Government has no plans to tackle property speculators

THE Government has no plans to crack down on property speculators, despite suggestions by Housing Minister Noel Ahern that they should be “taxed out of existence”.

Tánaiste Michael McDowell told the Dáil yesterday that the Government had no such plans .

But he suggested Labour leader Pat Rabbitte, who had raised the issue, could propose increases to capital gains tax if he wished.

Capital gains tax is charged on profits from the sale of assets.

“We have promised no such legislation,” Mr McDowell said. “[Mr Rabbitte] will have the opportunity, on the occasion of the Finance Bill next year, to table his amendments relating to increases in capital gains tax.”

Any such amendments would be comfortably defeated by the Government, which is against increasing the tax.

Earlier this year, referring to the role property speculators played in increasing house prices, Mr Ahern had said: “There is something wrong if the prices keep going up. Some form of taxation would help, as output alone does not seem to keep prices down.

“There are people buying houses and apartments off the plans and never taking the keys but selling on the contract. I personally would like to see those people taxed out of existence.

“People who see the demand move in to make the fast buck.”

Meanwhile, Mr McDowell said the report on the Leas Cross nursing home scandal would likely be published in a matter of weeks.

The Health Service Executive (HSE) has delayed publication of the independent report by Professor Desmond O’Neill because of legal fears over the naming of individuals.

Responding to questions from Fine Gael leader Enda Kenny, Mr McDowell said: “The Minister for Health has been anxious to publish the report on Leas Cross nursing home. Problems with the legal advice given to the HSE have delayed its publication. I note that a magazine today carries excerpts from the report under the headline: ‘This is the report the Government does not want to publish.’ That is not true.”