Standard Of Living Plummet 'Permanent' Says OECD

A report published today by a major European Community Organisation has claimed Living standards in Ireland are likely to remain 'permanently lower'.

The report from the Organisation for Economic Co-operation and Development, (OECD) said yesterday the 'boom' days for Ireland would not return, and would instead be replaced by a period of 'prolonged' growth.

Also, echoing a number of Irish think tanks, the organisation said lower wages were necessary to restore stability to the economy, and that consideration should be given to reducing the minimum wage.

Cutting the base level of income, including benefits, is being considered by the government as a way of driving down wages and making Ireland more attractive to outside business.

The policy, which has been mooted by a range of Government and Business sponsored think tanks including the ERSI and the controversial McCarthy report.

Confirming the Government's stance today, Tánaiste Mary Coughlan confirmed a number of cuts and restructuring to social welfare, which could be put through the Dáil before Christmas.

The OECD, which is made up representatives from 30 of the world’s developed economies, said the Irish economy can be restored to long-term sustainable growth after a period of 'unusually large' economic unbalances.

(DW/BMcc)