Wednesday, July 21, 2010

Labour to go into coalition with Fine Gael. Hello! Why?

So Eamon Gilmore has ruled out going into government with Fianna Fáil but stated twice in the same interview with Irish Times Political Correspondent Harry McGee that coalition between Labour and Fine Gael is the most likely outcome after the next election. What is Éamon at? Why on earth would he set the bar so low? Putting Fine Gael into government may change the bums on the Cabinet seats (pun intended!) but the economic and social decisions made will be much the same. It was the Spanish American philosopher and author George Santayana who famously said ‘those who do not learn from history are doomed to repeat it’. But it is his assertion that ‘habit is stronger than reason’ that offers some guidance in trying to rationalise Labour’s decision on its desired government partners.

The depth of anger felt by ordinary people across the state towards the government is palpable. The cry for an end to the madness of bailing out Anglo could not be any louder and the disastrous consequences of Fianna Fáil/Green Party cuts could not be worse felt. The proverbial ‘dogs on the streets’ know that we need a radical shift in politics. Business as usual won’t cut it - things are too far gone for that. So why is Éamon so timid? So depressingly predictable in his willingness to put the blueshirts – and the jaded politics of the same old same old - into the Taoiseach’s Office?

Labour were very much part of the auction politics that disastrously framed the 2007 general election, and dismissed Sinn Féin’s election call for the need to stabilise taxes and to curtail the property bubble. Now Éamon is supporting the government’s line (chiming perfectly with Fine Gael) that we need additional cuts in Budget 2011 to the tune of 3 billion - in an effort to reduce the deficit to 3% of GDP by 2014 as instructed by the EU. The reality is that this deadline will not be met, nor does it need to be. ICTU has been arguing this case for some time now, along with a number of leading economists. Getting people back to work must be the central objective of any government budget strategy at this time. In order to do this we need to spend money. As TASC recently argued, ‘In sort, government spending more than pays for itself - it provides a positive net return to the exchequer. And the opposite is the case; decreased government spending in a slump depresses total demand and so lowers tax revenues and increases welfare payments (even when welfare entitlements are cut).’

So why has Éamon bought into the government cut and snip dogma? Why are Labour so besotted with Fine Gael? Come back from the dark side Labour! Join Sinn Féin in leading a real political alternative for change. Anyway Eamon, I suspect you’d make a lousy golfer and sure the K-Club mightn’t even let you in!