Cowen added that "the daftness" was compounded by Labour "who are so desperate to cobble together a deal with Fine Gael that they will eventually acquiesce in a policy which will see tax relief going to those buying expensive houses while, at the same time, they are criticising my progressive reforms of PRSI.

"If this is an example of how policy is going to be formulated in a sophisticated economy like Ireland's, God help us. They are a joke, " the minister concluded.