BEIRUT: Lebanon’s economy and trade minister said yesterday that plans by the country’s main labour union for a sit-in protest against tax reforms this week would wreak more damage on the war-torn economy.

The opposition-backed Lebanese Confederation of Trade Unions on Saturday called on workers, students, unemployed youth, employees, farmers, drivers and citizens with limited incomes to join a sit-in on Tuesday outside a finance ministry office in Beirut to protest against Prime Minister Fouad Siniora’s economic reform programme.

The federation’s head said the sit-in was the first of measures that could escalate to strike action.

Asked why he thought the labour union had raised its objection to the reform agenda now, minister Sami Haddad said: "For political reasons ... We’re not firing anybody, we’re not imposing any tax for another year, so what is the point for all this? The timing is suspicious, to put it mildly."

The federation’s call is part of a drive by the Shia Hezbollah-led opposition to step up its protest campaign to try to topple the government.

The government had unveiled economic reforms to be presented to a Paris aid conference this month, which Beirut hopes will bring billions of dollars of desperately needed aid to an economy still reeling from the July-August war with Israel.

"This programme is everybody’s programme; it’s not the programme of the majority against the opposition," said Haddad.

The government plan includes tax reforms, as well as raising VAT rates, and the sale of a majority stake in or full sale of mobile sector companies by the second quarter of 2007.

But the labour union said it was against tax increases and privatisation efforts "that take away workers and employees’ rights", among other objections.

"The labour unions are criticising taxes. I will say it once and twice and three times; no increases in taxes before 2008, so what are they moaning about?" Haddad said.

"Secondly, the programme aims to create thousands of jobs ... particularly in the telecom sector, so what is the point of striking and stopping work and paralysing the economy? Does it help workers, does it help the economy, what does it achieve?"

"Privatisation of the telecom sector will not result in any job losses at all ... I’m sure they (labour unions) want to work in the interest of labour and job creation."

The government reforms, which aim to boost economic growth and ease the burden of Lebanon’s massive public debt level, will be presented at the January 25 ‘Paris 3’ conference.

Protesters have camped outside Siniora’s offices in central Beirut since December 1 to try to force him to cede veto power to the opposition in a unity government or call an election.

Siniora, backed by the US and Saudi Arabia, has resisted the demands. The impasse has raised fears the aid conference could be postponed or cancelled.

Saad al-Hariri, leader of the anti-Syrian coalition, which enjoys a parliamentary and cabinet majority, warned of the negative consequences of the latest escalation and called on Lebanese to "unite around the noble objectives of the Paris 3 conference", his office quoted him as saying in a statement.

France’s foreign minister has said international donors have not changed plans to help Lebanon, despite the political crisis.

"We desperately need to go (to Paris) ... Postponement is not on the cards anymore," Haddad said. - Reuters