McCreevy refuses to back down on house-buyers' grant

A defiant Minister for Finance is refusing to back down on the controversial decision to abolish the first-time house-buyers' …

A defiant Minister for Finance is refusing to back down on the controversial decision to abolish the first-time house-buyers' grant, despite growing revolt on the issue from backbenchers.

Mr McCreevy has received the full backing of the Taoiseach, who has said the Government must move on from the decisions taken in last week's Book of Estimates.

Mr McCreevy is facing dissent on other Estimates decisions, including the reduction in secondary road budgets and the slashing of the FÁS training budget.

Last night, a former minister and the most senior member of the Fianna Fáil parliamentary party, Dr Michael Woods, strongly criticised him for cutting the emergency humanitarian assistance budget of the Department of Foreign Affairs .

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Dr Woods, who is chairman of the Joint Oireachtas Committee on Foreign Affairs, called on Mr McCreevy to reverse the decision to cut the fund by 12 per cent from €22.85 million to €20.05 million.

The reduction could not be justified at a time when famines were currently devastating countries in Southern Africa, Dr Woods told The Irish Times.

The decision to end the first-time buyers' grant has prompted a new wave of discontent among Government deputies who faced the brunt of public anger over the move at many constituency clinics at the weekend.

Several backbenchers have told The Irish Times that they will let their views be known to Mr Ahern and Mr McCreevy at a meeting of the Fianna Fáil parliamentary Party on Wednesday.

They will also be warning Mr McCreevy not to renege on a promise to give €400 million in child benefit in the Budget.

The Government had committed itself to a three-year phased increase in child benefit, which is paid to families regardless of their incomes, with the final instalment due in this year's Budget.

"He cannot mess with the children of this country," one irate TD said following suggestions the Minister for Finance may not be able to honour his commitment this year.

TDs said they would plead with him to do something for first-time buyers in the Budget if he was not prepared to climb down on his Estimates measure.

Newly elected Tipperary North TD, Ms Máire Hoctor, said people were very disappointed over the move to abolish the first-time buyers house grant.

"I will be saying to Mr McCreevy in view of the backlash to go back and look at his books again and to find that money from somewhere else. Maybe he can put it on the price of drink."

Ms Hoctor also expressed concern at secondary roads budgets. "That is a big issue for me and it has not yet been highlighted to any great extent."

One of the most outspoken Fianna Fáil TDs, Mr John McGuinness from Carlow-Kilkenny, said the decision was indicative of centre-right thinking in the Government, which he described as "very worrying".

He said he would have strong words for Mr McCreevy and would ask the Government to "readjust to centre-left" policies.

Cork North Central TD Mr Noel O'Flynn called on Mr McCreevy to introduce tax credits for those who would qualify for the first-time house grant and to introduce a cap on the special savings scheme in the budget.

His constituency colleague and assistant Government whip, Mr Billy Kelleher, said there was a lot of concern at the decision to abolish the first-time buyers' grant.

"I would ask the Minister to see if he can bring in mechanisms in the Budget to address the concerns of the first-time buyers."

Dublin South East TD Mr Eoin Ryan appealed to Mr McCreevy to ensure that any first-time buyer who had signed a booking form for a new house got the grant. He said he would be happy with the decision if the €38 million saved went to affordable and social housing.