Sir, - Colm McCarthy's arguments ("Building on the Boom,"The Irish Times, January 4th) must be challenged. Mr Mac Carthy quotes some figures showing an improvement in the unemployment situation and immediately suggests we should reduce job-creation measures to invest in transport and housing.
He quotes an unemployment figure of 172,400 for 1990; and because there has been a percentage improvement in employment, he maintains there is no need to bother further with job creation. In fact the current unemployment figure is 217,310 (Department of Social Community and Family Affairs, January 8th, 1999). In addition, there are 31,300 people on special back-to-work schemes, making a total of 248,610. In 1990, 110,000 were out of work for more than a year, i.e. long term unemployed. The overall number of long-term unemployed has now, for the first time since October 1990, dropped below 100,000 (The Irish Times, January 7th) but this is not a real measure if we add in the long-term unemployed on special schemes.
So, in spite of the so-called Celtic Tiger, we have a greater number of unemployed and a greater number of long-term unemployed than in 1990, even though the percentage has reduced. Mr McCarthy goes on to suggest that "there are clear signs that the economy is close to full employment, if not already there". This must be some pseudo-economic definition of full employment, when about 1 1/2 million are at work and 1/4 million are out of work.
Much of the current boom in employment is based on multinationals which can decide to get up and move with the slightest international downturn. Very little of our current strength is based on indigenous companies created and controlled by Irish entrepreneurs with some long-term interest in a strong Irish economy. Therefore, if anything we must redouble our efforts to establish such a strong indigenous base and continue to support the creation of new enterprises. - Yours, etc., Rea O'Neill,
Chairman, Bolton Trust, Pigeon House Harbour, Dublin 4.