HIGH economic growth was being camouflaged by unprecedented growth in public spending, the Fianna Fail finance spokesman said. On the second stage of the Finance Bill, Mr Charlie McCreevy said the Government consciously decided to spend he fruits of the economic revival.

There was a myth that increased spending was always "socially good". It was a nonsense when corrective measures be taken it was the poor and the weak who bore the brunt.

Under the tax system, he said, single workers earning less than the average industrial wage had more than half their wages taken by the State in tax and PRSI.

McCreevy welcomed the proposal to consolidate tax legislation, but said that what people really wanted was reform. If anything, consolidation would "fix more firmly the bureaucratic maze". And while the tax system was complicated, it was a "shining beacon" compared to the social welfare system which was "confused with anomalies".

He reiterated Fianna Fail's pledge on Budget Day that, on its return to office, the party would abolish the residential property tax.

Officials of the Revenue Commissioners were concerned about a small number of leaks to newspapers and to members of the House in recent years of taxpayers' confidential affairs. This should be stamped out. The rules should be applied on the same basis to all citizens. "Any deviation from those principles on whatever grounds is not justified," he said.

The Minister for Finance, Mr Quinn, said the Bill gave effect to the tax measures in the Budget. The law regarding income tax, corporation tax and capital gains tax would be consolidated into a new act next year.

Debate on the Bill continues today.