Marese McDonagh

Taoiseach Enda Kenny warned today that the Government was not in a position to “write large cheques” while conceding that tax figures due to be published this afternoon were “quite strong”.

Speaking at the opening of a new €17million science building at IT Sligo, in advance of the publication of the tax returns, Mr Kenny warned that” our situation continues to be fragile”.

Asked whether the new figures would mean tax breaks in the budget he said the country still had an enormous debt. “We are not in a position to write large cheques. What we are in a position to do is to continue to manage the economy in a way that continues to make Ireland really competitive, that makes it attractive for continued investment and for the creation of jobs.”

The Taoiseach warned that the continuation of the strike at Irish Rail would damage the reputation of the country.

Urging both sides to get down to “real talks” he brushed aside speculation about a possible increase in the Government’s subvention to the company.

“The Minister for Transport has made it perfectly clear that the tried and tested mechanisms of the State are at the disposal of both sides here ,” said the Taoiseach. “I really would urge them now to get down to real talks with the assistance of the Labour Relations commission and hopefully bring about a conclusion to this.”

Mr Kenny said nobody was benefiting from the continued unrest. “Nobody benefits - not the consumer, the traveller, the workers at the company and our reputation as a country is not helped by tie either.

He said he hoped a conclusion could be reached within LRC “not have further strikes in this matter”.