PDs among critics of grant abolition

Progressive Democrat TDs have joined the growing number of Government backbenchers revolting over the controversial decision …

Progressive Democrat TDs have joined the growing number of Government backbenchers revolting over the controversial decision to abolish the first-time house-buyers' grant.

While the Taoiseach defended the move yesterday, the newly elected PD deputy for Galway West, Mr Noel Grealish, called on the Tánaiste and the Minister for Justice to use their influence at Cabinet to have it overturned.

Mr Grealish said he would be raising the matter at the PD Parliamentary Party meeting tomorrow.

The Minister for Finance, Mr McCreevy, will also come under fire at tomorrow's Fianna Fail Parliamentary Party meeting, while the Labour Party will table a motion in the Dáil condemning the move.

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Mr Grealish said he was "disgusted" and "shocked" at the measure which was hitting young house-buyers trying to get a foothold in the property market.

"I want Mary Harney and Michael McDowell to go back to the Cabinet table to tell their ministerial colleagues to look at this again," he added.

Mr Grealish was joined in his criticism by Ms Fiona O'Malley, PD deputy for Dun Laoghaire-Rathdown.. "It is hitting vulnerable people and is unfortunate. I would have preferred to have seen other tax incentives that developers benefit from go," she said.

However, the PD backbenchers will not be getting the support of their leader, Ms Harney.

A spokesman for the Tánaiste said last night that she was supportive of the initiative, and would not be seeking to have it overturned. "She supports the Government and the Minister for Finance on the Estimates," he said.

The Taoiseach, Mr Ahern, said there would be no climbdown on the measure. Speaking in Bray, Co Wicklow, he said: "We have to bite a lot of hard bullets. But the Estimates will be debated in the Dáil and all these issues can be discussed."

Mr Ahern said the grant was introduced 25 years ago at a time when house-building was being encouraged. But there were 47,000 houses being built every year now, and the economic reasons for the measure were gone.

The Dáil will today debate the Labour Party motion condemning the measure and the Estimates in general.

The party's spokesman on the environment, Mr Eamon Gilmore, said the decision to abolish the grant had caused "real anger among those hoping to buy a house".

"The big winners from the abolition of the grant will be investors in the housing market," he said.

A Government motion proposing the Estimates will also be debated in the Dáil today and tomorrow.

Dublin North Fianna Fáil TD, Mr G.V. Wright, said yesterday he would speak out strongly at the Fianna Fáil Parliamentary Party meeting on the decision to abolish the grant. He joins an estimated 35 Fianna Fáil TDs and senators who oppose the measure.

However, he refused to say if he would vote against the Estimates motion if the grant was not restored. "I am sure it won't come to that. I am confident that Charlie McCreevy will give some reassurances to the parliamentary party that if he is not prepared to reverse the decision he will do something for first-time buyers in the Budget," he said.

He was also critical that first-time buyers in Gaeltacht areas were not affected, and he questioned how the Minister for Arts, Culture and the Gaeltacht, Mr Ó Cuiv, managed to secure this measure.