The managing director of the Irish subsidiary of State Street Corporation has called for 30,000 redundancies in the public sector.

Addressing a conference in Dublin on the Croke Park Agreement, William Slattery said these redundancies were necessary to save money and increase efficiency in the public sector. He said they should be achieved by a cost-effective voluntary programme.

Mr Slattery also said that any cost savings made under the Croke Park Agreement should not be put towards reversing public sector pay cuts, but should instead be used to reduce the country's deficit.

He said the 30,000 redundancies represented about 10% of the entire public service and would save €2 billion for the Exchequer.

State Street is a financial services provider which employs 2,500 people in Ireland.

The Minister responsible for public sector reform Dara Calleary clarified that savings from the fall in staff numbers due to the recruitment embargo, early retirements and career breaks would not count when calculating money available for restoring pay cuts. He also ruled out front-loading payments ahead of verifiable reform.

But IMPACT general secretary Shay Cody defended public servants and called for public service management to up its game, and delivering proposals that were significant and proportional.