‘Perfect storm’ on pay could derail budget

Finance Minister Paschal Donohoe is facing into a “perfect storm” of pay demands from teachers, doctors and nurses, which is threatening to derail his €3.2bn giveaway budget in October.

Despite the express wish of some ministers for the pay of new entrant teachers to be restored, the Department of Finance is holding a hard line, saying “no side deals” will occur.

Government sources, speaking to the Irish Examiner, have said that a complex public sector pay deal, which is less than a year old, cannot and will not be re-opened and there will be no exceleration of the agreed rate of pay restoration.