05/09/2008

Government Plan To Kickstart The Housing Market

The Tánaiste has said the Government will be using the up-coming emergency Budget to jolt the housing market back into gear.

Minister Mary Coughlan said on Thursday that Minister Lenihan has met with representatives of the construction industry to discuss the issue.

She said: "The Minister spent a considerable period of time with construction people over the weekend and he will be taking into consideration many of these issues and not just for first-time buyers but for those who need to move on."

The move comes as new measures to deal with the current crises begin to trickle through from the Government.

News of a pay freeze in the public sector has emerged following the breakdown of the national pay deal talks just over a month ago.

Unions rejected proposals for a 5% increase over 21 months, and it is thought the Government may have taken this deal of the table completely, and instead plan to impose a total pay freeze.

On Thursday the European Central Bank made a plea for employers, unions and governments across the EU to abolish any inflation linked pay increases.

Presently there is speculation the Government favours a deal that would give lower-paid workers a bigger percentage increase on the grounds of equity and also as a measure to boost consumer demand.

(DW)

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