Taoiseach: ‘Ireland facing serious choices’

The Taoiseach says Ireland is facing very serious choices about its future.

His comments come as the social partners meet with the Government for talks on an economic recovery plan.

Speaking as he arrived at a meeting of the North South Ministerial Council in Derry, Brian Cowen refused to set a deadline for today's talks.

He said Ireland must be ready for when the recession ends.

Unions are ruling out pay cuts in any form, however, it's understood one of the proposals being considered by the Government is a pension levy for all public service workers.

Employers' federation IBEC however today called for an immediate deferral of the pay increases set out in the current partnership agreement.

In a statement IBEC said that given the dramatic economic deterioration in recent months, such a deferral would be "in the national interest".

IBEC also said that the national minimum wage should not be increased for the foreseeable future.

“The competitive pressures being faced by all businesses are unprecedented," IBEC Director General Turlough O'Sullivan said.

“The serious deterioration in economic conditions since the Agreement was signed, especially the deepening global recession, the sharp increase in the value of the euro, the credit crunch and the prospect of deflation, has now made paying the terms of the Agreement impossible for our members.

Meanwhile, the Association of Chartered Certified Accountants is recommending a plan to cut costs for employers.

It is suggesting employees work an extra half-hour per day without pay.

An extra 30 minutes represents an effective 6% pay cut, but the group says there is no real loss in earnings, even though there is an increase in productivity.

It says the plan could be implemented before pay cuts or lay-offs are considered.