Rabbitte: Austerity measures are working

Communications Minister Pat Rabbitte has said that the "painful measures" the Government has taken are producing results.

Minister Rabbitte welcomed an ESRI report today which said the economy should continue to grow this year, and that austerity is working.

Earlier SIPTU's Jack O Connor rejected the ESRI's view saying austerity may work for those at the top, but it isn't working for the 450,000 on the Live Register.

But Minister Rabbitte said it is clear that there is no alternative to getting the public finances back to health - other than spending cuts and tax hikes - and he said Ireland is a "long way from being out of the woods yet".

"The painful measures that have been taken are producing results," he said.

"We are a more competitive economy now than we were, and the export side is performing very strongly," he added.

"Unfortunately the retails sector is flat, and that's reflected in the figures.

"But welcome the public commentary of the ESRI that there really isn't any alternative to us getting the public finances back in kilter."