Sir, – We hear frequent claims, including from pro-business lobbies, that the size of the State has not kept pace over the past decade with the growth in population and in economic activity. We need more State expenditure, so the argument runs, if we are not to come up against limitations on our ability to support further growth. Pinch points in housing, electricity infrastructure and healthcare have been well flagged.
Gerard Howlin’s piece shows that we can hardly point to a lack of expenditure (“Ireland’s ballooning public spending proves Fine Gael is a fake right party”, Opinion & Analysis, February 28th). He writes that we have exploded the size of the State, with public expenditure increasing by about two-thirds from €54 billion in 2015 to in excess of €90 billion this year.
He challenges anyone to explain how public services and infrastructure have improved in tandem with this colossal increase in spending.
I do not expect that challenge to be taken up. We spend more and more and get little or nothing in return.
I have often thought that Paschal Donohoe either is Mr Teflon or has the best PR operation around. Uncritical press coverage has him saying all the right things and this seems to be enough to distract attention from the reality pointed out by Gerard Howlin. We have come through a period of fantastic tax receipts and zero borrowing rates and have no long-term benefits to show.
Spectacular corporation tax receipts and the accompanying boost in the income tax take have been our North Sea oil. We had choices as did the British and the Norwegians. Norway now has one of the largest sovereign wealth funds in the world – it used its bonanza to put money aside for the future. But we chose to follow the British path – we blew it. – Yours, etc,
PAT O’BRIEN,
Rathmines,
Dublin 6.