Exports alone will not save our bacon

WHILE export growth will undoubtedly improve our balance of payments, it cannot succeed in raising us out of the mire without significant growth in domestic demand.

An increase in exports will result in increased profits and subsequently in some jobs for export businesses and their suppliers, foreign and domestic.

To get a slice of that business, domestic suppliers must offer something unique, or at least better, or the same products at lower prices than their foreign competitors.

But increased profits in export companies will do little for our budget deficit unless those profits or that enterprise is taxed.

At 12.5%, corporation tax will yield little to the exchequer.

Increasing tax on jobs is not an option when jobs growth is the sought-after prize. Neither will taxing spending yield much when people have less disposable income and increased spending is the primary goal.

So export growth is not a panacea for recovery without a parallel increase in domestic spending.

That will only happen when people have confidence that those who would have us believe they have the competence to lead us out of the mire find the right formula and are telling it as it really is. Thus far this Government has done neither.

Kevin T Finn

Kingston Close

Mitchelstown

Co Cork