Ahern supports view of union leaders on PPF proposals

The Taoiseach, Mr Ahern, has confirmed that his understanding of the tax cuts provided for in the Programme for Prosperity and…

The Taoiseach, Mr Ahern, has confirmed that his understanding of the tax cuts provided for in the Programme for Prosperity and Fairness was the same as that of senior trade union leaders.

He was commenting as he arrived at Trinity College Dublin last night for the unveiling of a statue to the late Veronica Guerin.

He attributed confusion over the tax cuts of 10 per cent due during the next three budgets to opponents of national agreements. "There are some people who were always opposed to partnership and still are," he said.

Shortly after midday yesterday the Government issued a statement confirming that the PPF would provide for increases in take-home pay of at least 25 per cent, and that the tax cuts in last December's budget were in addition to these cuts.

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The statement has been welcomed by most trade union leaders and by the Irish Business and Employers' Confederation. The SIPTU president, Mr Des Geraghty, said the statement "fully supports the Irish Congress of Trade Unions' position of nailing the lie that the programme was over four budgets".

The IBEC's human resources director, Mr Turlough O'Sullivan, said it was also his understanding of the PPF that it provided for 15 per cent in pay increases and for 10 per cent in tax cuts.

He added that the tax measures posed no problems for the IBEC.

The December budget was outside the national agreements and attracted strong trade union criticism for giving most tax breaks to middle- and upper-income groups.

"The Government statement confirms that the tax changes which are to yield an average 10 per cent increase in take-home pay will occur during the next three budgets," Mr Geraghty said yesterday,

"The confusion engendered by the December budget should not deter people from recognising significant progress was made in the negotiations to rebalance measures in favour of the low paid, by reducing their PRSI and health levies."

Mr Ahern said he shared the views on the PPF tax package expressed by trade union leaders such as Mr Geraghty.

The Irish secretary of the ATGWU, Mr Mick O'Reilly, was still calling for clarifications on the tax issue last night but other social partners seemed satisfied with those already given by the Government.

The executive of the Irish National Organisation of the Unemployed has recommended acceptance of the PPF, primarily on the basis of commitments in the document to create full employment. But its press officer, Ms Noeleen Hartigan, in a statement after it met yesterday, confirmed that the INOU was also satisfied with the Government's clarification on tax cuts.

A special delegate conference of the Irish National Organisation of the Unemployed is to vote on the PPF next Thursday.

Father Sean Healy of the Conference of Religious of Ireland said the clarifications on tax cuts meant that the new agreement was on line to "reduce the rich-poor gap in Irish society, if its terms are honoured in spirit and in substance".