"Profit before people" is the verdict of Bishop Ray Field on the Bank of Ireland's decision to cut 2,100 jobs. Does that mean that there are no people who are shareholders of the bank? Are there no people who have pensions invested in the bank's shares? Are there no people who are customers of the bank?
What the Bishop really means is that the claims of the people who work for the bank are greater than those who own or are customers of the bank. That just doesn't sound as good, though, does it?
Now, don't get me wrong. I have a lot of sympathy for anyone who loses their job. I know that anyone who has worked for the bank for a long time will find it hard to get a new job. It's horrendous for anyone who ends up in this situation and I'd be quite happy to pray for such people if the Bishop asked me to.
But, the Bishop is doing more than that. He's indirectly prescribing what actions the bank should take. This attitude - protect jobs at all costs - increases costs on the consumer and shareholder and kills innovation.
That attitude was a big part of the reason the Irish economy was so dire until the late 1980s. It's a big factor in the economic problems in France & Germany today.
Ireland has a small, open economy, which means it's a competitive place to do business. Competition demands innovation and strict cost control. Competition in banking has been slower coming (banking is essentially a licensed cartel), but it now seems to be heading our way.
This move by the Bank of Ireland is (I hope) an indication that the grossly expensive costs of banking here are about to come down. That will benefit consumers (even the poor, Your Grace) and help small Irish businesses compete, which should mean more jobs (even for the poor, Your Grace).
