The Dáil has heard claims that scrapping the legislation to impose pay cuts on public-sector workers would “jeopardise” Government finances.

Public Expenditure Minister Paschal Donohoe said that the country cannot afford to undo public-sector pay cuts in one swoop – and a staggered approach is needed.

He was speaking as TDs debated the possible repeal of the so-called ‘FEMPI’ legislation which has imposed pay cuts on public servants for seven years.

Minister Donohoe said that understands why some want the laws scrapped, but says Ireland simply cannot afford it.

“I fully appreciate the impact of pay reductions on individual public servants,” he said.

“But now is not the time to jeopardise our economic progress with the unaffordable, immediate repeal of the FEMPI legislation,” he said.

“We remain committed to the implementation of the Lansdowne Road Agreement, which has commenced a sustainable unwinding of that legislation.”