FINANCE Minister Brian Lenihan has indicated he will cut social welfare and introduce a property tax in the next Budget.

In an wide-ranging interview with the Herald, the Minister reveals his ambition to become Taoiseach, but for now says he heads "the most powerful department in this Government".

"In some ways, I can do more as Minister for Finance than Taoiseach," he said.

The Minister also disclosed that while he is unlikely to increase income tax in the next Budget, he is considering the absorption of current levies into existing income tax rates.

doomsday

Cuts in social welfare and the introduction of property and carbon taxes are on the cards.

Mr Lenihan says he is proud of the way Irish people have accepted "the pain of pay cuts" and stresses "international observers are highly impressed with the way we've responded to this crisis".

In the interview, the Minister said: "We are seeing the first signs of recovery in the financial markets -- and the Taoiseach is right to say that if international conditions improve, we could see a return to substantial growth very quickly".

Mr Lenihan's comments come as it was revealed that Fianna Fail is just a week away from doomsday.

The main Government party is now predicted to finish third in the local and European elections behind Fine Gael and Labour.

Fianna Fail had expected to get some sort of bounce from the last opinion poll, which put them at 21pc two weeks ago. But their support has simply stabilised at 20pc.

At a rally in Loughrea last night, Taoiseach Brian Cowen reworked an old cliche: "They say a week is a long time in politics, but for people in Ireland, this week was longer than most."

Today's poll suggests that next week will be even longer for the Offaly man and his party colleagues. Support for the Government stands at 12pc, while Mr Cowen has impressed just 21pc of voters. And with just six canvassing days remaining, there seems to be little doubt that Fine Gael will be the largest party by far in local government by next weekend.

Despite a 2pc drop in support, Fine Gael are still attracting 36pc of voters.

The biggest winner from today's Irish Times/TNS mrbi poll is Labour. Eamon Gilmore remains the most popular party leader, while the party's support nationally is 23pc.

And in a move that could dramatically change the political landscape in Dublin, Labour are on course to become the biggest party in the capital.

The Fianna Fail core vote has collapsed to just 12pc, which is almost on a par with support for independent candidates.

Labour has pushed ahead of Fine Gael in the capital and now stands at 26pc, followed by Fine Gael at 24pc.

These figures could have an impact on the Dublin by-elections, particular in Dublin Central where Fine Gael's Paschal Donohoe and Labour's Ivana Bacik are locked in a head-to-head battle for a Dail seat.

angry

Fine Gael's slide into second place in Dublin will be seen as a small price to pay for greater gains across the country.

The main opposition party has a powerful lead over Fianna Fail across every region, age group and social category. The Green Party has stalled at 3pc of national voters, while Sinn Fein support has dropped slightly.

Speaking in Galway last night, Mr Cowen put on a brave face. "I am struck by people's positivity and their determination for Ireland to emerge stronger than ever from this global recession," he said.

"Yes, people are angry, but I detect people are fed up of negativity and the bad news brigade who want to pursue nothing but the politics of blame."

ANDREW LYNCH INTERVIEW See pages 24 & 25

- Kevin Doyle and Clodagh Sheehy