Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

As is always the case in negotiations, it is difficult to set a timeline because it depends on the willingness of the two parties in the negotiation to compromise and meet each other half way. Having been involved in some negotiations, I believe that setting a deadline oneself can be counterproductive because having done so, it makes it harder to achieve the outcome one wants. We will not set a deadline on it but if the trade unions are willing to compromise and come to an agreement with us, as we have done in recent months, the Government will not be found wanting. However, we need to bear in mind that this is taxpayers' money.

Another important point is that Deputy Micheál Martin is absolutely correct to say that housing and rental costs are very high. They are especially high for younger and new entrant workers. However, we must be careful. We have been here before. I remember some of the factors that led to the last economic crash where there was a cycle of increasing house prices and rents, which led to increasing pay demands, which led to increasing inflation. We all know where that ended. We, as a Government, are determined not to repeat the mistakes made by other parties in office. We need to make sure that we do not end up in an inflationary spiral.

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