AN IMMEDIATE general election was avoided yesterday after concessions to Independent TDs Michael Lowry and Jackie Healy-Rae secured a three-vote majority for the Government at the crucial second stage of the controversial Finance Bill.

Minister for Finance Brian Lenihan told the Dáil that, following the “strong case” made by the two TDs who normally support the Government, he would not implement a proposal to move the file-and-pay deadline forward for self-employed taxpayers from October 31st to September 30th because it would “have a huge negative effect on small businesses”.

He believed an earlier file-and-pay date was a “worthy proposal” that would have improved the budgetary process, “but you have to weigh up that against the real difficulties self-employed and farmers are facing in the Irish economy and this is not the year for such a fundamental reform”.

He has also allowed tax relief on student fees for families with more than one person at college. An amendment would also be introduced to tax bankers’ bonuses.

The Minister said, “it is appalling and unacceptable that the proposed taxation measures on bankers’ bonuses were not dealt with because of the time restrictions placed on this Bill by the Labour and Fine Gael parties on the passage of the Bill”.

Mr Lenihan noted comments by Independent Mattie McGrath (Tipperary South) about cutting the debate from two weeks to one, which “really constrained my department in what we could do”.

The Minister said: “I will be in a position to bring forward an amendment on bankers’ bonuses at committee stage, but I will need all-party co-operation in regard to this amendment.”

There were a series of votes throughout committee stage yesterday but at second stage the Government won by 80 to 77 votes, following a walk-through vote when Mr McGrath abstained.

He had earlier voted against the Bill during an electronic 80 to 78 vote.

The former Fianna Fáil TD said Opposition complaints about guillotining the Bill “ring hollow now”, and there should have been two weeks to debate the Bill.

The Dáil was adjourned early after the committee stage debate was completed 90 minutes earlier than scheduled.

Mr Lenihan said the enactment of the Finance Bill “is absolutely vital to our international credibility”.

“That has been made clear by the European Commission. That has been made clear by all of the international commentary about during this particular debate.”

However, he warned the House that the debate had made it clear “that you cannot make a concession now without providing for how the concession can be paid for elsewhere”.

“That’s how our public finances are going to be managed in the future, irrespective of what government is in office.”

He said: “If you want an increased expenditure somewhere you will have to explain what additional taxation or what reduced expenditure will fund it, and that’s going to apply in this House from now on”.

The Minister also hit out at the talk on burden-sharing.

“We know that the long debate in Ireland on the mere possibility of default has caused immense problems for the Irish banking system.

“If you insist that you’re going to torch a house, do you expect somebody to leave the house next door alone and to leave their deposit in it.

“That has been the quality of debate on this subject in this country for the last two years, and we’ve paid a heavy price for it.”