Call to halt public sector wage hikes

THE Government should postpone wage increases made under the benchmarking report until the public finances are in a better position, according to Friends First economist Jim Power.

He said the estimated cost of benchmarking, around 1.2 billion euro a year, is more than the country can afford at the moment. He said that the cost could force a 2% increase in the standard rate of tax, plus an increase in duties.

Launching Friends First quarterly economic report yesterday, Mr Power called the benchmarking report a "fiasco" and said questioned how the benchmarking body arrived at the 1.2bn euro figure.