The head of a group representing small and medium businesses says the Government and public sector unions must go back to talks to try and resolve the pay cuts dispute.   Widespread disruption is now looming at schools, hospitals, Government departments, and across the wider civil service.

Mark Fielding of ISME says talks are crucial, but the Government ‘cannot cave in’. “They identified €500 million of savings they could bring to the table last Christmas, and if we actually look at the main headings that they were talking about that could be the basis for a chat” he said.  “Where, again, increase in productivity will allow the public sector to get back the wages that they have – but over time – and that’s what we’re talking about – not initially”.

“The Government would lose all face if they gave in on the current wages” he added.