Payments by the Exchequer into the National Pension Reserve Fund will not be cut despite the Government's revenue difficulties, the Department of Finance said last night.

The declaration followed a call yesterday by top economist Mr Pat McArdle to scrap the Special Savings Incentive Scheme (SSIS) and cut contributions to the State pension fund, required by law to equal 1 per cent of Gross Domestic Product.

Initially, the Department told Today FM that the Minister would "definitely" not be touching the SSIS and there were "no plans" to change the legislation dealing with pension contributions.

The language was seized upon by Labour's Mr Brendan Howlin, who claimed it was clear the Minister was prepared to cut the contributions to shore up the deteriorating public finances.

"Fianna Fáil in the run-up to the election were categorical about not cutting the National Pension Reserve Fund contribution or using the pension fund money for any other purpose," he said.

Responding to questions from The Irish Times last night, the Department said there had been no attempt to make a distinction between the Minister's support for the SSIAs and the fund. "Nothing should be read into this. There are no proposals anywhere in the Department to change the situation. That is the definitive position," said the spokesman, after he had checked with the Minister.

"We have said legislation would be required to change the legislation and that there are no proposals to change the legislation," the spokesman said.