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An incompliant Iran..
by Sean Gildea
Condom
Iran believes a new deal offered by the United
Nations is a Western rouse based on false
promises, but will they eventually bow to the
pressure to disarm their nuclear weapons
Iran’s latest rejection of a nuclear deal is not a great
surprise, but it is in the best interests of everyone,
including Iran, that a deal is made quickly. While
the United States has been consistent in voicing its
concerns about Iran’s supposed nuclear ambitions,
it now seems Russia and China are also losing their
patience with the regime. Should further talks fail,
Iran will be the ones to suffer, most likely through
tougher sanctions. All eyes are now on Tehran.
The offer from the United Nations Security
Council’s five permanent members - Britain,
China, France, Russia and the United States – and
Germany; would allow Iran to keep their nuclear
facilities in operation. However, it would require
them to ship nearly 75 per cent of their lowenriched
uranium to Russia. There, the uranium
would be enriched further and then delivered back
to Iran as fuel, ensuring that it could not be used
for a nuclear weapon.
The offer has been viewed by most outsiders
as generous, but Iran is not happy. Tehran
has rejected the offer stating it wishes for a
simultaneous exchange within its own borders,
fearing that what it was promised will not be
delivered.
Tension brewing
This is a fairly reasonable argument from an Iranian
perspective as Russia has recently failed to deliver
an advanced missile-defence system to Iran.
Tehran has accused Moscow of bowing to political
pressure from Israel and the US. Iran is playing a
dangerous game. It is antagonising both its allies
and its enemies at the same time. Furthermore, it
faces the possibility of harsh sanctions or worse if it
continues its current nuclear policies.
The US has openly talked about the possibility
of imposing tough economic sanctions should
Iran reject any further deal. Iran has not reacted
positively. It has announced it will begin largescale
air-defence war games to plan against any
potential attack on their nuclear facilities. This is
a clear message to its rivals that Iran will not be
threatened.
These war games may all be for show, but Iran
cannot be too careful. Rejection of a new deal
will do nothing to ease some of their neighbours’
worries. A military response is unlikely but cannot
be entirely ruled out, especially from Israel. Israel is
not one to listen to objections from the UN or the
US when it comes to such matters, and they feel
most threatened by Iran’s nuclear proliferation. Not
even the US has rejected the possibility of military
action against Iran, however it is most unlikely it
will come to this.
Sanctions
A more likely situation is that harsh sanctions
will be imposed on the Tehran government.
Although China and Russia have recently declared
their reluctance to implement measures, Iran’s
deception regarding their second nuclear facility
has angered them. They are both now seemingly
in line with Washington on the issue. President
Barack Obama is willing to put some pressure on
the Iranians, however such a strategy could be a
mistake.
The only people that will suffer if measures are
imposed are the Iranian people. Cutting off food
and fuel supplies will do nothing to improve Iran’s
diplomacy with the West and will only deepen
the humanitarian crisis there. Sanctions would
make the Tehran government more belligerent
towards the West. With a government less open
to dialogue, a long-term humanitarian crisis in
the country, far worse than the current situation,
would be inevitable. It would also deepen antiwestern
sentiment in Iran and add fuel to the
terrorist threat.
Iran is certainly not portraying itself as worried
about all this. Only recently their foreign minister,
Manouchehr Mottaki, shrugged off the possibility
saying the West is “wise enough not to repeat
failed experiences”. He may be correct, but
perhaps he gives the West too much credit.
One only has to look at Iraq during the 1990’s
and early 2000’s to see that sanctions do not
work. Heavy sanctions will have no political effect
on Tehran and it is an undesirable solution for
everybody. Unfortunately, this is the only trick up
Washington’s sleeve short of war, when it comes to
dealing with undesirable regimes.
Solution
Iran will eventually come to an agreement with the
six powers and may be just playing the stubborn
mule. By rejecting the offer and announcing wargame
manoeuvres, Iran appears to be merely
acting with its usual bravado. The Iranians know its
army and air force is no match for the Israelis (no
matter how tarnished the Israeli army’s reputation
is).
The Iranians are biding their time in the hope
something better comes to the table. If it does,
they will feel they have won a battle of wits. If it
doesn’t, at least they have shown they are, once
again, not willing to be pushed around.
“The only
people that
will suffer if
measures
are imposed
are the
Iranian
people.”
The World Health Organisation (WHO)
classifies condoms as “only contraceptive
method proven to reduce the risk of all
sexually transmitted infections (STIs),
including HIV.”
Yet in Ireland, as usual, we are being grossly
overcharged for these life-saving items.
Condoms are taxed as “luxury goods” in this
country, even though they protect people
from such damaging diseases and unplanned
pregnancies. According to the Health Service
Executive (HSE), 337 new HIV infections were
detected in 2006, up over 6% on 2005.
Such “goods” face a steep rate of VAT. In
February 2008, former Finance Minister,
Brian Cowen, announced a VAT rate cut on
condoms from 21% to 13.5%, there was
widespread support for the move. The
reduction meant that condoms were reduced
by just over a Euro to around €10 for a packet
of 12. Other forms of contraception such as
the “pill” have a 0% VAT rate, why is there a
difference
Under EU regulations, member states are
only allowed to drop VAT rates to no less
than 5% on certain goods, as set out in the
Annex III of the EU VAT Directive. Condoms
are included in this Directive. Brian Cowen
said: “the position is that the VAT rating of
all goods and services are subject to the
requirement of EU VAT law with which Irish
VAT law must comply.”
Ò Durex Ireland believe
people should not be
Ô taxedÕ for protecting
their sexual health.Ó
Yet the then Minister could have dropped the
VAT rate on condoms from 21% to 5% under
EU law, but didn’t.
Rip-Off
By David Claxton
In 2006, then British Chancellor, Gordon
Brown, was able to drop the VAT rate on
condoms from 17.5% to 5%. This helped to
reduce condom prices to around €6 in the
UK.
There is a widespread belief that consumers
are being ripped off from various sources
concerned with this issue.
Ò we are being grossly
overcharged for lifesaving
items with
condoms being taxed as
Ò luxury goodsÕ Ó
Durex Ireland has said that they “believe
people should not be ‘taxed’ for protecting
their sexual health.” The company also states
that condoms should not be classified as a
luxury item and that VAT should be cut to 5%.
“By supporting the reduction in VAT levied on
condoms, Durex believes a lower price will
make condoms more accessible, particularly
to young people for whom price could be an
issue,” said a spokesperson for the company.
The Union of Students in Ireland (USI)
President Hamidreza Khodabakhshi said:
“let’s be clear, the Government hasn’t gone
far enough in reducing the cost of condoms.
The USI continues to lobby for a further
reduction in VAT to 5% as provided for by EU
law.”
For Proinsias De Rossa, Labour Member
of the European Parliament (MEP) and
party member of the Socialist Group, it is
clear what is happening in this country. He
said: “We are being ripped off by condom
suppliers. There seems to be reluctance for
consumers to complain.”
Is the VAT rate the sole cause of Irish people
being overcharged for condoms The VAT
rate in Spain is 16% and they are charged
over €6 for a 12 pack of condoms. The same
pack has a rate of 21% VAT in Belgium, yet
costs over €3. While in France, at 19.6% it
costs over €4 and in Germany, at 19% costs
over €5 for the same pack. The standard
rates of VAT in these countries are all
different to Ireland’s, some higher, some
lower, but we pay €12 for the same pack of
condoms that is much cheaper in other EU
states.
Durex Ireland says, “As a manufacturer, we
have no control over retail costs, nor are we
allowed to control them in any way under
EU legislation.” “Prices for condoms are
set by the retailers themselves,” a Durex
spokesperson said.
Labour would “insist that the Competition
Authority would examine the prices charged
by companies to establish if there is an anticompetitive
price fixing cartel, or market
sharing arrangement in place by major
manufacturers,” according to Proinsias De
Rossa. “The Government don’t want to
arouse the ire of conservative elements
in Irish society, who prefer to see young
people risk their health and lives thank forego
a religious based objective to so-called
‘artificial’ contraception,” concluded De
Rossa.
No one, it seems, wants to admit any fault
in prices being so high. This is clearly a
health and safety issue. Considering that
HIV infections are rising, this is another case
of the government passing the buck on an
urgent issue. Does this surprise anyone at all
these days
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