The Government is ready to increase State spending next year beyond expectations following better-than-expected Exchequer figures, Taoiseach Bertie Ahern strongly hinted last night.
The €4 billion surplus reported by the Minister for Finance, Brian Cowen, was "a stronger than expected surplus against which he is preparing next week's Budget", Mr Ahern told Fianna Fáil supporters.
However, he insisted Mr Cowen "will stick to the right course of prudent investment for Ireland's future" because this "approach is yielding real benefits".
"Of course, these additional resources are welcome. We will use them in a way which rewards work, supports services and improves the country's long-term budgetary position," he said.
The €4 billion Exchequer surplus was an "outstanding" performance and "the result of the hard work of the Irish people and our economic policies", he told the annual Cáirde Fáil dinner in Citywest in Dublin which was attended by 2,000 Fianna Fáil party members.
"Responsible government works. It provides for both today and for tomorrow. It encourages people to invest and rewards people for their work. It is the starting point of a virtuous cycle that allows us to enjoy economic prosperity and high social spending in a way that is sustainable. It is the essence of sound leadership," he said.
Meanwhile, Mr Ahern said he hoped that Sinn Féin would hold a special ardfheis to declare its support for the Police Service of Northern Ireland before Christmas, or in early January.
"I welcome the Sinn Féin commitment to addressing the policing issue. I know how sensitive this is for them. But it is clear that they now believe that all outstanding issues can be resolved.
"Everyone must work together to help deliver this vital last step. I hope that Sinn Féin will then move to convene a special ardfheis within the next few weeks or in early January.
"A successful and early resolution of this matter is vital to bolstering confidence and keeping the St Andrews process on track," he told the Citywest Hotel dinner.
"When I met prime minister Tony Blair in Dublin in January, we were of one mind. We simply could not, and would not, let the situation drift for another year," he said.
"I have never shirked from the challenge of bringing permanent peace to this island. From Armagh to St Andrews, we have patiently pursued a determined strategy.
"This has brought us to the point where we can now look forward to full restoration of the devolved institutions next March. For the first time ever, we now have all parties on board for the future.
"I believe that if everyone plays their part and honours the St Andrews Agreement, we can bring this process to successful completion," said the Taoiseach.
"A commitment by the DUP to powersharing and a commitment by Sinn Féin to policing are the twin foundations for progress. Northern Ireland desperately needs to move on.
"The people of Northern Ireland deserve no less."
The year ahead "has to be a year of real achievement", he said, adding that "a successful and early resolution" of policing "is vital to bolstering confidence and keeping the St Andrews process on track.
"I believe that with agreement, this entire island will be able to grow together in peace and prosperity into the future," he said.
Welcoming Fianna Fáil general election candidates, Mr Ahern said next year's election would be "critical" for Ireland's future: "It is about the historic opportunity to build a stronger, fairer Ireland. It is an opportunity that Ireland must not miss."