No change in policy on stamp duty, says Ahern

Government policy on stamp duty as agreed at the time of the Budget in December is not going to change, Taoiseach Bertie Ahern and Minister for Finance Brian Cowen said yesterday.

They were responding to plans announced by Tánaiste Michael McDowell to reduce stamp duty and cut income tax if the Progressive Democrats are returned to government after the next election.

Mr Ahern said he supported the stance taken by Mr Cowen, who said yesterday there would be no change in the policy agreed between the Coalition partners last December.

Mr Cowen, speaking in Co Roscommon, refused to say whether or not he supported Mr McDowell's tax proposals. He said these issues would be a matter for decision by the next government and its minister for finance.

"I'm not commenting one way or the other on what any other party has to say on these issues," the Minister said. "The PDs as a separate political party have outlined their position and we will be outlining our position in due course."

The PDs had, like Labour, set out their stall on the tax issue in advance of the election but people would have to see the whole range of policies closer to the election before making a decision.

Mr Cowen said he hoped that speculation about the abolition of stamp duty will not affect the stability of the housing market.

There was full Government support for the Budget decision, he added. "This was about giving benefit to all first-time buyers not just those about to purchase and it brought a clear settling to the market and moderated price inflation in the housing sector. It's important we maintain that stability into the future."

At its party conference in Wexford at the weekend, Mr McDowell said the PDs had decided to abolish stamp duty for first-time house buyers.