GOVERNMENT SPENDING CUTS

DAVID CARROLL,

DAVID CARROLL,

A chara, - In spite of the hysterical warnings from both media commentators and Opposition politicians that our economy is "in a disastrous state" and getting worse by the day, the latest estimates of next year's economic growth (The Irish Times, November 14th) put the European average at 0.8 per cent but Ireland's at somewhere between 3.3 and 4.5 per cent - that's four to six times the average growth rate. While I'm not an economist, I do have some basic command of mathematics so it seems quite positive to me.

Moreover, our budget deficit could be 1 per cent of GDP, but that also compares well with the likes of Germany at 3 per cent and Portugal at 4 per cent, both of which can soon expect reprimands from the European Commission.

Most interesting of all in terms of contradictory reporting and confusing comment, however, is the ever-changing debate on the control of government spending. During the "boom times", the Minister for Finance was regularly attacked for not spending enough on our public services. But that soon changed and the "in" view was that spending was in fact grossly extravagant.

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Indeed, such was the Minister's utter incompetency that the likes of Fine Gael believed there was no possible way that he could get spending under control in the forthcoming estimates; hence the motion of no confidence, calls for his resignation, etc.

In the ultimate twist to this saga, the Minister has announced that the rise in spending next year will in fact be only 2 per cent, exactly in line with the advice of all those commentators who said it could never be done. Yet they're now slating him again!

The more he gets it right, the more he gets it wrong, it seems. Thankfully he doesn't give a damn what they say, which is one policy I believe he should adamantly continue to pursue! - Is mise,

DAVID CARROLL,

Castle Gate,

Dublin 2.