SIPTU President Jack O'Connor has said wage increases are needed if the economy is to grow.

Speaking on RTÉ Radio 1's The Business, he said wage rises are needed to support demand in the domestic economy

However, speaking on the same programme, Mark Fielding of ISME said the economy needs more people in work and that cannot be done if employers have to increase wages.

But he said the Government could increase take home pay through tax cuts

Mr O'Connor said if there are resources available for tax cuts they should targeted at people on lower or middle incomes, through measures like refundable child tax credits or expanding the lower bands for USC.