The Government is giving strong consideration to introducing a savings or pensions bond to compensate workers and social welfare recipients for inflation.
The idea is being closely examined at senior political level, within the Department of Finance and in talks between the social partners.
The scheme would give people money to compensate for inflation while tying it up for a period, possibly even until the bondholder retired. However, there is no agreement on the exact form the arrangement would take.
Its supporters in Government and the trade union movement are arguing that it would allow workers to receive significant tax cuts - or even extra pay rises - while easing inflationary pressure by ensuring that at least some of this money was not immediately poured into the economy.
The Taoiseach indicated last night that he was open to the idea, telling an audience of trade unionists he would consider all proposals. While not referring directly to the bond idea, he listed criteria by which measures to deal with inflation would be tackled.
Significantly, a savings or pension bond would fulfil the Taoiseach's criteria: the need to limit consumer consumption; to help the less well off; to be cost-effective; and to meet the PPF objectives.
However, as the social partners prepare for detailed talks next week, clear differences are emerging between SIPTU and the Progressive Democrats on what form such a bond should take.
While SIPTU called again last night for a £500 Exchequer bond for everyone in the State's social insurance scheme, the PDs indicated that they favoured a voluntary scheme whereby individuals would be given tax incentives to save a portion of their income.
A spokesman for the Tanaiste and PD leader, Ms Mary Harney, said last night that she was willing to consider all proposals.
It is also understood that the idea of revising the Programme for Prosperity and Fairness (PPF) to give workers a pay rise in the form of a bond is also being given serious consideration.
This has been suggested as an alternative to the proposed rapid introduction of profit-sharing schemes.