Talks on public sector cuts to continue

Union leaders and government officials return to the talks table this morning as the prospect of job cuts in the public sector increases.

The Government has made it clear that job cuts can't be ruled out and that the recruitment embargo in the public sector will remain in place for some time to come.

The talks come as the Exchequer faces another €2bn shortfall in tax revenues.

The Government will be forced to borrow €22bn this year to run the country.

Labour Affairs Minister Dara Colleary says the fact that talks are continuing is a good sign.

"I think that the fact the talks are going on again today shows there is room there for discussion on it" he said.

"Clearly there is some sort of room for discussion and for ideas on the table, but I think as we saw yesterday in the various correspondence from union officials it can't be painless either - but if it can be done by some share of agreement that pain will be a lot easier to bear" he added