The Taoiseach has defended the Budget as anger increases among Fianna Fail backbenchers and Independent TDs over the controversial tax measure favouring two-income families.
Mr Ahern last night told the annual Fianna Fail president's dinner the Budget was a "real contribution to equal status" and he challenged critics to prove otherwise.
He said the ESRI recommended in October that the transferability of bands between spouses should be phased out on the grounds that it discouraged married women from taking up jobs, was economically inefficient, and did nothing for poverty.
"I would like our critics to address those arguments," Mr Ahern said.
His comments followed a huge backlash against the Minister for Finance, Mr McCreevy's provision that a single-income family would begin paying the higher tax rate at £28,000 a year, while a family where both partners work would earn £34,000 before the higher rate kicked in.
Mr Ahern said couples today wanted the freedom to pursue careers and raise families at different stages of their lives. "It is right that the tax system should treat everyone as people in their own right and the Budget is a real contribution to equal status," he said. "The double tax-free allowance will still be available to all married couples, even where one spouse stays at home to raise young children, so it is not the same system as in Britain."
He added that the Government was developing measures to support carers in the home.
The Opposition parties condemned the Budget measures yesterday and the Dail was suspended in uproar twice during attempts to have the matter raised on the order of business. Two of the four Independent TDs supporting the Government, Ms Mildred Fox and Mr Harry Blaney, signalled they would be asking the Government to reverse the controversial measure. ail backbench TDs also indicated yesterday that they will be seeking a climbdown on the provision following an angry response from constituents. The Minister for Finance,
Mr McCreevy last night met a group of up to 20 TDs for over an hour in an effort to allay their concerns. The Minister said that the Budget package could not be "unscrambled". However several TDs at the meeting said Mr McCreevy seemed to be under some pressure.
Earlier yesterday, four senior civil servants from the Department of Finance briefed 30 Fianna Fail TDs on the measure and explained it would cost £130 million if it was extended. The Independent TDs were given a separate briefing.
Ms Fox told The Irish Times last night she will be asking the Government to reverse the measure. She had received "hundreds of calls" on the matter yesterday. However, she made it clear she will not be "putting a gun to the Government's head" on the issue.
Mr Blaney confirmed that he, too, would be asking the Government to rethink the matter. "I think it is better, if possible, if mothers can be at home with their children. I think this measure is in the wrong direction and is not the way I would like to see things going.
"There are many good things in the Budget but I will be seeing if this can be changed."
A number of Fianna Fail TDs expressed their concern yesterday. Waterford backbencher Mr Brendan Kenneally said: "I do have concerns about it. As of now I cannot see any compelling reason why they [one-income couples] should be left out. There appears to be discrimination."
Wicklow TD Mr Dick Roche, said: "I am very disappointed. Presentationally it is very difficult for the party. I hope the Minister will introduce alleviating measures."
Cork North Central TD Mr Noel O'Flynn said: "I am hoping because of the enormous backlash from the public that the Minister will reconsider this aspect of the Budget in the Finance Bill".
The Tanaiste last night defended the Budget. In California on a trade mission, Ms Harney said it was inventive and imaginative and there were clear benefits for single-income married couples.