On the eve of tomorrow's plenary session of the social partners, the Government is preparing to deliver a hard-hitting message that it will not relent on public-sector pay.
However, in an attempt to defuse the prospect of unrest over wage restraint, the Government is likely to tell the social partners during their discussions on Partnership 2000 that further tax cuts, the introduction of a minimum wage and trade union recognition will be adequately addressed.
Meanwhile, spokespeople for both the Taoiseach, Mr Ahern, and the Minister for Finance yesterday denied a Sunday newspaper report that Mr McCreevy had threatened to resign from Cabinet over the Garda pay dispute. The Taoiseach's spokesman described the claim as "rubbish", while a spokeswoman for Mr McCreevy said that there was "no truth" in the report that he would quit his job rather than accede to the Garda pay demands.
While the Government's line on pay remains unchanged, it is not clear what approach the Irish Congress of Trade Unions will take at tomorrow's review.
In his address to the social partners, the Taoiseach is expected to clearly reiterate last week's post-Cabinet statement that there can be no "piggy-back" on the Garda pay deal. The entire tone and content of his statement tomorrow will call for an acceptance of tax cuts and non-salary improvements rather than pay increases.
"Given the constraints of EMU in relation to budgetary control, we cannot have wage-driven inflation. The Government wants to see consensus and to demonstrate that it is still committed to honouring Partnership 2000. Concerns will be aired and this is a listening exercise," a spokesman said.
Mr Ahern will be accompanied by Mr McCreevy - who will also insist on wage restraint - and by the Tanaiste, Ms Harney, who will emphasise her commitment to introduce a minimum wage. However, it is unlikely that she will be in a position to offer a specific timetable for this.
Claiming that many key commitments of Partnership 2000 had been delivered ahead of schedule, the Minister for Social, Community and Family Affairs, Mr Ahern, said yesterday that the partnership approach was a guarantee that the benefits of the economy would be shared by all.