Bruton counsels wage restraint

MODERATE wage increases are a key element in securing economic growth and stability, the Taoiseach, Mr Bruton, has told the annual dinner of IBEC. He also called on the employers' organisation to seriously consider introducing profit sharing schemes on a large scale.

We have, since 1987, had industrial peace in this country and I don't think we can underestimate the significance of the steps taken by the leaderships of IBEC and the Irish Congress of Trade Unions in this regard. They saw industrial conflict was a waste of talent, not just in terms of lost production but in diverting people from the market share they could win for Ireland", he said.

Turning to the current situation, he said moderation in pay demands had helped to keep inflation and interest rates low, to protect competitiveness and, crucially, to ensure real increases in living standards for the growing number at work.

He said that with the economy expanding at such a healthy pace expectations have also grown. "I believe that these expectations are out of line with reality. Recent reports from a variety, of economic commentators about the "vulnerability of our competitiveness and employment position clearly support this vied.

"It is not surprising that high growth rates should be expected to translate into higher pay levels. It is equally plausible to expect that resources should be applied to reducing the tax burden. There are also, of course, a host of demands to improve services and expand the range of services being offered by the public sector.

"With expectations so high, balancing all of these three elements and, at the same time, continuing to ensure that we are fully prepared for EMU may prove difficult. I believe that we must preserve the discipline and the partnership required to achieve a satisfactory balancing of these expectations".