The Government faces an embarrassing revolt from the four Independent TDs it depends on for support over the credit union tax controversy.
The deputies, Ms Mildred Fox, Mr Jackie Healy-Rae, Mr Thomas Gildea and Mr Harry Blaney, will meet today to consider their position in advance of a Dail opposition motion calling on the Government to introduce a fairer credit union tax regime.
The private members' motion, tabled by Fine Gael and supported by Labour, is calling on the Government to amend the Finance Bill to take account of the report of the working group on the taxation of credit unions.
That group recommended in 1998 that credit unions remain exempt from corporation tax and from reporting interest or dividends on savings to the Revenue Commissioners.
The debate will start tonight, and TDs will vote on the motion tomorrow night.
Mr Healy-Rae told The Irish Times last night that he made a request in January through the Taoiseach's office for a meeting to be set up between a Government representative and the credit union movement.
"I am still waiting for a response to that request. I have no regard for people who will not come out and at least meet people. I take a very poor view of this," he said.
However, a Government source last night said that Mr Healy-Rae was given a commitment that such a meeting would take place. He said a meeting between the Taoiseach and his officials and credit union representatives would happen "in the near future".
"A meeting will be set up. It has been in mind for some time but we are not exactly sure when it will happen with the Northern situation as it is," the source said.
The Kerry South TD was critical of the fact that the Minister for Finance had refused to meet representatives of the credit union movement in the last two years.
Asked if he would be voting with the Government on the Fine Gael motion, Mr Healy-Rae said: "It is very hard for me to make my mind up until I have heard from the Government on the issue and until I meet the other Independent TDS, when the matter will be discussed."
The Fine Gael spokesman on finance, Mr Michael Noonan, who will be leading the debate on the motion, said the Minister for Finance's war on credit unions had gone on too long.
He said Mr McCreevy's lenient approach to the banks was in marked contrast to his "hostile" attitude to the credit union movement. Mr Noonan claimed the Minister had avoided meeting credit union representatives for the last two years.
A proposal in the 1998 Budget to tax dividends above u£375 from credit union savings generated considerable controversy. Mr McCreevy was forced to do a U-turn in the subsequent Finance Bill.
The European Union competition directorate is currently investigating the tax treatment of credit unions to determine whether they have been favourably treated by the State.
The investigation followed a complaint by the Irish Mortgage and Savings Association that credit unions benefit from preferential tax treatment by not being liable for corporation tax and that members of credit unions do not pay retention tax on their savings income.