Corporate Financial Governance

www.green-business-consultancy.ie
Everybody wanted a public bank for Ireland but because Paschal Donohoe our France Minister was all the time working for the World Bank, in order to secure this new job, he wouldn't let us have one.
Don't let him go before he's sorted this out

 Dear party leaders,  16th April 2021

I am so sorry to hear about the let down of Ulster Bank and KBC most recently. I was speaking to a senior manager of AIB who said they were making a profit but not enough of a profit to stay. I wonder if it is the rise of interest in public banking, in Irish politics and the possible scrutiny of the solvency of private banks are how they work that was a motivating force too. 

I have developed a project plan that could build the reserves for regional public banks very quickly through community development and social housing, which I believe is what you feel could be the best way to go about implementation?

To this end, I put in an application to conduct a community development pilot project. I wasn't going to bring it to your attention unless I got the funding but when I heard about KBC and at the same time from the AIB manager, heard about the crisis in Lebanon where they too have a population of five million and have agreed to help two million Syrian refugees, who have already arrived. I recognised at once that there was a parallel situation that Ireland might face as Lebanon's economy has failed, like everywhere after the pandemic and they are looking at starting regenerative farms to help provide food for the population and the asylum seekers as well. That spurred me on to share our project plan, in case government could unite behind it. We are a social enterprise offering financial services and affordable homes.

The aspects of the plan that are in the Programme for Government are the providing of social housing, the empowerment of Local Authorities, the move towards carbon neutrality and all the Just Transition work and education and food security - as well as the commitment to help 25% of Ireland's farmers convert to organic farming and biodiversity directives.

The funding application we have made so far is to generate funding for our initial set up, administration and legal costs. We intend to shape our services from the start, around the Sparkassen community banking concept that they worked with you on, to deliver public banking in Ireland (That paper from 2015 is attached for your reference). It describes a Central Services Unit which offers the financial services that our organization will offer, in advance of legislation being passed and the structure inevitably changing slightly. 

We plan to be up and running and established in three counties, by the end of the 3-year pilot, in readiness for when public banking legislation is eventually passed. Even if it is years before our organization in partnership with local authorities is empowered by full banking status and services, we can still grow and be effective in the regional recovery. Although, it would be an opportunity missed for public money that we receive from Europe to not pass through a full public bank, with the much-needed credit creation capacity. 

We have been offered a farm in Kilkenny who want a change. I saw that there was a call for and funding for ideas for Autonomous Communities. In response, I have articulated two possibilities: an autonomous farm-based village model and secondly, buying small plots from existing houses, or even outhouses or double garages for retrofitting as dwellings, in exchange for payment covering their arrears and providing an energy feedback with conversion for the main house as well, to renewables and electric vehicles. Both of these concepts would start to provide the banks' reserves in well-managed property and an alternative solution to those already in mortgages, facing repossession. 

The project is to be free of private banks, for-profit property developers, private landlords, the ESB, agri chemicals. Communities will offer some food self-sufficiency and will support on site enterprises. They will endeavour to remain eligible and attractive to public (local authority and RIA) and private (individual families wanting to build) investment. We will teach county council procurement departments how to draw down available EU funds directly for the regions and pass them through these communities, helping them meet their Climate Action Charters. This will pave the way for promotion to full banks and insurance services. 

The pilot project application form asked for a lot of background on my enterprise here in Kilkenny but I have taken that out and just attach the corporate governance structure we're proposing, the plan and costs. I have used the community banking term from the attached document: 'Centralized Service Unit' for what our organization is specifically offering to create. This is similar to a special committee that government will no doubt want to set up and consider things from the political angle. But these are public banks and the majority of members and people on the board are going to be members of the public, so that it keeps its structural integrity. I'm hoping you might agree that this is an advantage as we can start building and growing, without waiting for agreement as to how and whether this project can develop into public banking proper? Our organization is a nationwide group of green business consultants with experience in housing, finance, education, organics and public roles.

In the application I have managed to frame the case for how to implement public banking without defining the problem again at all, as we all know the difficulties in each sector. This was a feat that you will all appreciate but it makes it much easier to read and understand what is possible at this unique juncture.

Many thanks and please let me know if you would like further information. 

Very best regards, Frances