A cabinet Minister has warned that major pay increases could be "repeating the mistakes of the past".

The Government is facing demands for a full inquiry into the sale of €5.7bn worth of assets sold by Nama in the North and millions of pounds allegedly diverted by a firm to an offshore account.

Nama chiefs will be hauled before the Dáil’s public spending watchdog on Thursday to address growing concerns about a controversial cut-price deal — linked to a secret €9.8m off-shore account scandal — that saw properties sold for €4bn less than their initial value.