Public sector workers gearing up to vote on a new pay deal to replace the Lansdowne Road Agreement

'Lansdowne Road 2'  - as its being dubbed will cost 180 million euro in the first year and has three key elements

It includes pay increases for most public workers -  the creation of a new pension contribution - and the removal of extra working hours introduced under previous deals.

But Leo Varadkar has conceded that the costs of the new deal will reduce the amount available to spend elsewhere in the Budget.

The new Fine Gael leader says there will be enough money left to continue cutting taxes on pay.

More from Cork