Cowen to make Dáil statement on public finances

The Taoiseach is to make a 10-minute statement in the Dáil this afternoon following the collapse of talks aimed at agreeing an economic recovery plan.

The discussions broke up without agreement in the early hours of this morning.

The trade unions say they could not accept government plans to introduce a pension levy on low and middle-income public servants as part of efforts to plug the massive deficit in the public finances.

The Government is now expected to press ahead with a range of public-spending cuts and revenue-raising measures without the agreement of the unions.

Mr Cowen will make a statement on the matter in the Dáil at 4pm, with the opposition parties given 10 minutes each to respond to the statement.

Fine Gael is calling for all Dáil business to be suspended to discuss the issue and says it will only support the Government's measures if they are "fair and balanced".