The Fianna Fáil manifesto commitment to abolish stamp duty for first-time buyers has provoked a furious political debate, with Opposition parties claiming it represents a massive U-turn by the Government, write Stephen Collins & Miriam Donohoe.
The plan to abolish stamp duty for all first-time buyers and to backdate the measure to April 30th was announced by the Taoiseach at the launch of the Fianna Fáil manifesto in the Mansion House yesterday.
The Taoiseach said the move would help young people to buy their first home. He pledged that in next year's budget Fianna Fáil would also increase the ceiling on mortgage interest relief for first-time buyers and would backdate it for seven years. "We are determined to help first-time buyers directly and substantially without disturbing market conditions, driving increases in house prices, and putting the more than 260,000 construction jobs at risk," he said.
Mr McDowell welcomed the commitment on stamp duty but said it was not enough. "They leave unreformed the situation of a couple, a young couple with an apartment who have now decided to go on to buying a home to raise a family."
Mr Rabbitte announced that the Labour-Fine Gael stamp duty proposal to raise the ceiling for first-time buyers and introduce a banding system would be implemented as soon as they took office.
However, Minister for Finance Brian Cowen later accused Mr Rabbitte of bluster and aggression.
"Having changed his policy at least three times in the last six months, Pat Rabbitte has confirmed yet again that he is the greatest modern practitioner of the art of the U-turn. In contrast, the Fianna Fáil proposal delivers certainty and prioritises first-time buyers and is fully consistent with our stated policy," said Mr Cowen.
However, the Minister came under attack from Galway Senator Margaret Cox. She said that last November she had put a motion to the Fianna Fáil parliamentary party proposing an abolition of stamp duty but Mr Cowen had refused to entertain it.
Fine Gael finance spokesman Richard Bruton said Fianna Fáil had no credibility.
"Who does Fianna Fáil think they're kidding? Their stamp duty proposal is an absolute joke. After weeks of relentlessly attacking Fine Gael-Labour's stamp duty reform policy, Fianna Fáil showed that their words and promises mean nothing. People will undoubtedly see today's Fianna Fáil U-turn for what it is: a desperate attempt to cling to power by a dying regime. After feeding at the overflowing trough of stamp duty for 10 long years, Fianna Fáil must have little regard for the intelligence of the Irish people if they think anyone will believe them now," said Mr Bruton.
The other major issue at the Fianna Fáil manifesto launch was the Taoiseach's personal finances. Mr Ahern insisted that the £30,000stg, which has been the subject of recent media reports, belonged to Michael Wall, from whom he rented a house in 1995, and not to himself.
"The money that has been in the public domain was his money, money administered by Celia Larkin on his behalf and I think nobody wants this issue, all of these issues, resolved more than me."
Mr Ahern insisted that the Mahon tribunal was not about his affairs but whether he received money from Owen O'Callaghan or did something in relation to the development of Quarryvale.
"That is nothing to do with money that was given by a person who was purchasing a house I subsequently rented. There is no accusation against me whatever about Michael Wall or about renting a house. The accusation is about the O'Callaghan case and people know that I have always been interested in public service, not private gain . . . I trust the Irish people will see through the politics of this and there is nothing in the politics of this that I am guilty of."
Mr Ahern said last night this would be his last election. Asked if he was successful if he would fight the next one in 2021, he said: "I don't think I would do that. I'd be getting too old at nearly 61."