Ibec: Raising wages will damage businesses which are already struggling to pay energy bills

“Energy costs are causing a significant threat to viability,” said Fergal O'Brien, director of lobbying and influence at Ibec.

Experts have said wage increases could damage Ireland's competitiveness.  File picture: Eddie O'Hare

Ibec said increasing wages to battle inflation will undermine the country’s competitiveness as firms struggle with other high costs such as surging energy bills.

Ireland’s largest business representative group proposed a number of measures in its pre-budget submission to government aimed at supporting businesses and consumers as they battle economic headwinds, but indicated wage increases would be the wrong direction to go down.