Tax relief for profit sharing schemes will form part of the forthcoming Finance Bill, the Tanaiste, Ms Harney has said.

Launching Forfas's strategic plan for the next 10 years, she also said forthcoming budgets will ensure that workers on the minimum wage should not pay any income tax at all.

She said it is "clearly not acceptable" that someone on the minimum wage should pay any tax.

The pledge - involving further tax relief for the lower-paid - is expected to form part of the deal between the social partners on the national wage agreement, which may be settled by this weekend.

To the obvious pleasure of Forfas chairman and the ICTU general secretary, Mr Peter Cassells, Ms Harney said the Government will now move very rapidly to implement this in forthcoming budgets.

"It will be done in the lifetime of this Government, but should also be done as a matter of priority," she said.

The Tanaiste also pledged that the forthcoming Finance Bill will contain very detailed provisions on tax relief for profit and gain sharing schemes which will also form a crucial part of a new national agreement.

She added that she and the Minister for Finance, Mr McCreevy, had agreed detailed schemes which will be included in the Bill. The practice and experience in many other countries has been taken into account, she added.

Profit or gain sharing must also be open to the wider membership of each organisation. "It must not be ring-fenced for senior people. All workers must be able to participate," she said.

The wage talks are now focussed on the issue of the low-paid. The central wage element has been basically outlined and both sides are likely to settle at a rise of around 15 per cent, halfway between the respective current positions.

However, the low-paid will need to have a larger rise. Various formulas are now under consideration.

One would give an employee on, say, £250 or less, an extra percentage point increase. However, another option would be to pick a figure and give either that or the basic percentage increase, whichever is higher.

There are also further tax or social welfare options which may be introduced in the Finance Bill.

The childcare issue has yet to be agreed. The community and voluntary pillar of the social partners, including the National Women's Council, is holding out for a standard increase along the lines of child benefit which would be taxable.

The employers on the other hand want receipted childcare expenses to be tax deductible, pointing out that this is far more targeted and would encourage providers to move out of the black market.

There are also ongoing negotiations around the minimum wage. For the moment the employers are insisting that the minimum wage will not be any higher than £4.40 an hour but this is under considerable pressure from the unions.