TAOISEACH BERTIE Ahern stressed the importance of pay restraint in social partnership negotiations.
He said that one could never pay any more than could be afforded in negotiations.
"Really, what social partnership and all the reviews done in this are about, is that we pay our public servants and our private sector workers what is achievable within an economy." There were international pressures, said Mr Ahern.
"One only has to pick up an international commentary to see the difficulties out there such as what happened in subprime lending, the financial downturn, inter-bank borrowing difficulties, and the loss of confidence in many parts of the world about the future.
"These are all difficulties and one way or another to some extent they affect us and we must be conscious of them." However, said Mr Ahern, the Irish economy was still strong.
"Employment is strong. Our debt ratio is historically low. Where there are pressures, we just have to manage them in a sensible way." He added that all the underlying strengths of the Irish economy were positive.
"We just have to manage ourselves through a sharp international downturn. If we do that, as we have done in recent years, we will get the bounce as soon as the international economy bounces."
Fine Gael leader Enda Kenny asked if Mr Ahern was concerned about remarks made by US presidential candidate Barrack Obama in which he said he was interested in allowing for the repatriation of moneys by US multinationals.
Mr Ahern said Mr Obama's proposal must be carefully monitored.
Previously, he added, IDA Ireland had a specialist in the US on contract to watch those kind of developments and lobby on issues.
"I understand the argument from a United States point of view. The more money they keep and treat to the best advantage within their own administration, the better it is for them. However, there are other considerations."
