Noonan: 'No room' for public sector pay increases

The Minister for Finance said there is no room for pay increases in the public sector right now.

It follows a call from Socialist Party TD Ruth Copping who says a 5 – 10% pay rise for low and middle income workers would boost tax receipts and reduce welfare payments.

But Michael Noonan said there isn't money to do so, even if private sector companies are giving pay rises.

"Whatever the economic benefits of increased pay levels in the public sector, the exchequer just can't just afford them at the present.

"Pay reductions have being negotiated as late as last year with the Haddington Road agreement, rather than pay increases."

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