FF parliamentary meeting to concentrate on social awareness

Fianna Fáil's determination to portray a more left-of-centre, socially concerned leaning for the rest of the Government's life…

Fianna Fáil's determination to portray a more left-of-centre, socially concerned leaning for the rest of the Government's life will be to the fore during a parliamentary party meeting in west Cork next week.

Ministers and TDs will hear a number of presentations, including speeches from the head of the Conference of Religious in Ireland, Fr Seán Healy, and the founder of the Irish Hospice Foundation, Ms Mary Redmond.

In further evidence yesterday that the Government will ease budget rules, the outgoing Minister for Finance, Mr McCreevy, gave a clear signal that the Government is to increase take-home pay for workers in future budgets.

The meeting, the seventh of its type to be held during Mr Ahern's leadership, will focus on the need to ensure that everyone in society benefits from economic progress, Government Chief Whip Ms Mary Hanafin said yesterday.

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Describing the theme as being one of "social awareness", Ms Hanafin said: "Obviously, there is extra money around. We have to make sure that everyone benefits from all of this."

The meeting will also hear from National City Brokers' chief economist, Mr Dermot O'Brien, while discussions among TDs will be organised by conference experts, Ms Siobhán Foster-Ryan and Mr Luke Monahan.

Fianna Fáil's determination to offer a left-of-centre image in coming months is considered necessary by the Taoiseach, following local election results which were little less than disastrous in some areas.

Though buoyant Exchequer finances should keep Fianna Fáil/Progressive Democrat relations stable in coming months, there is little doubt that FF's changing tack could eventually provoke conflicts.

After the opening of the new State laboratories in Co Kildare, Mr McCreevy hinted strongly that the Government will widen tax bands in the next budget and take all those on the minimum wage out of the tax net.

On Monday, the general secretary of the Irish Congress of Trade Unions, Mr David Begg, said the Government had promised major tax reform during a social partnership meeting in Government Buildings.

Saying he had "no disagreement" with Mr Begg, Mr McCreevy, who leaves to take up his new post as EU commissioner later this month, said there had been "outside the box" discussions with the unions on tax issues.

Emphasising that final decisions on the shape of the December budget will be a matter for the Government and the new minister for finance, Mr McCreevy said Mr Begg had made reasonable deductions.

Tax bands have remained unaltered in the last two budgets, a move which effectively reduced pay for many workers.

Trade unions will hold a special conference in Dublin today to consider ratifying the second phase of the Sustaining Progress agreement, which will give most workers a 5.5 per cent pay increase over 18 months.

The deal is likely to be ratified following a decision by SIPTU, the country's biggest union, to accept the agreement.

Meanwhile, Mr McCreevy has defended the Government's controversial special savings incentive scheme, which he said would benefit ordinary people rather than those with high earnings.

Last week Goodbody Stockbrokers estimated that €14 billion will flow into the economy when the SSIA scheme accounts matured in 2006 and 2007, with the average investor receiving about €13,000.

Mr McCreevy said few high earners had bothered with the scheme; those set to benefit most were in the ordinary social brackets.

He said that SSIA scheme had been set up by the Government to try to encourage saving, which he said in a growing economy had gone out of vogue. The scheme had been successful in encouraging ordinary people to save.