Lenihan hints at future tax rises

Minister for Finance Brian Linehan has today indicated that further tax rises will be a feature of his future economic policy.

Speaking in the Dáil today, Leinhan stated: “Whatever taxation measures are to be introduced will be informed by the principles of fairness, with the higher proportion falling on higher incomes.”

Lenihan also admitted there is still a lot of tough talking to be done before agreement is reached with the social partners on cutting €2bn from public spending.

A framework document published yesterday identified areas where potential progress can be made.

The discussions are expected to run into the weekend, with all sides acknowledging that the negotiations will be difficult.

However, Brian Lenihan told the Dáil today that the importance of an agreement should not be underestimated.

The Minister warned that the cut in public spending is only the first step in reigning in Government spending.

On his way into the talks this afternoon, John Carr of the Irish National Teachers Organisation said he expected tax to dominate the evening's agenda.