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Budget announced but public sector pay talks still loom

In recent years, public sector pay deals have been agreed in advance of Budget Day, but not this year.

The current public service agreement 'Building Momentum' is due to expire at the end of 2023.

The Government has indicated that talks on a successor deal would begin as soon as the Budget was over and it was referenced by Public Expenditure Minister Paschal Donohoe in his address today.

He described public servants as key to ensuring that Ireland can meet the needs of our growing and changing population.

"Later this year my Department will enter talks and endeavour to reach an agreement that is fair for public servants and affordable for taxpayers," Mr Donohoe said.

"Of course, I would expect that the significant package of cost of living and taxation measures provided for in this Budget, which will benefit public servants, would be appropriately factored into those discussions," he added.

Unions have also said that they will be watching the budget announcements closely ahead of the pay talks.

The Chair of the Public Service Committee of the Irish Congress of Trade Unions Kevin Callinan said recently that their priority objective will be to secure appropriate pay measures in response to continuing cost-of-living pressures on working families.

"Cost pressures, including rising mortgage interest rates and corporate profiteering, continue to erode wages," Mr Callinan said.

Paschal Donohoe has been engaged in intense talks with cabinet colleagues in recent weeks ahead of the budget but, for him and his officials, the negotiations are far from over.