McCarthy: No option but to cut public sector pay

THE Government has no option but to cut public sector pay because the country is going bust, the head of An Bord Snip has warned.

Colm McCarthy also said some civil and public servants were “out of touch with reality” and a large chunk of the €400 million the Government was borrowing each week was going on their pay.

His warning came as Taoiseach Brian Cowen was met by protesters dressed as robbers as he arrived at a conference of senior public servants where he stated that low priority services faced the chop.