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Conference tallis::celt

Title:Celt Notefile
Moderator:TALLIS::DARCY
Created:Wed Feb 19 1986
Last Modified:Tue Jun 03 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1632
Total number of notes:20523

1445.0. "The real issues" by ESSB::PBUTLER () Wed Dec 28 1994 03:43

    Let's kick off the New Year with a focus on the sad, but real, 
    issues about Irish unification. 
                 
    / Peter
    

The Irish Times,		December  20, 1994

Republic could not bear cost of unity, says economists

    IRISH unification would place an unsustainable burden on the economy of the
Republic, according to a submission to the Forum for Peace and Reconciliation by
two Northern Ireland economists.
   Taxes in the Republic would have to increase by 25 per cent to cover the loss
of funds from the British exchequer alone, say the submission's authors, Mr
Paddy Roache of the University of Ulster and Dr Esmond Birnie of Queen's
University Belfast.

   Neither Irish republicanism nor much of Irish nationalism had displayed a
grasp of economic reality, the submission added.

   The academics argue that the key issue in considering the economic
feasibility of unification is the British government's subvention which is worth
Pounds 3.4 billion sterling a year.

   The higher-tax scenario would require people in the Republic "to subsidise,
at great economic cost, a standard of living in Northern Ireland significantly
higher than their own" as living standards in the South are one third below
those of the North.

   The idea that European and American funds could be attracted to underpin any
new Ireland is "simply the rhetoric of economic self-delusion", submission's
authors hold.

   The analogy used by the former Taoiseach, Mr Albert Reynolds that
Irish-Americans would do for Ireland what the Jewish community did for Israel is
also limited as it ignores the extent to which the US support for Israel was
driven by the imperatives of the Cold War.

   The submission says that five years after unification, aggregate income in
the North will have declined by 20 per cent and the number of people employed
there would have fallen by 120,000.
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1445.1makes sense but....ESSB::BREEWed Dec 28 1994 09:0330
    I wouldn't for one minute disagree with what the economists in question
    have said primarily because I'm not qualified to do so but also because
    it appears to be fairly common sense to me anyway.
    
    If unification does ever come about it will be very gradual with only
    perceptible changes happening over decades. It is the duty of the
    Republic's government and people to work for the strongest, fairest
    economic order possible here not so we can become suitable for union
    but because that is the right thing to do for Ireland.
    
    The potential for synergies (not just economies of scale) in
    infrastructure, tourism, commerce and culture is there now and does not
    require re-unification to release it.
    
    Open, frank and rational discussion on the Island's future have a much
    better chance of success in an environment of opportunity, peace and
    fair play. To this end the British government would do well to
    facilitate Sinn Fein's/IRA's backing out of the armed struggle without
    placing too many obstacles over the hand up of weapons. The weapons
    will have to be decommissioned at some stage but for now the fact that
    they are not being used should be welcomed. 
    
    The British governent is not entitled to and should not look for a
    victory now. This sorry conflict had no winners and a lot of innocent
    losers. There is a distinct and welcome lack of "machismo" from both
    extreme Loyalist and Republican groups and any such behaviour from
    Dublin, London, Washington or Brussels would be inappropriate and
    unhelpful.
    
    Paul
1445.2Not if, but when unification comes about.KOALA::HOLOHANThu Dec 29 1994 09:4523
 re. .0

  Why should the British people be forced to subsidize an artificial
  economy in north east Ireland?  Answer: they shouldn't.  So no matter
  what, north east Ireland is probably going to lose it's 3.4 billion
  special "subsidy".  Now it might make more sense for the British government
  to slowly remove these funds, and use the existing money to build a 
  real economy (one that does not need to be subsidized to exist), and
  one that would not be a burden but an advantage to all the people of Ireland,
  when both the occupied and free states are unified.

  The logic used in .0 would have left east Germany still occupied by the
  Russians.

  Has anyone looked at the economic advantages of a united Ireland?

 re. .1
  I believe that the British insistance on a unilateral disarmament only
  further goes to prove the real lack of British government interest in
  a lasting peace.  All the weapons in north east Ireland should be removed,
  those held by the British forces, those held by the loyalist
  terrorists, and those held by the Irish Republican Army.
1445.3WELSWS::HEDLEYLager LoutThu Dec 29 1994 18:0410
re .2,

Mark,

creating a real economy using existing funds is a great idea, though
I'm sorry to say I feel it's unlikely to happen given our present
government's total ineptitude in running any sort of economy.  Probably
the best thing they can do is to leave it well alone...  :( etc.

Chris.
1445.4BONKIN::BOYLETony. Melbourne, AustraliaFri Dec 30 1994 00:069
    The report in .0 seems to be based on the idea that the British pull
    out their troops and their money overnight.
    
    When reunification comes about the British government should be made to
    pay for the mess they created when they partitioned the country. The
    current political situation in NI is a British creation, they should not 
    be allowed to walk away from it without paying money to clean it up!
    
    Tony.
1445.5the eec run this economySIOG::KEYESDECADMIRE Engineering DTN 827-5556Fri Dec 30 1994 08:4333
    
    
    The Irish economy (South) would indeed suffer if IT was to support the
    population of Northern ireland. but look at reality. To say that "taxs
    would go up" to support such a transition is an excuse!!..
    
    Look at reality..If the irish tax payer was to try and support this
    economy we would be paying 70-80% tax...at least 
    
    The Irish economy is very very heavily subsidised from the EEC...
    Its the EEC that will pay for re-building Northern ireland.....even if
    it comes from Southern exchequer coffers. 
    
    I can not really understand hearing folk complaining about how much we
    (southern irish tax payers) would have to pay for any changes when we
    take great pleasure in seeing how much we can "get" out of the EEC 
    ..And that goes for "getting what we can" out of the USA tax coffers
    also. Its a mentality which comes from the sad political structures
    we have here at the moment.
    
    My line on this for..what its worth..is that the economic issues around
    re-building ireland are a total smoke-screen. 
    
    If we need to focus on getting this peace process solid its local 
    admistration and policing that need to be sorted out...fast.
    
    rgs,
    
    Mick
    
    
     
    
1445.6TALLIS::DARCYAlpha Migration ToolsFri Dec 30 1994 11:1818
    A couple of things...
    
    Reducing security & police costs should be a benefit to both 
    the Republic and Britain should a lasting peace evolve. Something
    like 1/3 of ever pound spent in the north goes to security. 
    
    And there will be a marked increase in tourism in the north
    as peace continues. Many people haven't seen the Giant's causeway
    and other noted attractions and would like to.
    
    Many cross border institutions like energy and tourism can be
    created today, without much fuss over politics. This gradual
    integration will pave the way for more full unification.
    
    And I question the claim that living standards in the south are
    1/3 that of the north. Maybe on paper, but does that include the
    subsidies of the British exchequer in the north or the EC in the
    south? 
1445.7harrasmentEASEW5::KEYESWed Jan 04 1995 20:0227
    
    
    We are now about 4 months on in the ceasefire. Having met and talked
    with alot of people..albeit mostly nationalist...from Northern ireland. 
    I was saddened to hear that they..for the most part..have not seen any
    decrease in cases of "harrasment" from Security forces. (not
    British soldiers but RUC/RIC)
    
    I know thats a very very general statement and theres always two sides
    to every story...
    
    What was interesting was an article by Garret Fitzgerald (former
    Taoiseach and leader of Fianna Gael...friend of maggie Thatcher) In
    the irish Times. He stated that he was disturbed by cases he has been
    hearing of increased harrasment of Nationalists....and these were from
    contacts not neccesarily from the nationilist persuasion.
    
    This is akin to the Sadam in Iraq saying that the isreali's have the
    right to their land in isreal!!!!!!!. 
    
    Not good...not good at all....
    
    Gareth..Have you heard anything of this????
    
    rgs,
    
    Mick   
1445.8Not Personally....BELFST::MCCOMBAn SLB from DoireSat Jan 07 1995 12:4734
    Hi Mick,
            and a happy new year for 1995.
    
    I must admit that I haven't heard of this harasment either personally
    on in the local press, but I haven't been reading the press much over
    the holidays, so that doesn't mean it ain't happening.
    
    I was shooting over the holiday's down on the border with Cavan. I went
    through the Border post at Augnacloy without seeing anyone in the post
    and we shot within sight of the secuity post at Killeas without
    anyone bothering us.
     
    I personally feel that there has been a reduction
    in the security presence, we certainly don't have a helicopter hovering
    over the office like we had pre. ceasefire. Driving approx. 40,000 miles 
    a year in the province I tend to notice checkpoints which have now
    disappeared on the main trunk roads since September.
    
    Here's hoping I'll not be seeing any in 1995 or hearing bombs or
    bullets.
    
    Drunk drivers certainly took the hit over Christmas with the
    police being redeployed to traffic duties. I hear your new drink
    driving laws didn't go down too well, particularily in rural areas.
    It's difficult to know who has the valid point, what's your views Mick?
     
    Anyway, it's pheasant for dinner tonight.
    
    I'm working on a project in Dublin for the next six months, so I'll call 
    over and meet you
    
    Rgds
    
    Gareth  
1445.9METSYS::THOMPSONMon Jan 16 1995 17:4132
re: .0

I think it's the author's of that report that are suffering delusions!

It assumes stasis in the Irish economy. I understand the short
peace so far has boosted the economy quite a bit? A permanent peace
would almost certainly result in an improved economy.

Although the troubles have created a market for security services (in the
widest sense) that's all non-productive activity. If that energy was
put into productive work instead again it would have positive impact.

The traditional protestant complaint against the British was that they
constrained economic activity. PResumably free of those constraints
more economic activity would develop.

I think the ultimate settlement will be some kind of lease-back deal
perhaps modeled on Hong Kong. Those that consider themselves British will
retain that citizenship for their lifetime. The transition will be gradual.

ALso I think the author's of the report in .0 are assuming an 
anti-federalist plan for the EU in the future, however there is an
even stonger push for a federalist plan from France, Germany, Holland, etc.. 
If Ireland aligns with the federalist plan then aid from the rest
of Europe is quite likely. If you take the US as an example, the living
standards of the tiny state of Rhode Island aren't radically different
from California. The Federal Govt. acts as a great leveller.

I would put .0 down to scarmongering

Mark