The buoyancy of the Irish economy has been confirmed once again by the latest batch of official statistics, which show extremely strong growth last year and a very healthy picture in respect of tax receipts so far" this year. This should enable the Government to redouble its efforts to ensure that growth translates effectively into more job creation.
The growth figures are now more reliable, following revisions to take account of distortions arising from transfer payments by multinational companies and their disproportionately strong performance" compared to domestic firms. These changes are welcome and will enable a more realistic picture to be given of Ireland's growth, not least in the context of comparative figures for the rest of the European Union, both for the receipt of funds and to qualify for the single currency. Estimates of Gross Domestic Product and Gross National Product for 1995 show a volume change of 10.1 per cent and 7.3 per cent on, 1994, according to these figures, a difference that illustrates how significant the changes are. Even the lower figure the more reliable indicator puts Ireland at the top of the EU growth table. Many other member states, caught in a deflationary spiral, would gladly accept even the difference between these two. Irish figures as an annual growth figure.
Growth and development are not automatically linked, of course. One of the most persistent criticisms levelled at recent European growth performances has been that it creates too few jobs. Unemployment has nevertheless been coming down sharply in Ireland. According to the Taoiseach, Mr Bruton, speaking after the meeting between the Government and the European Commission, employment has been growing at an annual rate of over 50,000. He said more jobs have been created in this State in the last 12 months than in the whole period 1960-89. The Government has set itself a demanding task by putting employment at the top of its list of priorities for the EU presidency if it can't find effective means of translating such unusually high growth into job creation it will be judged harshly by the electorate.
The buoyant tax receipts will give the Minister for Finance more freedom to frame budgetary strategy later in the year, even within the constraints of the new arrangements that will spread budgetary planning over several years. The coalition has a firm consensus on the need to adhere strictly to the convergence criteria laid down in the Maastricht Treaty. It can argue convincingly from the Irish experience that this is the best means of setting out the conditions in which employment growth can be encouraged. It is to be hoped that the Government can use the present economic buoyancy as a means of bolstering its efforts to give priority to job creation.