Launch:The leaders of Fine Gael and Labour have rejected claims that the failure of the parties to commit to a definite timeframe for stamp duty reform would bring uncertainty to the property market.
Speaking at the launch of their economic policy "Protecting the Progress: An Agreed Agenda on Jobs and Tax" yesterday both leaders defended their decision not to be pinned down to saying when they would introduce the proposed stamp duty changes, including the abolition of stamp duty for first-time buyers on houses up to the value of €450,000.
Fine Gael leader Enda Kenny said for the first time in 10 years people will have a clear choice for change and a reason to change. He said it was unprecedented for two parties to come together and agree an agenda in a key area such as the economy.
Labour leader Pat Rabbitte said the parties are committed to changes in the key areas of health, crime and the approach to the economy. Maintaining a prosperous, enterprising economy is the basis to maintain the improvement in quality of life for people, he added.
Asked about his commitment to introduce the stamp duty changes over three years in Rathkeale, Co Limerick, last month, Mr Kenny said: "What I announced in Rathkeale was that the strategy would be brought in inside three budgets. We regard it as a priority that the new government would look at that and would deal with it as a priority as a single entity."
Mr Kenny said Fine Gael and Labour want a change in the stamp duty regime but Fianna Fáil does not. He said Fine Gael and Labour are clear on the issue. "We will do it as a priority, as a single entity. We are not in the business of either stagnating or stampeding the property market. The fact of the matter is Fianna Fáil do not want to change stamp duty and we will change it radically. It will happen in one fell swoop when the new cabinet decides . . . based on the prevailing circumstances."
Fine Gael finance spokesman Richard Bruton denied there was any difference in views on the stamp duty roll-out between him and his party leader. Last Friday Mr Kenny told journalists the timing would be decided by the next government and Mr Bruton told journalists separately it would happen over three years.
Mr Rabbitte said he did not know of any precedent where a minister for finance, or a prospective minister for finance, on a major taxation issue like stamp duty has signalled the precise timing of a change in advance. "Having regard to the budgetary and market conditions at the time, the government will make its decision in a single measure." Asked if people could conclude that it could be five years before it is introduced, he said: "I fail to appreciate how anybody could deduce that."
Mr Kenny and Mr Rabbitte said their economic policy document will bolster the incomes of families that have suffered from the "rip-off" experience. The income tax measures outlined in the document will support the life choices of all families, including parents and other carers, in achieving their own preferred balance between paid work and unpaid care.
Sound economic management is a fundamental requirement of good government and while the outlook for the Irish economy is positive, there can be no room for complacency, they said.
Mr Bruton said there were a number of differences between the Fine Gael/Labour document and Fianna Fáil's economic document. He said Fine Gael and Labour want to reform the way families are taxed and there will be more scrutiny of public spending.