Brian Lenihan. Brian Murphy
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of course, the housing bubble with Brian at the fall IMF/World Bank meetings in Washington in 2008 and at subsequent meetings. There was serious concern at the IMF that it was essential for Ireland to enter into a financial aid agreement with the IMF. Ireland resisted, knowing full well that many of the European governments that had accepted IMF ‘packages’ had been defeated in their next elections.
At one point, the IMF asked me to intervene as the leader of the Canadian constituency at the IMF to demand that Ireland raise its corporate tax rate as a condition of receiving IMF aid. Brian dismissed this suggestion. I did not press the point given not only that the lower corporate tax rate was a proven economic advantage for Ireland, but also the unemployment rate and public debt in Ireland were both rising dramatically. It was not the time to discourage investment in Ireland.
The Finance Minister took further steps, including the introduction of the National Asset Management Agency, which would buy roughly €81 billion worth of property development and commercial assets from participating banks at a significant discount, and stricter regulatory requirements.
We had many discussions about the IMF financial aid proposal. I learned about his family’s history in polictics, met his brother, and enjoyed his company. I knew of his illness, although Brian never mentioned it to me or made a word of complaint. We lamented from time to time that we had both been Minister of Justice (Ireland for Brian, Ontario for me) and barristers. I believe that we shared the feeling that our work in the justice systems had perhaps been more satisfying than dealing with banks, developers, audit agencies, and the rest.
On a later golf round in Ireland, after Brian’s death, with a few of my Canadian friends, the caddy commented on the diminished value of a property which he had visited in Dublin. He was not a young man. One of my golf partners (a Canadian Member of Parliament), who likes to create mischief, asked him what caused the housing price collapse. He replied that ‘it was the fucking politicians and the banks – and the lawyers too!’ I thought this covered my career (and a good part of Brian’s) comprehensively. It was a few holes later when another of my golf partners shared with the caddy that I was a lawyer, a politician, and Canada’s Minister of Finance. The caddy recovered quickly with ‘well, we could use you here now that Brian Lenihan is gone.’
Back to the IMF and Ireland. Not only were there continuing discussions of Ireland ‘taking a package,’ but also there was a voting quota question. Ireland, Luxembourg, Canada, and others accepted reductions in our voting shares. Each country, not each constituency, vote independently on voting quota issues. Brian felt that the larger European countries had not wanted to give up more quota than they did to emerging economies and therefore, in effect, capped the smaller European economies. He always fought to defend Irish interests.
At the end of many discussions, the Government of Ireland chose to accept the IMF package of financial aid. I had encouraged Brian frequently to do so, but, as an elected person, I knew also that the consequences at the polls would be dire. But these are the tests of character in political life, are they not? If it is only about getting re-elected regardless of the public good, one will not run short of willing politicians. Brian Lenihan had character. He took the essential steps for his country’s economic recovery. He has been proven right.
When Brian called to inform me that the Government of Ireland had taken the decision to accept the IMF financial aid package, I congratulated him on his courage and foresight. He sounded relieved and even a bit cheerful. I said that he seemed to be in good humour despite it all. He said: ‘Ah, Jim, we weren’t rich all that long!’
Brian, of course, was re-elected despite the government’s defeat – a testament to his enduring commitment to public service. He was a fine man and an excellent Finance Minister. Moreover, I can honestly say that his leadership is greatly missed internationally.
3 IN MEMORY OF BRIAN LENIHAN: A PERSONAL REFLECTION
PAUL GALLAGHER
AFTER THE CONCLUSION OF our last Cabinet Meeting on 8 March 2011, it was Brian Lenihan’s turn to speak and say his goodbyes. He began with a short recitation of Milton, effortless and poignant. He finished exuding his usual confidence and positivity. He was the only Fianna Fáil TD from a Dublin constituency to retain his seat. He was still working hard. There were difficult outstanding banking issues to be dealt with. Brian had his papers with him and he had earlier been discussing an issue that needed to be resolved prior to the change of government. He was still energised and quietly defiant. Though he knew death was approaching, it was difficult for the rest of us to believe this to be the case. He spoke and acted as if, like his colleagues, he were merely moving on to the next chapter of his life.
This reflection is offered as a personal insight derived from my very significant contact with Brian in the last few years of his life. The focus is on Brian and the context in which he discharged his public duties.
Brian was a remarkable man. His courage and determination were evident in the manner in which he met, without complaint, the great trials and obstacles he faced in the last few years of his life. Brian’s life changed utterly in the summer of 2008. From then, until his death three years later, his life was dominated by political and personal challenges. He has left a great legacy of courage and determination and provided an example of what the human spirit can achieve no matter how constrained by circumstances.
It will take much calmer reflection at a national level to recognise the true enormity of the challenges, arising from the financial and economic crisis, faced by Brian Lenihan and his Government colleagues between June 2008 to March 2011. The challenges were unrelenting in their ferocity, their scale, their complexity and their novelty. There was little guidance to those who had the unenviable task of dealing with the challenges and of making urgent and critical decisions on matters of great complexity and consequence. There was no consensus amongst experts here or abroad as to how those challenges should be met. There were so many uncertainties and so many unknown and uncontrollable factors rendering any decision difficult and risk prone. The one certainty was that avoiding decisions was not an option.
In this personal reflection, I do not attempt to portray in detail the atmosphere and environment of the time or the context in which Brian had to operate. It is important, however, to understand that context in a general way in order to understand Brian and his achievements. It must also be recognised that throughout his period of office, as is well known, Brian received great support from his colleagues in government and, in particular, from the Taoiseach. The Minister for Finance is a member of government and the major decisions that he takes are approved by government. Brian also received great support from the Secretary-Generals in the Department of Finance and from so many other civil servants and advisers. In reflecting on Brian’s achievements, it is very important that the role of others should not be overlooked.1
Brian was a brilliant young barrister, but it was clear that politics was the great love of his life. He could have enjoyed great and enduring success at the Bar. He had, in fact, become a Senior Counsel in 1997 but ultimately the call of public service drowned out any thought of personal gain. Brian’s reward for this selfless public service came when he was appointed Minister for Justice on 14 June 2007.
Brian was a dynamic and very hard-working Minister for Justice. He was full of new ideas and had very definite views on what he needed to do as Minister. I was always impressed by his deep understanding of his responsibilities and, in particular, his great respect for the law and the Constitution. He also had a deep understanding of politics and of the political system. This was of immense help to him in proposing and securing the passage of legislation. He had an intense interest in the legislative agenda and committed himself to some critical legislative projects (which his short time in the portfolio prevented him from bringing to a conclusion), including Civil Partnership and Immigration,2 the latter being designed to implement very significant reforms in immigration law and procedures. He had an excellent understanding not only of the legal problems which his legislation sought to address, but also of the technicalities of the legislation and of the practicalities in terms of what could be achieved. Above all,