McDowell pledges review of 'unneeded' stamp duty

Newly elected Progressive Democrats leader Michael McDowell has said that reducing the tax bill for low to middle income earners…

Newly elected Progressive Democrats leader Michael McDowell has said that reducing the tax bill for low to middle income earners is now top priority for the party.

Speaking at a party think-in in Malahide today Mr McDowell said the choice for voters after the election is now clearly between a coalition involving the Progressive Democrats which is committed to tax reductions, or a coalition containing the Greens and/or Labour which is at best committed to keeping income and corporation tax levels at current levels.

"The Progressive Democrats believe in low taxes because low taxes deliver economic and employment growth, and thereby give us the resources to tackle our infrastructure deficits and outstanding social issues," said Mr McDowell.

"Low taxes enable those whose hard work has created the boom to fully enjoy the fruits of their labours."

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Mr McDowell also said the Government does not need the massive sums of money generated from stamp duty levied on the purchase of houses. In particular he highlighted the effect of stamp duty on home owners and particularly on couples with children seeking to move home.

Options considered at the meeting included the abolition of stamp duty for moving home, a reduction in stamp duty rates, banding stamp duty across the rates, and the option of allowing stamp duty to be paid over the lifetime of the mortgage.

"It is our belief that there is scope for a significant re-adjustment of the stamp duty situation as it pertains to homeowners," said Mr McDowell.

Mr McDowell said the PDs would try and introduce taxation measures that are about "getting more people out of the 40 per cent tax band".

He said his party would extend the 20 per cent [tax bracket] up to "€100,000 in income for the average family so that most people are out of top rate.

Speaking this afternoon the Taoiseach, Bertie Ahern said he agreed with the Tanaiste's plans to take as many low income earners as possible out of the tax net.

"We have the second highest minimum wage in Europe and it's untaxed and that should continue. Of course that takes resources every year to keep that in place," said the Taoiseach.

Referring to comments attributed to his party colleague Liz O'Donnell that she would give consideration to going into coalition with either Fine Gael or Labour after the next election, Mr McDowell said his party was "not going to play footsie with two parties whose stated aim is to wipe out the PDs".

He said he spoke to Ms O'Donnell who was concerned that "a wrong construction had been put on what she said yesterday", and that both agreed that their current partners in Government were the way forward.

As part of its transport policy, the party has recommended moving container traffic away from Dublin City port to Bremore, in north Co Dublin. Mr McDowell said the expansion of Dublin Port was not the best way forward and that industrial traffic should be moved away from the city, with the port being turned into a world-class cruise ship terminal.

Mr McDowell said that under this plan the port tunnel would not be wasted but would be a "necessary underpinning of the notion of inner city redevelopment on the size and scale we propose".

The PDs also propose building a second ring road around Dublin from Gormanstown to Kilcullen on the M7 and connect with M1, M2, M3 and M4.

The Tánaiste also said he hoped his party would double its representation in the Dáil.

Elsewhere, Fine Gael leader Enda Kenny will address Labour's two-day think-in to reciprocate last week's gesture by Pat Rabbitte.

After an address by Mr Rabbitte, afternoon sessions will focus on strategy and policy development. Councillors will also be allowed to participate.

Former Northern Ireland Policing Board vice-chairman Denis Bradley will speak on crime and policing reform tomorrow before the event winds up at lunchtime.