ESRI official: Pay rates should be cut by 7%

An official from the ESRI has told a conference in Dublin today that pay rates across the economy should be cut by an average of 7%.

John Fitzgerald told the Institute of Public Administration event that pay levels need to be reduced if Ireland is to return to full employment in the coming years.

He also said this December's budget would have to include tax increases and major cuts in current spending, but continued investment was also vital to ensure the economy can recover from the current crisis.