Minister for Finance Brian Cowen needs to do more to help households with soaring energy bills, Labour finance spokesperson Joan Burton has said.
Joan Burton
Ms Burton said the apparent disagreement between Fianna Fáil and the Progressive Democrats over whether stamp duty should be cut back was an "ideological row between the two parties in the Government.
"If you like, Brian Cowen staked out his position yesterday, and Michael McDowell has staked out his position earlier, so only December and Budget Day will actually tell."
Speaking on RTÉ radio, Ms Burton said there was room for reform of the current stamp duty system but this did not mean cuts should be made.
"It would be unwise of any Minister to do anything at the moment which would simply make house prices go any higher."
She added that three years ago when the tax was reduced it was completely absorbed in house prices and said "stealth taxes" and increasing fuel bills were the critical issues on which the Budget would be judged, as these were having the biggest impact on householders.
"The Minister has a significant amount of resources and . . . he has to do a balancing act and a juggling act. He has a lot of resources at his disposal, but he has to spend money wisely and well on issues like health, housing for people trying to buy a home and also particularly in relation to issues like childcare and education and public transport."
Ms Burton said more than a third of PAYE taxpayers were now paying at the 42 per cent rate, despite a Government promise that this would be reduced to 20 per cent. She said this required "balanced tax reform".
"He's a very demanding job to do in the Budget in order to keep the economy competitive and growing, spend the money wisely and give some relief to people who are paying tax at the 42 per cent rate."
Mr Cowen indicated yesterday that his December Budget will favour increases in personal tax credits and tax bands over tax cuts.
This puts him in conflict with the Tánaiste, who recently called for significant tax cuts for the "middle class".
But in a speech to the Dublin Chamber of Commerce last night, Mr Cowen said tax cuts should be focused on lower-paid workers.