Being in the factory in China that makes Irish football shirts is a surreal place from which to comment on the Budget. But bizarre as it sounds, sitting here allows the altitude that is necessary to try to see the big picture. Not that this place is conducive to reflection: it is busy, sweaty, noisy and filthy.
All human life is on the street outside, eating, arguing, living and, above all, filling the air with that most Chinese of cacophonies, the great throat clearing and public gobbing Cantonese soundtrack.
But that said, there is a direct link to Ireland, and looking at the Budget through this global angle throws up a few ideas worth considering.
There can have been fewer people in the world happier with Robbie Keane’s equaliser than the young woman who manages this place. Miss May was delighted. She told me that she was glued to the small set in her local hairdresser last week watching the highlights.
She wasn’t that aware of yesterday’s Budget, but the fact that Robbie buried the ball in the Italian net was enough for her to begin to think about a possible factory expansion next winter.
She talked about whether I thought Bulgaria would stumble, and the fact that the Italians looked through already. We chatted, sitting on small stools, listening to the whirr of sewing machines as the workers giggled at the sight of a redhead.
About three months ago, after a miserable affair against Cyprus in Croke Park, I’d set myself the target of finding the factory that makes the thousands of Irish shirts that clothe the Green Army. I wanted to join the dots of the global economy and see for myself why a goal in the last minute in Bari can have a profound effect on the employment prospects of millions of poor workers in China.
Yesterday, on the day of Brian Lenihan’s Budget, my journey is over.
After many calls and false leads from retailers to wholesalers, to dye factories and middlemen, I have finally reached my nirvana. Away in a back street called Station Road, in the small Chinese town of BiLung — the knickers and bras capital of the world where expensive La Perla, Myla and Agent Provocateur lingerie are churned out — lies the factory that makes our shiny, acrylic kit. The workers get €9 a day and the shirts leave this place costing less that €1 each.
The fact that they retail for about €50 at Dublin Airport means someone along the way is doing very well. On either side of the street are dormitories, that house the workers who get bed and board and spend all day in the local internet cafe which doubles as a snooker hall, a bookies and a down-at- heel nail bar.
All the workers are from the same village in the interior of China. They appear happy enough with their lot. They know their Robbie Keane from the Roy Keane; they know their Man Utd from the Tottenham Hotspur; but they haven’t a clue where Ireland is.
And this is the point, Ireland is so small in the overall scheme of things globally that nothing Mr Lenihan did yesterday will remotely affect what happens to the pace of our recovery in the coming years.
In fact, the risk is that it accelerates the downturn.
I am not suggesting that he should have done nothing. In fact, here in China, where chess is very popular, chess players might realise that Mr Lenihan is in a position called Zugzwang, which refers to a carefully orchestrated manoeuvre where the victim is left in a position where he has to move, but any move he makes renders him worse off. He has nowhere to hide.
When all the lines have been scribbled, and all the talk has been chattered, we in Ireland need to accept that the world is in the grip of a violent recession and that we will sink or swim with it.
Let’s look at the big picture. This Government caused this mess. These are more or less the same people who, for their own sleveen ends, destroyed the country. Let us not forget this.
Ireland has bankrupt banks that have been destroyed by a mad bet on property. This mad bet on property was made look convincing by enormous amounts of credit that flooded into the economy between 2004 and last year.
But obviously there was cause and effect. The credit binge was being driven by the banks borrowing from the money markets to inflate our property boom with other people’s money.
This credit binge, not government policy, made the coffers overflow, and the pathetic thing is that the Minister for Finance at the time, Brian Cowen, did not appear to understand this basic economic fact.
What’s worse, the Department of Finance mandarins didn’t understand it either. (In fact, I remember making this crucial point on ‘Questions And Answers’ in 2005, ahead of the Budget, with the then Minister for Finance on the panel, and being told by the host, John Bowman, that he’d had ‘enough of the economics lecture’. This just shows the level of questioning entertained in public in Ireland during the boom years). Now we are paying for our lack of economic rigour.
Writing from China, where trade is everything, it seems that the best thing the minister could have done yesterday was to make sure that Ireland can trade its way out of this mess.
Do nothing to the economy that might make it more difficult for us to make things for sale on the international market. Did he do that?
No, he clearly did not. This is a Budget that raises taxes across the board. And, unlike the suggestion that was made here last week about the banking bailout, where it was argued that we could have done this at zero cost to the taxpayer, the bank bailout will impose enormous costs on the rest of us. The minister could have gone to the ECB and structured a deal. He inexplicably decided not to do so. Make no mistake about it, the economy will contract dramatically as a result of this Budget.
Back in China where trade continues, luckily for Miss May, Mr Lenihan is not the manager of the Irish football team or demand for her wares might be be hit.
Mr Trapattoni knows what is demanded to compete at the highest level with limited resources. Unfortunately, in economic terms, judging by his performance yesterday, Mr Lenihan has shown he doesn’t even understand the offside rule!
So make a move.
If we all withdraw our cash from the banks backed by the government they fail.
The problem of the banks is then brought to a head and their hand is forced. What’s more it’s democracy in action, more than can be said for the political process in this country.
I heard the Government is telling the media not to call the asset management plan a “Bank Bail Out”. Any suggestions of what else it should be called? – “Bank Whip-Around”, “Galway Tent Rescue Plan”..?
Good article, pity it has come so late in the day, this stuff has been going on for years. I remember you clearly on Questions and Answers and the slam Bowen gave you, you turned them off because of the ‘lecture’ you were giving them, but in essence what you were saying David was right, but you wouldn’t be the first messenger not to be listened to – I commend you your efforts. Your article is yet another tale from neoliberalism, the ‘Man’ making a killing off Irish soccer shirts, the consumer gets fleeced and the worker in dreadful conditions… Read more »
David McWilliams, I agree with you that “Make no mistake about it, the economy will contract dramatically as a result of this Budget.” This is so obviously likely to happen that I am driven to ask why does this government want to cause the economy to contract? What advantage could there be for Fianna Fail if consumer spending shrinks and unemployment grows? Why wouldn’t the government change course and start fighting for economic recovery? Personal gain. Follow the money. That must be it. I’m not yet clear exactly how this works but I don’t think it makes sense to go… Read more »
Irish football jerseys don’t create millions of jobs in China, and who makes the 49euro between China and Dublin airport, and where is it stashed. Good article though in atmospherics and basics, but Alan for UCG now has the MInister’s ear who is spouting competitiveness and sound core of exports trading at a surplus, which is then amplified when RTE haul in Sutherland to preach positives including a GDP ratio of 135 superiour to the UK, Germany or anywhere else he cared to mention. Sutherland with his positives spin on how wealthy this country appears to be comparably, and how… Read more »
Web administrator, you have not changed the clock to BST.
Interesting reflection. The goal on Bari might bring work to Chinese labourers, but it brings a real mint to the ‘middlemen’ and the ‘institutions’ who control the process along the way. But the long term consequences of this are a hollowing out of the Irish industrial sector. And it is helped along the way by the scoundrel known as Ahern, who wrote an article in the Sunday Indepedent trying to push sport as the opium of the people. Bread and Circuses,as the old motto went for the Roman Empire in it’s decline. Today we have stimulus packages, and celebrity culture.… Read more »
Hi David, I agree 100% with the main points of your article. And its not often I am completely in agreement with you. Your trip to China sheds light on an example of the global supply chain. In a more efficient world, that 1 euro shirt would sell for a mere 2 euro in target markets. But the world is not efficient. Macro economics indicate that such retail prices should go down, and in a free market they would. But markets are not 100% free and open. There are controlling interests and bottlenecks all along the way. Thats what drives… Read more »
David: The Jeremy Clarkson style of journalism can be perky taken occasionally, but seems a bit light this week. You apparently haven’t yet had time to digest Lenihan’s cold porridge budget. 50 years ago most of the shirts sold by Austin Reed, M&S, etc were made in Derry, in conditions similar to those you went half way round the world to see. Fruit of the Loom has only recently closed down in the north west. The economic message you omitted to mention was that instead of the manufacturer getting €1 for each shirt made in Derry the UK government now… Read more »
The budget had a clear purpose, pay off any FF connections with the bad asset structure before nationalising the banks all at taxpayer expense .This a controled demolition of the Irish economy and a scorched earth policy. They are gone in the next election and if they can’t have it all then they’ll leave us with nothing. They are the pilot that has put the plane into a nosedive and bailed out with their buddies and their golden parachutes leaving the country to it’s own faith.
The budget has made things even worse.FF and the rest ain’t got a clue.Our only hope is for 30,000 per annum to emigrate and govt spending and receipts will hopefully align as a result.Our overvalued exchange rate has lead to 1 in 6 of the border population to register as unemployed.How are the bank directors still in jobs?.Expect our income per head to return to 65% of the EU average @ best.
good article…. oops there goes the job of economic advisor of NAMA…. The yes men are already on message … .. Goodbodys (who have never seen a pig in a poke they couldn’t recommend buying with somebody else’s money) have suggested a 15% discount on the book value of the assets.. Whereas given the banks share price performance, offering 15% for these assets would be very generous by the government. The market has already priced these ‘assets’….its in the share price of the banks!!!! Let us not forget that our host in telling it like it is has chosen the… Read more »
MK1-I think running a ‘buy Irish’ campaign would be against some EU law.
5/5 DMcW. You’ll be be the first to be locked up come the uprising. :) I see Dan McLaughlin in BoI is saying we need the US to recover or we are all sunk (heavily paraphrased). So, the world is going to be saved when we get John Doe to buy a few more new pair of Levis they do not need. That’s the upshot of all the thinking in the Dept of Finance. When Capt America comes to the rescue, our assets will rise. In the meantime, since there is nothing Ireland can do to save itself, it may… Read more »
No, the government didn’t cause this mess – the collective greed and ignorance of the Irish people did. Looking for someone to blame is just a cop out. Every single individual is responsible for their own actions. No one forced anyone to take a ludicrous loan. We were better off in the seventies (when the country had no money) when I grew up poor but happy and leaving the country was the best thing anyone could do. Ditto for now. You are never going to solve the problems of Ireland no matter how much you talk yourselves around in circles… Read more »
Well yes Robert, I see your point but 1. They won’t be knocking on my door, unless they want to fly four thousand miles, and even if they did it would be at serious physical risk to themselves and I’m serious about that and 2. You have to start at the top and work down. Most of the populations of Germany and Iraq got free passes during the processes of de-Nazification and de-Baathification (sic?). What would we call our own (not-going-to-happen) cull – de Muppetication?
I suspect behind closed doors the Minister did go to ECB and they told him to F off, then I think he went to Gordon Brown who came up with the former regulator for the Bank of England business. I don’t agree with David blaming the Gov for our problems, if we are as a people so stupid that we dont know how to vote, we deserve whatever is coming to us .(If I ever hear someone say to me again “My family has always voted FF , so I will vote FF.” Ill punch their lights out). My last… Read more »
Easter is coming, so how about a little religion. The parable of the five wise and five foolish bridesmaids. The economy of Ireland could be likened to ten bridesmaids who took their lamps and went out to meet the bridegroom at midnight. Five of them were wise, and five were foolish. The five who were foolish went to the banks and took out loans they couldn’t afford to buy massively overpriced houses in Ireland and apartments in Spain and Bulgaria, they bought gas-guzzling SUVs to drive short distances and they went shopping in New York several times a year, but… Read more »
David, you are “not being helpful” by reminding others of their past mistakes, this isn’t done in polite society (apparently). I didn’t see the programme but I have my own short list of significant telly events burnt into my memory, most of them involving RTE and a fair few of those dealing with the ritual cutting down to size of suitable public figures. So, you are in honourable company – I often wondered why you weren’t in the club and it turns out you had been a member all the time! There’s an Easter theme there, and a Chinese one… Read more »
So guys being one of the 5 wise brides should one be taking one’s money out of the 2 major banks right now before one gets “royally taken advantage of ” without even getting kissed!
Seriously this really is a major worry for people who have saved in cash and actually have no other assets.
There are some incredibly intelligent and eloquent people making superb written contributions on this forum. I reckon a compilation in book form should be released periodically and, talking of education, it should be required reading for every adult in the country, especially every corrupt politician (in other words all politicians), every avaricious banker, developer etc. and every brian-dead consumer who succumbed to the propaganda (advertising) that convinced them to get involved in the pursuit of all the materialistic crap they didn’t need, including the over-priced shoe-boxes, that they think they own, but don’t. Problems are 1. of course this would… Read more »
Folks, Garry is correct, above:
“The market has already priced these ‘assets’….its in the share price of the banks!!!!”.
..don’t think there is any argument against that……
Folks, I think you should all join FF and that would cause an immediate and peaceful coup.
Don’t “guffaw!”.
Think.
If enough of people joined the party and voted through the views expressed here, things WOULD change.
If you can’t beat ’em, join ’em and BEAT ’em from within.
The government have been badly advised to set up the NAMA announced in yesterday’s budget. We don’t have to borrow more!! Bottom line if NAMA buys assets at a ‘discount’ suggested for say €50 billion which have a book value of €90 billion of loans and amounts lent on the balance sheet of banks. That’s €40 billion which would need to be injected into the banks to balance the ‘balance sheet’. The money doesn’t suddenly disappear it needs to pay bank liabilities to depositors and ‘professionally managed’ bond holders. So we will need €40 billion to ‘pay’ for these banks… Read more »
Fianna Fail: ‘Peasent class politics for a peasent class people’
Irish taxpayers, who took your cheese????
http://funnytshirtguide.com/wp-content/uploads/2008/11/flight-of-the-concords-mouse-trap.jpg
http://image.guardian.co.uk/sys-images/Guardian/Pix/steve_bell/2005/12/02/camelove512.jpg
I’d like to take issue with the point of view expressed by The Eye “I don’t agree with David blaming the Gov for our problems, if we are as a people so stupid that we dont know how to vote, we deserve whatever is coming to us .” This logic generalises the problem and points the finger in every direction. It highlights the extent to which everyone was involved in some way in a culture that turned out to be seriously flawed. It has the benefit of calling on everyone to take responsibility for their decisions and actions. However, it… Read more »
In Primary schools Teachers facing the class bless themselves with their left hand so the pupils bless themselves with their right hand.This Budget has no direction and needs to be double crossed .
The Romans never came to Ireland until Brian’s Budget and when they first arrived in Britain they moved the indiginous tribes to Wales .Soon when they will arrive in Ireland they will displace everyone in the Pale across the Shannon.
Forum – Part of our national cohesion problem as a people who need to speak their own minds is that we have no Proper Reality Forum that we can call to be an area to meet without fear of libel laws etc .
David ,fair enough at this stage of the game you are allowed some journalist privileges when coating figures ,as how many of your readers will ever get to see China. My business partner down in Guangdong takes home the same wage for selling her selection of chairs and she puts in a six day week but she does not live in a hovel and has the same access to the world via the internet as we do here in Ireland . The difference is Lua is happy with her lot in the sense she could be back in the village… Read more »
ALL LOOK AT THIS from last page http://www.pbs.org/moyers/journal/04032009/watch.html
I email Ken Black and he is coming to speak in Iceland ,.we should bring him here …I reckon TV3 for the Coup would Air him as he is a top regulator and one cool economics teacher too
When FF hacks are accused of blowing the boom, the stock answer given to them to repeat is ” we paid down the National Debt ” Martin Manseragh wheeled this out again on Vincent Browne last night.Truth is The National debt was 38 billion in 1995 and had’nt changed by 2007(still 38 billion) until it started to rise again.Truth is the Debt as a percentage of GDP became less.GDP growth was helped in no small measure by the credit bubble associated with the property bubble.In conclusion its fair to say that the National Debt appeared to shrink like a good… Read more »
Expect some interesting negotiations with asset valuations netween NAMA and the Banks.Example might be values of land in England, now devalued, but offset against Sterling’s devaluation.Issues of Title deeds in Dubai (not usually issued until after development complete).Ground rents to the Queen of England in New York. .Anyhooo Im sure Dr.Bacon would have used His noggin to tease all these issues out while making His submissions.Correct Me if Im wrong but is he a Director of Ballymore Homes one of the biggest house builders in Ireland and England ???????.P.s Remind me again what His expertise is again on sorting out… Read more »
Interesting name NAMA. Hope this Bank bullsh.t does not become our NAM. I have visions of the helicopters taking off from the tops of buildings,carrying the great and the good but this time there not headed for Punchestown or Galway.Before all ye cynics jump in Im sure their not off to England to avail of the 1 year Bankrupcy holiday deal, after all who do ye know would leave Ireland for 1 year to avoid paying any money to the State. OK OK OK ye got me on that last one but Ill be back to deal with ye cynics… Read more »
Hyde Park Corner : I believe this year will be a great year if we believe in ourselves and be true to ourselves .Life is about more than money and we should learn to sit back and think with a broader base and a deeper sense of well being .Nevertheless, we must not allow complacency to develop and we must learn to think to win for both ouselves and our country. I was at the musical Les Misserables last night in London and I witnessed grown up men cry and their spouses become uncontrollable .All through the battling scenes I… Read more »
Dun Aengus – there is no place in the western Isles that records the oldest sign of an economic activity and progress and that indicates a higher order of life that once was and now is no more.It’s presence predates Ancient Egypt ,Old Testament , and the Adam and Eve Concept .It’s limestone construction shows us that it was part of a land in the East when Life as we know it then arrived from The Americas proving itself to be a part of an older World Order now all lost . It’s original circle is liken to The Euro… Read more »
No matter what we say here about NAMA or our local version of the recession or our elites etc, I believe it will be overrun by a momentum of events which are likely to wind up in one of 2 directions. (I am assuming that people will remain quiet and compliant as the bitter taste of their budget medicine starts to really make itself apparent from next month – say June onwards). Obamanomics works and is starting to show benefit by end if 2009: There will be a lot of press that we are all saved and things will return… Read more »
Just realised something about the value chain for “Eircom Shirts”. It is rotten. So much for thinking in the mindset of “wearing the Green shirt”. It has become a complete joke. It is supporting a bunch of parasites who own the value chain between Sweating Chinese workers, and unemployed Irish workers on skid row. And at prices that are an extreme ripoff. Somewhere between the 2 Euro it costs for the shirt in China and the 80 Euro is costs in the shop a lot of people are doing really well. It is a sick joke. And we have that… Read more »
http://www.oneills.com/files/shops.php
You can buy Irish soccer jerseys there also. And rugby.
It says “Factory Shop-Stabane”. It is not ROI, but it is a border town.
And as far as I know the other balls, sliotars are made in Ballyfermot-Walkinstown. Here are comments I found in Google, people looking for it.
http://answers.yahoo.com/question/index?qid=20070924043723AALlgiR
http://www.anfearrua.com/db.asp?a=topicdisplay&tid=135521&xpos=0
Has anybody ever noticed how large fat cartoon characters are always portrayed as being ‘deh stoopid’ with a slow witted voice. I thought that this stereotyping was not a good model for our young people to grow up with but after this latest intellectually deficient effort by our two porky Brians I decided to see if fat people are in fact more stupid than thin people. Lo and behold research does actually show that as people put on weight their IQ drops see here http://www.health24.com/news/Weight_management_Obesity/1-955,37922.asp. Other than the proposal for the a government agency to buy up bad debts which… Read more »
Just found a new toy. Sorry about the huge link but it seems to be a way of comparing dozens of stats. Interesting when I figure out how to use it.
http://graphs.gapminder.org/world/#$majorMode=chart$is;shi=t;ly=2003;lb=f;il=t;fs=11;al=30;stl=t;st=t;nsl=t;se=t$wst;tts=C$ts;sp=6;ti=2007$zpv;v=0$inc_x;mmid=XCOORDS;iid=phAwcNAVuyj1jiMAkmq1iMg;by=ind$inc_y;mmid=YCOORDS;iid=phAwcNAVuyj2tPLxKvvnNPA;by=ind$inc_s;uniValue=8.21;iid=phAwcNAVuyj0XOoBL_n5tAQ;by=ind$inc_c;uniValue=255;gid=CATID0;by=grp$map_x;scale=log;dataMin=194;dataMax=96846$map_y;scale=lin;dataMin=23;dataMax=86$map_s;sma=49;smi=2.65$cd;bd=0$inds=i105_t002007,,,,
@malcolm,
Can you stop mis representing other peoples posts please.
And for god sakes, dont get all uppity with me too for asking,..
@David McWilliams, loved the article. More impressionistic this week, not surprised, alot of info to assimilate and get a grasp on,.. The idea of ‘trading our way out of this’ struck me as rather unbelievable that this fact has to be reminded on. It shows how far off the radar screen ireland and its economy has gone. Ireland is a divided society i would suggest david. A feudal system. Feudal lords and serfs. The feudal lords dont want to work. The serfs are overworked. Hence why, the concept of trading into prosperity is lost. The feudal lords only want trade… Read more »
@David McWilliams, Ok david on the “wether we like it or not, irelands faith is utterly tied in with world events’……. I suggest this…. local industry rules ok. I think there is far too much emphasis put on global this and global that and global the other. All trade comes back to local level, as your article shows. Ireland sacrificed local trade unto trans nationalist corporate trade and now finds itself lacking in the self reliant area. Local trade schools all in self reliance. Again back to modern day feudalism here, powers at be dont want self reliance imbued into… Read more »
@David McWilliams, “the gov caused the mess’……, I think the gov facilitated the ponzi ireland inc feudal enterprise pogrom, but the cause of it lies somewhere else. The cause of it lies in the coupling of easy peasy credit made available to greed to let rip in a plunder and pillage session and end in debt slavery. Who supplied the easy peasy credit,… the banking system,.. The banking system is an instrument of power. It is not a credit utility shop for all. The banking system is an instrument of power to self preserve a hidden feudal structure for all… Read more »
paddythepig, (and others) Although I believe that political activism should require no explanation, and in many respects is a civic requirement in a democracy, I am involved in it because I want to contribute to my community. Many of you may laugh at that, but I am used to it. It is a rather thankless endeavour, but someone has to try to build community, posit suggestions for practical improvements to the standard of living of people. This could be anything from lobbying local politicians to set up recycling bins, to providing proper play areas for children, a local swimming pool,… Read more »
A fresh look at what is still a savage budget for the man on the “Killnaskully Omnibus” If the grassroots FF have been heard and BL is gradually chipping away at the previously acceptable cronyism, then we might have some chance. The banks are told that they cannot write off the equity losses against tax. They’re hopping and demanding a seat on NAMA. Convicts don’t sit on prison boards. Most of the old guard are gone from the Banks and BL has gone outside the country for a new Regulator. TD’s gravy trains are being derailed by reality. A long… Read more »
Furrylugs, Sorry, I didn’t realise the old guard had gone from the banks. I can think of about six people who’ve gone. Please, what movements have I missed? Also [from my blog] No loans for business these days What a dreadful situation for business! No loans. No credit to oil the flow of goods and services… Why? Banks say they are open for business. But business says there’s no money flowing. Could it be that bankers think they’ll get no bonus this year? They won’t lend money unless they stand to gain a bonus? No bonus, no credit. Is that… Read more »
@bloggers,…
NAMA is a front akin to a hired contract killer to destroy
Rep Irelands national sovereignty….
shackling to the irish general serf populace as an unpayable bankingponzi credit bubble blowout debt, n, removal of accountabilityaway from the real culprits,
a further declining in democracy
and an ushering in a further rise in authoritarianism and
subversive influence of the irish banking system over irish life.
What we are witnessing is the further integration of Ireland
into a totalitarian global gov structuring run in a feudalist fashion
by financial elites.
@bloggers;
To anyone of interest,..
we are all entitled to be a member of any political party
we care to join up with,.. and be respected for…,
blaming anyone for anothers fu#k ups is brainless, robert, et al/