Fine Gael says it will introduce a scheme to compensate Eircom shareholders if it gets into Government at the next election.
Party leader Mr Michael Noonan said he would allow small investors who suffered losses when they bought shares during the flotation of the previously State-owned telecom company to offset their loss against taxable income.
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Mr Noonan said: "This relief, to be introduced as a measure in out first Finance Bill, will only apply to Eircom shares because of the Government’s central role in this fiasco."
The party estimates the cost of the scheme at around €80 million.
Mr Noonan said people were duped into believing that Eircom was a sound investment.
He said: "Hundreds of thousands of people were seduced by the Government into buying shares at a price which was much higher than that recommended by the Board of Eircom."
"The fact that Eircom Board had recommended a lower price level was deliberately concealed from the public at the time," he added.
Mr Noonan said his party was proposing the scheme "in the interest of fairness and to help restore peoples’ confidence in the IPO process."
However Senator Shane Ross lambasted the scheme as an election gimmick. He told ireland.com: "It would be lovely if the world worked like this and if those who lost money on shares could get it back when politicians were facing an election."
"Sadly it will never happen." he said.
"€80 million would only compensate a small proportion of the losses endured."
Senator Ross said: "I think that Fine Gael ought not to make promises which will not be delivered."
"The problem with Eircom was the totally unjustified rewards which the board of directors gave themselves while small shareholders were losing their life savings," he said.
