Fine Gael's plan to offer a tax deal to compensate Eircom shareholders would create "a very dangerous precedent", the Tánaiste, Ms Harney, said yesterday.
She said she wished to be fair, however, to the Fine Gael leader, Mr Michael Noonan, and she was not dismissing the proposal out of hand or describing it as an election gimmick.
All parties should consider proposals put forward by others, she believed, but she did not wish to fuel expectations that the Fine Gael proposal was possible. "I don't believe it is."
There was "a lot of sympathy and understanding" at Government level for people, especially small, first-time shareholders, who had lost money on Eircom shares.
"Notwithstanding that, I think it would create a very dangerous precedent if we were to reimburse individuals who lose money as a result of acquiring shares in public companies."
She had not discussed the proposal with her Government colleagues but she did not think it could be implemented. "When we invest in stocks and shares we take on board all of the risks involved."
However, the Minister for Finance, Mr McCreevy, dismissed as ridiculous the suggestion that Eircom shareholders should be compensated. Mr McCreevy said Fine Gael's proposal was tantamount to suggesting that people should receive tax relief for losing money at the races. Making such proposals in the run-up to an election campaign would turn many voters off.
"You can go back over the last 20 years and come up with ridiculous ideas we all came up with, including myself. Fine Gael doesn't have a monopoly on ridiculous ideas but this one is in the premier league of such ideas."
Meanwhile, the Labour Party leader, Mr Ruairí Quinn, has called for an end to pre-election "auction politics". He accused both the Government and Fine Gael of a practice which would damage Irish politics.