
There’s an article in last months Prospect which is very very interesting indeed. Not so much because it’s correct in its general thesis, which I’m far from certain about, but rather because it illuminates some information about the new rich in Ireland and about the roots of that wealth and also provides a remarkable clarity as regards the perceptions by some of that wealth.
So it is we turn to “Lucre of the Irish”, by John Murray Brown, Ireland correspondent for the Financial Times [as it happens Mary Fitzgerald is Prospect’s editorial assistant, provides a riposte].
It argues that:
According to the historian Roy Foster, after centuries of misfortune, the Irish have finally got lucky. On most weekends you can see some of the luckiest at play at Ireland’s big racetracks—rough-handed farmer types, wads of notes at the ready, who arrive by helicopter with their well-dressed ladies and are as comfortable in the owners’ enclosure as in the company of the other punters pressed against the rails. On my last visit to the races, I saw one such man emerging from a corporate marquee, flute of champagne in one hand, pint of the black stuff in the other. It was a fitting image for Ireland’s new rich.
He continues that:
For the first time in Irish history, some of these racegoers have become, almost overnight, part of a big, indigenous moneyed class. In a population of just 4m, there are, according to Bank of Ireland, more than 30,000 euro millionaires—up from a few hundred 20 years ago—and at least 300 people worth over €30m. Almost all are self-made, and much of the money has been made in only a decade or so.
The reasons for the existence of such a ‘class’ is “a creation of the country’s extended economic boom and an associated leap in property values. The country entered the 1990s with an unusually benign combination of a growing, well-educated workforce and strong demand for labour, the latter the result of high levels of inward investment, much of it from the US, attracted by low taxes and light regulation…Average annual growth of 7.2 per cent over the past ten years has encouraged Irish expatriates to return home, and more recently Poles and other immigrants have maintained the growth rate of the labour force”. And the consequence of this apparently benign confluence is an ‘Ireland [with] the second highest per capita income in Europe (behind Norway), well ahead of Britain and the US.’
Brown asks about the nature of the ‘new rich’. He questions whether they are leaving a mark on business life, or are they simply speculators, are they philanthropic, what is their impact on the society and the self-perception of the nation? And he notes that in previous generations Irish people did make money, but usually by departing our fair shores. Interestingly he’s somewhat dismissive when he notes that ‘there is some old money in Ireland’. And intriguingly he contrasts the 30 odd year slog that it took the Smurfit’s and O’Reilly’s to gain global prominence as business people and the current crop who have managed to do so in barely a decade.
But he points to the fact that many of these new millionaires came from property and building and were ‘well placed’ when the economy began to expand in the early 1990s to take advantage of that expansion. He suggests that many are from rural backgrounds and that they have fewer ‘airs’ than previous generations of businesspeople. He doubts that many would accept a knighthood from the British monarch, like O’Reilly or Smurfit. Still, as he describes them it’s clear that whatever about the rural backgrounds, there is no lack of appetite for ferociously conspicuous consumption. He describes how Johnny Ronan of Treasury Holdings… ‘with his jet-black beard and long hair, is the industry’s most dashing “high roller.” ….after winning one bitter planning battle, he celebrated by flying 50 friends to Italy, where Luciano Pavarotti sang for them in the garden of his villa. A few years ago, he sent a voucher to his business rivals informing them that they had each had a Guatemalan pig named in their honour, as part of a fundraising effort by Trocaire, a Catholic charity. He is a keen huntsman and art collector, and owns a Humvee amphibious US army jeep as well as a €650,000 Maybach, described as “a Mercedes on steroids.”
And in truth no horny handed son of toil this, Ronan is the ’son of a wealthy Tipperary pig farmer, was privately educated, and after school trained as an accountant’.
Séan Mulryan of Ballymore Properties ‘likes to spend too…Debbie Harry performed at his 50th birthday party. He owns two executive helicopters, and racehorses and studs in both Ireland and France’.
And these are people who are intimately connected into politics. Brown notes that…’A tribunal looking into corruption in Dublin planning discovered Seán Mulryan paid 50,000 Irish pounds between 1994 and 1998 to Liam Lawlor, a Fianna Fáil deputy and Dublin councillor, although it found no evidence that this had influenced any decisions’.
What is troubling about the article is that it raises many interesting points, and also no small number of disturbing ones. Perhaps it is overstating the situation to compare our property tycoons with Russian oligarchs. And yet…”According to one estimate, six or seven businessmen own almost all the commercial property in Dublin. Such a concentration of ownership was probably last seen in the days before Irish independence. In those days Irish land was worth a fraction of that in England, but it now commands a large premium, despite Ireland’s much lower population density”
Then one might query the rather breathless presentation of all this, as if it was incontrovertibly a ‘good thing’. The rich are rich. They are a different sort of rich - although reading through the article they simply appear to be slightly better at hiding their wealth in some areas. Brown suggests that… “There is, of course, some excess. The rich Irish think nothing of flying to the US for a weekend of shopping, and party invitations among the elite now routinely include longitude and latitude details for the benefit of incoming helicopters. But many of the new rich are from humble origins, and aware of the offence that flaunting their wealth can cause. “You won’t see any boats in Irish marinas over 60 foot. Not that they don’t own them, but they keep them elsewhere,” reports one financial adviser”.
So, meet the new boss, same as the old boss.
Brown also suggests that while there is a left wing critique the left parties (Labour and Sinn Féin) have not ‘performed well in recent years’. He notes that there is an increase in the growth of inequality, but then argues that Ireland has always been closer to Boston than Berlin. And here he makes some serious points…”Ireland has no universal health service: nearly half of the population has private medical insurance, and less than 30 per cent are covered by the state-funded “medical card,” which entitles holders to free care”. But he also locks into a discourse which is often used by the cheerleaders of new elites, an assumption that the newcomers are somehow supplanting old elites of middle and upper class. So we are told that:
One group that is often disdainful of the new rich is Ireland’s old elite of mainly Dublin-based senior civil servants, lawyers, journalists and artists. According to David McWilliams, this group is showing a renewed interest in the Irish language, and sending its children to the Dublin Gael schools, where the teaching is in Irish, as a means of distinguishing themselves from the brash newcomers.
Then there is the other discourse where a sort of petty-nationalism is displayed to somehow ‘justify’ business - a sort of Clausewitz-like notion of commerce as war by other means… note the following:
There has clearly been a political aspect to this—although it has not been much noticed in Britain. In 2004, Derek Quinlan, a former Irish tax inspector, paid £750m for the Savoy Group of hotels in London. Like other big foreign deals, this was reported in the Irish media as a matter of national pride. Indeed, Quinlan recalls that an Irish employee at the Connaught Hotel, part of the Savoy Group, ran the Irish tricolour up the hotel’s flagpole when the story broke. “It was put up without my knowledge,” he said. “But I cried. My poor father, who was in the Irish army, would have loved to have seen this.”
And in a sense this brings us to the heart of the article, a sort of breathless approach to the issue, one where extravagant wealth becomes ‘explained’, whatever the evident inequalities (or if one prefers, egregious disparities) that it engenders, by nationalism, anti-elitism and so on and so forth. That this wealth does not appear in a vacuum, or indeed that it in itself generates new elites is forgotten in an analysis which can - for consistency - only regard the present and recent past, not the future.
Part of this explanatory discourse is to look towards that one area where wealth can be seen to be seen in a somewhat softened light - by some. That is, public philanthropy. The article ponders on the question as to:
What about the accusation that the new rich are not putting money back into society or culture, in the manner of rich philanthropic Americans? “There is a gangster charm about some of the property people,” says Michael D Higgins, foreign affairs spokesman for the Labour party and a former arts minister. “But what I regret is they haven’t the imagination to fund an orchestra, or a piece of public sculpture.”
But others in the arts and education worlds say the new rich are generous donors. In 2005, Martin Naughton, founder of Glen Dimplex, an electrical appliances company, donated €5m towards a new nanoscience research institute at Trinity College, and last year his company began sponsoring a new set of literary awards. Mick Wallace, Wexford-born founder of Wallace Construction, has funded the rebuild of Dublin’s New Theatre. Michael Colgan, director of Dublin’s Gate Theatre, says it is a matter of how you approach the new rich: “They are not the sort of people who want to sit on cultural committees and feel patronised. With these guys you take them out to lunch and they will sign a cheque for €50,000. It’s not because they love theatre, but they see the Gate as part of an Ireland they want to feel proud of.”
And how can we judge, really? Is Higgins correct or is Colgan? Note too another narrative of blunt hardy folk who don’t want to feel ‘patronised’.
And pride in Ireland is a fluid thing. Bono and his cohorts prefer to have their tax affairs routed out of the country. The pragmatism of the wealthy overcomes any residual pride. Another twist on the nationalist narrative one might argue. And here the piece is very explicit:
They are using their money to make a statement—and the statement is that Ireland has arrived. Consider the sponsorship of Goffs Million, a race invented by the Irish bloodstock auctioneers in the 1980s. The original idea was to get buyers into the company’s sales ring, because only those yearlings bought at the previous year’s sales could compete in the race. It became one of the richest events in European racing. The first sponsor was Cartier, the French jeweller. Today the race carries the name of a hotel, the Parknasilla, owned by Bernard McNamara, a county Clare property developer.
I often reference Donald Horne, and he has some interesting things to say about how elites generate ‘myths’ to support their hegemony. Here we have a perfect example. The self-referential aspect of it all is evident. We have arrived as a state/society/nation because we now sponsor Goffs Million. Note the necessity to use numerous axis on which to project this ‘achievement’, because really, which one is it? And perhaps more importantly ‘we’ haven’t, and sponsoring Goffs, while no doubt cheering to those doing so, has no specific reference to the broader group termed ‘Irish’. Indeed to even posit in such terms is to ignore the divisions both political and otherwise which lead many to consider developers as a group within Irish society in a far from uncritical fashion.
And it is also supremely contradictory - as, admittedly, all things are - because it then moves to a conclusion that argues that:
On the other hand, relations between Ireland and Britain, and particularly between the Irish and the English, have probably never been better. As the Irish increasingly look beyond Britain, they have become less chippy about their relationship with their giant but often insensitive neighbour. “The Irish inferiority complex has disappeared and the British superiority complex has been weakened,” says [Garret] FitzGerald. Of course, he adds, relations will never be truly equal and Britain continues to cast a big cultural shadow over Ireland—British television, for example, is ubiquitous. “You can’t have equality between 4m and 60m. But there’s certainly less inequality.”
The article argues that:
One consequence of all this is that the Irish are now looking at themselves differently. The image of humble but poetic Catholics living in the shadow of the stiff and snobbish Protestant English is no longer meaningful on either side, even as caricature. The nation of “saints and scholars” has shown over the past decade that it has a genius for business too.
One of the great - and sometimes not so great - aspects of living a while is that you tend to notice how everything comes back in one form or another. I’ve spent a fair tranche of my adult life hearing how the “Irish are now looking at themselves differently”. In the late 1980s as we attracted expanded multinational investment we were ‘changin’. In the early 1990s it was football. Our anything but victories were evidence of a new ‘pride’, a new ’sense of success’. Then it was economic growth. Our cities, filled with the drunken laughter of our then young folk - well, my laughter as well at the time - demonstrated a ‘new Ireland’. Our shiny new divorce law indicated our society was more ‘generous’. Our skylines indicated a future written in the steel gridwork of cranes. And now, as boom flattens, perhaps even tanks, we finally ‘look at ourselves differently’. That’s twenty years of holding a mirror to our faces. I’m far from convinced by such narcissistic tropes.
And lest this seem like a carnival of begrudgery, let me note that it is on our watch - and by this I mean the contemporary Irish left, that such excess has manifested itself, that we have seen a degradation of our public services by those who pay them lip service, largely for electoral ends. That the wealth has not been turned, by any serious effort on the part of state or government, towards the public good. That however much talk there is of this having a ‘nationalist’ hue that simply does not appear to transfer in any meaningful way to our society, or in any clear way to solving the societal ills. That - even if we attempt to deal with this group indirectly - the revenue streams generated by the activities of many of those listed above (and let’s not forget those who work for them) have been squandered. That we still have no universal health insurance, no proper state education system and no proper pension provision. What a waste. But what on earth has the left been doing, what vision has it articulated, what connections has it made with the actual - as distinct from an idealised version of - the Irish people? Because, when it comes down to it, however much the excessive aspects of new wealth are concealed - and I’d have my own mind as to how successfully - the existence of such extremes of wealth are simply not questioned by the broader society. And that has to be in part our fault.
