A Fine Gael private member's motion on social partnership was defeated last night. The motion deplored the introduction of "suspicion and uncertainty" by the Government to the talks on social partnership and called for the necessary steps to be taken to reassure the participants of its good faith.

The motion was supported by Labour.

In response to the motion, the Minister for Finance, Mr McCreevy, said he recognised the strength of feeling generated on this issue and on what taxpayers perceived as an unequal approach to stay-at-home spouses and two income families.

Mr John Bruton, Fine Gael leader, said the Budget undermined social partnership. The Government was absolutely wrong to apply different standards to the better-off.