Economic body urges Govt to stop cutting into public services

The Nevin Economic Research Institute has said the Government needs to introduce a "growth-friendly" budget.

The call comes after CSO figures published yesterday reveal the economy contracted in the first quarter of the year.

The research body is recommending the Government re-think the austerity measures.

It has said the Government should avoid making further cuts in public spending on education, health and social welfare and all areas which impact closely on personal consumption or investment.

Dr Tom Healy, Director of the NERI says the government has choices.

Dr Healy said: "They do have some wriggle room on the promissory note deal.

"They need to look again at the problem of investment, we have a crisis in investment, so we need an investment stimulus that needs to be brought forward much more quickly than the Government is planning over the next two to three years.

"We need to stop cutting further into public services."