Warnings of tougher times

Madam, - Only weeks after stuffing the electorate with promises of lower taxes and better services, the Taoiseach tells us that…

Madam, - Only weeks after stuffing the electorate with promises of lower taxes and better services, the Taoiseach tells us that we are entering a period of challenging economic conditions and that it is important to focus on restoring and renewing competitiveness in all sectors (The Irish Times, June 7th). Isn't it really strange that this is the second time that conditions have deteriorated immediately after an election?

In fact, nothing has happened during the past month to justify this about-face. However, if the Taoiseach believes what he says then he could lead by example and slash the inflated salaries of ministers and TDs, who are among the best paid in the World.

He should then shake up the public sector to bring it into line with performance and pay norms in the private sector and ensure that lump-sum wage increases rather than socially-divisive percentage increases are applied in future national wage agreements.

Unless measures along these lines are taken to restore our increasingly unbalanced, uncompetitive, overpriced and over-borrowed economy, we will see a continuing deterioration. Action now would be less painful than the appalling prospect of having to abandon the euro for a floating Irish pound in order to recover the levers of economic management.

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This would improve competitiveness but at the expense of even higher prices and interest rates. - Yours, etc,

BRIAN FLANAGAN, Ardmeen Park, Blackrock, Co Dublin.

Madam, - No sooner is the election over than we learn the economy is over-heating, and inflation is out of control.

Are we to believe that during the campaign the Minister for Finance and his senior mandarins did not know this disturbing economic news was coming down the track?

The Taoiseach calls it challenging. I call the whole charade disingenuous in the extreme. - Yours, etc,

MIKE CORMACK, Ardagh Close, Blackrock, Co Dublin.