Minister for Finance Brian Cowen has claimed that pay increases could lessen the economy's competitiveness and hurt Ireland's long-term employment prospects.
Speaking at an Irish Insurance Federation annual lunch in Dublin today, Mr Cowen said complacency was the single most significant threat to Ireland's economic success.
The Minister warned against pay rises, which he claimed could "lessen our competitiveness versus other countries [and] will directly endanger long-term employment prospects".
Referring to the insurance industry, Minister Cowen said the challenge was to promote fair competition and to allow innovators to meet the needs of the marketplace and the consumer.
He added the Government was committed to working with industry and the public to achieve this objective.