Paschal Donohoe delivers stark warning over the Government’s ability to meet public sector pay demands

Public Expenditure Minister Paschal Donohoe has delivered a stark warning over the Government’s ability to meet public sector pay demands in the forthcoming budget, saying talks with trade unions will be “very difficult”.

In a key intervention, Mr Donohoe delivered a major shot across the bows of the unions ahead of the commencement of talks on a new pay deal, which have to be concluded before October.

The timing of his comments is significant as he was speaking ahead of the teacher conferences next week where pay rises, especially for new entrants, are likely to dominate the agenda.