Ireland: NAMA - Putting Dracula in charge of the Blood Bank

Karl Marx once observed that by means of Bourgeois Democracy the ruling class establishes an executive committee drawn from its own ranks that ruled in the interest of private property. During “normal” times the flotsam and jetsam of politics passes by without provoking much interest, but from time to time; particularly in times of acute economic and political crisis, the class nature of society is made absolutely clear. The next few weeks in the Oireachtas will reflect the crisis and the bourgeois response to it.

The debate over the National Assets Management Agency will put the class nature of government in Ireland into stark focus. NAMA is being established to bail out the capitalist banks after the orgy of speculation in the latter stage of the celtic tiger. The builders and property developers were more than happy to take their cut in the good times, but as soon as the situation changes the responsibility for their greed falls onto the shoulders of the working class.

Probably the biggest property company in the world

Ruairi Quinn, the Labour Party Enterprise spokesperson explained that the Coalition Government is "proposing to establish the biggest property company in the world and asking taxpayers to foot the bill and bear all the risk. this Bill will be one of the most important pieces of legislation ever to have come before Dáil Eireann. There will be enormous consequences for the taxpayer if the government get it wrong."

Over the last 12 months in particular the Irish working class has had levy after levy, budget after budget and blow after blow from the bosses and the Fianna Fáil/Green Coalition. Given Lenihan and Cowen’s track record in respect of “the taxpayer” this is the equivalent of giving Dracula the keys to the blood bank. The potential book value of the loans that would be covered is between €80 billion and €90 billion, in other words that’s how much we stand to get billed in the long run.

Greens feel the heat

So it’s hardly surprising then that there is opposition to NAMA. The Greens are feeling the heat and are pushing for a windfall tax on the property developers. The latest opinion poll shows that 50% of Green voters oppose NAMA while only 21% are in favour. A windfall tax isn’t such a bad idea – as far as minor tinkering with the system is concerned, but in this instance this is pure opportunism. It’s an attempt to try and present themselves as somehow different to FF. Doubtless there will be some window dressing and a bit of spin to try and ease the passage through the Oireachtas. But the Greens are looking forward to the next General Election even less than FF, so they are likely to be left with a sorry compromise. The Greens are on the horns of a dilemma, support the government and hope for the best or break ranks and take the consequences,

The latest poll results in the Irish times indicate that Cowen and FF could be facing wipeout with as little as 17% support. The government has very little room for manoeuver. The state finances are in a complete mess and the economy is in freefall, either Lenihan places the weight of the crisis on the bosses or the working class. Therefore there’s no contest, NAMA is a straightforward class policy on behalf of Cowen and Lenihan. Apparently NAMA is very popular among voters in social classes A and B, Whereas nationalisation is favoured by Labour and even Green voters.

A class response

The support is there for nationalisation, the trade unions and Labour must present a clear class alternative; that would mean an unequivocal call for the nationalisation of the banks under democratic worker’s control and management. Not only that, but also the nationalisation of the building and construction industries.

NAMA is like a black hole in space that potentially will suck in billions and billions of Euro. But it’s merely symptomatic of the deep crisis of capitalism internationally and particularly in Ireland. Only a complete break with capitalism, the socialist transformation of society in Ireland and Internationally, can ultimately solve the problems that capitalism in its degeneration and decay has created.