Tánaiste says pay offer is realistic

The Taniste and Minister for Enterprise, Trade and Employment says the 7% pay offer to employers and unions is realistic in the current economic climate.

Employers body IBEC and the Irish Congress of Trade Unions have been offered a 7% pay deal over 18 months as part of a new national agreement.

Mary Harney says she accepts that the offer is lower than the rate of inflation, but the alternative could mean lengthening of the dole cues.

She added ''We cannot continue to pay ourselves the kind of pay increase that we have seen in recent years. We simply would put ourselves out of business and put people on the dole.''