The Taoiseach says he hopes trade unions will respond to an invite to Government for fresh talks on cutting the public service pay bill inside two weeks. It follows a decision by the Cabinet earlier today to see if the 21 unions would be willing to engage.

The Public Expenditure Minister Brendan Howlin briefed the Cabinet this morning for the first time since unions voted down the 'Croke Park 2' proposals last week.

The Cabinet reaffirmed that there is a requirement to make €1 billion in savings by 2015 and that €300 million of this must come before the end of this year.

In a bid to see if some sweeter deal could find favour with public sector workers the Labour Relations Commission has been asked to see if it can establish a new round of talks.

Chief Executive Kieran Mulvey is to make contact with trade unions in the coming days and establish "whether or not there is a basis for a negotiated agreement to meet these budgetary targets" a statement from the Department of Public Expenditure and Reform stated.

The Taoiseach was quizzed on the matter in the Dáil by Sinn Féin deputy leader Mary-Lou McDonald.

And as he went into Cabinet this morning Finance Minister Michael Noonan insisted the savings would have to be made.