Addressing his party's annual conference at the Helix Centre in Dublin, Rabbitte also stressed that Labour had "no intention" of increasing taxation, stating: "What is needed now is not more taxation, but fair taxation".

In an overt reference to recent union opposition to outsourcing driving tests, Rabbitte warned that, while Labour supported social partnership, no interest group had "the right to veto changes" necessary for the public good.

"When 130,000 young people can't get a driving test, Labour will not shrug its shoulders and walk away. The rights of those young people and the imperative of road safety overrides any other consideration, " he said.

Rejecting the Boston v Berlin argument, the Labour leader said Ireland had to "build its own future". He dismissed those who measured commitment to social justice by one's willingness to increase taxes. The emphasis should be on justice in the tax code . . . "everyone paying their share" . . . and eliminating the waste of taxpayers' money.

"At a time when the finance minister discovers two-and-a-half billion in extra revenue after Budget day, it is plain that the economic agenda now is not about taxation. Taxes are down and they should stay down". In the speech, entitled 'Ireland Can Do Better', Rabbitte claimed "the momentum for a fairer Ireland" has stalled since Labour had left office. "We have a successful economy but a society under strain. Hard-working families feel they are on a treadmill running faster to stand still.

The government is remote from their lives and doesn't listen."

But, he said, if people want change, it needed a change of government. Referring to Michael McDowell's recent description of the PDs as 'the meat in the coalition sandwich', Rabbitte said: "It's not just that the meat in the sandwich is rancid and sour, the entire sandwich is soggy and stale."

McDowell and crime were both "out of control", he said, adding: "We are the only state in Europe where the gardai outside the minister's house are there to protect the public from the minister." On health, Rabbitte said there "was no answer to the chaos in A&E without providing more beds" and promised "Labour in government will accept responsibility, not hide behind the HSE".