Public pay cuts ‘should be considered’

The Government should keep an open mind on cutting public sector pay and pensions, increasing taxes and looking at welfare rates, as its attempts to meet the EU/IMF deficit target by 2015, the Fiscal Advisory Council has recommended.

Public sector pay and pensions are protected by the Croke Park agreement.

Moreover, the council, which has a role to independently assess whether the Government is meeting its own stated budgetary targets and objectives, recommends that the Government makes a further €1.8bn in budget cuts over 2014 and 2015 in order to stabilise the country’s budgetary position.