Paschal Donohoe: Public sector deal ‘must be affordable’

Public Expenditure Minister Paschal Donohoe has refused to scotch reports that he is willing to award pay rises of 6% to 300,000 public servants in a new pay deal.

Mr Donohoe, speaking yesterday, said that any deal offered by him in talks with unions on behalf of the Government will have to “be affordable and fair”.

The minister said that at this stage no formal negotiating position has been arrived at as he has not brought any memo to Cabinet for approval for a successor deal to the Lansdowne Road Agreement. That deal expires next year.