'Signs of Stability' Says Tánaiste Despite Wage Chop Hints

Despite admitting the economy isn't out of trouble yet, the Tánaiste has told business owners that signs of stability are emerging.

Speaking at the expansion of paint suppliers Colourtrend in Celbridge, Co Kildare, Tánaiste Mary Coughlan said she had recently completed a tour of businesses in the southeast, where it was clear there was "some stability" taking place in the market.

Ms Coughlan said that the very fact the firm had maintained 50 jobs was an example of "stability and hope".

However, the Tánaiste also defended her recent comments that professions needed to reduce their fees to enhance competitiveness in the economy, following hints from Government sources that further wage reductions were in the pipeline.

She said the Government was not prepared to back down in its drive to increase competition and get better value as it tackles the economic crisis.

Following the finalisation of the draft proposals for the state's new Asset Management Agency, the Tánaiste added that the biggest issue being raised by companies was "getting the banking system back to lending money to business".

An upcoming report from the National Competitiveness Council is expected to recommend a reduction in fees by professional workers.

The report will back up indications from the Central Bank earlier this week, which suggested broad reductions to the current income of Irish workers, including civil servants.

(DW/BMcC)