The pre-election promise came in Rabbitte's leader's speech last night to his party national conference in Dublin. He accused the current coalition of favouring the betteroff with reductions in the top-income tax rate. "This government has levied more taxes and wasted more taxes than any government since the foundation of the state, " Rabbitte said. "Fianna F�il and the PDs make the choice to cut the top rate. That's the Fianna F�il/PD way. It's not the Labour way. If you cut the lower rate all taxpayers benefit but those on middle and low incomes gain most."

The tax promises along with a new housing policy targeted at first-time buyers is evidence of a renewed Labour strategy to increase its appeal with part of the electorate which backed Fianna F�il in recent times.

In a generally upbeat speech, Rabbitte set down markers for significant improvements in public services should Labour be part of the next government. He targeted the current coalition's under performance in transport, crime and education with a strong attack on Mary Harney's record as health minister.

"Mary Harney doesn't understand that health is a community service, not a market commodity, " he told delegates in the Helix theatre in Dublin. He also claimed contracts to build private health clinics on public hospital lands will be signed in the coming weeks.

Significantly in terms of the next government, Rabbitte recommitted himself to his alliance with Fine Gael, but once again he did not rule out a post-election deal with Fianna F�il. "The task for Labour is not to engage in speculation about possible scenarios that may never arise after the people have voted, " he explained.