Charlie McCreevy | |
|---|---|
.jpg) McCreevy in 2004 | |
| European Commissioner for Internal Market and Services | |
| In office 22 November 2004 – 9 February 2010 | |
| President | José Manuel Barroso |
| Preceded by | Frits Bolkestein |
| Succeeded by | Michel Barnier |
| Minister for Finance | |
| In office 26 June 1997 – 29 September 2004 | |
| Taoiseach | Bertie Ahern |
| Preceded by | Ruairi Quinn |
| Succeeded by | Brian Cowen |
| Minister for Enterprise and Employment | |
| In office 17 November 1994 – 15 December 1994 | |
| Taoiseach | Albert Reynolds |
| Preceded by | Ruairi Quinn |
| Succeeded by | Richard Bruton |
| Minister for Tourism and Trade | |
| In office 22 January 1993 – 15 December 1994 | |
| Taoiseach | Albert Reynolds |
| Preceded by | Brian Cowen |
| Succeeded by | Enda Kenny |
| Minister for Social Welfare | |
| In office 11 February 1992 – 12 January 1993 | |
| Taoiseach | Albert Reynolds |
| Preceded by | Brendan Daly |
| Succeeded by | Michael Woods |
| Teachta Dála | |
| In office June 1997 – 12 October 2004 | |
| Constituency | Kildare North |
| In office June 1977 – June 1997 | |
| Constituency | Kildare |
| Personal details | |
| Born | (1949-09-30)30 September 1949 (age 75) Sallins,County Kildare, Ireland |
| Political party | Fianna Fáil |
| Spouse | |
| Children | 1 |
| Education | Gormanston College |
| Alma mater | University College Dublin |
Charles McCreevy (born 30 September 1949) is an Irish formerFianna Fáil politician who served asEuropean Commissioner for Internal Market and Services from 2004 to 2010,Minister for Finance from 1997 to 2004,Minister for Tourism and Trade from 1993 to 1994 andMinister for Social Welfare from 1992 to 1993. He served as aTeachta Dála (TD) for theKildare constituency (and later theKildare North constituency) from 1977 to 2004.[1]
Born inSallins,County Kildare, McCreevy was educated locally atNaas by theCongregation of Christian Brothers atNaas C.B.S.,[2][3] and later atGormanston College. He studied commerce atUniversity College Dublin and went on to become a chartered accountant. His family background was modest, his father and ancestors since the late 18th century was a lock-keeper on theGrand Canal, a job carried on by his mother, after the death of his father, when McCreevy was four years old.[4]
Thus, his post-compulsory education was attained by winning scholarships. His political career began with when he won a seat in theKildare constituency at the1977 general election,[5] which was a landslide forCharles Haughey's supporters in Fianna Fáil and he was re-elected at every subsequent election until he joined the European Commission. Between 1979 and 1985, he served as an elected member of theKildare County Council.[citation needed]
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In the December 1979, Fianna Fáilleadership contest, McCreevy strongly supported the controversialCharles Haughey, who narrowly won the post. However, in a time of severe budgetary difficulties for Ireland, McCreevy soon became disillusioned with the newTaoiseach and his fiscal policies. In October 1982, McCreevy launched a motion of no-confidence in the party leader, which evolved into a leadership challenge byDesmond O'Malley. In an open ballot and supported by only 21 of his 79 colleagues (known as the "Gang of 22"), the motion failed and McCreevy was temporarily expelled from the parliamentary party.[citation needed]
In later years O'Malley was expelled from Fianna Fáil itself and formed theProgressive Democrats (PDs), espousing conservative fiscal policies. Although considered ideologically close to the PDs, and a personal friend of its erstwhile leader,Mary Harney, McCreevy chose to remain a member of Fianna Fáil, where he would eventually serve in joint FF-PD Governments.[citation needed]
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For his first 15 years as TD, while Haughey remained leader, McCreevy remained abackbencher. In 1992,Albert Reynolds became Taoiseach and McCreevy was appointedMinister for Social Welfare. In this role, he is principally remembered for a set of 12 cost-cutting measures, collectively termed the "dirty dozen", which were arguably minor in their direct impact but provided a major political headache for his party in the1992 general election.
In 1993, he becameMinister for Tourism and Trade, which he held until the government fell in December 1994. In opposition under new Fianna Fáil leaderBertie Ahern, McCreevy was appointed Opposition Spokesperson for Finance. In this role he was viewed as actively pro-enterprise, anti-spending and a key advocate for tax cuts.
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In 1997, Fianna Fáil returned to power and McCreevy becameMinister for Finance. His period coincided with the era of the "Celtic Tiger", which saw the rapid growth of the Irish economy due to social partnership between employers, government and unions; increased female participation in the labour force, decades of tuition-free secondary education; targeting of foreign (primarily U.S.) direct investment; a low corporation tax rate; an English-speaking workforce only five time-zones fromNew York, and membership of the European Union – which provided payments for infrastructural development, export access to the Single Market and aEurozone country.
McCreevy was a consistent advocate of cutting taxes and spending. As Minister for Finance, he had an opportunity to implement these policies. During his term in Finance, he made many changes to simplify the tax system and presided over Ireland's entry toEconomic and Monetary Union of the European Union and later, the changeover to theEuro. He maintained a significant surplus during his seven years in Finance by forecasting tax takes which were lower than average. He simultaneously implemented a tax-cutting programme, major increases in health, education and pension spending as well as increasing investment in infrastructural development to 5% of GDP.
Unemployment fell from 10% to 4.4%. Real GDP growth fell steadily, however, from a peak of over 11% in 1997 when McCreevy took office to just over 4% in 2004. Real GDP growth across the full period of the Celtic Tiger represented by far the highest average of any western European country. Inflation was increased from 1.5% in 1997, to 5.5% in 2000, before falling steadily to just over 2% in 2004.[6]
From 1997 to 2000, McCreevy cut Capital Gains Tax from 40% to 20%, and extended Section 23 Tax allowances to the Upper Shannon Area (against the advice of the Finance Department) in the Finance Acts of 1998 and 1999. These included special tax incentives targeted at the area covered by the pilotRural Renewal Scheme, which was later criticised by the Heritage Council for being introduced without a "Baseline Audit" to inform the level and scale of development to be supported through the scheme, not identifying priority areas suitable for development, not providing any strategic protection for designated areas including the corridor of the River Shannon nor promoting the use of sustainable design and building materials in any new build or refurbishment project supported by the scheme.[7]
These two measures of cutting Capital Gains Tax and providing tax incentives for property development in thinly populated rural areas have been partly responsible for the explosion in housing and commercial property speculation, which led ultimately to the collapse of the Irish banking system.[8]
Frequently outspoken, McCreevy sometimes made comments which attracted controversy. For example, McCreevy once referred to the Irish health system as a "black hole"[9] and reacted to the initial Irish rejection of theNice Treaty as "a sign of a healthy democracy".[10] He later explained this as reflecting a wake-up call to politicians and others who, like him, had expected an almost automatic Yes vote. McCreevy also prompted warnings from theEuropean Commission, who claimed that his £2 billion tax giveaway in 2000 would be inflationary, and harmful to the Irish economy.[11]
One of McCreevy's initiatives as Minister for Finance wasdecentralisation, involving moving government departments and state agencies to other parts of the country and moving 10,000 public servants with them.[12] This target was never reached, with only 3,159 jobs having moved outside of Dublin and a wide range of state agencies having remained in Dublin.[13] The project was abandoned in 2011,[14] with the government having spent close to €100 million on offices that mostly remained unused.[15]
In 2008, asIreland entered recession,[16] McCreevy's stewardship has been cited as one of the reasons why the global financial crisis hit Ireland especially hard, due to his"light touch" regulation of the financial system.[17] FormerTaoiseachGarret FitzGerald attributed Ireland's dire economic state in 2009, on a series of "calamitous" government policy errors by the then Finance Minister Charlie McCreevy, who between the years of 2000 and 2003, boosted public spending by 48pc while cutting income tax.[18]
In 2015, McCreevy gave evidence to the Oireachtas Joint Committee of Inquiry into the country'sbanking crisis and denied his policies as minister had contributed to the crisis. A legal warning was given to McCreevy at the Banking Inquiry after he refused to answer, when asked, if he believed there had been a property bubble, but then accepted that from 2003 there had been a property bubble.[19][20]
In 2004, McCreevy was selected by theGovernment of Ireland to replaceDavid Byrne as Ireland'sEuropean Commissioner. He was appointed to the Internal Market and Services portfolio, byPresident of the European CommissionJosé Manuel Barroso. At his confirmation hearings in theEuropean Parliament MEPs described him as "fluent and relaxed".[21] He also informed them that he had campaigned for the ratification of every European Treaty since 1972.[22]
"You will find me ready to meet, discuss, listen and argue on how best to deliver to our citizens the real benefits of an Internal Market. There are enormous challenges facing the EU in the coming period on which we all must find common ground. I want our policies to show that EU means something real and positive to the people in Europe."
When McCreevy resigned hisDáil seat on his appointment to the European Commission, his son, Charlie Jnr, declined the opportunity to be the Fianna Fáil candidate inthe resulting by-election. The seat was won by theindependent candidate,Catherine Murphy.
McCreevy sided with the major record labels who are trying to extend a fifty-year copyright exemption to ninety five years.[23][24] In 2008, McCreevy was a supporter of attempts to introducesoftware patents in the European Union.[25]
Following his departure from the commission, McCreevy was forced to resign from the board of a new banking firm,NBNK Investments, after an EU ethics committee found a conflict of interest with his work as a European Commissioner in charge offinancial regulation.[26] This is first time that a former member of the EU executive had to resign a directorship the 2003 system for overseeing the work of retired commissioners.[citation needed]
In October 2007, McCreevy, commenting on the Northern Rock Bank's loss of investor confidence, claimed that banking regulations in the UK which forces banks to be open to scrutiny from outside investors, caused the panic. He said if access to the banks dealings "had been restricted", then the trouble could have been avoided.[27]
Irish constitutional law requires a referendum to alter the constitution for such a major change as the adoption of theLisbon Treaty. Interviewed beforehand, McCreevy said that he had not read the Treaty in full himself, though he understood and endorsed it:
In the event, thereferendum was held on 12 June and the Irish electorate did not approve the Treaty. McCreevy was heavily criticised in theEuropean Parliament, by the leader of the Socialist group in theEuropean Parliament,Martin Schulz, who demanded on 17 June 2008, that McCreevy be removed as a European Commissioner. Schulz slightly misquoted McCreevy, whom he stated had contributed to Ireland's rejection of the Lisbon Treaty with remarks during the referendum campaign that no "sane person" would read the document.
"This man goes to Ireland and says he has not read the treaty and tells people there is no need to read it," Mr Schultz said during a heated debate on the referendum at theEuropean Parliament inStrasbourg today."[29]
McCreevy is a member of theBilderberg Group.[30]
McCreevy joined the board of Sports Direct International plc on 31 March 2011 and is also a director ofRyanair. He receives annual pension payments of €119,177.[31]
| Political offices | ||
|---|---|---|
| Preceded by | Minister for Social Welfare 1992–1993 | Succeeded by |
| Preceded by | Minister for Tourism, Transport and Communications 1993 | Succeeded byas Minister for Transport, Energy and Communications |
| Preceded byas Minister for Energy | Minister for Tourism and Trade 1993–1994 | Succeeded by |
| Preceded by | Minister for Finance 1997–2004 | Succeeded by |
| Preceded by | Irish European Commissioner 2004–2010 | Succeeded by |
| Preceded by | European Commissioner for Internal Market and Services 2004–2010 | Succeeded by |
Charlie McCreevy navigational boxes | |
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