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THE REALITY OF THE FRESH START AGREEMENT

AND THE IMPACT IT WILL HAVE ON OUR COMMUNITY
By Ciarn Mulholland
December 2015
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1. INTRODUCTION:
After years of political theatricals between the Stormont Assembly Parties we have eventually been
handed down their agreement A Fresh Start (Stormont House Agreement II).
Given the shockingly reluctance of our journalists to adequately investigated this misleading selfprofessed fresh start I felt I should summarised the reality of its content in order that it can be
easily understood in advance of the forthcoming election in 2016.
We are told that we are experiencing times of economic hardship, a recession that is affecting all of
us, and one in which everyone is feeling the pinch. The reality is that this is untrue and similar to any
historical period of economic gloom it is always the working-class who feel the wrath and
ruthlessness of the capitalists shortcomings.
In recent years we witnessed a false economy, one based on unrealistic property evaluations and
sales combined with the reckless credit culture which was exploited by unaccountable Bankers and
unregulated Loan Companies. Despite this situation created by a small minority of society it is the
majority that suffers and the tax-payers money that is used to ease this difficult period for the 1%.
There have been numerous reports published regarding social and economic deprivation, which
makes some difficult reading, particularly given that we are now furnished with the clear facts and
figures of the flaws of the system we live in. These are not the facts and figures we will hear the
political establishing talking about when it comes to election time nor will it be reported by their
allies in the media outlets which will only attempt to indoctrinate the masses with their inaccurate
and sectarian manifestos.

2. THE REALITY OF POVERTY:

It is widely accepted that austerity measures are affecting our community disproportionately and
creating a more unequal society. The grim reality is that many families face vicious cycles of debt and
impossible choices between heating their homes or cooking a hot meal for their children. This is
pathetic in this day in age given that we live in one of the wealthiest nations of the world, but
ironically little is being done. We are unnecessarily regressing as a society; we are facing worse
hardship than what our grandparents experienced.
This is generation immigration our brightest and best
flee in hope of greener pastures and who could blame
them? There is a severe lack of opportunities or any
prospects in this Island. Sister Stan has openly expressed
that homelessness is the worse she has ever experienced
in the capital and the Trussell Trust which operates the
majority of food banks across the greater Belfast region
has recently stated that they have noted a drastic 489% increase in the amount of people seeking
emergency food parcels. They have also added that a significant proportion of these people are
actually in employment too. This should not be the case in this day in age.
We now live in a society where there are fewer opportunities, less and less employment rights,
weakened Trade-Unions, a diabolical health service with an ineffective and unsustainable A&E
Wards not to mention inability to adequate cater for mental health patients, a flourishing loan-shark
culture through PayDay Loan Companies and an ever failing and segregated education system.
Oxfam Ireland, in their most recent report urged the British government and the Norths Executive
to "row back" on deep-cutting economic policies stating that the North hasnt experienced the
equivalent in cuts since World War II.

Oxfam are calling on governments to champion a new economic and social model that invests in
people and pursues fair taxation" and stated that the governments could raise billions for public
services, such as health and education, by increasing tax on the wealthiest, and also cracking down
on tax loopholes and avoidance schemes." Essentially the charity are asking that the State
demonstrates some form of humanity and compassion and acts in the interest of fairness and justice
for all, not exploitation in the interests of a few.
The Oxfam Ireland in summary has concluded that;

25% of working households are living in poverty.

Continued increase in people who are going to food banks to get the bare essentials.
25% of those working in the North of Ireland do not make a sustainable living wage.
The lowest earners have lost 38% of disposable income.

Other noted reports have also highlighted shocking figures of inequality and deprivation in our
communities.

The End Child Poverty Campaign in which charities such as Barnardos are involved found;

43% of children grow up in poverty in West Belfast.

Enough wasnt being done by Westminster & Stormont.
Over 100,000 across the North of Ireland are living in poverty.

It was reported by Save the Children Charity in their recent report that;

Just over 60% of parents in poverty say they have cut back on food and 26% say they have
skipped meals in the past year.
Around 20% of parents in poverty say their children have to go without new shoes when
they need them.
One fifth of children in poverty say they are missing out on things that many other children
take for granted, such as going on school trips and having a warm coat in winter.

3. DYSFUNCTIONAL PEACE PROCESS:

There are those who will argued that at least things are better now than what they were
before, but this is nonsense and unfounded nothing more than a fabricated slogan the
establishment echo in an attempt to fool us that constitutional-conformist politics is working. Of
course there are, thankfully, fewer fatalities than before, but the standard of living and pursuit of
happiness hasnt progressed for the majority.
Professor Peter Shirlow at a lecture in Queens University several years ago made a statement which
really struck a chord with me and one in which I could immediately identify. He stated that the
reality is not everyone benefited from the Good Friday Agreement, and in some working class areas
within inner-city Belfast , like that of the Markets and Sandy Row, the only real difference they have
witnessed is the increase number in swanky cars parking in their streets during the week.
The dysfunctional peace that we are living in today is clearly not one based on open transparency,
truth, justice and equality. Anne Longfield from the charity 4Children stated that too many
children and families are struggling here today with limited potential and life chances as a result
The 4Children Chief Executive also urged that politicians must ..change the way they listen and
respond to what families really want This was verified when new statistics from the 4Children
reported on living standards in the North of Ireland, they confirming the following figures;

57% of people here feel family life is hander now than two decades ago.
1/3 of people here sadly think todays children will have a worse life than they experienced.
50% of people said more services should be aimed at families.
96% of those asked felt our Job Centres were inadequate.

The facts dont lie they speak volumes and they conclude that the people of West Belfast, like the
thousands of others through our City and Country, have been miserably failed and neglected for
generations. These systematic failures are not improving but exasperating our everyday living. More
and more of us have absolutely no quality of life.

4. STORMONT HAS FAILED PARTITION DOESNT WORK:

This will not improve under the Stormont Assemblys implementation of Tory Austerity a genuine
fresh start is essential, but a fresh start in name only will be offered.
There is no shortage of reasons to be frustrated with our many parties, unions and groups not
offering an inspiring enough alternative. But for Tories, Blue-Shirts, Shinners, and DUPers to be
auctioning off dinners, and pheasant shooting escapades in our nation of food banks, zero-hour
contracts and poverty wages well, it should concentrate the senses.
Our shameless, rapacious economic elite, Troika
and criminal enterprises seem to keep the
corrupt sectarian political establishments afloat
not out of generosity, but because they expect a
return. The Guardian journalist and political
commentator, Owen Jones posed the question
Can money buy democracy? It certainly appears
to be the case!
The optimistically entitled A Fresh Start, has

said that the main political parties with the support of London and Dublin governments believe that
the agreement will consolidate the peace, secure stability, enable progress and offer all our people
hope for the future. Martin McGuiness went further, saying that the agreement signals our resolve
to engender the sea change that our community is demanding.
In real terms, it marks a deepening of austerity and a perpetuation of sectarian division for future
generations, particularly in a City of every growing peace walls. There is no fresh start in this
agreement for workers, the young, the elderly and most vulnerable within our community.
Last years Stormont House Agreement was initially thrown into doubt when Sinn Fin withdrew its
support for the deal made on welfare reform. Sinn Fin side-lined their Joint First-Minister and
rushed Anti-Austerity TD, Gerry Adams up from Leinster House and took the moral high ground and
professed to be defenders of the poor, sick and needy. They even alleged that others had failed to
live up to their commitments and claimed it had been their understanding that no current or future
claimants would lose out, effectively rendering welfare reform pointless. In reality, this
backtracking reflected concerns about the impact that introducing brutal attacks on the poorest and
most vulnerable in our society could have on SFs carefully cultivated image as an anti-austerity-left
force in Dil ireann.

After months of bombastic posturing on the issue, we now have the incredible situation where Sinn
Fin along with the DUP and Alliance has like Pontius Pilate, attempted to wash its hands of
responsibility for welfare reform by voting to hand power to implement these vicious cuts to the
Tories at Westminster. This really is an act of cowardice and rapine against our most vulnerable.

WHAT DOES THE FIGURES SAY?

The DUP and the other Unionist parties in Stormont were always in favour of ruthless attacks on the
workers irrespective of their political stance, non-discriminative for a change. They never attempted
to conceal the fact that they always favoured a Tory agenda. The Nationalist parties on the other
hand advocated their opposition; however the Sinn Fin soon began to renege on their commitment
to the working-class, eventually sanctioning the SHA part II.
Sinn Fin would boast that they have secured 585 million to mitigate against the effects of welfare
reform over the next four years. These boasts do not match the reality. Looking at the numbers, of
the 585 million fund, 240 million was originally earmarked to compensate for the impact of the
planned Tory cuts to tax credits, which were not covered by the Stormont House Agreement.
Based on Norths Department of Social Development figures, this would still have seen workers in
the 6 Counties worse off to the tune of around 30 million each year. The remaining 345 million
was earmarked to ease against the introduction of the 2012 Welfare Reform Act over four years.

This works out at over 200 million less than what was negotiated at Stormont House last year, the
deal Sinn Fin reneged on with Martin McGuinness saying an extra 200 million was needed.
Under pressure from Tory backbenchers and Lords who feared the reaction it could provoke, George
Osborne has since shelved plans to cut tax credits, although they will be phased out and replaced
with Universal Credit, the precise impact of which is unclear. Now, the full 585 million fund
established by Fresh Start could be used to compensate for welfare reform but it still falls far short
of the estimated cost of the cuts. Sinn Fin themselves estimated that 122 million per year would
be lost by claimants in just two of the Norths eighteen constituencies, Derry and Upper Bann. This
represents a dramatic retreat for the partys previous position that no one would lose out.
When these measures run out in four years rather than the six originally agreed at Stormont
House, nothing is guaranteed and the full impact of these attacks on welfare are likely to be felt. The
evidence is there as to the effect it will have.
In November 2015 the Journal of Epidemiology and Community Health concluded that 590 extra
suicides, 279,000 extra cases of mental ill-health and 725,000 more prescriptions for antidepressants were associated in England and Wales with the controversial work capability
assessments between 2010 and 2013. There is no doubt that we will soon hear the unfortunate
news in Belfast, that some of the most vulnerable members of our committee have died all as a
result of a fresh start.
Crucially, the 585 million is not new money from the Dublin and London governments. Rather, it is
to come from cuts to other Stormont departmental budgets, including from the discretionary social
fund which provides loans for urgent, essential spending to people on benefits. Cuts are simply being
moved around rather than wiped out. Austerity is austerity, whether that is cuts to public services,
amenities or jobs.

AUSTERITY IS AUSTERITY...FOR THE MANY NOT THE FEW:

The SF/DUP duopoly have crowed about getting an extra 575 million from the two governments,
however, this is little to boast about, especially from Sinn Fins point of view when approximately
188 million is tied to security-related spending for the PSNI and MI5.

The exploitation of the social welfare system is obviously wrong, but many seem to think lots of
people are claiming benefits illegally. This is due to inaccurate media reporting, thus purposely
instigating a Nation of Chavism. It should be noted that when Congress (TUC) in the UK completed a
poll on this, people thought that 37% of welfare was claimed fraudulently. The facts couldnt be
more different.

Just 0.7% of the welfare budget is claimed fraudulently, but at the

same time nearly 25% of benefits go unclaimed, that is roughly
12bn. This should be compare to the total amount lost through tax
evasion and avoidance. The taxman estimates the gap between
what the government thinks it should receive in tax versus what it
actually gets is over 30bn a year, with other research putting the
figure as high as 120 billion. This should be considered in its
totality as 120bn would almost be enough to pay almost the entire
British and North of Ireland deficit off in one go.
It is boom time for the richest from April this year people earning
over 1 million a year in the UK will get a tax break of at least
40,000. On average this will give million pound earners an extra
107,000 a year. This is exactly the type of Reganonomics Peterthe-Punt and the Martinator wants to bring to the 6 Counties.
Shockingly, 125 million of this agreement is earmarked to police the welfare system in other
words, to step up harassment of the very people who Sinn Fin have been claiming to protect. The
500 million figure is predicated upon this harassment being considerably more successful than
previously in producing savings in benefits payments.
This additional funding will make no fundamental difference to the austerity to be implemented by
Stormont over the coming years. Even the BBC News NI Economics & Business Editor has stated that
Stormont can expect to implement 2% total spending cuts each year until 2020. The new agreement
warns of challenging cost reduction targets for all departments. There is also a commitment to
structural reform in the big spending areas of education, health, and justice. This is no different
from the language used by the Tories to justify cuts and privatisation. Ruling by fooling really does
seem to be well and truly in place.
This agreement reaffirms that the Stormont will borrow 700 million to introduce an estimated
20,000 job losses in the civil service through the Voluntary Exit Scheme. This will have a devastating
impact on the economy. Whether jobs are lost through voluntary or compulsory redundancies, they
are no longer there for young people leaving education. Almost one in four young people across the
North are not in employment, education or training and the figure has again begun to rise, again. It
is also worth noting that this loan must be repaid to the British Exchequer by our children,
grandchildren and great-grandchildren; certainly not pursuant of the 1916 centenary ethos of
cherishing our children equally.
It is worth noting that an Independent Fiscal Council is to be established. Its role will be similar to
that of the Office for Budget Responsibility established by the Tories at Westminster. The
membership will even have to be agreed with the Tory government and will act as an inbuilt point of
pressure for ever more cuts and privatisation, demanding that Stormont balance the books.
The agreement reaffirms the Stormont politicians commitment to selling off important public
assets, such as Belfast harbour. This could also see the profitable parts of our public transport
system opened up for cherry-picking by the private sector. The agreement states that Stormont will
consider revenue raising measures if cost reductions cannot be achieved quickly enough. These
measures will undoubtedly take the form of increased student fees and the implementation of the
already prepared water charges.
While tax rises could be on the cards for the workers, the opposite is the case for big business. While
devolution of the power to set corporation tax rates was agreed last year, the new agreement, for
the first time, commits the parties to a concrete level and timeframe. Corporation tax will fall to
12.5% by April 2018, in line with the current level in the Free State.
The loss to the British Treasury as a result of the corporation tax cut will have to be compensated for
by a corresponding cut in Stormonts block grant. Therefore, for every pound big business gains in

extra profit, a pound is lost by schools, hospitals and other public services. Figures put this cost at
around 240-300 million per year. In reality, it could be much greater if major corporations register
their head offices in North for tax purposes, creating next to no jobs, no opportunities, no
investments nothing.
The Assembly Executives economic strategy is to engage in a race to the bottom in terms of
workers pay and conditions, but also in terms of tax paid by big business. This is not a race they can
win. While corporation tax in the South is currently set at 12.5%, the real effective rate of tax paid by
corporations is around 6.5%. Google pays an effective tax rate of 0.25% in the South this cannot be
aspiring standard.
The Northern Department of Enterprise claims that a cut in corporation tax will create 50,000 new
jobs. An excellent public relations machine at their disposal, with great headlines, however even by
their own figures this will take at least 20 years. It is likely that this number is massively exaggerated.
Across Europe, big business is hoarding profits rather than investing, nervous about the extremely
unstable economic situation, particularly given recent tremors in the world economy and global
sponsored wars by the super-rich.
The jobs which corporate handouts from Invest NI have attracted in recent years have
overwhelmingly been low-paid, zero-hour contracts and precarious. All too often, these fly-by-night
investors have packed their bags as soon as the subsidies dry up. There is no reason to believe that
the investment attracted by a corporation tax cut would be any different, nor that it would stop the
haemorrhaging of manufacturing jobs. Tobacco firm JP Gallaghers categorically stated that
corporation tax had not been a consideration when they decided to close their Ballymena plant.
They moved to Poland in search of a 50% reduction in wages, plain and simple capitalism, no loyalty
to the workforce just profit driven.
Essentially, the Stormont cronies have agreed to exchange tens of thousands of existing public
sector jobs for pie-in-the-sky hopes of inward private investment in the future. This is a clear
indication that the main parties have fully embraced the neo-liberal argument that the public sector
in the North of the Country is too large and that the economy must be rebalanced through
austerity and privatisation. Ironically, it is the neo-colonial and imperialist market and the private
sector which has failed miserably to develop the economy across the entire Island.

WHERE ARE THE UNIONS?

In December 2014 ICTU openly campaigned against the economic elements of the Stormont House
Agreement, describing it in an advert in the Irish News a bad deal, fit only for a land of pound shops
and food banks. Earlier this year, public sector workers showed their strength by taking strike action
which sent a shockwave through Stormont. Unfortunately, it wasnt built upon with further strike
action and a real campaign to fight the cuts.

Instead, the consensus amongst the trade unions leadership was to attempt to build alliances with
the Assembly parties, particularly Sinn Fin. Obviously the lessons of the past, flirting with Fianna
Fil was not learnt.
ICTU was in the hope that they would ameliorate the worst elements of austerity. They were clearly
wrong and have so far remained silent on this recent agreement, merely stating that they are in
favour of devolution politics. This is an affront to the dignity of the workers they represent. To
continue with their current strategy would be to disarm workers in fighting cuts and threaten to split
the entire movement. Trade union activists must organise to demand a change of course towards
rebuilding a united movement against the Stormont parties austerity.
For the first time ever ICTU opposed the administration over the austerity measures in the 2014
Stormont House agreement. Industrial action was launched around the slogan "no deal." A furious
row broke out in the bureaucracy. Within weeks the campaign was abandoned. ICTU representative
Peter Bunting said that a deal - any deal - was the central demand of his movement. In the week
before the "Fresh Start" agreement ICTU lobbied at Stormont. It was issued in a statement that;
"Devolution, if it means anything, is the right and duty of those we elect to govern in the interests of
the people of Northern Ireland."
In the week following the agreement, when an unprecedented attack on the working class had been
agreed and was under way they said - nothing. The Irish peace process represents the victory of
imperialism and Irish capitalism over the republican revolt, the working class as a whole having been
disarmed by social partnership between union leaders and capitalism. We were promised that a
victorious imperialism would bring democracy and prosperity. What we have is corruption and mass
poverty.
I attended a festival talk at St Marys University College several years ago as part of the File an
Phobail celebrations, whereby ICTU President John Doughlas openly acknowledged the failures of
the trade union movement over recent generations throughout our Island. He accepted that our
trade unions did not build a viable labour movement, a political alternative or educate and train
activists at the workplace. These omissions are truly unforgiveable and contributable to the
credibility loss by trade unionism throughout Britain and Ireland. However still appear to be
prevalent today.
We are now enduring austerity as a result of the extreme corruption of capitalist bankers and their
neoliberal cronies. Despite the elements and the likelihood of demonization within our communities
from the authoritarian SF/DUP supporters and media allies a great diverse crowd attended to
highlight their disgusted with the draconian Tory lead cuts to public services, welfare reform and the
hypocrisy of slashing corporation tax under the guise of a Fresh Start agreement a document
filled with constructive ambiguity and conformity to an ultra right wing conservative agenda.

These cross-community, branch-led protest

were wildly reported in the media and it
must be said represented a new viable
alternative to the toxic and corrupt status
quo. There was a momentum that could be
felt at these demonstrations. There were
trade union activists, members of opposing
political parties, workers, pensioners and
unemployed, that all decided to take an
honourable stand in the common interests
of justice and humanity.

As expected attacks soon followed in the form of unfounded, fabricated and defamatory accusations
by Sinn Fin Councillor, and ironically SIPTU member Jim McVeigh, whereby he attempting to incite
hatred and division within Unite in the Community with sectarian black propaganda statements on
social media (which he later deleted). This was also reciprocated by his Unionist counterparts which
gives a true insight into their feels of an alternative being expressed.
The media made every effort to assist the political establishment and shallow sectarian driven
attacks were made against a Unite in the Community member who had a record for political-related
offences, on the BBC Nolan Show and the Belfast Telegraph. This was clearly an attempt to deflect
and derail the issues of Austerity that were being highlighted and undermined the integrity and unity
of the demonstrations.
It was embarrassing that Unite the Union clearly retreated on their community members and issued
a generic short statement. Unite is the biggest union in the Country, with over 1.5 million members,
made up of some of the most intelligent and articulated workers and this was the best they could
come up with? The lack of a meaningful response from the trade-union movement on this matter
has been nothing short of appalling.

CONCLUSION:
This farce of an agreement actually facilitates the formation of an official opposition at Stormont;
however this will be of little consequence if it is made up of parties like the UUP or SDLP, right-wing
parties that maintain the status quo and absent from controversial assembly votes despite the
feeling of the masses.
All the Stormont parties are wedded to austerity and neo-liberal economics which can only deliver a
future of poverty, unemployment and hopelessness. These parties which are based on and reliant
upon sectarian division are incapable of ever overcoming it. Indeed, they will instinctively whip up
sectarian tensions in order to distract from the cuts they are implementing, this is witnessed during
the build of every election when they retreat to their tribal concerns.
Increasingly, the North or Ireland seems stuck in the dark ages, continuing to deny LGBT equality
against the wishes of 68% of in the 6 Counties and not one of them support a womans right to
choose, despite the High Court in Belfast deeming the present situation and practice unlawful and a
violation of womans Human Rights. Notwithstanding the continual use of non-Jury Diplock Courts
and many incarcerated for lengthy years on remand and others convicted on secrete evidence in
dubious circumstances. This is far from the New Ireland of Equals we were promised by the
Establishments Parties which have reluctantly opened its door to a hand full of Syrian Refugees.
We cannot look to the same stagnant sectarian, pro-austerity parties for solutions, not when they
are complicit in the implementation of terrorism against our communities. We must begin the grim
task of building a working class resistance. We must build a new viable voice for the working class,
based on genuine community empowerment initiatives, funding for workers cooperatives, and
those involved in fighting racism, sexism and homophobia. This would represent a real and honest
fresh start and more importantly, one with integrity.
I believe that this is achievable and that we have a real opportunity here to build a united and
credible alternative to the dysfunctional political parties that continue to fail our workers and blight
our society. The trade-union movement offers a platform to attract workers from right across the
traditional divide here and contribute to building a radical left vanguard movement.