Goodbody warn of benchmark madness

THE long term needs of the Irish economy would be best served if the Government abandoned its ‘madcap’ public sector benchmarking pay deal, according to Goodbody Stockbrokers.

In a hard hitting Summer 2003 Review the wholly owned AIB subsidiary says there is a risk that pressure for tax increases will build in the medium term.

“Conservative budgetary management in recent years would have provided the government with ample resources to indulge in a counter-cyclical boost in the form of increased spending on infrastructure (traditional means) or further income and corporate tax reliefs.