Scrapping the Seanad is a Big Political Reform

Since the emergence at the weekend of unanimity amongst political parties that the Seanad should go, contrarian commentators have been forced to argue that this is not a ‘real’ political reform, what we need is fundamental change, etc etc.

The move to a unicameral parliament is a pretty big change, and for the better. This is what I wrote for today’s Farmers Journal.

 

The decision of the Labour Party to support Fine Gael’s plan to scrap the Seanad pretty much seals the fate of Ireland’s experiment with a two-chamber parliamentary system. Fianna Fail and the Greens have also, however belatedly, come to the same conclusion, and all the main political parties are now signed up to this particular political reform. The Seanad costs around €25 million per annum directly, and An Bord Snip suggested, in July 2009, that its time was up. The direct saving however is not the full cost of the second chamber.

Civil servants spend a considerable amount of time dealing with queries (they call them ‘reps’, short for representations) from Senators, many of whom see themselves as trainee TDs and engage in clinics and general messenger services for voters in whatever constituency they have their eye on. Ministers must attend the Seanad regularly in addition to making themselves available for questioning in the Dail. This eats into the time ministers can devote to running the country, and while Dail accountability is essential, the demands of the Seanad on ministerial diaries is substantial and very hard to justify. I recall spending several hours with senior officials some years back waiting for a minister detained in the Seanad who apologised profusely and predicted, quite accurately, that not a syllable of the Seanad proceedings which detained him would make it into the parliamentary reports in the newspapers the following day. In addition to the direct saving of €25 million per annum, there should be further savings in civil service personnel and a reduction in the time-wasting demands on ministers.

Under the current Irish system, we have 166 TDs and 60 Senators, for a total of 226 national parliamentarians. This is rather a lot for a small country, and most countries of our size make do with a single-chamber parliament. The public seem quite happy to let the Seanad go and there have also been calls for a reduction in the number of TDs. Bord Snip did not feel that a major reduction in the size of the Dail was advisable, although the number does not have to be 166. Cutting numbers saves only the direct costs: scrapping the second chamber in its entirety provides opportunities to make all sorts of indirect savings as well.

There have been numerous distinguished Seanad members over the years, including some of those elected from the university panels. But there have also been legions of defeated TDs and wannabe TDs, leading one wag to describe the Seanad as a mixture of creche and retirement home. There is nothing to stop the better class of senator to welcome the inevitable and run for the Dail. I can think of a few I might even vote for! But the occasional emergence of good contributors in the Seanad cannot conceal the overall mediocrity that has been its hallmark. The Irish Times managed to disagree with itself last weekend on the following crucial issue: how many reports have been prepared over the years (the first was in 1928) on the reform of the Seanad? Harry McGee thinks there have been twelve, Noel Whelan plumped for thirteen. I recall, as a student in the late 1960s, attending a discussion group called Tuarim, whose leading lights included Tom Barrington, Barry Desmond and Garret FitzGerald. One spirited debate was about , you guessed it, reforming the Seanad. Any institution still searching for a meaningful role seventy four years after its re-creation in current form needs to be scrapped.  

Of course scrapping the Seanad is not a political reform programme on its own. It is essential that the Dail becomes a more effective chamber and that a better balance be restored between executive and legislative branches of government. But scrapping the Seanad will help both directly and indirectly. Those with ambitions to serve in national politics will now have no option but to shoot for the Dail, which should make that a better chamber. The politicians need to restore credibility as a group, and the public will see abolition as evidence of serious intent to reform, at the cost of some cushy numbers for the political class. This will help when the time comes to face the music on local government reform, through eliminating the excessive number of local councils, and on reforming the public service, where numerous useless quangoes survive.  

End-Year Exchequer Returns

The end-year numbers are out: the statement is here.

Poolbeg again

In the Netherlands, if a government falls, it continues on as a caretaker government until the new government is formed. Any member of parliament can declare as controversial a particular piece of legislation and regulation, and the caretaker government cannot make any decisions on these subjects. If it tries nonetheless, the senate will block this — and if it doesn’t, the queen will.

Ireland is different. Just prior to electoral defeat, a number of initiatives are being rushed through. There should be checks and balances to prevent this sort of thing. I’ll return to the climate bill later this week.

Poolbeg is back in the news. Although the public consultation on waste policy is still so recent that the department has yet to publish the submissions (at least one of which raised fairly fundamental concerns), if the Irish Times is to believed, new legislation will be introduced this month that would give the Minister of the Environment the power to set punitive levies on incineration and landfill.

Instead, waste levies should reflect the externalities of waste disposal. The maximum incineration levy is much higher than the two available estimates of the external cost of incineration.

The draft waste policy was far from ready. Instead of rushing through immature legislation, the government should have the grace to pass this dossier to the next government. ATMs will continue to work.

UPDATE: The story heats up again. See Times, Independent, and Independent again (with a reference to the EER2010).

UPDATE2: The Times claims that the bill will be published today (Jan 7). At 8.44 am, the submissions to the public consultation are still not online.

It wasn’t just Americans who were skeptical!

Paul Krugman had a post the other day which pointed out that a lot of US-based economists were skepical about the euro project back in the 1990s, and that their meat-and-potatoes-style analysis actually turned out to have had a lot of useful things to say on the subject.

Patriotism is the last refuge of a scoundrel, and over here there are plenty of people who suggest that it was ignorant outsiders who were skeptical about the euro project. Krugman links to this article which is bound to become a standard undergraduate reference, but I find the recent references by Klaus Regling to ‘outside “experts”, who always seem to know what is good for Europe’ to be more telling given their provenance.

So it seems fair to point out that Irish academic economists also expressed skepticism regarding the euro project during the 1990s, most notably Peter Neary and Rodney Thom. I’m sure Rodney won’t mind if I point out that Peter was not just anybody in the context of the Irish profession, but its most prominent member by far, and someone who went on to become President of the European Economics Association. Here is an article by Neary and Thom, and here is another article by Peter writing on his own.

Nor were Peter and Rodney alone in worrying about the consequences of euro membership for Ireland. Here is an entertaining newspaper column by Jim O’Leary. Indeed, to quote Peter writing at the time,

to my knowledge every university economist who has commented on the matter has expressed grave reservations about our joining EMU if sterling does not.

The key word here is obviously ‘university’, since the pro-EMU Baker, Fitzgerald and Honohan report written for the Department of Finance was an ESRI production. But the point remains that the Neary-Thom view was by no means an uncommon one at the time.

Finally: I don’t think anyone has linked yet to Colm’s Stephen’s Day piece on Estonia and EMU, which shows that even economists are capable of enjoying the holiday season. So here it is.