Gerry Adams, Goldman Sachs And The Latest Stormont Peace Deal

Ed Moloney highlights something of the background to Sinn Fein's role in the Tory assault on the poor. Ed Moloney blogs @ The Broken Elbow.

Last March, around the St Patrick’s Day celebrations in New York, I published a blog post noting that during a lunch for Hillary Clinton, hosted by Niall O’Dowd, the editor/publisher of The Irish Voice, Goldman Sach’s CEO, Lloyd Blankfein, sought out Sinn Fein president Gerry Adams, one of the honoured guests, for a private chat.
The context was a revolt led by Greece’s Syriza party against the Anglo-German austerity policies in Europe and a presumption on the part of many who knew no better, that a Sinn Fein role in the next Irish government could plunge Europe into an even deeper crisis.
Adding fuel to the fire was an imminent internal Goldman Sachs report predicting that SF would take a radical line opposing austerity in Ireland, hitherto the most amenable EU member vis-a-vis austerity.
Lloyd Blankfein, CEO of Goldman Sachs - was 're-assured' after his chat with Gerry Adams
Lloyd Blankfein, CEO of Goldman Sachs – was ‘re-assured’ after his chat with Gerry Adams
Hence the interest of a worried Blankfein in what was really in Gerry Adams’ mind. Was he going to follow Syriza or the Spanish party Podemos and plunge Europe into an economic maelstrom with alarming implications for Goldman Sach’s profits and Blankfein’s annual bonus? Or not? This is what I wrote:

I understand that on the periphery of the Hillary Clinton lunch in New York hosted on Monday by Niall O’Dowd, the wannabe Irish ambassador for the next Clinton White House, Gerry Adams had a ten-minute tete-a-tete with Lloyd Blankfein, CEO of Goldman Sachs.

It would be sensible to presume that Blankfein wanted to get his own take on the leader of the political party which was about to be described as
the greatest single threat to Ireland’s economic future by his Chief European economist, Kevin Daly.

The report, which warned that Sinn Fein in government could well take the same stance on Ireland’s debt as Podemos does in Spain and Syriza once promised in Greece, was published a day or so later so presumably Blankfein, whose Goldman Sachs empire was once memorably described by journalist Matt Taibbi as “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money,” did not have the opportunity to influence Daly’s report.

A pity for Sinn Fein because according to reliable sources Blankfein later told friends that he had been “greatly impressed” by the Sinn Fein leader, and “re-assured” (by what he had heard).
It is in that context that I recommend that you read a statement issued yesterday by Eamonn McCann and the ‘People Before Profit’ party, critiquing the latest peace process deal between Sinn Fein and the DUP. I doubt whether Lloyd Blankfein, reading this, would think that Gerry Adams had misled him much back in March.
Read it here:
Eamonn McCann of People Before Profit:
“Sinn Fein has now joined the ranks of the austerity parties.”

Staying in government with the DUP took precedence over standing by the most vulnerable. The worst-off people in deprived places like Derry will be hardest hit. People Before Profit’s Eamonn McCann: “If the Coalition in the South introduced this sort of package, Sinn Fein would be elbowing its way to the front of street protest.”

Eamonn McCann: “This deal underlines the necessity of a radical alternative to the DUP, SF and other parties of the status quo.
Eamonn McCann - for Sinn Fein 'Staying in government with the DUP took precedence over standing by the most vulnerable'
Eamonn McCann – for Sinn Fein, ‘Staying in government with the DUP took precedence over standing by the most vulnerable’

People Before Profit will be offering this alternative in the forthcoming Assembly election. We need an election asap – and the election of people with different politics.

“It is typical of the deal that new money has been found for a fresh attack on social welfare “fraud”. Welfare fraud is tiny in the North.

The real scandal lies in the huge tax frauds of the big corporations and the super-rich. The Tories should have been told to sod off and sort that out before coming after people in Derry doing the double.

Under the deal, the Assembly will agree not only to the welfare cuts introduced in 2012 but also to the new cuts currently before Westminster. These will see a benefit cap of just £20,000 per annum for families with children – leaving many unable to meet basic needs. It is overwhelmingly children who will suffer.

The new deal includes cuts to all working age benefits, including Job Seekers Allowance, Housing Benefit and even Employment and Support Allowance – a benefit for people found unfit for work. The already miserly rate for each of these will be frozen for four years, while tenants in social housing will see a one percent year-on-year cut to their Housing Benefit. This is all on top of the cuts to Tax Credits, over which Stormont has no control.

Disabled people will see their incomes slashed, as Disability Living Allowance (DLA) ends and is replaced by the Personal Independence Payment (PIP).

The Department for Social Development has admitted that a full 25 percent of people currently receiving DLA will not receive anything under PIP, while a further 33 percent will receive a reduced award. Public sector staff numbers are already down by 5,210. A further 2,200 employees are to be pushed out before March 2016. By 2018, some 20,000 public sector jobs will have gone. Just like Labour in the South, Sinn Fein defends itself by saying the job losses are “voluntary”.

But when managements start putting on the squeeze, there can be a thin line between compulsory and voluntary. Moreover, the loss of so many jobs will have a devastating effect on hospitals, schools and wider public services.Eamonn McCann: “No genuinely anti-austerity party would have signed up to this.”

The DUP/SF plan also involves “challenging cost reduction targets for each of the nine new departments’”. That means more austerity. The agreement is full of the sort of coded neo-liberal language found in austerity programmes all over Europe. Take “structural reform” in health education, housing and justice – that’s code for outsourcing and privatisation. Despite the rhetoric about taxing the rich, DUP/SF have signed up to a reduction in Corporation Tax to 12.5 percent from April 2018.

This is a bonanza for big corporations. It means a cut of 7.5 percent in their official tax rate. But even this disguises the reality of enormous tax subsidies to the corporations. In the South, the official rate is 12.5 percent but the actual tax paid by corporations amounts to only 5-6 percent. We can expect similar scams in the North – meaning even less money for public services.

The only issue that SF propagandists can claim a concession on is the bedroom tax, which will not affect current tenants. This measure acted like a lightning rod for anger against the welfare cuts generally. Protecting current (but not future) tenants from the tax helped give DUP/SF political space to endorse the overall welfare cuts package.That might provide cover, but of the fig-leaf variety.Parties should stop talking out of both sides of their mouths.

In the coming weeks, People Before Profit will be challenging Sinn Fein members and supporters to take a different road.

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