Public service pay deal: Peace may be achieved but at a high price

Economists such as John Fitzgerald have correctly questioned the merit of returning to pre-crash pay levels in the first place, the political system here seems intent on capitulation on that point, writes Daniel McConnell.

THE unsustainable spending increase of today is the savage, socially destructive spending cut of tomorrow.

This was the warning from Paschal Donohoe, the Public Expenditure Minister in his Budget speech of last October — he said he would not tolerate bonanza giveaway pay increases in the public sector.