We are broke ? so how do we spend so much on alcohol?
WE ARE ECONOMICALLY BUST, BUT HOW IS IT THAT WE MANAGE TO MAINTAIN A NATIONAL BOOZE HABIT THAT COSTS THE STATE UPWARDS OF €3.7BN A YEAR?
It’s stating the bloody’ obvious to say that we could desperately do with that sort of money, but there isn’t a hint of outrage at the enormous price we pay for our national drinking habit.
Tonight and every night in Ireland, 2,000 beds in our acute hospitals are being occupied by people with problems directly related to alcohol. In our emergency departments a quarter of injuries are a result of drink.
At a time when we are counting every single cent that is being spent by the Exchequer, how do we tolerate a situation where alcohol-related illness costs the State €1.2bn and alcohol-related crime €1.19bn. Those numbers are probably higher since those statistics, and others like them, were gathered by the Department of Health in 2007.
Let’s propose a toast then to junior minister Roisin Shortall, a woman who is going to need a lot more than good luck if she is to succeed in her crusade to get Irish people to drink less.
This week Ms Shortall announced in the Dail that she is to end alcohol sponsorship of sport. She allowed that it would happen over a reasonable period of time, but nevertheless the intention is that it will happen. It could, I understand, take up to a decade for this to take total effect.
This proposal would form part of an alcohol action plan currently being developed by the Department of Health, which should be brought before the Cabinet later in the summer.
The plan is based on the report of the National Substance Misuse Steering Group, published earlier this year. Its recommendations included the ban on all alcohol sponsorship of sporting and large outdoor events, as well as a ban on outdoor advertising of alcohol, higher excise duties on some alcohol products and the introduction of minimum pricing.
The drinks industry doesn’t say how much it spends on sponsorship. According to some estimates, they pay €40m for those chest-size beer and stout logos our sportpeople (including children) wear on their shirts.
There is no room for ambivalence in our approach, Ms Shortall told the Dail. This sort of talk may drive those who rail against the “nanny state” even wilder, but it is only a will of iron that will get these policies through.
The junior minister is doing to rounds of her Cabinet colleagues at the moment and by all accounts the response is a little mixed. There is understandable nervousness given how sports clubs, with the reduction in National Lottery funding, are more dependent than ever on sponsorship.
It would appear the junior minister stood on the toe of Sports Minister Leo Varadkar by making her announcement and not advising him of it in advance. In an interview on Radio Kerry he spoke of how there had been no “Cabinet” decision on this and how other ministers such as those in charge of tourism, arts, sport and the food industry, would have a view.
Sorry, Leo — some situations call for a brass neck, otherwise the changes simply don’t happen. Strong and unequivocal signals are needed here.
Then there are the pernicious efforts of the drinks industry to ensure that the status quo is maintained.
Alcohol companies have a huge amount of clout, not least that they are large employers in Ireland and they have built up a serious cunning when it comes to protecting their patch.
Ms Shortall recently met six of the seven universities in Ireland to discuss how alcohol consumption on the various campuses could be reduced. Those six were apparently very keen to co-operate and there were tales of students consuming vast quantities of alcohol, which in turn affected their studies and resulted in mental health issues.
We need look no further than the study just released by youth mental health organisation Headstrong, and psychologists at University College Dublin, to see that young Irish people who drink to excess are much more likely to suffer mental problems.
The first in-depth study of youth mental health found that almost 40pc of young adults had problematic or harmful drinking habits and a further 7pc had signs of alcohol dependence, according to the survey of 14,000 teenagers and young adults.
Now it is totally reasonable that the Government is caught up with this recession and passing EU treaties, and other economy-related issues.
They spend a lot of time telling us now of what we can’t afford and what we cannot do. We frequently hear of how we have no control of our own destiny. However, this is a perfect example of something extremely valuable and money saving that is absolutely within our grasp and would actually ultimately save the State money.
The Eurozone sickness Bug is spreading fast
It seems increasingly likely that Greece will have to leave the euro-zone. But what will this mean for the rest of Europe?
Suddenly, there are a lot of Sick Men of Europe. Greece is in intensive care; Spain’s waiting for a bed to become available; the drips that Portugal and Ireland are on don’t seem to be doing much good; and while the condition of Italy seems to have stabilised a little, France is developing a bit of a cough; and the Netherlands are feeling a bit peaky. It’s all a bit like a pan-European edition of Casualty.
And, just to make the episode more interesting, while almost everyone agrees on the underlying causes of the disease, the doctors can’t agree on the treatment. This is partly because of the varying states of the patients, but also because the doctors themselves have their own agendas and interests. Some swear by this drug, others by another, and all are afraid of getting too involved with the critical cases in case they get infected. Time, then, for as calm a case conference as we can manage.
WHAT ARE THE SICK SUFFERING FROM?
A surfeit of debt, which, because of the credit crunch, and fears of default in the markets, is costing far more than it once did to service – plus overborrowing in the years of easy credit, a too-rapid expansion of public sectors, and, in the case of Ireland and Spain especially, an implosion of property prices. Greece now owes 160 per cent of its GDP, Ireland 110 per cent, Portugal 107 per cent and France 89 per cent. And, as economies contract, inefficient tax collection means these countries have even less cash.
WHAT ARE THE SYMPTOMS?
Of the euro’s 17 members, seven are in recession: Ireland, Greece, Spain, Italy, Cyprus, the Netherlands, Portugal and Slovenia. Germany, meanwhile, had 0.5 per cent growth in 2012′s first quarter, mainly due to a big rise in exports. Under pressure from Germany, governments have laid off workers, cut pay, reduced spending on social programmes, and imposed higher taxes and fees to boost revenue.
As economies have shrunk, countries’ debt levels have worsened. In Spain, the interest rate on 10-year government bonds stood at a worrying high of 6.2 per cent on Friday, not far from the 7 per cent mark that forced Greece, Ireland and Portugal to ask for bailouts. The level of bad loans on the books of Spain’s banks has risen to an 18-year high. All those in recession, but especially Spain, Portugal and Greece, now have hideous rates of joblessness. In Spain, one out of every four citizens is jobless.
In Greece, the first shortages are starting to appear. Melina Ferousi, a businesswoman who imports paper and stationery items, said: “French and Spanish suppliers are still selling on credit, but German ones are particularly strict and are refusing to do so.” And Greeks, fearful that an exit from the euro would mean their savings would be devalued overnight, have been withdrawing deposits from banks.
What treatments have they tried?
The drug of choice has been Austerity. Most countries have been self-medicating (in Britain’s case too much so, says Labour), while Greece, Portugal and Ireland are under the doctor on a bailout regime and having to swallow even greater doses. The unpalatability of Austerity is what caused the revolt by Greek voters on 6 May. Increasingly testy Spanish government officials insist they have put in place a litany of unpopular measures since January that have raised taxes, forced regions to impose deep budget cuts, cleaned up an antiquated labour system by making it easier to hire and fire workers, and required banks to raise the amount of money in place to cover problematic assets and loans. They, like many others, can see the pain all too clearly, but are yet to see palpable gain. And there is a lot more Austerity to swallow.
Why are these not working?
Austerity, if it is the only medicine being taken, has known side-effects, notably drowsiness in economic activity and pain for the jobless. Lack of growth makes debts harder to pay, and pushes up social welfare spending. In Greece’s case, the underlying condition is so severe that no dosage of Austerity, however large, will effect a cure.
IS THERE ANY ENVIRONMENTAL FACTOR INVOLVED?
The Sick Men all live together in a closed community, which works so long as the members are seen to be inextricably bound together. The fear is that if one departs, or is allowed to leave, others will follow and the community will collapse, taking many banks with it. Investors, fearful that Portugal, Ireland, Spain and Italy will follow Greece’s path, would then pull their money out of those countries, too. That would likely be disastrous for the global economy, although it is so unprecedented that nobody really knows.
A vital part of the community is that they all have to take the same medicine. Were they operating as individuals, the inevitable remedy would be a sharp devaluation to make themselves more competitive, but, since the community is based on currency union, one cannot devalue on its own.
Are there other complications?
Two in particular. First and foremost, voters – especially Greek ones. At the 6 May election, they made plain that the prospect of decades of externally inflicted, distasteful Austerity medicine was not something they were going to swallow. Nearly two-thirds voted for parties of the radical left and far right which oppose the terms of the EU/IMF assistance programme. A Greek government could not be formed after the election, hence a return to the voting booths on 17 June. Leading in the polls is the Syriza party, led by Alexis Tsipras, an ex-communist with only three years in parliament, and no background in finance or law. He would withdraw from Nato and close its bases, halt repayment of the national debt, reverse privatisations, seize banks, eliminate sales tax, impose a 75 per cent tax on the rich, and tear up the €130bn bailout.
Yet a majority of Greeks consistently support remaining in the euro, and one’s hunch is that, if there is a sign the EU leaders will ease up on the Austerity dose a little, then there might, come 17 June, be a return to pro–bailout parties. But the Greeks are not the only voters with a say. A poll published on Wednesday found 59 per cent of Germans reject the idea of borrowing more to stimulate growth.
The second factor in all this is the banks. They don’t want patients to die or be so ill they can’t work, either of which would mean they could default.
What about the doctors?
These are also either the patients, or potential patients, and their suggested remedies are coloured by their own interests. Germany wants Greece to stick to the old treatment regime, France wants to administer some doses of Growth, and Spain wants Greece to be kept alive in the community for fear that the markets will switch their attack to Madrid if Athens expires.
SO WILL THE PATIENTS SURVIVE?
There is an immediate crisis ahead, with Greece having to make more budget cutbacks next month to get new funds from its international bailout. If it runs out of money before the 17 June poll, some have said that Athens might have to issue IOUs or vouchers to meet salaries and key service bills. An exit, though thought inevitable by many, would be at a terrible short- to medium-term cost, with the country’s GDP shrinking by around 20 per cent. Greece imports 40 per cent of the food it consumes, nearly all of its oil and natural gas, and much of its medicine. Salaries and pensions could go unpaid for a while, and its banking system would likely collapse for a time. The government would have to default on the euro-denominated money it owes other European countries, shaking the Continent’s financial system.
WILL BRITAIN CATCH IT?
Our economy is already somewhat indisposed because of low European demand, but we will not go down with a serious illness unless Spain and Italy default. That would cause problems for our banks, who are exposed to the tune of about £57bn and £37bn, respectively. That could mean 2008 in spades. (Our banks’ exposure in Greece is £6bn.)
AND WHAT ABOUT ME?
Your mortgage rate is likely to go up, lending will be made more difficult, but savings are protected by the Government’s safety net fund to the tune of £85,000 per institution. And, if you’re going to Greece on holiday, take plenty of cash in small denominations.
AND THE PROGNOSIS?
There is no quick cure. This is not 1933 or 1973. It is a globalised world, with transnational banks, and, in the eurozone, a ponderous, committee-style decision-making institution constantly grappling with uncertainty-phobic markets. Wolfgang Schaeuble, the German Finance Minister, has predicted the crisis could last up to two more years, and there is little reason to doubt him. The patients will be ill for a very long time.
Who can save the euro? (A: not David Cameron)
ANGELA MERKEL, GERMAN CHANCELLOR
The holder of the purse strings. Everyone is banking on the veteran of financial crises to flex Germany’s financial muscle to rescue the euro. But with elections due in the next 18 months, she knows more handouts will go down badly with German voters. Her rumoured suggestion that Greece stage a referendum on remaining in the eurozone has not helped relations.
A Teenage Girl (18) is shot dead in Derry
Two men and a woman are being questioned by police over attack in which a second woman was seriously hurt
Three people are in custody after a teenage girl was shot dead and her sister seriously injured in a gun attack in a Co Derry village this morning.
Police said they were attending the scene at residential premises at William Court in Bellaghy, near Magherafelt, Co Derry. It is understood the dead girl was 18 years-old and celebrated her birthday just last week.
Her older sister, aged in her early 20s, lived at the rented house, in a recently built development at the back of the established housing estate. Locals said the seriously injured woman is a mother of two young children.
Police said they received a report of the shooting shortly before 10.40am. A spokesman said: “At around 11.10am, a 26-year-old man was arrested on suspicion of murder and a 28-year-old male and 28-year-old female were arrested on suspicion of assisting an offender.
“All three were arrested in the Toome area and have been taken to the serious crime suite at Antrim police station.”
Investigating officers have appealed for anyone with information about the incident to contact them.
The North’s deputy first minister and Mid-Ulster MP Martin McGuinness said his heart goes out to the family of the girl who died.
“People I have spoken to in the area this morning are in a state of shock,” he said.
“I would wish to extend my thoughts and prayers to the family and friends of the victim at this terrible time.”
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