Taoiseach Enda Kenny has said that the Government has to very carefully manage the economic recovery and there can be no return to the policies of boom and bust.

Speaking from the Ibec CEO Conference to CNBC, Mr Kenny said that people have to feel the benefits of the economic recovery in their daily lives.

Ibec has called for lower rates of income tax to be introduced in the next budget and Mr Kenny said that the burden of tax remains too high.

He said that was why modest increases in peoples' take home pay was introduced in Budget 2015.

Key to the success of the economy is jobs and 90,000 new jobs were created last year, the Taoiseach stated.

He said the Government is aiming to create 40,000 new jobs every year up to 2018 with full employment targeted by then. 

Mr Kenny also said that Ireland has nothing to fear in relation to international tax issues, adding that the so called "double Irish" tax scheme has been scrapped.

He said that the 12.5% corporation tax rate will remain, adding that it was a cornerstone of the economy and also of the country's recovery.

But he also said the corporation tax rate was not the only reason international companies were moving to Ireland.

The Taoiseach said that foreign companies were attracted by country's talent pool - which he described as young, flexible and innovative.

Mr Kenny also said that Irish people who had moved to the US and Australia were returning to Ireland as the economic recovery continues.

Mr Kenny has also said that if the minimum wage is increased following recommendations from the Low Pay Commission, the Government will look at ways of mitigating the extra cost on employers. 

The Taosieach said when the minimum wage was increased previously, employers’ PRSI was reduced, and if the commission recommends an increase the Government will respond in October.

He said it would look at options for how to compensate employers for increased costs to them.  

Yesterday, Minister for Public Expenditure and Reform Brendan Howlin said he planned to hold a forum on issues such as pay, taxation and services that would not be a return to social partnership.

Exchequer figures yesterday showed tax receipts for the first two months of the year ahead of last year's, and ahead of forecast so Ibec's Director General Danny McCoy's call today for lower income taxes in October's budget could be well-received.

He said that tax cuts would see more money in circulation, creating a further boost for the economy next year.

Ibec said that if Government plays its part, Irish business will create thousands of jobs and unemployment will fall below 9% this year.

Mr McCoy also predicts that half of companies will award pay rises this year, but the fact that many continue to struggle needs to be reflected in wage expectations.

At this morning's conference, Mr McCoy was expected to say that business has no interest in returning to "one-size-fits-all" national pay agreements and that future engagement between Government, business and unions would only have merit if it is firmly focused on job creation and competitiveness.

Speaking on RTÉ's Morning Ireland, Mr McCoy said he believed it would be a good idea to establish the forum.

He said Ibec would certainly be supportive and, if invited, would participate in that.

"It's good to get views in a more systematic way than maybe the megaphone diplomacy that happens from many quarters.

"I think it's a good way to move through the April statement, something in June, in advance of the budget," he added.