Taoiseach Brian Cowen has said the Government will hold fast on its decision to impose €3 billion in public sector cuts in next December’s budget, despite growth returning to the economy next year.
He justified the position on the basis that the Government must keep a clear focus on the factors that it can control against a background of continuing uncertainty in global financial markets.
Mr Cowen said last night that the good news for the economy was that growth of 3 per cent has been forecast for 2011 by the European Commission and by the OECD. If it materialises, it will be twice the average of euro zone countries.
But Mr Cowen also referred to what he said was the "continued turbulence" in financial markets. "It is a warning that we cannot be complacent. The international outlook in particular is not yet as secure as we might like," he said.
"That is why we must keep a clear focus on those factors that are ours to control. We will deliver on the €3 billion adjustment of the public finances required in 2011."
Mr Cowen was the keynote speaker at the president's dinner of the Irish Business and Employers Confederation (Ibec) in Dublin last night.
Mr Cowen defended social partnership in his speech, despite the failure by employers and unions to reach agreement in the last round.
"While it has proved impossible to secure a broad measure of agreement on the detail of a national strategy for economic recovery, I believe that a robust social partnership experience continues to be important," said Mr Cowen.
He said that public sector union backing for the Croke Park agreement was "an important step in our collective efforts to meet the challenges".
He added that membership of the new Public Service Board, to be announced shortly, would be mainly drawn from outside the public service, with a mandate to drive change. He also disclosed that the National Economic and Social Council would be reconstituted in the near future.
In his address, Ibec's incoming president Leo Crawford said that unhealthy business behaviour contributed to the economic crisis and deepened its impact.
Mr Crawford said that such action resulted in a loss of public trust and damage to the reputation of business generally. He said that weak corporate governance had left a small minority of organisations open to scrutiny and the relatively small scale of the business community had created an unfortunate impression of elitism.
"What are perceived to be excessive remuneration packages have reinforced negative stereotypes of those at the top perhaps unfairly," said Mr Crawford. "In a recession, these things matter. Being told you have lost your job is one thing. Being told you have lost your job when you sense that the pain is not shared is another."
* Meanwhile Up to 300 people held a demonstration outside the Mansion House where the Ibec dinner, dubbed the "bosses' banquet" by protesters, was being hosted, writes Pamela Duncan .
Guests attending the black-tie event were met with shouts of "shame on you" and "we hope you choke" as protesters voiced anger at what organiser James O'Toole of the Right to Work Campaign described as the workers being "left outside like peasants while the masters have their banquet".
The crowd jeered and booed as Mr Cowen entered the building, while one protester threw a coin which missed the Taoiseach.
A 24-year-old man was arrested for public order offences after which time the assembled protesters made their way to Pearse Street Garda station chanting "jail the bankers, not the workers".
The man was released a short time later.