The forthcoming Budget will contain the "biggest tax breaks ever" for lower earners and the largest increases yet in child benefit, the Tanaiste, Ms Harney, said last night.
In an interview broadcast on The Week in Politics on RTE, Ms Harney also endorsed the current Government, saying that she had put differences over allegations concerning the Taoiseach and other members of Fianna Fail behind her.
Ms Harney said that the tax concessions in the December Budget should surpass those in last year's Budget, which had amounted to some £600 million. She said: "It is important for a whole host of reasons, in particular because of what has come to light in recent times in the Ansbacher report, and [because of] the tax evasion that is now rampant in our society among certain sections of our society - the wealthier sections of our society.
"I believe it is very important that PAYE workers and ordinary working people now see that they can get the biggest tax breaks ever. I believe we can do that. We have the capacity to do that. It actually will not cost money because, as more people go into the workforce and pay tax, revenues are going up."
The PD preference was for increased child benefits rather than tax concessions. "I don't want to speculate on figures, but we have the resources to deliver a really substantial package and to make it worthwhile. The biggest ever increase given before was £7 [a month]. I believe we have the capacity to go beyond that in this Budget, and certainly the Progressive Democrats will want to see a substantial increase in child benefits in the 1999 Budget . . ."
Commenting on pressures on the Government arising from the Sheedy affair and the Flood tribunal revelations concerning the Taoiseach, Ms Harney said: "There have been difficulties in the life of this Government, which I think is inevitable, differences in relation to policy, and some other difficulties which have been discussed before in the public domain. But they were resolved, and I like to put things behind me and look to the future rather than always looking backwards at what should have happened or didn't happen. I have an excellent relationship with the Taoiseach and, I think, with all my ministerial colleagues."
Ms Harney admitted that there had been times when her party had faced difficulties, but she welcomed the recent improved ratings in the opinion polls and said that she would not be "throwing in the towel".