A government climbdown over the controversial Budget tax proposals has become increasingly likely amid concerns over the continued support of the four Independent TDs.
The stand-off between SIPTU and the Government over the Budget shows no signs of being resolved and Government negotiators have deferred a meeting, due to be held this morning with the social partners, to assess the position after SIPTU concludes its deliberations at Liberty Hall.
The SIPTU executive is due to conclude its meeting about lunchtime and outline the clarifications it requires on the Budget before re-entering talks.
A special executive meeting of the Irish Congress of Trade Unions will take place afterwards.
Three of the four independent TDs - Mr Harry Blaney, Mr Jackie Healy-Rae and Mr Tom Gildea - are due to meet the Government Chief Whip, Mr Seamus Brennan, later today.
The Wicklow TD, Ms Mildred Fox, who is out of the country, last night issued a statement calling on the Minister for Finance to "revisit this particular provision".
The Budget proposal on individualisation is likely to generate angry exchanges on the floor of the Dail chamber today. The Fine Gael leader, Mr John Bruton, said the proposal had caused "enormous hurt" to women in the home.
Should the measure favouring double-income families be left unaltered, the Coalition faces the possibility of a Dail defeat in the new year on the Finance Bill. Such a development would precipitate a general election. However, it is likely that some form of balancing measure will be introduced prior to such a situation.
While the Minister for Finance, Mr McCreevy, continued to defend his proposals, the Taoiseach, who has defended his Minister - yesterday pointedly declined to comment on the controversy. The view in Government circles was that the steam had to be taken out of the controversy as soon as possible.
Ironically, the only evidence of political support for the beleaguered minister has come from the PDs.
The party's four senators have placed a motion for discussion in the Seanad on Wednesday evening which notes that "recognising the unprecedented benefits for single-income families . . . the Seanad endorses the Government's policy of tax reduction and reform and the individualisation of tax bands . . .". However, the PD Senator John Dardis last night accepted that the "whole thing needs to be looked at again".
Last night, SIPTU president Mr Des Geraghty said there was "no point sitting around for months in talks fooling people. Our position is clear. We are not going back into those talks until we know the Government position on low pay and the social policies outlined in the NESC (National Economic and Social Council) report.
"What Mr McCreevy did in the Budget is anathema to our people," he said.
The Cabinet is to discuss the situation this morning and the Taoiseach, Mr Ahern, is expected to be able to outline the Government's position in the Dail this afternoon. Simultaneously it is hoped the meeting of the social partners, adjourned yesterday morning after the surprise withdrawal of SIPTU from talks, can resume.
Although yesterday's meeting of social partners went ahead, at the insistence of Irish Congress of Trade Unions general secretary, Mr Peter Cassells, senior negotiators for the Irish Business and Employers Confederation (IBEC) have made it clear that there can be no meaningful talks without SIPTU.
IBEC's director of employee relations, Mr Turlough O'Sullivan, said the prospect of a free-for-all taking place when Partnership 2000 expires was becoming more likely.
The Tanaiste, Ms Harney, last night staunchly defended the Budget, saying "it was not and is not a mistake".
Ms Harney said a budget was central to Government strategy and sent a strong signal that there would be no climbdown.
Ms Harney said the Budget was part of a three-year programme designed to take as many people as possible out of the top tax rate and there was a lot of misunderstanding that women who stay at home were going to pay for it.
"Every single taxpayer, every single family will gain from this budget," Ms Harney said on RTE's Questions and Answers programme.