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Minister for Public Expenditure and Reform Paschal Donohoe says there is no guarantee there will be an agreement on public sector pay but the absence of one would be "an appalling vista".
“I don’t want to see a scenario like there was in the late ‘80s when there was sector after sector trying to outdo each other on wage agreements,” he said.
“That would be the route to crippling public finances.”
Talks between the Government and public service unions and representative bodies on an extension to the existing Lansdowne Road pay agreement are expected to get underway next week, probably on Monday.
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In advance of these talks, unions are expected to meet with the Workplace Relations Commission - which will be hosting the negotiations - on Wednesday to discuss arrangements for the process.
Speaking on Newstalk's Pat Kenny Show on Wednesday morning, Mr Donohoe said that under the Fempi (Financial Emergency Measures in the Public Interest) legislation there was a cut to everyone's take home pay on the basis of their income not their job.
The aim of the new public pay talks would be to guarantee affordability, fairness and productivity, he added.
“It has to be affordable and it has to be fair to everyone.”
When asked if he would be “judge and jury” on the issue, he said his department would adjudicate, he would be the judge and the Cabinet would be the jury.
“There is no guarantee that we will get a deal. The agenda will be demanding. Any agreement has to be affordable. It has to take account of future demographics.”
Mr Donohoe pointed out that the population was growing by 5 per cent per annum, while the population over the age of 85 is increasing by 3 per cent a year.
When asked about the possibility of his department amalgamating with the Department of Finance, he said that his department had justified its existence.
“It is a brilliant department. I would love to continue to lead it.”