Capping public sector salaries ‘would save €85m a year’

CAPPING public service salaries at €175,000 would save the State €85m a year, new figures have shown.

But Finance Minister Brian Lenihan has hinted at the difficulties with such a move – the recently-agreed contract with the hospital consultants.

The debate about high public sector salaries usually focuses on ministers and senior civil servants, such as the secretaries-general of Government departments.