The fiscal compact and referendum mechanisms in Ireland

The Minister for Transport, Mr Varadkar, in commenting on whether a referendum will be necessary for Ireland to sign up to the fiscal compact is reported to have made the commonplace point that

There’s only one reason why you have a referendum and that’s where there is a requirement to change the constitution.

Em, not quite.

Apart from a political view that a referendum might be desirable in any event, there is a particular mechanism in the Constitution of Ireland for holding a referendum, even when a measure does not require constitutional amendment. This is set out in Articles 27 and 47, whereby one-third of the Dáil and a majority of the Seanad could petition the President to decline to sign and promulgate a Bill “on the ground that the Bill contains a proposal of such national importance that the will of the people thereon ought to be ascertained.”

The detailed provisions of Article 27 envisage that if such a petition were successful, the will of the people could be ascertained either by referendum (in which at least one-third of those on the register would have to vote “no” in order to veto, by virtue of Article 47) or, in effect, by a general election.

I guess the fiscal compact itself may not in fact be a Bill, but presumably the detailed fiscal provisions of the agreement will have at least that legal form. Apart from whether the required numbers of TDs and Senators would line-up for the petition which Article 27 envisages, whether or not this mechanism will be applicable seems to me, as a non-lawyer, to turn on whether the Bill in question is a “Money Bill”. Money Bills appear to me to exempt from Article 27 (reading back to Articles 23 and 22) but I may be mis-reading that, so perhaps we might get some legally informed views in comments.

United Left Alliance convention

My invitation to the above event at the week-end being unaccountably delayed, it’s interesting to see the Irish Times relaying the views of colleague Professor Terrence McDonough (IT do note correct spelling please.) here.

In summary:

“He said the country should default on its debt, leave the euro, build a single public bank, provide a jobs guarantee for all workers and nationalise the Corrib gas field.”

NCC report on costs of doing business in Ireland

The National Competitiveness Council has just published the Costs of Doing Business in Ireland Report 2011.

You can download it from here.

The CSO’s detailed public finance data

The CSO publishes annually, as part of the National Income and Expenditure document, detailed tables related to the public finances, which are of particular interest in the context of the current urgent focus on fiscal policy, to the extent perhaps of providing a more useful starting point for multi-year fiscal plans than the traditional exchequer and budgetary formats, which are not fit for that purpose. Some details and links to data on all this follow.

Political reform: the puzzling argument for reducing the size of Dáil Éireann

A recurrent proposal in the ongoing debate about institutional reform in Ireland is that the number of members of Dáil Éireann be reduced from the current level of 166.  Perhaps this particular proposal receives prominence because it’s relatively easily understood, and is seen by some as a satisfyingly visible response to widespread alienation from politicians and politics as practised in Ireland. It receives additional and weighty support from the most recent (and much more wide-ranging) article in the Irish Times series on political and economic renewal, by UCD Professor David Farrell which you can read here.

While appreciating that it’s perhaps unfair to evaluate any one such proposal in isolation from the broader set of ideas with which it’s typically linked, I’m genuinely puzzled as to why it seems to have such immediate resonance and support, beyond the generalised antipathy towards elected politicians, an antipathy which some of them seem willing to enable, by competing to support a culling of their present –and future–numbers.

Let me explain why I think the reasoning behind this sort of proposal is problematic, with a nod towards a little naive economics argument towards the end.