The Government could save €1 billion over 10 years by outsourcing 30,000 public service jobs, according to business lobby group, Chambers Ireland.

The organisation, the umbrella body for the Republics chambers of commerce, yesterday published a paper on the Croke Park deal between the Government and public service unions.

The document recommends outsourcing 30,000 public service jobs, which would save €1 billion over 10 years.

It also argues that service increments, to which more than one in six civil servants are entitled, should not be paid for three years.

Increments last year cost the Exchequer €250 million.

Seán Murphy, Chambers Ireland deputy chief executive, acknowledged that the Croke Park deal had achieved savings and greater flexibility.

However, he argued that given the straitened nature of the State’s finances, it would be hard to justify paying the increments.