Category Archives: Misc

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A person sleeps behind the railings of the Custom House in Dublin

The Simon Community released its annual report for 2015 this morning.

The launch of this report followed an early-morning count of the number of people sleeping rough in Dublin.

168 people were counted.

The main findings of the Simon Community’s report are as follows:

10% of people moved out of emergency accommodation into a home

59% of people in emergency accommodation have been homeless for more than two years

32% increase in the numbers counted on Early Morning Rough Sleeping counts in the last year (not including the 60 without a bed in the Merchants Quay Ireland Night Café) 168 counted this morning

31% increase in those accessing Addiction Treatment Services

46% increase in housing capacity, through opening and acquiring 109 new properties in 2015.

59% increase in those accessing Emergency Accommodation

Dublin Simon Community Annual Report 2015 – Key Findings (Simon Community)

Sam Boal/Rollingnews

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People on the Right2Water rally against water charges in Dublin last Saturday

Diarmaid Ferriter misses the point about the movement against water charges. The key to understanding why hundreds of thousands of people have taken to the streets since 2014 lies not in a discussion about the abolition of rates during the 1970s but in the impact of austerity in this State since 2008.

The communities from which the water protests emerged were those who had suffered most from cutbacks under both Fianna Fáil and coalition governments. They were consistently told that there was no alternative to these policies. But the implementation of water charges was, for many, the straw that broke the camel’s back.

The fact that, despite derision from commentators, the movement not only sustained itself but grew, makes it more likely that people will feel that protest over housing, child poverty and numerous other issues may also be successful.

Anyone who wants to see a “civic-minded Irish Republic” should therefore be applauding those who took part in the largest social movement in this country for decades.

Dr Brian Hanley,
Cabra,
Dublin 7.

Water charges and social protest (Irish Times letters page)

Previously: Torrential

Sam Boal/Rollingnews

dundrum

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From top: Dundrum Town centre, part of portfolio of loans known by Nama as Project Jewel: NAMA board member Brian McEnery  British property giant Hammerson’s statement on Project Jewel, June 2016

Nama Wine Lake writes:

On Sunday last, Brian McEnrey a board member of NAMA was on the Marian Finucane show defending NAMA and badmouthing the Comptroller’s report [Into Project Eagle].

During the interview, Mr McEnry made this statement

“Project Jewel, Dundrum Shopping Centre held until we were at the very height of the market and sold for about a billion euros profit into Nama.”

It has some in the property and investment sectors scratching their heads as to how it could be true.

So what is Project Jewel?

This was a portfolio of loans linked to Joe O’Reilly, a NAMA Top 10 borrower. The loans had a par value of €2.57bn and were secured on collateral which included the Dundrum Town Centre shopping centre in south Dublin, Joe O’Reilly’s 50% stakes in the Ilac centre in Dublin city centre and the Pavilions shopping centre in Swords.

Other property collateral included an area around North O’Connell Street/Moore Street which has planning permission for a major new shopping centre.

How much did NAMA pay for Joe O’Reilly’s loans?

We don’t directly know. We do know the loans were acquired in two steps. Step #1 was in 2010 when NAMA acquired loans for the top developers from several Irish banks and building societies (Bank of Ireland, AIB, Anglo, EBS and Irish Nationwide)

Step #2 was unusual, and involved NAMA buying from Ulster Bank its €129m loans which were secured on the Dundrum Town Centre. NAMA paid Ulster Bank par value for the loans, in other words, it paid €129m.

We do know, in general, that NAMA acquired all of its €74bn loans from the banks in 2010-2012 for at an overall 44c in the euro. NAMA paid less for loans which had poor collateral. Dundrum Town Centre and the Ilac and Pavilions would have been considered good collateral.

How much did NAMA sell Project Jewel for?

€1.849bn was the price when NAMA sold the portfolio in early October 2015. The buyer was a venture between the British property giant Hammerson and the insurer Allianz.

Is it possible NAMA made a profit of €1bn on the sale of Project Jewel?

If the sale price was €1.849bn and NAMA made a profit of €1bn, that suggests the NAMA cost of the loans was €849m (€1.849bn minus €1bn). If NAMA paid €129m for the Ulster Bank loans, that suggests the cost of the other loans was €720m (€849m minus €129m).

Deducting the Ulster Bank loans from the par value of Project Jewel suggests the par value of the Step #1 NAMA loans was €2.44bn (€2.57bn minus €129m). That suggests the NAMA cost of €720m versus the par value of €2.44bn was 30c in the euro, which was worse than the average NAMA acquisition price.

The perceived wisdom would be the cost of Joe O’Reilly’s loans would have been greater than the average 44c in the euro because the collateral was so good.

It seems very unlikely to the point of incredibility that NAMA made a €1bn profit on Project Jewel, at least in the way it was presented by NAMA last Sunday.

There may be complicating factors such as the interest charged on the loans by NAMA in 2010-2015, and NAMA may be including that interest in its “profit”, but that would be disingenuous and at odds with how NAMA’s loss on Project Eagle was calculated.

Was October 2015 “the height of the market”?

No, according to the JLL Irish commercial property indices, prices have been increasing for all property, including retail up to June 2016, the latest period for which JLL has issued its indices.

Between Q3,2015 (the end of which NAMA sold Project Jewel) and Q2,2016, Irish commercial property overall has increased by 9.4%, whilst retail, which forms the greatest element of Project Jewel increased by 8.4%.

Q3,2015 was certainly not the “height of the market”.

Are the buyers now making a profit on Project Jewel?

Oh yes, at least on paper. Hammerson, one of the parties to the venture which bought Project Jewel, issued a statement in June 2016 which said:

“Project Jewel was accretive to 2016 EPS and with opportunities for valuation growth, the portfolio provides an attractive projected five year ungeared IRR of 7-8%, excluding development returns”.

Translated into basic finance, Hammerson expects its purchase from NAMA will make a €870m profit in five years, excluding financing costs, and also excluding any unforeseen profits from developing the properties including the property at Upper O’Connell Street.

Yesterday: Taking The Michael

Nama Wine Lake

Rollingnews

binsMichael Taft

From top: bin collectionb; Michael Taft

In Ireland, what’s good for Donegal is decided in Dublin.

This must change.

Michael Taft writes:

Whenever one compares Irish government finances with that of other small open economies or Nordic countries, showing that we spend far less on public services, social protection and investment someone invariably comes back with: ‘we can’t trust our government to spend efficiently, or honestly, or at all’.

For those of us who believe in a strong social state, this is a challenge. If people are to accept higher levels of taxation to pay for higher levels of public services, they have to have confidence in state institutions – or at least have confidence those institutions are accountable to them.

So how do the other countries do it?

There is no one answer but the following may be a contributing factor: other European countries are far more decentralised than the Irish state.

The Irish state is one of the most centralised in Europe, fiscally speaking. The central government here spends the highest proportion of total government spending than almost any other EU country. In the EU-15, central government accounts for 54 percent of all government spending; in Ireland it accounts for 95 percent.

Another way of look at this is the amount that local government spending makes up.

Let’s compare ourselves with those high-spending Nordic countries.

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We can see how decentralised these other high-spending countries are – with Danish local government making up nearly two-thirds of total government spending (interestingly, Denmark is the highest spending state in the EU; the other countries are not far behind).

By contrast, Irish local government is weak, very weak.

So what do these other countries spend their money on through local government?

There are four main areas:

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On average, in the Nordic countries local governments are the main financial sources for health, education and recreation & leisure. In Ireland, on the other hand, local government plays a much diminished and, in the case of health, a non-existent role.

Even in social protection, Nordic local governments play a prominent role. It should be noted that the category of social protection is not just about cash transfers; it includes in-kind benefits – home-helps to elderly and disabled, transport services, assistance with funeral services for survivors, holiday camps for children, etc.

In short, the Nordic countries are characterised by highly decentralised systems where policies and financing are provided by governmental tiers that are arguably ‘closer to the people’. In Ireland, what’s good for Donegal is decided in Dublin.

Could this decentralised structure imbue more confidence in higher spending regimes? And what implications does it have for Ireland. Well, if the answer to the first is potentially yes, the implications for Ireland are not good.

There are volumes of reports on local government reform going back to the 1940s but local government remains  manager-centred. So what would a reformed local government look like?

It’s too big an issue to go into here but this is just a sampler:

Why do we have four local authorities in Dublin, rather than a Greater Dublin Council? Councillors could be elected along Dail constituencies and would be full-time – part-time councillors don’t have the resources or the time to hold the managerial system to account.

There would be an Assembly with full-time staff and support services with a number of centralised functions devolved to the council level.

Another lower, part-time tier could be established through local area councils (a Swords Council, a Blanchardstown Council, an Inner City Council) with powers devolved through the Assembly.

In the rest of the country, there would need to be an upscaling of city/county councils. We used to have eight regional authorities; recent reforms have reduced to these three. Formerly it was probably too many, now it’s too few.

These are largely toothless but they could be turned into larger full-time professional councils along the lines of a Greater Dublin Council. The current structure could remain but reformed to bring about even more local democracy (a Tralee Council, Letterkenny, Drogheda, Athlone).

But all this is predicated on the willingness of the political culture to engage in a radical decentralisation and, given our historically centralised state, this would be a big task. But it’s one that progressives should investigate.

[Note: it could be argued that Ireland is too small to have a decentralised system. Yet, Iceland and Luxembourg spend more money through local government than we do.]

If people felt that such institutions – being closer to home – were more accountable, then the prospect of developing a strong social state could gain momentum. And there’s another reason.

The Left doesn’t look like taking national power anytime soon with its divisions, fragmentation and low-vote.

However, there are many areas in the country where the Left could form a majority and show that it is capable of governing.

This could set up alternative sources of power and prove useful preparation for hopefully, one day, national hegemony.

It’s not as if others haven’t noticed how weak our local government is. The Council of Europe produced a damning report on Ireland’s excessive centralisation, lack of funding transparency and limited local powers.

Isn’t it about time we noticed, too?

Michael Taft is Research Officer with Unite the Union. His column appears here every Tuesday. He is author of the political economy blog, Unite’s Notes on the Front. Follow Michael on Twitter: @notesonthefront

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A fire at Camp Moria on Lesvos island, Greece last night

Last night.

A fire broke out at Camp Moria on Lesvos island in Greece.

According to UNHCR figures, as of September 13, there were 5,600 people seeking refuge on the island where there are facilities with a capacity for 3,500.

More than 94,000 people have reached Lesvos island, by sea, so far this year.

Last night, The Guardian reported:

Thousands of refugees detained at one of Greece’s biggest camps, on the island of Lesbos, have fled the facility amid scenes of mayhem after some reportedly set fire to it, local police have said.

Up to 4,000 panic-stricken men, women and children rushed out of the barbed-wire-fenced installation following rumours of mass deportations to Turkey.

Between 3,000 and 4000 migrants have fled the camp of Moria,” a police source said, attributing the exodus to fires that rapidly swept through the facility because of high winds.

Approximately 150 unaccompanied children, controversially housed at the camp, had been evacuated to a childrens’ village, the police source added. No one was reported to have been injured in the blaze.

But damage was widespread and with tents and prefabricated housing units going up in flames, the Greek channel Skai TV, described the site as “a war zone”.

 

Readers may recall how, prior to March 20, refugees arriving on the Greek islands were registered at “hot spots” before receiving paperwork to travel onto Athens and continue their journey into Europe.

From November 2015, there were signs that this might change with some nationalities (people from Pakistan, for example) not being given the opportunity to register and continue their journey into Europe.

But for the vast majority, especially Syrian refugees, the process was relatively smooth and quick.

All that changed when the EU and Turkey struck a deal which caused outcry across many working in the humanitarian sector.

On Lesvos island, where there is almost 65% over capacity, the situation and conditions are dire and individuals waiting on Lesvos are desperate to leave the island and head to the mainland in the hope of better conditions and, eventually, continuing their journey.

This desperation has led refugees to risk everything they have, again, to try and make it off the island and onto the mainland.

Further to this…

Emma Hett, from Dublin, volunteered on Lesvos and, later the Greek mainland, from March to July this year. During this time, she worked with many people seeking refuge who had arrived on the Greek island from Turkey.

Some months after the March deal, Emma also spoke with several refugees who explained to her what options are available for those stranded on Lesvos without papers but who are desperate to leave.

She writes:

Due to the high levels of checks and police on the water, people who wish to leave Lesvos are forced to attempt the process through established smuggler networks.

The smuggling rings in Lesvos operate in tandem with each other and so there is little or no conflict or tension between them.

The option of a travelling in a small dinghy from Lesvos to Athens, in the same way most travelled from Turkey to Lesvos, is not an option here.

Instead, refugees stranded on Lesvos, desperate to reach the mainland in search of better conditions, are forced to pay large amounts of cash to smugglers if they are to have any hope of leaving.

Finding a smuggler to help get you off Lesvos isn’t a problem. And you don’t even need to go looking. The short answer is one doesn’t find a smuggler, a smuggler finds you.

On Lesvos, the majority of smugglers are from Pakistan or Afghanistan. However, they are directed and controlled by Greek smugglers. The Greek smuggler operates through the Pakistani or Afghani smugglers who make direct contact with refugees.

They approach refugees in camps and anywhere where refugees may be gathered (in certain places around Mytilene or at the beaches). These smugglers usually speak several languages (Urdu, Greek, sometimes a little Arabic but usually not English). They operate in conjunction with other smugglers on the island, and throughout Greece, and are usually well connected.

Once the refugees have agreed to travel with the smugglers to the mainland, they are offered the opportunity to stay in one of the several smuggler houses in Mytilene. They usually pay roughly €100 per month to cover expenses while living there.

This is very appealing for many of the refugees who are living in either dire conditions in the Moria detention centre or outside in the forests surrounding Mytilene. According to Sami – a Pakistani refugee who was desperate to leave Lesvos and contacted a smuggling ring to help him do so – in one house, there were over 100 people resident at one time.

Yet, for many, this is better than staying in Moria, illustrating just how poor the conditions are in Moria.

To buy a ferry ticket allowing people to leave the island, you must show your identification paperwork. Refugees can buy identification papers for roughly €200.

These are always original papers, usually from Syrian and Afghani refugees, and they are received from mafia contacts in FYROM (the Former Yugoslav Republic of Macedonia).

The mafia source these papers from those already off the island and travelling on through Europe. In return for selling their papers, the smuggler takes these refugees the remainder of the journey across the border. These papers are then sent back to smugglers on Lesvos who can sell them on. Papers are sold on Lesvos for €200. For a family of five, the cost is significant.

In addition, some local residents in Mytilene have sold their resident papers (Greek papers) to refugees to allow them to travel on a ferry to the mainland.

It’s worth keeping in mind the desperate situation local people on Lesvos are facing with, first, a hugely damaging economic crisis, immediately  followed by the refugee crisis which has forced many, who are dependent on tourism, into financial difficulties.

Some hotels in Molyvos, in northern Lesvos, have reported that hotel bookings are down 95%, forcing some to close for yet another season.

Most registration papers that are bought are from Syrian and Afghani nationals who are generally the first nationalities to be registered and moved through the system quicker than people from other countries.

For some nationalities (Iranian, Pakistani, etc) these papers can be difficult to use (aesthetically, they look very different). Another option open to those desperate to leave the islands is to buy “Protection Papers.” These are papers that are given to individuals on Lesvos who have lodged asylum claims and have received the first acceptance (allowing them to travel throughout Greece). These are referred to as “White Cards.”

Two years ago, these were coloured red but have more recently been printed in white (International Protection Application Card). The going price for these cards is €90. These are given to all nationalities so they have the added benefit of appearing more authentic.

While registration papers and white cards are relatively cheap for those travelling solo (maximum €200), they are also known for being unreliable. Port police scrutinise the papers and look out for those travelling on somebody else’s papers.

Another option available is to buy a “Red Passport”, an EU passport, which, while prohibitively expensive for most at €1,000, stand a better chance of not being scrutinised at the port.

The €1,000 passport option is a one-off attempt (if you are arrested then the problem is yours and the smugglers will not provide a second “free” attempt, as is the case with some €200 registration paper “deals”).

Obviously, the cost of being smuggled is high and it is done only in cash-in-hand transactions. This can lead to a vulnerability for smugglers who could be caught being handed large quantities of cash.

However, they have found a solution to protect themselves. Money is transferred globally to those who need cash for these transactions via Western Union. When the refugee agrees to travel, via smuggler to the mainland, no cash is exchanged on Lesvos. The smuggler network in Athens operates the cash transfer.

For example, a cousin or friend of a refugee on Lesvos, wanting to travel, will meet a smuggler contact in Athens, at a secret location, and hand money over that has been sent to them via Western Union. This way, the smuggler ring on Lesvos never has to handle any cash.

Once confirmation of the transaction carried out in Athens is received by the smuggler in Lesvos, the papers are handed over.

It is the responsibility of the refugee to buy the ferry ticket themselves. From Lesvos, there are two ferry operators; Blue Star (Government) and Hellenic Seaways (private). In order to buy a ferry ticket, you must show valid identification to the tour operators/ticket sellers.

So, prior to buying a ticket, you have to have either bought or faked registration papers or some form of identity card.

The first step to getting onto the ferry, and off the island, is to present yourself with your papers at the port. The police then check the papers and they give permission for you to buy a ticket in the kiosk in the port area.

The local shops in Mytilene which also sell ferry tickets are more risky for refugees and they have been known to call the police from the Moria detention centre when a refugee has presented themselves to buy a ticket and they feel the papers are fake.

Therefore, it is safer for the refugees to buy their ferry tickets in the port.

Sometimes, when someone attempts to buy ferry tickets in the kiosk, the operator will not issue the ticket based on the presumption the papers/ID are fake. When this happens, the refugee phones the smuggler who, in turn, phones the agent and resolves the issue, after which the ferry ticket is issued.

Most of the Pakistani and Afghani smugglers operating on Lesvos, have been living on the island for a long time, speak fluent Greek, and can communicate with the kiosk agent directly.

While a smuggler is on the phone sorting out this issue, it is out of sight of the port police, so there is no risk to the refugee being caught at this time. In addition, there is no risk to the ferry operator getting into trouble from issuing the tickets and they receive extra money for issuing the tickets from the smugglers.

Once the refugee has been issued their ferry tickets (approximately €45, from Lesvos to Athens), they can attempt to board the ferry. Some are successful and board the ferry and travel to Athens. Others are stopped when trying to board and are arrested by the police.

There are also a large number of plain-clothed police officers in the port area so, until the ferry departs Lesvos, the refugees are on edge.

If arrested, they are usually handled very violently by police. The police then rip up the papers and ticket, bundle the refugee into a waiting police van and, once the ferry has left (and any other suspected refugees have also been arrested and placed into the van), they are taken into a closed detention facility inside Moria hotspot.

There is no formal punishment for refugees, for this offence, but access to facilities is decreased (i.e. less food) when held in the closed detention facility. They are usually held here for two to three days, before being released. For the majority of refugees, this is not a deterrent. It just forces them to find another €200 and try again.

Many people have also tried to travel to Athens in shipping containers. Some are successful but the majority are not. This shows the risks some are willing to take, out of desperation, to leave Lesvos and the dire conditions they are faced with.

The smuggler mafia network on Lesvos also has contacts within the Greek police force. This is appealing to refugees as it increases their confidence that they are more likely to be successful.

There is the option of paying an additional €1,800 to the police, via the smugglers, to ensure they aren’t stopped when attempting to board the ferry. For many though, this isn’t an option as it is too expensive.

Instead, they attempt it without the insider support of the police force and, if they are unsuccessful, they are forced to save up again and attempt the journey for a second or third time.

But for those who have travelled this way, with the support of the police, they have been successful. For others, they take the risk and attempt to board the ferry without bribing the police. What’s clear is that if you have the money to bribe the police, you are more likely to be successful in being smuggled off the island.

This summer, there was another alternative being offered to refugees stranded on Lesvos. A single police officer (operating independently of other police officials) inside Moria, with mafia contacts, was offering to smuggle refugees to Athens for €700.

During one particular week in June, 10 people from Pakistan successfully travelled this way. This is particularly appealing to Pakistani refugees who have, in some cases, been stuck on Lesvos since December and are now desperate to travel to Athens. They are also already significantly indebted to smugglers for their journey from Pakistan to Greece.

They also, aesthetically, don’t look like Syrian refugees and are generally  stopped more often and, in some cases, are on first name terms with the port police, thwarting any chance of future attempts with fake papers.

Some of the Pakistani smugglers on Lesvos, who have lived on the island legally for many years and have EU passports, are married to Greek women. These wives have also become involved with the smuggler operations and travel with a male Pakistani refugee – to make it look like they are a couple. These refugees travel with fake identification cards while the Greek wives travel with original, legitimate paperwork, strengthening their legitimacy.

What is clear, is that the EU Turkey deal has not stemmed the profits being made by the smugglers across Europe. If anything, prices have increased, and refugees, especially those travelling as family units, are sinking further and further into debt in order to travel on and try and build a future.

It all comes down to money, the more you have the more successful your chances are of getting off Lesvos. The less you have, the more desperate and vulnerable you are and therefore the more likely you are to be taken advantage of. As options became more limited for refugees after the EU/Turkey deal in March, the options became more dangerous.

This summer, smugglers offered refugees who had little or no money left another option to fund their journeys, drug smuggling. Refugees were given the option of distributing drugs (on Lesvos this was mostly heroin and cocaine) between the refugee camps on Lesvos to other refugees.

Many have taken up this offer, especially those from poor families who cannot depend on their families to send them additional money to fund their onward journeys. For many, the cost of the journey to get as far as Lesvos has put huge financial pressure on their families at home.

After several failed attempts with faked papers, they are forced to enter the drug smuggling option. This option is also being offered to the unaccompanied minors in camps on Lesvos. This group of refugees are particularly vulnerable and are easy targets for smugglers.

The money made from selling the drugs within the camps is split 50/50 between the smuggler and the refugee. This is a way for the refugee to make money in order to fund their journey ahead.

However, the risk is high – if refugees are caught with the drugs, they are arrested and brought to jail in Mytilene. This would also impact their future chances of gaining asylum in Greece.

Thousands flee as blaze sweeps through Moria refugee camp in Greece (The Guardian)

Pic: Humanity Crew