The Minister for Finance, Mr McCreevy, has said the Government will look at all possible measures to tackle inflation.
Speaking at the launch of the National Pensions Reserve Fund Bill, the Minister strongly defended his record on inflation and said he would be reviewing all the options, including those put forward by the Irish Congress of Trade Unions (ICTU), and would implement whatever measures would have the most impact over the longer term.
However, senior trade union sources said last night that Congress leaders had been told it is unlikely that the Taoiseach, Mr Ahern, will have a detailed response available for them within the next week. If this happens, unions opposed to the Programme for Prosperity and Fairness (PPF) may propose that a special delegate conference be held to consider withdrawing from the agreement.
While admitting that he would prefer if inflation was 1 per cent, Mr McCreevy said it was a product of success. "No other country has had the high growth rate, the fall from very high unemployment and the amount of spending which the National Development Plan implies."
Mr McCreevy added that he will meet the social partners shortly and that the measures they had proposed to curb inflation would be considered.
He pointed to outside factors, such as the relative weakness of the euro and the price of oil, which the Government can "do nothing about".
Overall, increasing competition is "absolutely" the best way to tackle inflation, Mr McCreevy said. But he said this could be very difficult.
ail because of the vocal publican vocal lobby and the fact that many TDs hold their clinics in pubs.
"There would be uproar in the House," he said.
The PPF is likely to come under renewed attack at the Irish conference of the Amalgamated Transport and General Workers' Union today. Its Irish secretary, Mr Mick O'Reilly, has already called for a special delegate conference of ICTU, and several other unions are expected to back his call next Wednesday.
It is unlikely that they will secure a majority but the continuing slowness of the Government response will put pro-PPF union leaders under considerable pressure.
