Central Bank chief issues strong call for wage cuts

The new governor of the Central Bank has issued a strong call for wage cuts as a means of protecting employment.

Speaking at an ESRI conference in Dublin this morning, Patrick Honohan said retaining wage competitiveness to ensure maximum employment should be a key priority for the country, even if it means cuts to nominal wages.

He also said the aim of government policy should be to restore the structure of the economy to where it was at the start of this decade.

Mr Honohan, an economics professor at Trinity College, was appointed as Central Bank governor last month by Finance Minister Brian Lenihan.