Government 'uncertain' on stamp duty - FG

The war of words over stamp duty continued yesterday, with Fine Gael accusing the Government of generating uncertainty in the…

The war of words over stamp duty continued yesterday, with Fine Gael accusing the Government of generating uncertainty in the housing market.

This followed remarks from Taoiseach Bertie Ahern which gave a further indication that a Fianna Fáil initiative to assist first-time buyers may be imminent.

Responding to claims that the Opposition was destabilising the property sector, a Fine Gael spokesman said: "The only uncertainty in relation to stamp duty is coming from within Government circles."

Claiming there were "many different messages" coming from the Fianna Fáil-Progressive Democrats Coalition, the Fine Gael spokesman added: "The Tánaiste appears to want to do something at some point in the summer; Minister for Finance Brian Cowen and his advisers have consistently voiced disinterest in this issue; and now the Taoiseach is speculating about the prospect of making some reform."

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Questioned about the issue after Fianna Fáil's 1916 commemoration at Arbour Hill, Mr Ahern stressed the Government's anxiety to maintain the stability of the housing market.

"Anything that we will do, will be about the stability of the market and particularly our focus on first-time buyers," he said.

When it was suggested that he was fuelling speculation, Mr Ahern replied: "What we have said all along, anything that we will do will be to enhance the stability of the market. That's what we have done in two of our last three budgets."

With Mr Cowen standing beside him, Mr Ahern said that they were "totally" at one regarding this issue. Asked if he was saying there would not after all be any initiative on stamp duty, he replied: "I didn't say that, now."

Labour leader Pat Rabbitte said afterwards that, judging from Mr Ahern's remarks, Fianna Fáil was contemplating: "How soon could they follow our example?"

Mr Rabbitte continued: "He seems to have been persuaded that this tax is disproportionately unfair and although he has presided over it for 10 years and has railed against the proposals that we advanced, he now seems to be preparing to announce a set of proposals in that regard."

Stamp duty had "increased by 230 per cent in three years", even faster than the price of houses, which went up 75 per cent in the same period. "They sat on their hands; they could have gradually reformed it," Mr Rabbitte added.

Commenting on the latest opinion polls, Mr Ahern said: "The real poll isn't so long away."

The RedC poll in the Sunday Business Postgave the following percentages (with the previous results in brackets): Fianna Fáil 35 (36); Fine Gael 27 (23); Labour 11 (12); Green Party 9 (8); Sinn Féin 8 (10); Progressive Democrats 3 (3), Independents 7 (8). The figures in an IMS/ Sunday Independentpoll were as follows: Fianna Fáil 38 (42); Fine Gael 23 (20); Labour 12 (10); Progressive Democrats 4 (4); Green Party 6 (6); Sinn Féin 8 (8), others 8 (10).

Meanwhile, Independent TDs Finian McGrath and Catherine Murphy will be in the High Court today to challenge Minister for the Environment, Heritage and Local Government Dick Roche over what they claim is a breach of Article 16.2.4 of the Constitution, which states: "The Oireachtas shall revise the constituencies at least once in every 12 years, with due regard to changes in distribution of the population, but any alterations in the constituencies shall not take effect during the life of Dáil Éireann sitting when such revision is made."

The TDs are claiming that 11 of the 43 constituencies are in breach of the established limits where the proportion of TDs to the population is concerned.