TREASURY is braced for demands for more money from departments to cover this year’s pay deals. Manual workers have been awarded a 5% rise for 2008, but departments’ budgets have been based on a predicted 3.5% RPI growth.

Now other major groups such as civil servants and teachers are looking to settle and it is likely the manual workers’ award will be the basis for that.  Treasury minister Deputy Charles Parkinson said he was hopeful departments would make savings elsewhere in their budget.

‘We know that there are a considerable number of vacancies across the States, but if departments have problems meeting the cost of the payroll, then they will bring it back to Treasury and Resources,’ he said.

‘I don’t know specific positions of any department but my own, but it may be they will not need to come for more money.’

He could not confirm the cost to the States of the manual workers’ deal.