The Irish Congress of Trade Unions gave a guarded welcome to the Government's package of measures to tackle inflation last night as a "first instalment", but warned that much more needs to be done.

Meanwhile, opponents of the Programme for Prosperity and Fairness (PPF) are expected to begin a campaign for ICTU to call a new special delegate conference to review participation in the national agreement.

The Government has not so far taken up ICTU proposals to cut VAT rates and duty on petrol, but the commitment of £40 million extra for childcare facilities this year was welcomed, as was a commitment not to increase charges by statutory bodies such as local authorities, CIE and the ESB.

The general secretary of the ICTU, Mr Peter Cassells said, "While elements of the package seem to indicate that the Government is beginning to recognise the seriousness of the situation, a more comprehensive approach is needed to protect living standards. Congress will continue to insist that further action be taken."

Besides reductions in VAT and duty on petrol, ICTU wants compensation in the Budget for all those others on fixed incomes whose living standards have suffered because of "the surge in inflation".

Congress has requested negotiations on the Budget "commence immediately". If "living standards continue to be eroded by inflation and adequate compensation is not provided for in the Budget, then congress will renegotiate the PPF".

IMPACT general secretary Mr Peter McLoone said bluntly the Government's package of measures would not be enough to bring short-term inflation down. The most that could be said was that it was "the first concrete indication that the Government was prepared to protect the spending power" of consumers. SIPTU president Mr Des Geraghty was very reluctant to give any welcome to the Government package in case this suggested that trade unionists were satisfied. "It will take a lot more if we are to tackle the problem of underlying inflation," he said.

However, he particularly welcomed the decision of the Government to meet representatives of other bodies such as the Construction Industry Federation, the Irish Auctioneers and Valuers Institute, the Irish Medical Organisation, the Bar Library and various trade bodies to impress on them "a sense of social responsibility". in setting prices.

"Tackling inflation cannot just be left to the trade union movement," he said. "We don't want Government Ministers to be just chatting to these organisations either, we want real results to follow." He said that if the Government is serious in its efforts the effects should begin to show from next month. However, one opponent of the PPF, Amalgamated Transport and General Workers Union leader Mr Mick O'Reilly, not only described the Government's measures as "too little, too late" but said last night that he was going to begin a campaign to call for a special delegate conference of ICTU to review participation in the agreement. He said proposals for promoting consumer awareness were "very noble" but did not pay bills.

"A lot of this is just for the optics," he said. It was now very clear that "Irish workers were sold a pup" during the PPF debate.

Meanwhile, the Vintners' Federation of Ireland will be seeking an immediate meeting with the Minister for Labour, Trade and Consumer Affairs, Mr Tom Kitt, to discuss the proposed imposition of price control on drink.

A spokeswoman for the federation noted that the Minister intends to consult relevant interests and, as an interested party, the VFI will be putting its views across.

The VFI believes that a price order is a crude and discriminatory measure and unworkable in the long term, the spokeswoman said.