Chambers Ireland has welcomed the commitment made by Government to reduce the high marginal income tax rates and increase public sector investment but urged prudence particularly on public sector pay increases.
Ian Talbot, Chief Executive, Chambers Ireland said, “The announcement that there is scope for both tax reductions and spending increases in next year’s budget will increase consumer confidence and support investment.”
“Both public and private sector workers have made significant contributions to Ireland’s economic recovery. However we must be realistic about pay expectations. While the Government has committed to entering discussions on public sector pay increases, there must be a mechanism put in place to effectively link any future pay increases with increases in productivity. Ongoing productivity gains are essential if public sector pay is to be sustainable into the future,” he concluded.