SINN FEIN REACTION:THE FAILURE of the social partnership talks to reach an agreement has resulted in "an even greater mess that further undermines confidence in the economy and in the ability of this Government to plan and implement a strategy for recovery", according to Sinn Féin Dáil leader Caoimhghín Ó Caoláin.

Responding to Taoiseach Brian Cowen's speech on achieving €2 billion in cuts, Mr Ó Caoláin said the talks breakdown "raises major questions about the intent of the Government in those negotiations and about their competence as negotiators". The Taoiseach's decision "to start discussion on the pension levy at the 11th hour would seem to indicate that he was never fully committed to getting across-the-board agreement from the unions and the employers".

A "key source of wastage of public spending is the private companies who are operating on the back of our public services".

He hit out at Minister for Health Mary Harney who, he said, this week opened "another private for-profit health clinic in Co Kildare which was substantively paid for by taxpayers' money. She has had the brass neck to be calling on everyone to share the pain of public spending cutbacks to finance her friends in the private healthcare industry. It is this hypocritical approach to our public deficit which has . . . resulted in the Government imposing cutbacks in health and education."