Sunday, November 25, 2007

Green Irish Greens in the Soup

Our part-time parliament, which is shuttered for about six months of the year, can resemble a theatre in the rare times that it is in session.

This is the busy season for Santa Claus and his elves in the North Pole and our messenger boy/girl politicians at least can look forward to a six-week break starting next month, barring the odd meetings of most of the do-nothing parliamentary committees. There are 23 of them in a system where there is little or no accountability and the overpaid lobby fodder can continue to top up their expense earnings by signing the attendance books.

In our 1920's era governance system, the country is 15 miles from Leinster House and an overnight allowance can be claimed whether or not our over-taxed (nothing got to do with tax!)legislators, actually stay in Dublin.

In reaction to perceived public displeasure about the Super VIP Benchmarking pay rises, Green Party Ministers Gormley and Ryan who are both getting an extra €25,656 and Trevor Sargent who will get an additional €17,716, announced that the money would be diverted to the Green Party, even though it appears that the plan is in violation of electoral law.

Given their failure to object to the pay bonanza, the belated decision to divert the funds for party use has an air of sleaziness about it.

Irish politicians of courage and conviction are a rare specie and Green politicians are as good at following the crowd as others.

Minister for Energy and Natural Resources Eamon Ryan during the week issued a stark warning of climatic Armageddon unless there is a dramatic reduction in global emissions.

"If we ignore this challenge the threat posed is beyond any catastrophe, war, famine or natural disaster which occurred on the planet for hundreds of millions of years," he told the Dáil during a debate on climate change.

Climate change justifies the Faustian bargain for power with the acceptance of corruption and the zero prospect of reform in areas of governance and land rezoning. However, after almost six months in office, where are the radical proposals on climate change?

There are none of course and we will await what the European Commission will propose.

Green Party leader and Minister for the Environment John Gormley, in true Irish ministerial style, is due to set up a panel to advise him on the mechanical biological treatment (MBT) of waste as an alternative to incineration.

Similar to the way the promotion of biofuels was foolishly seen as a simple risk-free alternative to fossil fuels, MBT is in a similar boat. Gormley needs to get an international scientific panel to advise him and it could well say that incineration is a more practical option.

Gormley opposes incineration because his constituents oppose it. Nevertheless, the planning board approved the building of a plant on Dublin’s Poolbeg peninsula.

“Minister Gormley must be the first politician ever that found on appointment to ministerial office that he has less power than when he was an opposition TD,” Labour Party leader Eamonn Gilmore said.

Fine Gael leader said that the Greens "comment on everything and aren't able to implement anything," like the Muppet Show's Statler and Waldorf.

Green Party Senator Dan Boyle owes his position to political patronage such as the members of the hundreds of Sate quangos that he criticises.

Decisions were being made by independent bodies for political reasons because powers had been abrogated in legislation and politicians could not stand over that, Dan Boyle of the Green Party, deputy leader of the Seanad (Upper House of the Irish parliament), said in relation to an Environment Protection Agency go-ahead for the Poolbeg incinerator.

Senators had recently discussed how an ongoing process of abrogating political responsibility to stand-alone bodies was diminishing political decision-making and democratic accountability.

Dan Boyle like the worthies, do-gooders and party hacks who people all the quangos, also owes his position to political patronage. The dead-man walking Taoiseach Bertie Ahern who the Greens in May said had "lost moral authority," because of a torrent of corruption allegations, appointed Boyle to his current position as a national politician.

Santa Claus will see more glacial change than the Irish political process.

Taoiseach Bertie Ahern has chaired one meeting of a Cabinet sub-committee on climate change since June. Meanwhile, the Greens oppose incineration but do not appear to have a problem with the export of hazardous waste for incineration. They oppose nuclear power but we may well import UK electricity that is generated by nuclear power. Baby-steps and posturing are the responses to climate change.

It all could be termed Irish politics as usual.

Sunday, November 18, 2007

Irish Public Sector Biggest and most Powerful Consumer for Private Sector

Dr. John Crown

Self-censorship has been in the news in recent times when it was disclosed that a senior manager in Ireland's public broadcaster RTE had excluded the well-known cancer specialist John Crown from a television panel discussion on the lamentable state of Irish cancer services. RTE wished to create "balance" by excluding the one person who was in a position to speak with direct knowledge on the service.

Crown is on record as a critic of the establishment e.g. “It is a shame that the Department of Health have had to be cajoled, humiliated and bullied in public into doing something about it. The disastrous health service we’ve had over the past ten to twenty years reflected a complete lack of planning on the part of the Department. It wasn’t until certain people started to make very public criticisms of the state of the cancer service that they were shamed into doing something about it. I think it’s an awful pity that that’s the way the public discourse has to work in a democracy.”

The same senior RTE manager apparently had no qualms about balance on the same programme before the general election when two leading apologists for Taoiseach Bertie Ahern appeared on a panel of three. Ahern subsequently appointed one of them to the Upper House of the parliament at a cost of €150,000 annually in a redundant role. Small change, some might think but add all the rest of the featherbedding - e.g. the Green Party office manager likely trebled his salary to €161,000 when be became aide-de-camp/gofor for Minister for the Environment John Gormley. The Cabinet and Ministers of State have nearly 130 civil servants and privately-recruited staff working solely on constituency queries, costing the Exchequer at least €4 million annually. Gormley has seven staff working in his private office on ministerial duties and four more in his constituency office.

Senior RTE managers are working in the public sector and compared with an SME manager in the tradable goods/services sector, they have well-paid cushy numbers and why would they wish to rattle the cages of their political masters?

So why would IBEC, the principal representative organisation for Irish business also behave with a level of timidity that is a welcome bonus for politicians?

One obvious explanation is that it doesn't want to get listed on Bertie Ahern's "little black book."

Politicians, in common with adults can have thin skins and act in infantile ways. Look at our history and De Valera's jealousy of Michael Collins. Last May, the Bagehot columnist in the Economist wrote in relation to current British Prime Minister Gordon Brown's petty reaction to Tony Blair's chief of staff Jonathan Powell: According to those in a position to know, Mr Brown has not spoken to Mr Powell since soon after Mr Blair became leader of the Labour Party in 1994, even though he is forced to pass his desk every time he visits the prime minister. Mr Powell's transgression was to laugh when Mr Brown suggested that some of the money he was raising to run the new leader's private office should be handed over to the shadow chancellor.

Many Irish business firms also have a pertinent reason to resist rocking the boat of the permanent government.

The Irish public sector has huge power over the private sector because it is the biggest consumer of goods and services in the State. That power simply buys silence despite the incompetence, waste, lack of accountability and failure to match a modern economy with a credible system of governance.

Last September, the Tánaiste and Minister for Finance confirmed that Budget Day 2008 would include "a major innovation" with the change that “all new spending measures, as well as tax changes, will be brought together and announced as one in a unified way on Budget Day, instead of on a piecemeal basis, as at present”.

Given the glacial pace of change at governance level in Ireland, the "major innovation" is in reality a baby-step.

There is no detail provided on spending across government in say up to 20 categories e.g what is spent on energy, marketing, consultants, information technology etc.

I was advised by the Department of Finance earlier this year, that I would have to go to each Department via Freedom of Information requests to get information on the top 100-200 suppliers to the State. The catch is that each Department can charge the cost, at its discretion, of providing the information.

Senior RTE managers are not the only ones who find it expedient to toe the line (btw that is the correct spelling for the phrase!)

Sunday, November 11, 2007

Irish Politics, Brass Necks and Donkeys

An Taoiseach Bertie Ahern canvassing in Dublin South Central in May 2007

I recall as a youth reading a number of American journalist John Gunther's (1901-1970) series of "Inside" books that I had got from the Bandon library.

There are two items I remember from Inside Latin America, which was first published in 1939. Gunther recounted how the drunken Bolivian president General Mariano Melgarejo had in 1870 thought that the new British ambassador could be brought down to earth by ordering that he be strapped naked, facing backwards, on a donkey and paraded around La Paz.

The other story also involved a donkey. Politicians in some Brazilian town were so discredited that some citizens nominated a donkey for mayor and the ass won.

It's said that the camel seldom sees his own hump and when it comes to Irish politics it is not always easy to discern who are the donkeys - - the politicians or the voters?

When free education at secondary level was introduced in 1968, there was a concern as to who would do all the "dirty" jobs given that most people would henceforward be "educated." The term brings to mind writer Frank O'Connor's cutting reference to "Mr De Valera's educated government," in a forward to the Eric Cross book The Tailor and Ansty, which was banned in the early 1940's.

Still on the subject of donkeys, writer Seán O Faoláin in a letter to the Irish Times, said in reference to the moral guardians of the Censorship Board that they had made “fools of themselves and an ass of the Minister”—or “a fool of the Minister and asses of themselves.”

Fast-forward to modern Ireland and the expected call for pay restraint came two weeks after the Super VIP Benchmarking awards - it was a decent interval - and was a day before the conferring of honorary doctorates on three "distinguished public servants" at Dublin Castle.

The new doctors had all won considerable pay hikes in the benchmarking bonanza. Secretary General at the Department of the Taoiseach Dermot McCarthy, got a 25% pay rise and his retired predecessor Frank Murray, also got the corresponding increase, in his pension. John Fitzgerald got a 36% pension rise as his successor as Dublin City Manager, received a 36% hike in what can be termed Super VIP Benchmarking. Former Taoiseach, Dr Garret FitzGerald, who presented the awards, also received a 14% pension rise to correspond with Taoiseach Bertie Ahern's benchmarking rise.

The Taoiseach Bertie Ahern and Tánaiste Brian Cowen, on Thursday displaying brass necks, lectured union leaders about wage restraint following their own salary hikes worth €38,000 and €36,000 respectively.

In the Sunday Independent issue of Nov 4, 2007, senior journalist Willie Kealy wrote on the bleak future facing Taoiseach Bertie Ahern, who will get compensation of one year's salary of €310,000 on leaving office and a pension of about €200,000 annually together with a State car for the rest of his life. As for providing for this two children, there is nothing to worry about either. As far back as 1994, Ahern's children were listed as potential beneficiaries of his landlord's will. In the interval, one of them has become a millionaire through a contract with one of Rupert Murdoch's publishing companies while the other is married to a millionaire member of the Westlife boy-band.

And what does the future hold? He has already said he will step down before the next election. So a few more years in office as Taoiseach -- if all goes well -- and after that, what?

A well paid job as President of Europe? There was a time when that seemed a shoo-in. Now with all this muck flying around, all this dirt from the tribunal which shows no sign of abating. Well, they are pragmatic if nothing else in Europe. And they are not going to put themselves offside to do Bertie a favour.

So nothing is guaranteed, except that by the time Bertie Ahern reaches 60, he will probably be out of a job and his best chance of employment will be to try to retain his seat in the next election.

He currently has no woman in his life that we know of. He dotes on his daughters and the grandchildren, but lives alone in Drumcondra. If that job in Brussels is lost, he has probably lost it already. And he does not have to fight another election as Taoiseach. He is that dangerous animal, a man with little left to lose.

In those circumstances, as he looks forward into an old age that could be lonely and unfulfilling, compared to the career and family highs he has tasted in the past, he must be tempted to say to himself, "I can at least make sure it is not a penniless old age." He has four more years of a Taoiseach's salary to collect, at best, and after that a pension. There will be no more dig-outs.

He is now facing into the prospect of being a fixed-income pensioner with no independent source of income and no real assets except his home.

In those circumstances, is it any wonder he said that he would take the €38,000 a year extra salary he has just been granted and the corresponding increase in his pension.

The way he is feeling right now, to turn it down would not only be monumentally foolish, but personally irresponsible. Des O'Malley and Bobby Molloy made such a gesture before, refusing to accept an increase for two years, and they each reckoned that it didn't earn them a single vote in the subsequent election.
And, as for postponing it for a few years ... well he only has a few years left at the highest level of public life.

Forget the old Bertie, the man who hadn't a clue where the next pint would come from and didn't care. The man whose care of his career was fanatical. The man whose fine political judgement was unrivalled. Now he can sometimes be distant, those close to him say. His sense of persecution is fuelled when a favourable poll gets a brief mention on the nine o'clock news, but one showing him on the slide is a big story.

Today's Bertie Ahern is a man on a mission. He's pretty sure his legacy is secured already with the North and the Celtic Tiger and that all the tribunal stuff will eventually fade, probably after he's gone.

No, Bertie Ahern's mission today is to secure his old age.

One can well wonder who think's whom are the donkeys? Bertie Ahern's mission today is to secure his old age - - and 900,000 workers have no occupational pension never mind the gold-plated pension that awaits plain old Bass man himself.

Also revealing this week was the news that climate change is hardly a big priority for Bertie Ahern.

The professed raison d'être/excuse for Green Party leader John Gormley's Faustian bargain for power has also been undermined since June. Bertie delivered on a Cabinet sub-committee on climate change (big, big addition to the laundry list of Green "achievements" to keep the idealists in tune!) and he even attended its only meeting to date!

Impressive indeed !

The polar ice caps melt faster than change in Bertie's Ireland; Gormley's moral compass tarnishes by the day and we sit idly by awaiting for direction from Brussels on climate change.

Who was it that strongly condemned gombeenism in February 2007?

Wednesday, November 07, 2007

The Custodian of the Two Holy Mosques meets the Pope

The meeting in Rome on Tuesday between Pope Benedict XVI and Saudi Arabia’s King Abdullah was a surprise given that it is illegal to publicly practice Christianity in the desert kingdom. Saudi Arabia has existing strong links with the Eternal City having funded the building of its main mosque.

At the first meeting between a Pope and a Saudi monarch, the two discussed the need for greater collaboration between Christians, Muslims and Jews and prospects for a Middle East peace. A Vatican statement said “the presence and hard work of Christians (in Saudi Arabia) was discussed” – seen as a clear reference to the Vatican’s concern over the Christian minority.

In Saudi, December is the busiest month for the religious police , the muttawa - officially known as the Committee for Preventing Vice and Enforcing Virtue. The muttawa try to ensure that traders do not sell anything that could be regarded as a Christmas decoration. Filipinos are particular targets during the Christmas period.

While religions other than Islam are viewed with suspicion, it's preferable to have one for visa purposes.

On one occasion, the Saudi embassy in Brussels rejected a business visa application, as the applicant had entered "none" in the religion box.

Credit is due to King Abdullah for taking a step that can only be viewed as positive.

Saturday, November 03, 2007

Remarkable Decades of Change in World but Irish System of Governance Immutable to Reform


On June 12, 1987, US President Ronald Reagan delivered a historic speech by the then Berlin Wall, with the Brandenburg Gate in the background, at the other side of the Wall in East Berlin: Behind me stands a wall that encircles the free sectors of this city, part of a vast system of barriers that divides the entire continent of Europe. From the Baltic, south, those barriers cut across Germany in a gash of barbed wire, concrete, dog runs, and guard towers. Farther south, there may be no visible, no obvious wall. But there remain armed guards and checkpoints all the same--still a restriction on the right to travel, still an instrument to impose upon ordinary men and women the will of a totalitarian state. Yet it is here in Berlin where the wall emerges most clearly; here, cutting across your city, where the news photo and the television screen have imprinted this brutal division of a continent upon the mind of the world. Standing before the Brandenburg Gate, every man is a German, separated from his fellow men. Every man is a Berliner, forced to look upon a scar....General Secretary Gorbachev, if you seek peace, if you seek prosperity for the Soviet Union and Eastern Europe, if you seek liberalization: Come here to this gate! Mr. Gorbachev, open this gate! Mr. Gorbachev, tear down this wall!....As I looked out a moment ago from the Reichstag, that embodiment of German unity, I noticed words crudely spray-painted upon the wall, perhaps by a young Berliner: "This wall will fall. Beliefs become reality." Yes, across Europe, this wall will fall. For it cannot withstand faith; it cannot withstand truth. The wall cannot withstand freedom.

Just over two years after President Reagan's address in Berlin, the Wall had fallen in a decade when Reagan himself and British Prime Minister Margaret Thatcher, were rare politicians, in challenging conventional economic orthodoxy.

The end of the Iron Curtain in Europe and the adoption by the Chinese Communist Party of a capitalist model, gave a significant acceleration to globalisation together with low inflation and interest rates as prices of Asian manufactured goods fell over a sustained period and Eastern Europe provided the economies of Western Europe with a new source of labour.

People easily take for granted the remarkable decades of change for the better in the world in recent decades.

Just consider that on Jan 1, 1974, Spain, Portugal and Greece were run by dictatorships; Eastern Europe was under the jackboot of a Soviet tyranny as was Russia and Central Asia; Most of Latin America was run by dictatorships; a small number of Asian countries were making remarkable economic advances but most of the region's population was living in extreme poverty; life for most people in the Arabian peninsula hadn't changed in more than a thousand years and most of Africa remained in a cycle of despair including the majority of the population of the advanced economy of the region - South Africa.

In Ireland, we've had tremendous success through becoming an important base for US multinationals and having our farming industry hugely subsidised by other European countries but we should be cautious about self-congratulation in claiming some uniqueness when our current level of prosperity has been so tied to the acceleration of trade and globalisation. There have been huge advances elsewhere.

As we look ahead, globalisation will bring new challenges. The benefit of Chinese goods price deflation will disappear; food prices and other commodities are surging. The era of very low interest rates is behind us, bar a severe recession.

In Ireland, do we need some bad economic times before we confront some serious questions?

How can a country that has taken so long to even introduce a credible broadband system, become a "world-class knowledge economy" in 5 years? Why does it take 29 years to complete the building of a motorway between the two principal cites - Dublin and Cork -, on a small island, when countries like Malaysia have already built a comprehensive infrastructural network in a much shorter time?

In 1955, the Irish Minister for Finance Gerard Sweetnam appointed the 39-year old Thomas Kenneth Whitaker as Secretary of the Department of Finance and in the 1956 budget Sweetnam exempted profits derived from exports, from taxation. The imprint of Whitkaker was clearly to be seen. In 1958, Whitaker's Economic Development white paper became the basis for the First Programme for Economic Expansion.

That was the genesis of the Celtic Tiger and today, almost a half century later, there is not one senior civil servant who is known to the Irish public.

Ireland today is in need of another Whitaker who can get the attention of the school teachers, farmers and small-town solicitors that the our old Ireland system of cronyism and gombeenism produces.

I'm an optimist, which by definition every entrepreneur is but it is realistic to ask, how low do our economic fortunes have to fall before attention is given to reforming a paralysed political system of 1920's/30's vintage with its limited accountability and responsibility?

Where is the Outrage? Gombeenism thrives at home while in Paris, OECD staff work on proposals for Irish public service reform

Friday, October 26, 2007

Pests and the European Parliament

European Parliament in Strasbourg
European Parliament building, Strasbourg, France
This week European Parliament MEPs proposed that spraying pesticides near schools or hospitals should be heavily controlled to safeguard health and food quality.

There would also be a general ban on aerial crop spraying, making it illegal to kill bugs using a method made famous by Alfred Hitchcock's movie North by Northwest.

No doubt, the highly protected agricultural sector would be provided with compensation.

For the pests in the European Parliament whose only exposure to tropical pests is in the rarefied atmosphere of 5-star hotels when on their regular junkets, and the anti-GMerrs, in the comfort of Europe, the mammoth UN environment report that was published on Thursday said:

Losses in total global farm production, due to insect pests, have been estimated at about 1 per cent.

Since 1987 the expansion of cropland has slackened, but land use intensity has increased dramatically. A hectare of cropland, which then yielded on average 1.8 tonnes, now produces 2.5 tonnes.

Unsustainable land use is causing degradation, a threat as serious as climate change and biodiversity loss. It affects up to a third of the world's people, through pollution, soil erosion, nutrient depletion, water scarcity, salinity, and disruption of biological cycles.

The food security of two-thirds of the world's people depends on fertilisers, especially nitrogen.

Population growth, over-consumption and the continued shift from cereal to meat consumption mean food demand will increase to 2.5-3.5 times the present figure.

By 2030 developing countries will probably need 120 million more hectares to feed themselves.

The loss of genetic diversity may threaten food security: 1 animal species make up 90 per cent of all livestock, and 30 crops dominate agriculture, providing an estimated 90 per cent of the world's calories.

Saturday, October 20, 2007

False Panaceas for Fools on Biofuels and Organic Food

Conventional wisdom is dangerous when it comes to climate change remedies and with politicians likely to follow the crowd, it's well to be on guard for what is termed the law of unintended consequences.

So for example, if you believe that you are contributing to alleviating climate change or protecting the environment, by buying organic food, you may be dead wrong. You may also believe that the European Union target to increase the share of biofuels used in transport to 10% by 2020, is a good thing. It may well not be. You may also regard Ryanair's Michael O'Leary's rejection of emission curbs on aviation as pernicious but just consider: Every year, the world loses a forest area the size of Ireland. This accounts for 18 percent of annual carbon dioxide emissions, more than from the world’s entire transport sector. Deforestation must be reversed not accelerated by for example biofuel production. (SEE: Finfacts article).

In recent weeks, there have been warnings that the greenhouse gas situation is being made worse by the emphasis on biofuels. Increased palm oil production in for example Indonesia will accelerate the destruction of the rain forests while in India and China, water supplies will be endangered.

The poor of the poor are at most risk from the jump in grain prices that the increase in subsidised biofuel production in the US has triggered.

The damage to the environment may in fact be worse than the disease.

Dr. Norman Borlaug (1914- ), winner of the Nobel Peace Prize in 1970, is called the Father of the "Green Revolution" and in the words of US Senator Charles Grassley, has "saved more lives than any other person who has ever lived."

Last week, the United Nations Special Rapporteur on the Right to Food, demanded an international five-year ban on producing biofuels to combat soaring food prices.

Switzerland's Jean Ziegler said the conversion of arable land for plants used for green fuel had led to an explosion of agricultural prices which was punishing poor countries forced to import their food at a greater cost.

"232kg of corn is needed to make 50 litres of bioethanol," Ziegler said. "A child could live on that amount of corn for a year."

Using land for biofuels would result in "massacres", he said, predicting a reduction in the amount of food aid sent to developing countries by richer ones.

"It's a total disaster for those who are starving."

Ziegler's proposal for a five-year moratorium, which he plans to submit to the UN General Assembly on October 25, is aiming to ban the conversion of land for the production of biofuels.

Ziegler said he hoped that by the time the moratorium was lifted science would have made sufficient progress to be able to create "second generation" biofuels, made from agricultural waste or from non-agricultural plants such as jatropha, which grows naturally on arid ground.

Taking Brazil as an example, Ziegler said he deplored the fact that sugar cane plantations, whose products were used for biofuels, were spreading at the expense of food-producing land.

He said ten hectares (100,000 square metres) of food-producing land could sustain an average of seven to ten farmers, whereas the same area could only produce enough sugar cane for one farmer.

The use of non-food plants such as jatropha, shows that it is not a simple issue of saying one solution is good, another bad.

Ibrahim Rehman, the director of action programs at The Energy and Resource Institute in India, says that in the absence of a global consensus on specific principles, criteria or standards for bioenergy production, there are indications - especially in the developing world - that the biofuels agenda is being pushed forward with limited understanding of social, environmental and economic implications.

A further complication is that the case for biofuels is often oversimplified. For instance, in India it is argued that crops for biofuels production can be planted on 106 million acres of wasteland - even though a major part of this so-called wasteland is under various uses, not lying vacant, as agricultural planners may assume.

Rehman says that in other situations, biofuels initiatives likely will involve planting on land already in production, or cultivating crops that would otherwise contribute to the food chain - with rising prices of U.S. corn and of cereals in China as cases in point. It will be crucial to properly assess and determine the economics of growing our fuel and its implications on food security.

To an extent, several pilot initiatives are addressing this lack of specific criteria for biofuels production, thus contributing to the nascent development of standards and practices.

In India, one such step in the direction of developing practices and standards is the joint biofuels initiative of BP and The Energy and Resources Institute in New Delhi. The project focuses on growing jatropha - a non-food crop that thrives in conditions where food crops tend to fail - on more than 19,700 acres of land in the state of Andhra Pradesh.

The project encompasses and assesses the complete biodiesel production process, and very poor farmers are involved in measuring jatropha's benefits in augmenting incomes for marginalized sections of society.

The World Bank in its World Development Report 2008, (WDR) which was published on October 19, 2007, says that promising new opportunities for mitigating climate change and creating large new markets for agriculture have emerged through the production of biofuels, stimulated by high energy prices. But few of the current biofuels programs are economically viable, and many pose social (rising food prices) and environmental (deforestation) risks. To date, production in industrial countries has developed behind high protective tariffs on biofuels and with large subsidies.

These policies hurt developing countries that are, or could become, efficient producers in profitable new export markets. Poor consumers also pay higher prices for food staples as grain prices rise in world markets directly due to the diversion of grain to biofuels or indirectly due to land conversion away from food production.

What is the future for the global food supply?
From World Development Report 2008

Agriculture has been largely successful in meeting the world’s effective demand for food. Yet more than 800 million people remain food insecure, and agriculture has left a huge
environmental footprint. And the future is increasingly uncertain.

Models predict that food prices in global markets may reverse their long term downward trend, creating rising uncertainties about global food security.

Climate change, environmental degradation, rising competition for land and water, higher energy prices, and doubts about future adoption rates for new technologies all present huge challenges and risks that make predictions difficult.

To meet projected demand, cereal

production will have to increase by nearly 50 percent and meat production by 85 per cent from 2000 to 2030. Added to this is the burgeoning demand for agricultural feed stocks for biofuels, which have already pushed up world food prices.

Managing the aggregate response of agriculture to rising demand will require good policy and sustained investments, not business as usual. Sharply increased investment is especially urgent in Sub-Saharan Africa, where food imports are predicted to more than double by 2030 under a business-as-usual scenario, the impact of climate change is expected to be large with little capacity to cope, and progress continues to be slow in raising per capita food availability.

The WDR says that Brazil is the world’s largest and most efficient producer of biofuels, based on its low-cost production of sugarcane. But few other developing countries are likely to be efficient producers with current technologies. Policy decisions on biofuels need to devise regulations or certification systems to mitigate the potentially large environmental footprint of biofuels production. Increased public and private investment in research is important to develop more efficient and sustainable production processes based on feedstocks other than food staples.

Dr. Norman Borlaug is presented the Congressional Gold Medal by Speaker of the House Nancy Pelosi, President George W. Bush and Senate Majority Leader Harry Reid on July 17, 2007 - - Professor M.S.Swaminathan, President, National Academy of Agricultural Sciences of India, said at the ceremony: The impact of the Borlaug-led Green Revolution symphony will be clear from the fact that during 1964-68, Indian farmers increased wheat production in four years by an order greater than that achieved during the preceding 4000 years.

Organic Food

Peter Melchett of the Soil Association, Britain's leading organic lobby group, says that environmental concerns, rather than health benefits, are now cited by British consumers as their main justification for buying organic food.

The Economist says that there is no clear evidence that conventional food is harmful or that organic food is nutritionally superior.

The Economist says that not everyone agrees that organic farming is better for the environment. Perhaps the most eminent critic of organic farming is Dr. Norman Borlaug, the father of the “green revolution”, winner of the Nobel Peace Prize in 1970 and an outspoken advocate of the use of synthetic fertilisers to increase crop yields.

He claims the idea that organic farming is better for the environment is “ridiculous” because organic farming produces lower yields and therefore requires more land under cultivation to produce the same amount of food.

Thanks to synthetic fertilisers, Dr. Borlaug points out, global cereal production tripled between 1950 and 2000, but the amount of land used increased by only 10%. Using traditional techniques such as crop rotation, compost and manure to supply the soil with nitrogen and other minerals would have required a tripling of the area under cultivation. The more intensively you farm, Dr. Borlaug contends, the more room you have left for rainforest.

What of the claim that organic farming is more energy-efficient? Lord Melchett points out for example that the artificial fertiliser used in conventional farming is made using natural gas, which is “completely unsustainable”.

The Economist says that Anthony Trewavas, a biochemist at the University of Edinburgh, counters that organic farming actually requires more energy per tonne of food produced, because yields are lower and weeds are kept at bay by ploughing. And Mr Pollan notes that only one-fifth of the energy associated with food production across the whole food chain is consumed on the farm: the rest goes on transport and processing.

The Economist says that the most environmentally benign form of agriculture appears to be “no till” farming, which involves little or no ploughing and relies on cover crops and carefully applied herbicides to control weeds. This makes it hard to combine with organic methods (though some researchers are trying). Too rigid an insistence on organic farming's somewhat arbitrary rules, then—copper, a heavy metal, can be used as an organic fungicide because it is traditional—can actually hinder the adoption of greener agricultural techniques.

Norman Borlaug

Named by TIME Magazine as one of the 100 most influential minds of the 20th century, Norman Borlaug was born in 1914 to Norwegian-American parents outside Cresco in the north-eastern part of the American State of Iowa.

In 1944, Dr. Borlaug participated in the Rockefeller Foundation's pioneering technical assistance program in Mexico, where he was a research scientist in charge of wheat improvement. For the next sixteen years, he worked to solve a series of wheat production problems that were limiting wheat cultivation in Mexico and to help train a whole generation of young Mexican scientists.

The work in Mexico not only had a profound impact on Dr. Borlaug's life and philosophy of agriculture research and development, but also on agricultural production, first in Mexico and later in many parts of the world.

It was on the research stations and farmers' fields of Mexico that Dr. Borlaug developed successive generations of wheat varieties with broad and stable disease resistance, broad adaptation to growing conditions across many degrees of latitude, and with exceedingly high yield potential.

These new wheat varieties and improved crop management practices transformed agricultural production in Mexico during the 1940's and 1950's and later in Asia and Latin America, sparking what today is known as the "Green Revolution." Because of his achievements to prevent hunger, famine and misery around the world, it is said that Dr. Borlaug has "saved more lives than any other person who has ever lived."

Finfacts 2006 report: Enormous tasks ahead to feed the world, says former Nobel Peace Prize recipient

Finfacts Climate Change Reports can be found in the lower right-hand column of the home page.

Saturday, October 13, 2007

Ozone Man's Vindication

Al Gore's award as co-winner of the 2007 Nobel Peace Prize, is a worthy vindication for a man who has promoted environmental issues from his early years in politics.

In the 1992 presidential campaign, President George H.W. Bush nicknamed Gore, then Bill Clinton's running mate, "Ozone Man" and portrayed him as a threat to Americans because of his perceived wacky positions on the environment. Eight years later, Gore was contesting the presidency against Bush's son and "misunderestimated" him to use a Bushism.

American columnist Charles Krauthammer wrote in 2004: Upon losing a game at the 1925 Baden-Baden tournament, Aaron Nimzowitsch, the great chess theoretician and a superb player, knocked the pieces off the board, jumped on the table and screamed, "How can I lose to this idiot?"

Within months of Gore's searing loss of the presidency as decreed by the Supreme Court, President George W. Bush exempted the US from emission targets that were set by the Kyoto Protocol of 1997.

For many, the new president confirmed the view that he was an idiot. Bush in fact wasn't exactly the Neanderthal that his poorly communicated position suggested - see letter of March 13, 2001 to US Senators. A President Gore would also have had a serious challenge in selling climate change to the Republican controlled Congress at that time.


Al Gore Nobel Peace Prize Press Conference

Gore like the superrich Irish rock musician Bono, has been successful as an advocate. Advocacy however, is only the start of the process of reaction and it's the easy part.

Wealthy celebrities can promote their cause, without in any way risking their lifestyle and they often enhance their earning power. The New York Times says that Gore is a multimillionaire who has built a media and high-tech empire around himself and his environmental work. He is an adviser to Google, sits on the board of Apple and is the chairman and cofounder of Current TV, a cable network with 38 million subscribers. He receives up to $175,000 per speaking appearance, although he waives or reduces his fee for some non-profit companies and schools. Fast Company magazine has estimated his net worth at more than $100 million.

The rich like Bono and Gore can buy conscience salving carbon credits and solutions for climate change would be painless for them.

For others, the hard part is ahead.

The jump in the price of oil in the 1970's coinciding with environmental concerns moving up the political agenda in the rich world, ushered in significant advances in technology that has reduced both pollution and increased oil use efficiency. The emphasis on climate change will bring forward a technology leap in decades ahead that will prepare the world for a time when oil will be more costly and harder to extract - e.g. from tar sands - than it is conventionally.

The difficult choices ahead are exemplified by the impact of the ramping up of biofuel production has had on in pushing up grain prices in the US and the warning this week that India and China will face water shortages if they go ahead with their biofuel plans.

The poor of the poor in places like Africa may face the biggest threat from climate change but some remedies may hit them in the here and now. Where does most of the wheat for the World Food Program come from?

Politicians have had little to say on expected lifestyle changes ahead if any, so far and in Ireland, Green Party minister Eamon Ryan has called for a cross-party consensus on climate change measures, suggesting a reluctance to make hard choices. In an ideal world, it would be nice to get all politicians to agree on proposals that would sacrifice short-term popularity. However, where parties in power take credit for everything of a positive slant, apart from the weather,
Ryan's spread the responsibility strategy, will hardly work.

Al Gore Debates Global Warming

Ryan's ministerial colleague John Gormley does not engender much optimism either given the muddle that he has made of waste management policy. He plans to spend millions in hiring international experts to advise him, even though he has already set forth various versions of his own position.

Ireland is a very small part of the climate change issue and the people in Emerging Economies have much further catch-up in spreading the conventional carbon-rich first world lifestyle. More cars, more air conditioning, more showers, more clothes washing, are just part of the emerging scenario.

Just consider how hard it is to get a global trade agreement.

The first world could impose carbon taxes on imports from poorer countries but wasn't it precisely the deflationary impact of those imports that has kept our interest rates in the first world at single digits for the past two decades?

To borrow the words of Winston Churchill in November 1942: this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning

So let's give two cheers for Al Gore's prize!

Related articles on climate change can be found on the lower end of the right-hand column of the Finfacts home page.

Wednesday, October 10, 2007

The Hidden Ireland and the Vested Interests with the Grip on the Public Megaphone

Tánaiste and Minister for Finance Brian Cowen TD - - After the last sham benchmarking, it is "likely" that the Benchmarking Body will take account of the public service pensions that would require the equivalent of 28% of salary for 40 years in the private sector! More...

This morning on RTE Radio 1's flagship news programme Morning Ireland, a representative of the Aer Lingus pilots/shareholders, outlined their case for the application of a model in relation to international bases, which the airline may establish, that is the antithesis of the model that has been the central pillar of Irish economic development for the last half-century i.e. principally American companies could set up operations in Ireland and operate in accordance with local market conditions.

Taoiseach Bertie Ahern on Tuesday had given the pilots' union a hope of a fudge on conditions for pilots at the new base in Belfast, by saying that both sides should resume talks. It's a tack that has worked fine for a while during times of plenty, with the likes of sham benchmarking, but sometimes a clear line must be drawn.

Some time later on Morning Ireland, a representative of the Irish Medical Association outlined why doctors are threatening a strike at Dublin's Beaumont Hospital because of the reduction in overtime. Not too long ago, the whinge was that junior doctors were expected to work too long. Surprise! surprise!

In both cases - excess and inadequate overtime, the ostensible concern is safety of patients.

Another morning it could be medical consultants carping about salaries of over €200,000 being "mickey-mouse" money or teacher unions whinging about some grievance, all on behalf of the patients again or the school children.

In the hidden Ireland, there are hundreds of thousands with no job security and on terms and benefits that pale in comparison with those of the vested interests that have a firm grip on the public megaphone.

IBEC, which represents large Irish employers, said on Tuesday that in the period 1999 to 2006, compensation per private sector employee in Ireland rose by 42%, compared to 15% in the euro area, and just 7.5% in Germany.

Politicians pay increased about 90% in the period and the rest of the public service in the period 2001-2006 saw their pay increase by 38% (additional staff are excluded in arriving at figure) compared with a rise of 19% in the average industrial wage which is €32,000 - not too much more than Trevor Sargent TD, who lives in Balbriggan, North Dublin, claimed in travel expenses last year.

The Tánaiste and Minister for Finance, Brian Cowen said last week that the Benchmarking Body in making comparisons is likely to give greater weight to the value of the public service pension package "in view of developments in relation to pensions across the economy in recent years."

Likely???

A private sector worker can provide for the equivalent of a public service pension for a maximum of two-thirds of final salary for retirement. However, 28% of salary would have to be put aside every year for 40 years to do so.

In the private sector, there are 900,000 workers without any occupational coverage.

Having a grip of the public megaphone pays dividends big time and the politicians are good at feathering their own nests.

One can well ask, where is the outrage from the hidden Ireland?

Anyone for Benchmarking.....but perish the thought that there would be public sector reform.

Saturday, October 06, 2007

Happy 10th Birthday Irish Planning Corruption Tribunal; Land Rezoning Reform: ZERO

Dublin Castle, the location of public corruption tribunals -Politicians were revealed to have sold their integrity for as low as €3,000.

The corrupt land rezoning system that makes multi-millionaire of farmers and others, is immune from reform.

Irish politicians are not known for political courage or conviction, whether in the area of social policy that is left to the Courts or economic issues that would challenge vested interests.

For more than four decades, the Irish population has been threatened with shame and embarrassment by being hauled before the courts for non-payment of a television licence - or let's call it a tax, for this purpose.

During much of that time, anyone who could evade taxes, did it on a massive scale and to borrow a line from the late Queen of Mean, Leona Helmsley, who recently hit the news by willing her dog $12 million: "We don't pay taxes. Only the little people pay taxes."

Some of our little people, were charmed by a political leader such as Charles Haughey and bought into a plot similar to the James Stewart 1946 film It's A Wonderful Life.

In our history, the name "Oliver Cromwell" and the word "landlord" has induced frisson in many an Irish person.

Haughey's mentor, current Taoiseach Bertie Ahern however has done a good makeover on the word "landlord" with another sequel to the James Stewart story. This time, the angel Clarence in the person of Michael Wall brings a case full of cash to the distraught "George Bailey." The angel as the landlord, not only wills his house to the tenant but in the event of the tenant's death, to the latter's children.

There are believers in UFOs and yarns but beyond stories of sterling and dollars, there are two striking aspects to the Irish Planning Corruption Tribunal that will celebrate its tenth anniversary next month.

News of the nexus between land rezoning - Ireland's crack cocaine - and politics is no news. Secondly, after a decade of public confirmation of corruption, the system that spawned the corruption, has been subject to ZERO reform.

The days of the brown envelope may be past but anyone who believes that the incentives for more subtle forms of corruption have abated, is an idiot, given the huge value changes that rezoning decisions, or the prospect of them, trigger.

Is there a prospect of change? Absolutely not.

My mother used to say to expect nothing and you won't be disappointed. In that regard, it is arguable that the Green Party leadership has done more damage to the reputation of politics in recent times, than anyone else.

John Gormley's Faustian bargain for power is not tied to measurable objectives such as changing the corrupt rezoning system but to more stellar ones such as saving the polar ice-cap. While important too, the reality is that an Irish politician, representing 4 million from a global population of 6.5 billion, has to comply with EU targets and piggy-back on the credit of others from more significant economies, if there will be anything to brag about.

The Irish Times reported last May: Green Party leader Trevor Sargent described the Taoiseach Bertie Ahern as a political "dead man walking" and claimed no party would be willing to serve in a coalition government led by him because of the questions about his personal finances.

He said he could not "see any party to be honest accepting the moral authority which is expected of a taoiseach with Bertie Ahern in that office".

"I feel that Bertie Ahern as a result of the Tánaiste essentially calling him a liar is politically now a dead man walking. When people vote for Fianna Fáil the question will be on their minds as to who they are voting for as leader because it's very likely it won't be Bertie Ahern."

He added: "The questions of his own personal finances and his relations with individuals which he didn't want to make public but has been made public, does, I believe, call for a new start in Irish politics where standards are set at the very highest level which take out any confusion about vested interests and who controls decision making in Government."

Trust me? And the same people bewail widespread cynicism!

Within weeks, Trevor Sargent avidly drank the soup despite the cant on moral authority and became a Minister in Ahern's Government!

On September 26th, Green Party Leader John Gormley spoke in support of Bertie Ahern in a Dáil confidence debate: When the Green Party made the decision to enter Government last June, its members knew a process was in train and that the Taoiseach was due to give evidence to the Mahon tribunal. It has been our consistent line that we will await the outcome of that tribunal. It is important that the tribunal be allowed to conduct its work unimpeded and that no attempt is made to prejudge the outcome.

Consistent? Four months is a long time to be consistent!

Change does happen eventually in Ireland but don't doubt that it's at a slower pace than the glacial speed in the Arctic and the penny may well drop at some point for the Dr Faustus of modern Irish politics.

The message on the one tax - the television licence - that continues to get promotion on the broadcasting airwaves, has also changed in recent times.

Besides scaring the little people, business owners who may be dawdling the day away watching trash daytime TV, are now also under threat of shame and embarrassment not only in the courts but in front of staff, when an inspector calls.

That's progress at least, if not a little more democratic but dare anyone impinge on the potential bonanzas for farmers - who are already largely dependent for most of their income on European taxpayers, and continue to have the opportunity of a double-dip with the system of rezoning, paid for dearly by house purchasers!

John Gormley's Planet Bertie Speech Feb 2007

Irish Politics and the Value of "Values" - - Minister for the Environment and Green Party leader says in Feb 2007 that the Fianna Fáil party is "without vision or values" and that Michael McDowell, then PD leader was Bertie Ahern's Tammy Wynette - Stand by your Man - a role Gormley plays months later.

Gormley may well have done more damage to the reputation of Irish politics than Bertie Ahern because of the huge gulf between his words and actions.



Postscript: It will be reassuring that a poll apparently conducted by the Sunday Independent among 400 people on Friday, by a team of "professional telephone pollsters", has found that the public's support for Bertie Ahern has not wavered.

The identities of the "professional telephone pollsters" is not given in contrast with polls published by other newspapers. Readers have to make up their own minds if the poll is a figment of someone's imagination.

Whether it's the Wall Street Journal, the Irish Independent or the Irish Times, no serious newspaper has its staff call people from the phone book and then present it as a poll.

If the poll did take place, it's clear that it wasn't scientific.

Anyway, the Taoiseach's satisfaction rating "remains rock solid" at 50 per cent, five points ahead of Mr Kenny (45 per cent), with the new Labour leader, Eamon Gilmore at 43 per cent.

The Greens leader, John Gormley, "will be heartened" by his emergence as the second most popular leader (47 per cent), a possible reflection of his continued support for Mr Ahern (what a surprise???), and of his party honouring its deal to stay in Government, in the face of huge political and media pressure in the aftermath of the Taoiseach's evidence to the Mahon Tribunal.

The so-called "poll" appears to be another front in a newspaper war.

Sunday Business Post Political Correspondent Pat Leahy writes:

The Taoiseach’s future has become a sort of ideological battleground between two newspapers, neither of which takes prisoners.

The Sunday Independent has followed its abrupt pre-election u-turn by backing Ahern aggressively in its news pages and in many of its opinion columns. The Irish Daily Mail - and particularly its Sunday edition, a direct competitor for mid-market readers - has hounded Ahern relentlessly and mercilessly.

It is a brutal commercial conflict, personalised by the antipathy many of the journalists on each paper appear to feel for their rivals, an antipathy that is openly acknowledged. Recently one Sunday Independent columnist decried the ‘‘British newspaper’’ for trying to take down an ‘‘elected Irish Taoiseach’’.

The Mail responds by boasting of its scoops on Ahern’s finances and sneering at the Sunday Independent’s sudden conversion to Ahern’s cause.

The Mail says the facts are against Ahern; the Sunday Independent says the people are on his side.Maybe both will turn out to be right. But Ahern has fought his last election as leader of his party; the support of the people is not as important for him as it was before May.

And one thing is certain: Fianna Fail will not fight an election to save him.

Monday, September 24, 2007

President Sarkozy calls for increase in European Central Bank key interest rate!!!

French President Nicolas Sarkozy has been baiting his compatriot Jean-Claude Trichet, European Central Bank President in recent months to cut interest rates and give politicians a greater role in ECB decision making.

Ten years ago, they crossed swords when Sarkozy was Budget Minister and Trichet was President of the Banque de France.

The above headline is a joke because it would never happen.

Former Federal Chairman Alan Greenspan says in his book The Age of Turbulence (click for excerpt):

The Federal Reserve's pre-1979 track record in heading off inflationary pressures was not a distinguished one. In part, that earlier history was a consequence of poor forecasting and analysis, but it also reflected pressures from populist politicians inherently biased toward lower interest rates. During my eighteen-and-a-half-year tenure, I cannot remember many calls from presidents or Capitol Hill for the Fed to raise interest rates. In fact, I believe there was none. As recently as August 1991, Senator Paul Sarbanes, in response to what he considered intolerably high interest rates, sought to remove voting authority on the FOMC [the board that controls the federal funds rate, the primary lever of monetary policy] from what he perceived were the "inherently hawkish" presidents of the Federal Reserve banks. Interest rates declined with the 1991 recession, and the proposal was shelved.

I regret to say that Federal Reserve independence is not set in stone. FOMC discretion is granted by statute and can be withdrawn by statute. I fear that my successors on the FOMC, as they strive to maintain price stability in the coming quarter century, will run into populist resistance from Congress, if not from the White House. As Fed chairman, I was largely spared such pressures because long-term interest rates, especially mortgage interest rates, declined persistently throughout my tenure.

It's a great argument for central bank independence to keep in mind that politicians would never call for higher rates despite the justification.

Sarkozy tells ECB to follow Fed and cut rates; Merkel and Trichet strongly defend the central bank's independence

Friday, September 21, 2007

Hedge Fund Managers, Cold Sweats and Soothing Words from a Psychologist

The American writer Tom Wolfe termed bondtraders "Masters of the Universe" in his 1987 novel Bonfire of the Vanities.

It was the year of the Black Monday market crash and also one where another work of art had a big impact on the attitude of the public to business - Michael Douglas playing asset-stripper Gordon Gekko in the movie Wall Street. (see his famous "Greed is Good" address to shareholders.)

Fast -forward 20 years and the hedge fund manager has replaced the bondtrader as a Master of the Universe - or so they think!

Top 25 hedge fund earners raked in more than $14 billion in fees in 2006 - equivalent to the GDP of Jordan or Uruguay

The big cats get lots of cream and today, the Forbes magazine list of the top 400 richest Americans has more than half who are hedge fund or private equity managers.

Not all the Mr 20%'s are plutocrats (the deal apart from most of their earnings being treated as capital gains, resulting in people like Warren Buffett's secretary paying a high tax rate - Buffett calls hedge fund managers "helpers - gives managers 20% of profits or more, together with fund fees of 2-5%.

What has been striking in recent years is that average returns are far from jaw-dropping compared with general market returns.

This week the New York Times had a story on the reaction to hedge fund losses in August when the general market advanced. Many readers must have enjoyed the schadenfreude.

A Times report said that after years of eye-popping returns, sudden losses can be wrenching. Aware of the psychological impact that high-pressure trading can have, several funds have retained psychologists to counsel stressed managers.

“It has been a very challenging period for these people,” said Jonathan F. Katz, a psychologist who works with large hedge funds. “I have seen people shaken, their confidence eroded. They are upset and depressed.”

The writer noted that such anxieties become all the more acute when taken with the boundless spending habits developed at the height of the hedge fund bubble.

As an example, Katz cites a client who, in the middle of the market turmoil in August, found himself closing on an expensive apartment in Manhattan.

“All of a sudden, two or three of his major positions were down,” Katz said. “He was on an emotional roller coaster. He had put himself out there, and now he felt horrible because he had lost his firm tons of money.”

The Times says such distress can result in what some call a social contagion, as hedge fund executives let their woes at work affect their personal lives. Investors have said that their golf scores soar, that they lose their appetites and wake up in the middle of the night in a cold sweat!

To be sure, many investors are cool headed enough to not let inevitable setbacks derail them. But others find it hard to keep their sense of self insulated from losses.

“Some people are debilitated by it,” said Ari Kiev, a psychiatrist who works principally for SAC Capital, the hedge fund founded by Steven A. Cohen. “You can’t sleep; you can’t eat; you have catastrophic thoughts about losing your house.”

The Times says that a prominent hedge fund investor, who like the other executives who discussed their anxieties asked not to be identified, spoke of a crisis of confidence. “

"It’s an intellectual destabilization,” he said. “All of a sudden, your funds are down 5 percent and the S.& P. is down 1 percent. Once you were master of the universe, but the market makes you humble.”

Humble for how long?

Some people are debilitated by it - yes indeed - such as those at the bottom of the pyramid who are subject to foreclosures.

Friday, September 14, 2007

Pious Platitudes and Climate Change

View of rising Earth about five degrees above the Lunar horizon, taken on December 22, 1968 - - This is one of the more famous images of the Earth from the Apollo program, taken by the Apollo 8 astronauts as they became the first humans to circumnavigate the Moon.

The rising Earth is about five degrees above the lunar horizon in this telephoto view taken from the Apollo 8 spacecraft near 110 degrees east longitude. The horizon, about 570 kilometers (250 statute miles) from the spacecraft, is near the eastern limb of the Moon as viewed from the Earth.

On the earth, the sunset terminator crosses Africa. The south pole is in the white area near the left end of the terminator. North and South America are under the clouds. The lunar surface probably has less pronounced colour than indicated by this print. Photo: NASA -
US National Aeronautics and Space Administration

The issue of climate change is very important but the danger of misguided good intentions has been illustrated this week by the impact that the encouragement of biofuel production will have on food prices, in particular for the poor in developing countries and also the risk of damage to the environment.

A report prepared for a ministerial meeting by the Organisation for Economic Co-operation and Development (OECD) said governments should end subsidies for biofuels, as the demand for grain for the alternative energy industry result in surging food prices and the potential destruction of natural habitats, including rain forests.

The European Union target for 2020 that 10% of energy used in the EU should come from plants, has been called into question.

Brice Lalonde, the head of the Organisation for Economic Co-operation and Development’s round table on sustainable development, said on Wednesday that it may not be possible to hit the target using “sustainable” methods, as called for by European Union leaders in March.

Lalonde, a French former environment minister, said: “The message was to be careful and take a long hard look at the issues. Several people were very blunt in saying that you cannot ask nature to do everything. You cannot feed people and soak up carbon and protect biodiversity and fuel cars.”

Forest burning puts Indonesia in the third rank of greenhouse gas emitters after the US and China. It is ramping up palm oil production for biofuels and the huge Kalimantan rainforest peatlands are under serious threat. When the forests are cleared the natural carbon sink that is rich in methane gas combusts and much of South-East Asia gets covered in smog.

There are many very big challenges to address in relation to climate change.

It was for example reported this week that Opec countries' demand for oil is growing prodigiously - it is rising at 2½ times the global average rate - reducing the amount they can supply to the rest of the world.

Jeff Rubin, chief economist of CIBC World Markets in Toronto, said oil cartel Opec countries and other oil producers like Russia and Mexico were "cannibalising" their own production. According to the International Energy Agency, the rich countries' energy watchdog, Opec accounted for 22 per cent of the roughly 8m barrels a day increase in world oil demand between 2000 and 2006.

Ireland of course is a small fry when it comes to climate change and our principal role is to comply with EU plans.

Minister for the Environment and Green Party leader John Gormley TD said last month that a cabinet sub committee on climate change, which will be meeting this month, will have a central role in formulating and implementing Government policies and initiatives in this area.

"The establishment of a special cabinet sub committee, which includes the Taoiseach, is an indication of the priority this Government is attaching to addressing climate change," Gormley said. "The committee and the Government have an ambitious and challenging programme of work ahead in tackling the climate change issue, in both the shorter and longer term."

The Minister said, "I envisage that by the end of the year there will be a number of positive initiatives on reducing emissions in Ireland. These include proposals for rebalancing VRT and motor tax, the establishment of a climate change commission, and ambitious new energy efficiency targets for new homes."

Gormley's comments on policy so far have been confusing.

He opposes incineration as an alternative to landfill and says that alternative technologies, such as Mechanical and Biological Treatment, built on a smaller scale, provided much better scope for reducing reliance on landfill. However at the same time, he says that European and national standards need to be set for these technologies to ensure they can operate to the highest possible standards.

Gormley said he would be issuing directions to local authorities "to ensure that local authorities do not introduce any measures to effectively skew the market in favour of either landfill or incineration by directing or guaranteeing waste streams to such facilities."

The Minister said on September 3rd that an independent international review of regional waste plans would be carried out, which will examine the potential contribution of technologies such as Mechanical and Biological Treatment.

Simply, Gormley has said what his policy is but at the same time will get an independent international review to produce a report that may well contradict it.

"In the context of this review I will also consider increasing the landfill levy from its current low rate of €15. As part of this I will also examine whether it may be necessary to extend the levy to include municipal incinerators. I do not see why incineration should not be subject to the same financial regime as landfills," Gormley said.

This is duplicity cloaked in the veneer of reason.

As an incineration plant requires significant capital investment, the message Gormley is sending is that he will ensure that such ventures are doomed. He is Minister for the Environment of a country that sends 70% of its hazardous waste overseas for incineration!

It's very much in the Irish political tradition of self-back slapping for taking "moral" stands while we export our problems. In a similar vein, we can use the import route as for example in taking electricity from the UK - which may or may not be produced via nuclear power.

It is at least something at least that the Green Party leader gives even selective credence to scientific evidence even though he has decided the issue in davance!

On Friday, his government's Chief Scientific Adviser highlighted the sharp divergence between the scientific evidence and public perceptions of GM foods. However, as with incineration, Gormley is at his best also following the anti-GM crowd.

"Minister Gormley said he was open to hearing from everybody in this debate on whether landfill levies should be increased and whether an incineration levy should also be introduced," a press release noted.

Later in September John Gormley will address a UN meeting on climate change in New York. He should use the opportunity to thank other ministers for their countries support in burning Irish hazardous waste!

When Gormley cannot provide a coherent policy for this country, God help the rest of the world!

Forest countries seek carbon credits; Indonesia's Rain Forest Peatlands

OECD report calls for end to biofuel subsidies; Food price surges and damage to the environment consequence of current policies

Rising global greenhouse gas emissions will cost more than $200bn a year to return to today’s level of emissions by 2030

About 50% of the increased demand for energy services in the 26 International Energy Agency member countries was met through increased energy use, and the other half through improvements in efficiency in the period 1990-2004

Report launched on Key Meteorological Indicators of Climate Change in Ireland

Gormley Opposes Incinerators in Ireland but Supports Export of Irish Hazardous Waste for Incineration

Extreme weather the norm across globe; Temperatures highest since 1800


Saturday, September 08, 2007

Freeloaders to reduce Air Travel in interests of Planet! Like hell they will!

Dipak Patel, former Zambian Minister of Commerce, Trade & Industry - - The Irish brought 21 civil servants to Hong Kong - more than five times Patel's trade division staff total and the Irish had little of substance to do. Some of the 40-person Irish delegation, were there to "represent" the poor of the developing world.

In December 2005, 30 Members of the European Parliament (MEPs) flew to Hong Kong to "monitor" progress in the Doha trade talks, where they demanded almost daily updates from Peter Mandelson, EU Trade Commissioner, despite the fact that as parliamentarians they had no role in the negotiations. The total of trips by official parliamentary delegations in 2005 was 43.

It's easy to be generous to yourself, with business class travel and top-notch hotels, when someone else is paying.

Three Irish Ministers brought an entourage of 21 civil servants to the same meeting.

The 24 Irish officials were joined by 16 other Irish freeloaders from lobby groups such as IFA (farmers) and IBEC (business) and representatives from groups working for the world's poor.

Conor Lenihan, then (Junior) Minister for Overseas Development, was there also to "defend" the interests of the poor of the world while the Minister for Agriculture Mary Coughlan was there to ensure that Mandelson would not concede anything to developing countries that would damage the interests of Irish farmers.

It must have been some donnybrook with Ireland one of the149 member countries of the World Trade Organization with delegations there and we had 40 from a country of 4 million people.

A French chef who worked at the Saudi State Guest House in Jeddah in the early 1990's, told me that Pakistan' then Prime Minister Benazir Bhutto had brought 85 freeloaders on a trip to Saudi Arabia with her.

However, not everyone can play that game.

Dipak Patel, Zambian Minister of Commerce, Trade & Industry in 2005, who was the Chair-Co-ordinator for the Least Developed Countries WTO negotiations Jan-Dec 2005 has said: "...the Financial Times has a bigger trade team than our entire trade division."

The FT's Alan Beattie, in an article titled: Dipak and the Goliaths (unrestricted), wrote in December 2005: It is late at night in a bar by the Zambezi river when Dipak Patel, trade minister from the impoverished southern African state of Zambia, finds the perfect way to illustrate how hard his job is. “So how many people does the Financial Times have covering trade?” he says. Well, I say, there’s me (the world trade editor), a reporter in Geneva who spends most of her time on trade, someone in Brussels, someone in Washington, and of course our bureau chiefs and reporters around the world spend a fair amount of their time writing about it. “God,” Patel says, contemplating the rows of luxury cognac bottles behind the bar, waiting for the rich tourists. “The FT has more capacity to do trade policy than we do.”

When asked on RTE's Morning Ireland what all the Irish were doing in HK - the reality of course was sfa - Conor Lenihan provided an example of his endeavours for Ireland (besides the poor of the world of course). He had ran into a man from China who had expressed a desire to invest in Ireland!

Three Irish officials at most would have sufficed for the trip to HK and the staff at the Consulate could have been on hand to roll out the red carpet.

So in an age of concern about climate change, don't be foolish and expect anything to change even with the appendage of the Green Party at the Cabinet table.

A press release issued last month by the Department of Environment stated: Minister Gormley, at the request of the Taoiseach, will be travelling to the UN in New York next month to represent Ireland and address a heads of State meeting which will be discussing climate change.

There will also be heads of government at the meeting, we assume!

How many bag carriers will Ahern and Gormley bring to New York?

In true Hollywood style, the Government will buy compensatory carbon credits - a salve-conscience routine that is the modern equivalent of the poor box.

So most of the 185 heads of government or State will drone on about climate change in an almost empty chamber, but the serious work will be at the UN climate change conference in Bali in December, which aims to lay the groundwork for a treaty to replace the Kyoto Protocol on curbing emissions.

Progress in Bali will not be helped by hordes of the usual freeloaders/hangers-on scrambling to get to the island.

Meanwhile, on Friday, the Irish Independent carried a report on a super-junket by Irish local politicians.

Years ago, to reduce the opportunities for corruption, councillors were left with one real power - land rezoning!

Besides their involvement in creating an artificial scarcity of land for development, in a country that is 4.0% urbanised, Irish councillors are also well known for their overseas 'fact-finding' missions.

A few decades ago, a local government conference in Brighton in Southern England had 150 attendees and about 120 were Irish.

The Independent reported that a group of 25 county councillors are on a 'secret mission' to investigate landslide fencing in Austria.

The Mayo councillors flew out Thursday from Dublin Airport for a four-day trip which is shrouded in mystery.

Mayo county secretary John Condon refused to reveal how many councillors were on the trip or what its purpose was.

"I don't have time because I have more important business to attend to. Next week you'll get all the information you need," he said, before hanging up.

However, the Irish Independent said that the purpose of the trip is to visit a factory in Austria which supplied the council with €900,000 of landslide barriers.

They are also scheduled to visit Salzburg, the historic town where the 'Sound of Music' was filmed.

The 'fact-finding' mission to Austria has accounted for 25 of the county's 32 councillors, as well as local authority officials and local newspaper reporters.

Some of the councillors are also believed to have been on a delegation sent by Mayo County Council to Argentina last March.

They attended ceremonies to commemorate the 150th anniversary of the death of Admiral William Browne, the Mayo-born founder of the Argentinean Navy.

The newspaper reported that it is understood that Mayo County Council organises a 'fact-finding' mission to Europe every year, with recent trips including a walking tour in England.

So expect lots of actionless action on climate change issues ahead but don't expect freeloaders in Ireland or elsewhere to imperil the global aviation and hotel industry.