Taoiseach Brian Cowen has had recent discussions with the social partners about the new national pay deal, in the context of further economic decline.

With latest exchequer figures showing Ireland has a greater deficit than Rafael Benitez’s transfer dealings at Liverpool, emergency measures were needed. The agreed 6% increase has been widely criticised as too generous in the current climate and Cowen made a revised offer earlier today.

He has suggested pay freeze until 2010, 12,000 Superquinn points for each employee (to be spread out over a three year period), 500 Bank of Ireland shares and 2 free lines in the Christmas National Lottery draw. Also, financial advisor Noel Edmonds says employees will be given a small cardboard box which they can choose to trade in for a guaranteed €50 but may keep and open in the hope that a larger sum is inside. The box may contain nothing but fluff.

Union leaders are thought to be opposed to the deal and want to hold out for what they originally agreed. “We feel that if we simply ignore reality we’ll get what we want”, said one.