16/5/2013: There are jobs & then there are...

Off the start - there is nothing wrong with debt collection as business when it is properly delivered and regulated / supervised. And there is nothing wrong with debt collection agency growing its workforce.

But, then again, there is nothing particularly laudable about this either.

Unless, that is, you are an Irish Government Minister who cares none but for a headline grabbing opportunity.

Capita - some background on the company is given here: http://www.rte.ie/news/2013/0516/450722-capita-jobs/ and http://namawinelake.wordpress.com/2010/08/15/capita-aka-crapita-%E2%80%93-service-provider-for-one-of-nama%E2%80%99s-most-lucrative-contracts/ - is to double its workforce in Ireland by bringing in 800 new jobs. There is no information on the split of Capita's activities in the ROI, but one can venture a guess that booming business of debt collections here will take up the bulk of the new jobs 'created'.

Irony has it - Capita's new HQs in Dublin will be at the heart of the pride of Irish economy: the Barrow Street cluster that houses top firms in law and ICT services, but also has the dubious distinction of housing Ireland's 'bad bank' Nama. Nothing like calling the 'knowledge economy neighbourhood meets debt collectors' a 'vote of confidence in the Irish economy'.

Have we lost all bearings and compases?

I, for one, can't wait for the next congratulatory flyer from FG to my home - it will undoubtedly explain how the misery of thousands of Irish homeowners facing repossessions benefits my local economy of Ringsend-Irishtown with blessed new jobs.

22/4/2013: Government Latest Hair-brained Idea

Earlier today, RTE has reported that:
"The [Irish] Government has launched a plan to facilitate the creation of 20,000 jobs in the manufacturing sector by 2016." Frankly speaking, I can't be bothered to read much more into the idea. In times of aplenty it is bonkers to allow the state to pick winners in the economics game and then let civil servants lavish 'investment' supports onto them. In times when debt/GDP ratio is up at 120% of GDP marker and private debt is bending the nation into the ground, the very same idea is simply a prescription for massive waste we can't afford. 

But here's what, according to RTE report is even worse: 

1. "Under the plan fledgling manufacturing companies will get to apply for support from a specific start-up fund." Wait... start-up funds invest in start-ups which, by their definition can't be in existence long enough to become 'fledgling' - unless they are 'fledging from the start-up phase' which is equivalent to being dead-on-arrival. So question for Irish boffins: you will be investing in freshly-dead firms or fledgling ancient 'one-day-were-start-ups'?
2. "There will also be a support fund for capital investment by manufacturing companies and additional financial support for R&D investment in engineering firms." Aside from capital investment (presumably, having nationalised most of the banking system, our markets-supportive Government now has appetite to take on equity in manufacturing firms too) idea which suffers from the same problem of 'winners-picking', leading to risk-mispricing (which in current fiscal conditions can be labeled 'waste' outright), there is a problem of R&D supports. Targeted tax and sponsorship allocations to R&D supports are not a good policy for stimulating high value-added R&D. Here's one study that found as much. 
3. "The plan also contains proposals to maintain or reduce company costs for energy, waste, regulation and tax." Wait, how is that going to be achieved, if, per our semi-state behemoths and the Government, there is no ripping-off of consumers/users going on in Irish energy, waste and tax environments? Either things are being priced to rip-off customers today (thus allowing for some price reductions), or there is no room for price reductions, or - as most likely - the Irish Government is planning to increase rip-off of other customers (e.g. households) to subsidise select manufacturing ones.
4. If Irish Government pumps said subsidies into select manufacturers, how does this square with the equal markets treatment laws within the EU? And how will the Irish Government deal with the pesky problem that you can engage in industrial favouritism while making any serious claims about having a real markets-oriented economy here?

I can go on about this latest idea. It is promised that it will 'create' 20,000 jobs by 2016 - a claim that is, as always is the case with the Irish Government pronouncements, is neither verifiable, nor based on any serious analysis. But, needless to say, there will be loads of PR opportunities involving flowers, ribbons, Ministers and RTE cameras in months to come. Meanwhile, when your taxes go up comes December 2013 once again, don't ask why, think Government 'jobs creation' plans... Think big... Think someone else is getting subsidies so you don't have to...