The Fine Gael leader has warned against excessive pay demands. Mr John Bruton said he was referring in particular to the demands by scaffolders for a 200 per cent increase. "Some extravagant demands are being made at the moment, which could entirely derail our process of economic growth."

The Taoiseach said that unofficial disputes always created great difficulty for the economy.

"While it would not be appropriate for me to comment on the specifics of any dispute, I would urge the representatives of the scaffolders and the construction industry that they should engage in talks as a matter of urgency, using the labour relations machinery of the State."

Mr Pat Rabbitte (Labour, Dublin South West) asked Mr Ahern if he accepted that in an industry which was in boom, other grades, especially the craft grades, had used the local bargaining clause and won some concessions as a result.

He added that it could be said scaffolders had a real grievance, without commenting in any way on the actual claim as phrased.

Mr Ahern said he hoped that its resolution could be achieved by dialogue and negotiation.

Later, speaking on the adjournment, Mr Rabbitte said that the industry was recording unprecedented profits, and it was entirely understandable that workers would seek to share in the performance.