Taoiseach Bertie Ahern has said that he does not foresee any major economic problems on the horizon and he has denied that the budget in December could be one of the tightest in years.
Speaking after his address to the biennial conference of the Ictu in Bundoran he also said that a drop in house prices for first-time buyers was a good thing.
Asked whether tax cuts were still on the agenda given the €1.4 billion exchequer deficit recorded in the first six months of the year, the Taoiseach said that the Government had not yet had an opportunity to give consideration to the half-year financial figures.
Mr Ahern signalled that the Government would not bring forward planned mortgage tax relief measures, until the budge, as had been sought by the trade union movement.
He said that the Government had already brought in one Finance Bill this year, and the promised mortgage interest measures would be introduced, as planned, in December.
Mr Ahern said some sections of society were being affected by the recent spate of interest rate rises. "It is putting pressure on the sector of people with high mortgages. We responded in the last budget for that, and we will respond in the next budget to try to reduce the problems for those people."
Asked about reports that this year's budget would be one of the tightest in years, Mr Ahern replied: "I don't actually think so. I think I brought in a few of those in my day. We have to keep a close eye on things, but no more than ever."
The Government had to keep employment strong. It also had to keep bringing in foreign direct investment and not get into an inflation/wage spiral, the Taoiseach added.
