Trade union leaders have been told that the Government will produce a "wide ranging package" on housing next week to help counteract inflation. Senior members of the Irish Congress of Trade Unions (ICTU) will also meet the Taoiseach later this month to review progress in talks with senior officials aimed at introducing further anti-inflationary measures.
The Cabinet is to consider the radical recommendations of the latest report by consultant Dr Peter Bacon on the housing issue next week and is expected to back its policy proposals.
Among these is a major shakeup in stamp duty which will see this tax abolished or sharply reduced for first-time buyers of second-hand homes, but a sharp increase for those buying investment properties.
It is understood that stamp duty could as much as double on third or subsequent properties. The details are expected to be announced late next week.
The plan will also contain far-reaching recommendations to speed up the planning process and new measures to encourage land to be built on more quickly, including capital gains tax changes.
At yesterday's meeting, the secretary general of the Government, Mr Dermot McCarthy, and his colleagues from the Department of Finance were left in no doubt about the seriousness with which ICTU views the inflationary crisis. The latest inflation figures, due out next week, are not expected to show any further upwards move, but on its own this will not be enough to placate the unions.
There was some element of relief when ICTU leaders left talks at Government Buildings yesterday but also scepticism over what would finally be delivered. "They told us they were acutely aware of the problem, and that's the first time they've said that," SIPTU general secretary Mr John McDonnell commented.
The Irish secretary of the Amalgamated Transport and General Workers Union, Mr Mick O'Reilly, said there had been some movement but he still detected "a degree of complacency. I'm not sure they understand its not a question of talk anymore. It's a question of what action will be taken".
The general secretary of ICTU Mr Peter Cassells outlined a whole series of measures Congress is seeking. These include immediate reductions in duty on petrol, diesel and heating oil; lower bus and train fares to be funded through increased public transport subsidies; maximum price orders for drinks in pubs, hotels and restaurants and an immediate investigation of prices in the services sector.
Congress also wants a tripartite committee to monitor prices, on which unions would be represented, along with the Government and employers.
On housing, ICTU wants tax penalties imposed on developers who hoard zoned and serviced land, compulsory purchase of land by local authorities at agricultural prices, more resources to speed up the planning process, fees for auctioneers and estate agents to be fixed rather than be based on a percentage of the property's sale price and a major training programme in construction work aimed at the unemployed and immigrants, as well as improving the skills of existing building workers.
Official sources said last night the details of next week's package "may not contain some of the specific mechanisms outlined by ICTU but they will have the same objective".
The Government side did agree to bring speed up the establishment of the housing forum.
ICTU and other nominating bodies such as the Construction Industry Federation are to be asked for the names of their representatives immediately.
--(additional reporting by Finance staff)
