Varadkar: 'No good time' to announce reversal of pension cuts 

Leo Varadkar says it's "unfortunate" when it comes to pay rises that "the optics are always around".

The Cabinet has reversed pension cuts to retired taoisigh, ministers, and top civil servants who were in office during the financial crash a decade ago, just one week after refusing to pay student nurses.

The €12m-a-year decision will see up to 4,000 of the highest-paid retired public servants, including former taoisigh Bertie Ahern and Brian Cowen, relieved of the pension levy introduced in 2009.

The Cabinet also cleared the way for pay increases for opposition party whips and the judiciary.

The Tanaiste told RTÉ that "no matter when things are done does still look wrong, if this happened next week or the week after I have no doubt we'd be accused of trying to hide it before Christmas, and they are very separate issues," he said.

First of all government ministers aren't taking the 2% increase.

"I've taken no increase nor has any minister since increase restoration started five or six years ago.

Facts matter here, and people reading that headline may get the wrong impression.

"They may think to some sort of special pay increase for the chief justice or for judges. That is not the case.

"Here are the facts. Every public servant in Ireland got two pay increases this year, one in March, one in October and some got a third in the form of an increment that includes nurses, teachers, civil servants, doctors, firemen, gardaí. Every public servant got those increases.

"The increase for judges of 2% in October was no different to any increase that anyone else got, they got the same 2% increase."

Likewise, Public Expenditure Minister Michael McGrath says the Government's “hands are tied on the issue”.

“Under the 2017 act the Government has to, by the end of this year, specify a date by which the public service pension reduction will be completely removed,” he said on Newstalk.

We have sought legal advice on this issue over a number of months and our hands are tied.

“The legal advice is very clear and very strong that it is not open to Government to amend that act to push it out further or to set a date for restoration that is so far into the future that it would not be credible.

"That does not mean that everybody has to accept these pension restorations," he added, noting the Chief Justice Frank Clarke’s decision not to take his pay increase.

Mr McGrath said the Government is committed to addressing the student nurses' pay issue.

“There will be a review,” he said. “It is at a very advanced stage. It will be over by the end of this month and the Government will make decision promptly to deal with that.” 

He said officials must “consider the implications of every decision that we make” adding that paying student nurses would have implications for a “whole range of other students who are engaged in placements”.

“The Government will address that issue and we have to take account of the implications for a whole range of other student placements across the system."