Lower tax take to hit public pay talks

Public Expenditure Minister Paschal Donohoe has delivered a fresh blow to public sector pay demands, saying lower-than-expected tax revenues will impact on what the State can afford.

Mr Donohoe is set to begin talks to deliver a successor deal to the Lansdowne Road Agreement this month, but has warned that Government spending increases must be “prudent”.

Writing in today’s Irish Examiner, Mr Donohoe says any pay increases must be “rooted in reality” and “sustainable”.