Ministers from Austria's far-right Freedom Party have threatened to resign in an internal row over tax cuts, putting the country's coalition government at risk.

The party has been split between figurehead ex-leader Joerg Haider on the one hand, and current leaders and ministers on the other.

Susanne Riess-Passer says she will resign over the issue

Mr Haider and his supporters are demanding early tax cuts, in line with election pledges.

But the current party leaders are backing Austrian Chancellor Wolfgang Schuessel, who wants to delay the cuts to help fund last month's flood catastrophe.

The ministers - who include Austrian vice-chancellor Susanne Riess-Passer and the finance and defence ministers - say they will resign rather than force the tax cuts through.

The Haider camp has called an emergency party conference in October, aimed at forcing the ministers to back down.

If the party's ministers do not have the support of the party for our policies, that is the same as a vote of no confidence in our work

Susanne Riess-Passer

Austria was among the worst victims of the August floods. Eight people died, and damage is estimated at 6.7bn euros (�4.2bn).

A report presented to parliament called the flooding "the worst national disaster to hit Austria since World War II".

Austria had been planning a round of tax cuts, but, like Germany, announced in the wake of the floods that their implementation would be delayed.

The Freedom Party's executive committee held all-night talks on Tuesday to try to settle the row, but without success.

If the vice-chancellor has to go then we'll all go

Finance Minister Karl Heinz Grasser

"If the party's ministers do not have the support of the party for our policies, that is the same as a vote of no confidence in our work," said Ms Riess-Passer, giving the party until Monday to call off the conference.

Finance Minister Karl Heinz Grasser said the situation was now "very serious".

"If the vice-chancellor has to go then we'll all go," he said.

There were signs on Wednesday that Mr Haider's camp might back down.

He told Austrian news agency APA that the conference was a last resort, and was not needed.

"The holding of a congress would be the last resort," Mr Haider said. "We should work together to find a solution."

Chancellor Schuessel said that if the far-right ministers resigned and he did not approve of their replacements, he might reconsider the coalition between his party and theirs.