IBEC welcomes measures to cut public expenditure

IBEC have welcomed the Government measures to achieve a €2bn spending cut announced by Taoiseach Brian Cowen today.

IBEC expressed regret that trade unions were unable to support such an approach, but said that Government must lead and put the national finances back on a sound footing.

IBEC Director General Turlough O'Sullivan said: "The move to reduce public sector pay costs will go some way towards stabilising the public finances, but more will need to be done.

"Ireland will only regain prosperity by encouraging enterprise, cutting our own costs is an essential first step. Given the need to reduce public expenditure, it is only fair that greater contributions are made by public servants to reflect the value of their pensions.

"It is now important that measures are agreed to support enterprise and job creation. Unless substantive action is taken to support economic activity in the real economy the public finances will deteriorate even further."