A DISPUTE has flared up between Government partners. Labour and Democratic Left over how to tackle long term unemployment.
Last night the Democratic Left Minister of State to the Government, Mr Pat Rabbitte, rejected comments by the Labour leader. and Tanaiste, Mr Spring, that proposals in the Report of the Task Force on Long Term Unemployment represented the Government's "definitive" response to the problem.
Mr Spring made his comments in an RTE interview shortly after launching the report at Government Buildings yesterday. At the launch, he said major recommendations in the report would be implemented in next week's Budget, but he did not describe it as the "definitive" or only response to the unemployment problem.
However, in the RTE interview he described the task force report as representing the "definitive response" of the Government.
Reacting sharply to this Mr Rabbitte said: "My concern was that the RTE report left the impression that this was the Government's response to the long term unemployment problem. The announcement of the task force recommendations yesterday was merely one aspect of the Government's response, which I fully support.
"However there is a comprehensive report from the Minister for Enterprise and Employment, Mr Richard Bruton, and a detailed set of proposals from the Minister for Social Welfare, Mr De Rossa, still before Government. These proposals, together with today's announcement, will constitute the Government's total response to the unemployment situation."
Measures to exempt those on the lowest incomes from the tax net altogether are expected to form a central part of the Budget. Those on incomes of less than £80 to £85 a week will be exempted from the 5.5 per cent PRSI levy, while the level at which weekly income is relieved of income tax is expected to rise from £71 to about £73.
The Minister for Finance, Mr Quinn, is also expected to announce a substantial widening of the standard 27 per cent income tax band. Drink, cigarettes and petrol will again be targeted, with an increase of 5p on 20 cigarettes and a penny on the pint anticipated.
The Government also has agreed in principle on ESB price increases averaging 6 to 7 per cent over the next three years.