JOHN ANDREWS,
Madam, - After the recent announcements about the contents of the next Budget, it is quite clear that Charlie McCreevy should resign. He has proved conclusively that he is economically illiterate. The incompetence of a single individual has squandered the hard work of Irish taxpayers.
All Mr McCreevy's budgets during the boom years were flawed. He pumped money into an already booming economy by increasing Government spending and cutting taxes. With ever more private and Government cash chasing a limited supply of services and property, prices rocketed. The extra money in paypackets and the extra Government spending was absorbed by higher prices. This money should have been used to make dramatic cuts in the national debt.
Then, when the recession hit (i.e. now), the Finance Minister would have had scope to raise Government spending (on health, infrastructure and the vulnerable in society).
If it seems obvious how he should have managed the economy, it is because it is completely obvious (which is why he was rapped on the knuckles by the European Commission a couple of years ago). It is instructive to look across the water at Gordon Brown, who inherited a similarly strong economy in 1997 and managed it properly. He is now reaping the benefits with huge increases in health spending.
Charlie McCreevy has failed Economics 101. In fact this whole Government has failed Economics 101. Which means that when Charlie resigns, as surely he will have to, whoever replaces him will probably be just as bad - if such a thing is possible. - Yours, etc.,
JOHN ANDREWS, Ringsend, Dublin 4.
... ... * ... * ... * ... ...
Madam, - Who should pay when the Government runs out of money and needs €37 million from somewhere? First-time buyers who are already stretched to the maximum in their attempts to get on the property ladder; or property investors who are looking for somewhere to store the excess cash gained from their feasting on the profits of the Celtic Tiger?
Apparently Mr McCreevy and his Government colleagues, all of whom, presumably, are already well up the property ladder, believe it is better to keep €3,700 from 10,000 struggling young couples than to keep €30,000 each from 1,200 rent-earning, affluent property investors. I'm certain the 10,000 young couples will still be struggling with their extra mortgages at the time of the next election. - Yours, etc.,
Dr ALAN HYNES, Owenacurra Business Park, Midleton, Co Cork.
... ... * ... * ... * ... ...
Madam, - Perhaps the National Development Plan should now be described as the Notional Development Plan. - Yours, etc.,
DAVID JOYCE, Seabury Parade, Malahide, Co Dublin.
... ... * ... * ... * ... ...
Madam, - Mr McCreevy was my tenth preference. He has just lost it. - Yours, etc.,
S. SMITH, Ballinteer, Dublin 16.
... ... * ... * ... * ... ...
Madam, - We endured record rainfall on May 17th, election day. We have just suffered more torrential rain and flooding on the day the Government spending estimates were published.
Is somebody trying to tell us something? - Yours, etc.,
BRIAN CAULFIELD, Mater Hospital, Dublin 7.