The Taoiseach denied that the Minister for Finance was being "politically chaperoned" in the run-up to next month's Budget.

The allegation was made by the Fine Gael leader, Mr John Bruton, who said this was happening to Mr McCreevy because of the "rather unnecessary errors" he made last year.

"The Government is, in fact, using the social partners as a form of political proofing of the Minister's Budget in a fashion that goes against the traditions, whereby this House is the first to hear of the Minister for Finance's proposals under the Constitution."

Mr Ahern replied: "That certainly would not be true. The same conventions are taking place this year as every other year. These discussions go on, but there is no change."

The Labour leader, Mr Ruairi Quinn, said last year's Budget was "both inflationary and socially divisive, bringing us to the point where the pay component of the present social partnership agreement is seriously at risk".

He asked Mr Ahern to indicate if it was the Government's priority to ensure that the social partnership agreement would stay intact.

The Taoiseach said the Government was very conscious of the pressure on incomes as a result of inflation. "We have to be vigilant in avoiding an inflationary spiral, with a domino effect across different sectors."