The Minister for Public Expenditure and Reform says significant progress has been made in talks on the Croke Park 2 deal but there is still a way to go.

Brendan Howlin will brief the Cabinet this morning on the latest developments in negotiations with public sector unions on €300 million worth of savings this year. The head of the Labour Relations Commission (LRC) Kieran Mulvey is leading the talks and has been given more time to try and reach agreement.

Last night an agreement was reached in principal with health sector unions. Both sides say more work needs to be done, and the talks will resume in a fortnights time. The health sector unions are crucial to the deal as half of the €300 million savings targeted come from their budget.

It has emerged this morning the government thinks it is unlikely a collective agreement will be reached. However a number of individual deals appear likely.

Those outside the process still face the prospect of having an across-the-board pay cut imposed.

Last night the LRC head met with Public Expenditure Minister Howlin to brief him on the latest developments. It is understood the Minister was given information about which of the unions are close to agreement.

Mr. Mulvey said there had been significant progress, with the groups that agreed in principal to the new deal now going  to consult their members. A number of unions stayed locked in talks at the LRC late last night. 

While Speaking on his way into that Cabinet meeting this morning Mr. Howlin said savings have to be made one way or the other.