An initial round of talks yesterday left some union leaders pessimistic that a deal could be done because of the level of demands being sought by the government.

The Government wants to make savings of €300 million in the public service this year, and a billion over the next three years.

Donal Donovan - whose a member of the Government's appointed Fiscal Advisory Council - says he believe the unions will know there must be some movement on the issue of pay:

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