The Public Expenditure Minister Brendan Howlin says he agrees with the Irish Congress of Trade Unions (ICTU) General-Secretary that out-dated public service allowances should be re-examined under the Croke Park Agreement.

However he defended his decision to leave allowances largely untouched during a comprehensive review of the payments which was completed last week.

The failure of the government to stop any of the more than 1,000 allowances for public servants has angered a number of Fine Gael backbenchers who wanted savings to be made.

Today the General-Secretary of the ICTU has said the system of allowances is out-dated and discussions are needed to modernise them and integrate allowances into core pay.

That call has been backed by the Energy Minister Pat Rabbitte who admits changes have to be made.

Today the Public Expenditure Minister Brendan Howlin said a huge swathe of public service allowances amount to core pay.

He said he strongly agrees with David Begg that reforms are needed.

While the Minister for Education Ruairi Quinn says the issue of public sector allowances should be part of the negotiations on a new Croke Park Agreement.

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