Developers McInerney and Treasury Holdings Default. Irish Taxpayers Pick Up The Bill

Counting the cost of the bailout in real money.

I’ve decided to define new units of currency: the IR$chool and the IRChildHospital.

One IR$chool equals roughly €2 million.

One IRChildHospital equals 500 IR$chool

So far, Anglo-Irish Bank has cost the State 12,250 IR$chool or 24.5 IRChildHospital.

Irish Nationwide has cost the State 2,000 IR$chool or 4 IRChildHospital.

The other two banks have so far cost the State 3,500 IR$chool, or 7 IRChildHospital.

Nama will cost at least 20,000 IR$chool, or 40 IRChildHospital.

Let’s add all that up.

So far the cost to the Irish taxpayer of bailing out the banks instead of letting them collapse is 37,750 schools or 75 National Children’s Hospitals.

It’s 90 LUAS systems.

It’s nine times the cost of all the motorways ever built in Ireland.

It’s 190 Aviva stadiums.

This is more than three times the entire amount of European structural funds given to Ireland in the last 30 years, all down the toilet because of the government’s desire to protect the banks and their investors at all costs.

Here’s a quote from that rabid Communist rag, the Financial Times, as given in The Irish Economy:

It is time to staunch the bleeding. As Irish state guarantees near their expiry date, some banks will not be able to refinance their balances. The government should prepare insolvent banks for forced debt-for-equity swaps, which would instantly recapitalise the banks in question and cap the government’s exposure. This cannot be done frivolously; European institutions are exposed and EU partners must be consulted. But someone must put an end to the practice of handing banks blank cheques. Some Irish pluckiness would benefit us all.

News reaches us today that McInerney Homes can’t pay its bills and neither can REO, the Treasury Holdings company set up as a vehicle for Johnny Ronan’s monstrous ego.  Johnny was the darling of the arse-licking classes in the high-flying years, as this grovelling piece from 2006 shows, but now, it seems the ordinary worker will be picking up the debris for him.  Send a pig-dealer’s son to a posh school, and every forelock-touching Paddy in the land will be turning the gobshite into royalty.

That’s Ireland for you.

Not to worry.  If these companies stiff the banks, there’s always the Irish taxpayer to make up the loss.  REO owes the banks about 1,000 schools in total, of which half is to Irish institutions, so there’s another billion coming out of your pocket, thanks very much.  McInerneys, on the other hand, owe Irish banks a piddling 50 schools.  One way or the other, the banks won’t lose, because the government will make up whatever shortfall arises due to the hubris and stupidity of Treasury Holdings and McInerneys.

Anyway, it’s only the price of another thousand or so schools.  Not even a full children’s hospital.


37 thoughts on “Developers McInerney and Treasury Holdings Default. Irish Taxpayers Pick Up The Bill

  1. Excellent monetary juxtaposition Bock. You will of course be accused of “not understanding” that the banking fiasco has nothing to do with schools and hospitals.

    Another way I have thought of looking at this glorious mess is to take the €50,000,000,000 cost of the bank/FF client bailout and divide it by the number of years this State has been in existence (1922 to 2010). That’s €568,000,000 a year, every year, since the foundation of the State.

    Clowns, maggots and thieves. And that’s just Fianna Fail.

  2. I will be accused of that by unlettered, ill-educated Fianna Fáil troglodytes, and I will take great pleasure in laughing at the idiots, though in truth, there’s little to laugh at in the disaster these fools have created.

  3. Good comparison Bock. The figures means something when you put them into tangible things we can understand.
    Not to be pedantic though, but where you say.. ‘ it’s only the price of another thousand or so schools. Not even a full children’s hospital.’ Wouldn’t that be two children’s hospitals?
    1000 schools equaling 2 billion. One Hospital equaling 1 billion.

  4. This is only the beginning every day the Golden wonders find new black holes to shovel the future of Ireland into .Round and round it goes where it stops nobody knows. The only chance we have is to tell gamblers who bet on Anglo and the others that they lost.

  5. FME — You’re right. I get confused. A billion here, a billion there, before you know it, you’re talking real money.

  6. No. On reflection, you’re not right. My calculations were correct, sort of. Half a billion equals half a children’s hospital.

    Not that it makes a rat’s arse of a difference when the country is being boned up the arse.

  7. Real money is right Bock.. Seems like monopoly money or something. I can’t fathom the amounts. Hard to read the zeros. (but wanted to check me sums all the same)

    Bloody gangsters is all I can say.

    (if ‘REO owes the banks about 1,000 schools in total’ – then that’d be 2 billion he owes right? Equaling 2 hospitals.. oh jesus nevermind.. he owes more than I can fathom anyways. )

  8. Ah Jesus, you’re right, but they owe only half of it to Irish banks, so that’s, let me see now. One full children’s hospital,

  9. I am now convinced that there would be no recession in this once great country of Ireland if not for the banks and their great protectors, Fianna Fail. Surely at this time we,the tax payers, are entitled to know why the Government are so committed to bailing out this Zombie Bank. The likes of Ivor,Bertie,Biffo et all must have a vested interest in them. I am dumbfounded to think of any other reason for all of this madness. It may now reach E34,000,000,000!! Give me a break. Most of us have kids and this shower choose to mortgage their future and also that of their children. I am working ,to pay myself, at the moment because of the tax system. Is there no end to the madness? The system is in tatters and we are rudderless. Up shit creek and Mc Creavy, Bertie, Clowen and Linehan have Fucked the paddle away! HELP!

  10. rob

    Is there no end to the madness?


    Welcome to mental asylum economics.

    If you take the “e” out of “economics” you get to see the “con”.

    It’s con-omics.

    Some think it plain comic.

  11. A once proud nation,brought to its knees by a shower of incompetent fools. The Celtic Tiger was a total myth. Who gained, and, more importantly, who lost. The gains were made by the High Flyers who suddenly became Property Speculators and the big losers were those of us who have one overpriced home, one car and two or three kids who want to go to college. I for one cannot wait for these bastards to call to my door looking for support in the next elections. Anyone who needs a loan of a golf club contact me!!

  12. TaxiChris there will be no revolution the People have reverted to “whipped cur mode” and it seems will take anything the shower of incompetents, that style themselves a Government, care to throw at them.
    Rob no point in shouting for help, in space no one can hear you scream. We left Earth behind us some time ago. We now are on course for F.F. wonderland and we have already turned the corner. Honest! The Government said so and it must be true.

  13. Bock- —Incredible but true-I think you may be right on this. “This is more than three times the entire amount of European structural funds given to Ireland in the last 30 years, all down the toilet because of the government’s desire to protect the banks and their investors at all costs.”

    It is hard to believe. Almost incredible.

  14. Bock. A more light hearted look at Treasury Holdings among other things.
    Johnny bought a power Station

    Johnny bought power station
    That burns no more coal
    Now Johnny’s in Morocco
    Looking for his hole

    The NAMA boys are counting
    The lost billions day and night
    But Johnny’s in Morocco
    And couldn’t give a shite.

    Cause Johnny first screwed Anglo
    And Anglo then screwed us.
    And NAMA’s just a condom
    In case we’d get a buzz

    They’ll toast a glass to NAMA
    With finest French champagne
    And at Spanish haciendas
    Ireland’s blood they’ll drain

    Fingers took your money in
    And then he made some calls
    To Celia and to Charlie
    And to all the Fianna Fails

    Fingers had a deal with Seanie
    That would trump a three-card trick
    Then he left with all his millions
    The scheming pious prick.

    In school we learned of Cromwell
    That ogre, warts and all
    But school did not prepare us
    For Anglo and Fianna Fail

    The country is fully ruined now
    And no one pays the crime
    That will chain the nation’s children
    To ransom a banker’s mine.

    A plague on all their mansions
    Built with hard earned sweat
    Of future generations
    That aren’t born yet.

    St Patrick rests in his heaven
    To bestow his saintly smile
    But when he meets the Fianna Failers
    He will flay them back alive.

    And send them to the mountains
    To herd both sheep and goats
    For 900 years and counting
    In the misty mountains soaked

    And NAMA pens its useless letters
    A Chara one and two
    The horse has left the stable boys
    There’s just one thing left to do

    Tell the world we now disown them
    They fooled us one and all
    And to get back their FUCKING money
    From the scuts in Fianna Fail

  15. I suspect that beyond a certain number of zeros, the figures blend together in people’s minds into “fuckloads”. Do people actually believe the country would be worse off if we converted these tens of billions (which we don’t have) into the aforementioned currency of schools and hospitals, instead of throwing them at the banks?

  16. Hail Marcus I agree the zeros can be very confusing especially for our Bankers, Building Societies, Dept of Finance, Regulators, Government Etc. Perhaps we should look at this as a mortgage? At a realistic estimate, in my opinion , € 100,000,000,000 it ought not take more than a thousand years of penury and general suffering of the lower orders to pay it off. I of course reserveve the right to revise this opinion (upwards only) next week. I leaving out the current 6% extra

  17. Taking Gary’s figure of €100bn, at 5.5% interest, that means last year’s savings/cut and this year’s cuts are needed just to service the interest each year. That means we continue to add another €20bn per annum to the principal because that’s the size of the deficit we will continue to run.

    Supposedly we propped up the banks in Sept ’08 because the entire banking system was on the verge of falling over. How could the collapse of the banking system be worse than this?

  18. Obviously, saving a handful of bankers who are mates of Fianna Fáil is worth dooming the rest of the country. That should be patently obvious by now, it’s apparently the “harsh medicine” we need.

  19. The banking fiasco has nothing to do with schools and hospitals.

  20. F.F. good to see that there are some of you still about. I thought you were extinct Enjoy the pain of your lords and masters with the rest of us.

  21. Bock you may have missed T.u.F.F.T point “ It wasn’t me , I wasn’t there no one saw me do it” . It was the Bankers . Honest we can make it all right , Just another few years on the gravy train and everything will be fine. We will reinvest in Ireland from our accounts in the Caribbean. Or perhaps from our new planet, provided the new Government has cleaned up the mess of course.

  22. There are no fools in Fianna Fáil.
    Neither are there fools in the banking sector.
    There are however quite clever and cunning criminals in both those gangs.
    The only fools are those not yet part of one or other.
    Choose your gang and live it up; simple shyte really.

  23. Have to agree with you there unstranger.

    people constantly talk about our stupid politicians and bankers but these so called stupid people ensure they themselves are highly paid, have good pensions, and remain in power for as long as possible.
    Joe Public seems happy enough to just eventually vote them out of power. No one will chase them for allt eh money they legally stole from the country.

  24. Good poetry tTumbrel,
    Fianna Fail connected waste contractors have made fortunes dumping illegal waste in a quarry owned by Cement Roadstone Holdings, in the vicinity of Dublin’s water supply reservoir in County Wicklow during the past decade thereby endangering the drinking water for some three million citizens.

    However further depredation in this region by crony developers of the Soldiers of Destiny has, thankfully, been put on hold due to the world wide recession, An Bord Pleanala, and the fact that
    Johnny Rohan and partner Richard Barret have been NAMAtized .

    Dodgy bank loans loans of approximately 1 billion Euros were given to the two Fianna Fail inspired developers various companies.

    Some of the money was earmarked for the destruction of the Wicklow mountains, but thankfully, the money is all gone west.!

    This is good news for conservationists but bad news for the taxpayers of Ireland.

    NAMA (i.e. Irish taxpayers) are now the owners of a 150-hectare site in a designated Area of Special Amenity,close to Roundwood village in Wicklow.!

    Ronan’s Jersey based Real Estate Opportunities (Swinwood ltd) bought the site for 20 million Euros in 2005 with money lent them by the usual suspect (Seanie Fitz).

    The cooperative and compliant County Councillors (Fianna Failers mostly) in Wicklow rubber stamped the boys plans to build a six story hotel, two golf courses ,and equestrian centre , numerous other houses,and whatever your having yourself on this high amenity land.

    An Bord Pleanala threw out the whole scheme recently and the land is now only good for grazing goats.

    When is a “personal guarantee” worth F*ck all ?


    When a billionaire developer commits his personal wealth to a banker should he default on his repayments.

    Ronan and Barrett have not been pursued personally for one penny by Brian Lenehan’s NAMA quango.

    Meanwhile the two boys R & B are pocketing 18 million Euros per annum in “fees” fortheir ongoing management of their ruined REO (Real Estate Opportunities) outfit which also owns derelict sites elsewhere in Europe such as Battersea Power Station in London (loss on original purchase price an estimated 500 million Euros)

    In fact they hope to present Brian Lenehan with a new business plan which will keep the whole charade on the road as “a going concern”!

    No effort has been made to sell off any of the two boys current stock of office buildings -some of which are producing good rental income.

    Perhaps Mr Lenehan is waiting for the market to re-cover?

  25. Aha now lads you just don’t get it now do you? The Golden Circle need gold ,that is what they live on. All of these facts that you are presenting will only confuse the likes of commenter #24 you shall have to be put into the lower decks of the Galley so that the upper decks may shite on you. All of the Developers shall weather this storm . There shall be a few losses below decks but that is only to be expected. Now just put your backs into it and row harder. Think of Ireland and our Glorious leader.

  26. What kind of sentence could you expect for mass tarring and feathering these days? (Not being kind. Just preliminaries).

  27. John McDermott. Can this be true ? I genuinely didn’t know that NAMA is paying these people fees to run a company that they have already run into the ground. 18 MIllion in fees? And they are dumping billions of unpaid debt on Irish taxpayers because they can’t or won’t pay. This is insanity. Who is making this decision? Does he or she have a name?

    Bock. We need to call for a constitutional amendment to strip these people of their assets. Forget company Law, other law. etc Just a constitutional amendment to nail them.

    John McDermott ” Meanwhile the two boys R & B are pocketing 18 million Euros per annum in “fees” for their ongoing management of their ruined REO (Real Estate Opportunities) outfit which also owns derelict sites elsewhere in Europe such as Battersea Power Station in London (loss on original purchase price an estimated 500 million Euros)”

  28. It’s in the Phoenix magazine recently I read it.Get a copy yourself!
    Like NAMA ,the monster developers created by the banks and Fianna Fail are not going to go away anytime soon.
    Maybe to Marbella to play some golf but they will be back,like a host of Freddies from Nightmare on Elm Street.
    When the Soldiers of Destiny have finished resurrecting the zombie banks, they will find a way (and more taxes on the poor) to maintain their buddies on life support.
    Read my lips..

  29. @Bock @ John McDermott. Not surprised. Just very pissed off. But still was not aware of it. It is certainly not making the six o’clock news. Why? I cannot understand how anybody can stand over paying a red cent to these people.
    In reality, I am still naive. These people were given over two years to salt away their wealth. Maybe that was what the last two years were all about. Giving these people time to stash away the swag. The shit loans are left to Mother Ireland. McWilliams figure of €11,235 per person is probably accurate. maybe we should send the bill to Willie. He was a cheerleader for all those people.

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