The Organisation for Economic Co-operation and Development has declared the Celtic Tiger is over, in its latest bi-annual survey of the Irish economy.

The Paris-based think tank says the Government must now focus on controlling wage expectations and its own spending to ensure reasonable economic growth in the future.

It says the recent partnership wage agreement will help moderate income expectations, but further increases in public sector salaries must be 'strictly conditional' on demonstrating higher efficiency.

The report advocates greater accountability for the results of public sector spending, with the introduction of routine evaluation and value-for-money audits.

It also recommends the introduction of a number of controversial new charges by the Government: including the reintroduction of third level fees, the use of water charges, and new local property taxes on residential housing.

On health, the OECD says spending is a priority, but that comprehensive reforms are needed of the organisation and management of the sector.

The report criticises the sluggish progress the Government has made in increasing competition in pubs, and the legal profession, although it says some progress has been made in taxis and the telecoms sector.

It says new competition initiatives are required to control our high level of inflation.