The Fine Gael Leader has said there needs to be greater competition in order to increase efficiencies and achieve wage cuts in Ireland's semi-state companies.
Enda Kenny was speaking as he launched his party's plans to tackle rising youth emigration.
Mr Kenny said that no-one in the public sector should be paid more than the Taoiseach.
He was referring to the pay of chief executives of some of the largest semi state companies, which in some cases amount to in excess of €500,000.
He said that driving down costs and pay will necessitate the market being opened up to competition in the interest of the economy.
Asked whether he would support a pay cut in semi-state organisations, he said the only way to do so was to drive down costs by opening up to competition.
Mr Kenny said Ireland is operating in a ruthless world economy and needed to adjust in the interest of business, jobs and the economy.
Fine Gael's 'Hope for a Lost Generation' policy was launched this afternoon.
It claims it can remove 30,000 young people from the dole within one year, create 13,000 graduate intern placements and 5,000 extra community employment scheme places.
Public servants to protest over cuts
Public servants are to protest outside the Dáil later today as politicians debate legislation that will cut their wages by 5% to 15%.
Hundreds of workers are expected to turn out this evening to vent their anger at the Government's plan to slash €1bn from the public sector pay bill.
The action comes as figures show that TDs and Senators have claimed €9m in expenses so far this year.
TDs claimed around €7m in expenses and allowances, while Senators claimed over €2m in the first ten months of the year.
The amount claimed last year was €12.4m.
