Coughlan Denies Govt In 'Disarray'

Tánaiste Mary Coughlan has said in the Daíl that the Government is not in 'disarray' after a suspected U-Turn over a crucial spending report.

Responding to accusations that the Government has dropped recommendations by the McCarthy Report, Ms Coughlan denied that three Cabinet Ministers, including herself, were at odds with Minister for Finance Brian Lenihan over the proposed cuts.

Responding to a question from Labour leader Eamon Gilmore, she also said that a date for the Budget has not yet been set.

The controversy came to light earlier in the week when the Tanaiste made the surprising statement that aspects of the report into budgetary strategy "did not make sense".

Her comments were soon followed by a contrary statement from the Minister for Finance Brian Lenihan, who insisted the McCarthy report remained "key to the budgetary process", adding that the Government was committed to sorting out the problems facing the country.

Today, Taoiseach Brian Cowen dismissed the Tánaiste's criticisms of the McCarthy report as a "manufactured story".

Cowen was moved to also express his full confidence in Ms Coughlan, describing her as as an "excellent Minister, hard-working and a very good member of Cabinet" and dismissing any contention that her position had become untenable.

Ms Coughlan was the third Minister to criticise the McCarthy report, following strong comments by Minister for Arts, Sport and Tourism Martin Cullen and Minister for Rural, Community and Gaeltacht Affairs Éamon Ó Cuív. The McCarthy report recommended the abolition of both their departments.

(DW/GK)