THE Tanaiste, Mr Spring, will indicate Labour's priorities in the Coalition's three party Budget negotiations today, when he gives a briefing on tackling the unemployment problem.
The Government has still to finalise a package to tackle long term unemployment, but a much more active approach towards getting school leavers into the jobs market is one element that is now expected.
On his departure for Italy last night the Taoiseach, Mr Bruton, set out to dampen expectations of large tax cuts in next week's Budget. There would be reductions in personal taxation, he said, "but I think that some of the expectations that have been created are quite unreal".
The need to keep Exchequer borrowing within the guidelines set in the Maastricht Treaty is believed to be a key factor limiting the scope for concessions on tax. However, PRSI relief is expected, including an increase in the £50 PRSI allowance introduced last year.
The Minister for Social Welfare, Mr De Rossa, indicated yesterday that further increases in child benefit remained a priority, although he would not speculate about the Budget contents.
As attention is focused on differences between Fine Gael and Democratic Left in the negotiations, Mr Spring will give a press briefing on the report of the task force on long term unemployment today. The joint Government and National Economic and Social Forum task force comes under the aegis of his office.
It is understood that some elements of the report, dealing with the operation of the community employment scheme, have already been agreed by the Cabinet for inclusion in the Budget. But at today's briefing Mr Spring will emphasise the Labour Party's input into the three party talks.
The Budget is expected to announce that higher numbers of long term unemployed people will participate in the Community Employment Scheme and that the quality of the training and work available on the schemes will be improved.
Government sources confirmed last night that the package to help the long term unemployed was not finalised at yesterday's Cabinet meeting.
It is understood, however, that Ministers have refined their budgetary options on the taxation package, social welfare proposals and other measures to boost employment.
The Cabinet sub committee on the Budget will meet over the next couple of days with a view to finalising the budget package at another Government meeting on Friday.
The contentious proposal to reduce unemployment payments for new 18 and 19 year olds coming on to the live register has been revamped.
It is now expected that the Budget will indicate a much more active approach to getting late teenagers into the jobs market through the local employment service. However, cash reductions in unemployment payments are not expected.
The cost of the proposed measures to deal with long term unemployment is still proving an obstacle to final agreement.
The Government agreed before Christmas that spending this year should not exceed £12.087 billion. Mr De Rossa said yesterday that this limit was an important discipline, but that if it was a question of whether to breach it by £10 million to fund a worthwhile initiative then this should be done.