Taoiseach: Public sector pay deal will impact spending in other areas of Budget
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The new pay deal hammered out for public sector workers will have an impact on the amount that can be spent on other areas in the Budget, the Taoiseach has warned.
Describing the 6.5% increase as a "fair agreement", Micheál Martin said "harmony" is now needed given the disruption the war on Ukraine is having on the economy.
However, he warned that the staggered increases in public pay will eat into the amount the Government has to send on other services.
"As we have said before, the budget will be the budget for your full year and the pay does affect that because that would take up so much of what's allocated in terms of the public service estimates of provision. Therefore that does have impact on what's available for other spending across the public service in terms of services," Mr Martin told reporters in Co. Monaghan.
Welcoming the agreement, Mr Martin said: "We are living through extraordinary times and workers, both in the private sector and the public service, are under a lot of pressure. We've always said that there would be a combination of measures used to address the pressures that workers in households and businesses are under, pay is one of them."
Mr Martin said he is not encouraging any private sector firms to do anything but stressed various salary increase agreements have already been arrived at between private sector employers and workers.
He said there would be "further strands" in the areas of tax and cost-of-living measures to help people in September's budget but warned that the State does not have an unlimited pot.
"Government cannot do everything, and Government will not be able to cover the increased costs in their entirety. What is concerning us now is the projections for the next number of months and also for the first part of 2023. That is concerning us in terms of the pricing that's been factored in now."
Mr Martin said he had spoken to EU Commission President Ursula von der Leyen around the exponential rise in the price of gas and oil on Tuesday morning, adding that these hikes are "quite alarming".
"The European Commission will be bringing forward proposals, there will be an emergency meeting on September 9, with the energy ministers and there will be an emergency measure that will be proposed by the Commission in terms of the immediate situation, and then also a more sustained reform of the energy market over the next 12 months."