlabanki.is/lisalib/getfil … temid=6840
Wages up 7.5% YoY
CPI up 17% YoY

My understanding is that mortgages in Iceland are CPI-indexed, so outstanding mortgages have increased by 17% YoY, but ability to pay (wage rates) have increased by only 7.5%.

Despite the massive inflation, Icelandic workers are experiencing huge deflation. Don’t be fooled by the big inflation numbers. This is, as far as I can see, a misunderstanding on Mr. McWilliams part.

In addition, many domestic debts in Iceland are in foreign currency. With a 90% devaluation of the krona, those debts have increased ten-fold relative to local currency.

I don’t see any mechanism that the situation that has happened is in any way good for Icelanders.

i suppose he means that since domestic debts are tiny when valued in foreign currency, when you attract some foreign money to your shores you can quickly clean up your balance sheet.

Yes I was going to go check and expected to find a large inflation figure to justify McWilliams’ comments. Thank goodness for the Euro is all I can say, without it I’d probably be huddled on a ship sailing to the new world.

Maybe not WW but SR Technics would be worth having. I’d imagine Valuable skills that could be redeployed for any manner of task and not just aviation. Some things you don’t want to loose.

Presumably then one of them will think “Hang on, I can use my skills to do [whatever]”, start his own business and hire on his own mates. This is what usually happens in recessions, no government interference needed.

SR is ex Semi State and heavily unionised, that kind of environment tends to frown on creativity and discourage the kind of thinking that one would need to engage in this kind of enterprise.

OK, in the case of SR Technics, I will draw you back to a certain debate in 1997 before the results of the privatisation of the company that we see now: historical-debates.oireachtas.ie/D/0483/D.0483.199711270016.html

Before the sell-off of both companies (Aer Lingus and TEAM) they were both profitable and intrinsic to employment in the region. The social good of having secure employment in an Irish owned industry in an entire region of the country is the reason why the State should. You call this the road to hell. I call the alternative of mass unemployment ripping communities apart. You mention Dell. It was a scandal for the same reason that this was allowed to happen. The Irish operation was very profitable. Corporate greed forced the relocation. Taxi-drivers, architects etc - all individuals or small companies. Their livelihoods can just as much be affected by the knock-on results of a major employer shutting down - see Dell, see Waterford. I’m talking about the devastation to an entire area by the removal of a large and important employer. The skills and experience of these workforces could be harnessed to maintain viable well-paid secure jobs as they did in the past. Properly managed with collective input from all levels they can be extremely viable. But if you accept the neo-liberal ideology of global competition and “cost-cutting” forcing wages down, then we can throw our hands in the air and eventually none of us will be able to afford any product that is made.

Profitable companies get relocated or shut down every day. As explained above.

We live in a world of limited resources which need to be allocated efficiently. Why do the people in Waterford and SR Technics **deserve ** secure employment? Why don’t I deserve secure employment? Why doesn’t every single person in the country deserve secure employment?

The reality is if there was strong demand for their skills they **would **be in secure employment.

Corporate “greed” is what got Dell here in the first place. Have you forgotten that Dell is not an indigenous Irish company?

If it’s so easy to make a profit building custom computers in Ireland and selling them why doesn’t one of the canny lads who got laid off put together a business plan doing just that? Why does the Irish government need to ride in and save the day?

Well it keeps coming back to this - if this is all so sensible why the government?

It’s funny to start complaining about global competition now when we’ve been benefiting from it for decades.

As asserted above. Do you think Dell is looking just at the current quarter? Do you think they’re unable to plot a line into the future and see that the growing cost base in Ireland means remaining in this country is not sustainable? Are they supposed to wait until they’re losing money in order to satisfy you?

We live in a world of mismanaged resources - look at all the empties around the country - side-by-side with unaffordability, unemployed construction workers and homelessness.

They do.

There is. Unfortunately the provision of the service is not in sync with the profit margins of SR Technics. As Joe Higgins said “Let us make no mistake, if they get away with it, whichever multinational giant comes in will have loyalty to one thing only, maximisation of their profit. If that means moving the business out of Dublin to the United States or somewhere else, that is what will be done, without thought for Irish jobs, Irish workers or north Dublin.”

Glad we agree on that.

Therein lies the problem. Too much emphasis on FDI, not enough on indigenous industry - making stuff we can export where the profit doesn’t get repatriated to some boardroom pockets in the US.

Well it’s going to be difficult seeing as Dell will shut up shop and take everything when they leave. Dell should have been told - “well lads you did very well out of the workforce of Limerick and our ridiculously favourable corporate tax rates. If you feel you really have to relocate, we’ll just be holding onto the plant and machinery. A little compensation, if you like. Off you go now”. Same workforce, a little initiative and investment , a bit of Irish entrepeneurship we hear so much about, bob’s your uncle. Company creates goods for export. Revenue accrues to public coffers - as we keep hearing “there’s no money”. Problem solved. simplistic yeah, but you get the gist.

Short term benefits. Look at the mess we’re in now.

Well again, therein lies the problem. “loyalty to one thing only, maximisation of their profit. If that means moving the business out of Dublin to the United States or somewhere else, that is what will be done, without thought for Irish jobs”.

Let me emphasise the point - I have no faith in the gombeens in this government or their corrupt cronies to maintain these viable industries. This government is content to sell off our natural resources and run our workforce into the ground to appease the balance sheets of major corporations. And then tell us we have no money. It just doesn’t wash with me.

We live in a world where resources are not allocated to maximal efficiency. In order to abandon the current system we must have a system which is **more **efficient. Government bureaucracy is one of the least efficient systems and something I’m not prepared to use except where it’s absolutely necessary and/or the alternatives are worse.

Does everyone deserve to be securely employed in whatever profession they like? If someone wants to be an artist they deserve to be paid to make art?

Then any one of the people laid off or indeed anyone else can start a similar business and make money at it right? Where does the Irish government fit into this picture? There’s money to be made so let someone go make it.

This sounds extremely sensible to me.

Then you should be enthusiastic about handing them control of even more of the country!

Maybe we could cash in on our innate construction abilities and build prefabricated shoeboxes and export them?

No wait, Lego already do that. :angry: