McCreevy says scope for tax cuts is limited

Finance Minister Charlie McCreevy has hinted that a possible new social partnership deal under discussion in Dublin Castle might not include commitments to reduce income taxes.

Speaking ahead of today's talks, Mr McCreevy said: "The scope for further tax reductions which were a main feature of agreements from '87 onwards is very limited."

The minister also suggested today that payments due under the benchmarking process would be weighed against calls for greater provision for the less well-off and the need to reduce public spending.