The Health Minister says public sector workers deserve pay restoration.

Leo Varadkar's comments come as unions and government inch towards a deal on public sector pay - with workers set to gain around €1,000 next year and a similar amount in 2017.

Negotiations aimed at reversing some of the cuts made during the financial crisis were adjourned in the early hours of this morning, due to Government objections. The talks resumed this morning.

It is understood public sector workers are in line for a €1,000 pay increase for 2016, and a similar amount the following year - in return for further reforms and changes in work practices, and an extension to the Haddington Road agreement.

This would commit staff to solving disputes through binding arbitration rather than strike, and would also demand further reforms in work practices.

Talks continued into the early hours of this morning and were adjourned at around 2am. Unions say substantial and positive progress had been made.

Both sides are meeting again at the Labour Relations Commission this morning. Speaking on his way in to talks, Niall Shanahan of IMPACT was feeling positive:

Health Minister Leo Varadkar says public sector workers deserve pay restoration, and that he is hopeful that a deal will be reached:

Chief Executive of the Labour Relations Commission Kieran Mulvey says a deal is close:

Martin Wall, Industry Correspondent with the Irish Times, spoke to Newstalk Breakfast this morning about the details of the draft deal: