A cabinet Minister has warned that major pay increases could be “repeating the mistakes of the past”.

Leo Varadkar says increases to private sector wages could make Ireland less competitive and result in jobs actually being lost.

And as unions indicate plans for a 4% pay increase next year, the Minister has warned about unsustainable demands:

“We have been here before. We did get to that point in the country, not that long ago, where we became unsustainable in terms of pay levels, public expenditure in general and the level or borrowing that occurred.

“We really need to make sure that we don’t repeat the mistakes of the past.”