Sir, – Finland’s electorate removed the left-wing coalition led by Sanna Marin. Finnish voters, stressed by bloated government debt, elected the centre-right National Coalition Party on the promise to control spending and restore economic order. Last year Swedish voters too removed their left-wing government in favour of a conservative government that promised to provide financial stability. Looking ahead, Spain’s socialist government looks unlikely to be returned to power later this year given its polling positions compared to conservative parties.
Over the long term, voters want a stable economy with sound economic policies and stable public finances. Time and again leftist governments demonstrate that they cannot manage an economy and that they will ultimately allow public spending to run out of control.
What about Ireland? It seems likely that the Irish electorate, which already has the most redistributive tax and welfare system in the EU, intends to risk the hugely successful Irish economic model by electing a leftist government led by Sinn Féin with the probable involvement of the Social Democrats, Labour and People Before Profit. However, none of these parties appears to have an economic plan or or economic development policy of their own. But they do have plenty of spending commitments. Their assumption is that they can apply more taxes on investors, entrepreneurs, high earners, foreign direct investment companies and Irish businesses and that economic growth will continue unabated.
Labour’s finance spokesperson Ged Nash says that “in advance of every budget I publish comprehensive social democratic proposals that would transform Ireland” (Letters, April 3rd).
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Reading his budget submission though it quickly becomes clear that Labour, like the other leftist parties, do not have an economic development plan to call their own. Mr Nash appears to assume that he can apply more taxes to those who already pay the most and that the successful Irish economic model, created over 30 years by Fianna Fáil- and Fine Gael-led governments, will continue to generate ever-increasing piles of tax revenue for him and Sinn Féin to spend. The Irish electorate, caught up in populist rhetoric such as the promise of a constitutional right to housing by Sinn Féin and one million homes (eye-roll) by Labour, looks set to lurch significantly to the left at the next general election. However, over that term of office, when reality bites and a cohort of investors and higher tax payers say no to even more taxation and depart to other jurisdictions where their contribution is appreciated, taxation yields in Ireland will fall, private investment will suffer, and, if the European experience is anything to go by, the Irish electorate will ultimately turn back to the centre ground to re-elect Fine Gael and Fianna Fáil. – Yours, etc,
MARK MOHAN,
Castleknock,
Dublin 15.