ISME calls on Govt to 'face down' unions

The Irish Small & Medium Enterprises Association (ISME) has called on the Government to "face down" union leaders and reject their "absurd demands" for increased taxes in lieu of cuts to the public pay bill.

"Private sector SMEs have already averaged 13% pay cuts, on top of unprecedented job losses this year and can no longer fund the ever increasing public sector," the body said in a statement.

"The Association is confident that the proposed cuts in the public sector pay bill have the full support of business people, both large and small, who are demanding a sharing of the burden to beat the recession."

ISME Chief Executive Mark Fielding said a "bloated" and inefficient public sector was a luxury the country could no longer afford.

"With the Government needing to achieve a €4bn saving in 2010, there is no option but to reduce the cost of running the public service," Mr Fielding said.

Calling any attempt to increase taxes a "recipe for disaster", Mr Fielding said it was "utter lunacy" that the private sector could be used to "bail out" the public sector.

"The time has come to say ‘enough is enough’," Mr Fielding said.

"For once the Government needs to take account of the rest of the economy and face down the unions, not only for the sake of the economy, but for the future democracy of the country.

"The small business community will resolutely support such actions.".