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McCreevy briefs colleagues on Budget proposals

The Minister for Finance, Charlie McCreevy, has been briefing individual Fianna Fáil back-benchers about his Budget proposal to widen tax bands in favour of couples with two incomes. The proposal has been sharply criticised by Opposition parties and various interest groups as socially divisive. The Taoiseach has also been defending yesterday's Budgetary tax measures for married couples. Bertie Ahern told the Fianna Fáil President's dinner in Dublin tonight that the existing system discriminates heavily against single people, even those below the average industrial wage, and against married women, particularly older married women, returning to the workforce.

Earlier today, the Labour Party condemned the budget as callous and anti-family. The party's deputy leader, Brendan Howlin, referred specifically to the decision not to raise the standard rate tax band for one-income married couples in line with those for couples with two incomes.

Deputy Howlin said that it was "beyond his imagining" how independents such as Mildred Fox, Harry Blaney and Jackie Healy-Rae could vote in favour of these proposals. Earlier, the Ceann Comhairle was forced to suspend the Dáil twice following attempts by the opposition to raise yesterday's budget on the order of business.

However, Mr McCreevy, defended the Budget against the accusations. He fielded calls from the public for over an hour on the Pat Kenny radio show this morning. Afterwards, he said that some people seem to have misunderstood the effect of the changes he made.

Employers and unions have generally welcomed the provisions in the Budget. Budget 2000 will reduce the top and standard rates of income tax, widen tax bands as well as increase personal tax allowances, pensions and social welfare payments. But the National Organisation of the Unemployed said that far too little had been done for the less well-off.