Independents’ Day as canny pair wring concessions

TWO defiant independent TDs forced the Government into its final climbdown after a week of humiliation to ensure the Finance Bill can pass before the general election.

Key measures introduced by Finance Minister Brian Lenihan on Tuesday were dropped and he promised to include the 90% bankers’ bonus tax, which he previously argued was too complex to complete this week.

Independent deputies Michael Lowry and Jackie Healy Rae had asked Taoiseach Brian Cowen to abandon plans to bring forward the filing date for self-assessment tax returns.

The pair had also demanded the reassertion of a clause to allow parents with at least two children in college to write off the fees for their second child against their tax liability.

Mr Lowry said it had been unacceptable of the Government to try to make significant changes from those announced in the budget.

But he reached a deal in advance of Mr Lenihan addressing the Dáil at lunchtime.

Mr Lenihan said he took on the representations of the two independents, in relation to the self-assessed tax deadline, and scrapped his initial plans.

“Deputy Lowry advised me the harsh treatment of the self-employed is unfair. Likewise, Deputy Healy-Rae made a strong case in this regard.

“This measure would also have serious consequences for farmers because the single farm payment will not have been paid by the 30th of September, leaving farmers with no financial resources to make this payment prior to the deadline.

“In all these circumstances I am prepared not to proceed with the proposal to bring forward the pay and file deadline to the 30th of September,” he said.

A day earlier he said the early filing measure was required to enhance the accuracy of budgetary projections.

In relation to the tax on bankers bonuses, Mr Lenihan said he would need the co-operation of opposition parties to pass the complicated amendment.

The changes ensured the bill passed through the second stage and through the multiple committee stage votes, where amendments are teased out in more detail.

With the support of the independents, and former Fianna Fáil member Joe Behan, the Government won the initial electronic vote by 80 to 78.

Deserted Fianna Fáil deputy Mattie McGrath voted against the Government. However, when the opposition called a walk through vote, which requires TDs to pass through a voting gate, he decided to abstain.

The bill is expected to pass through all stages in the Dáil this evening when it will be sent to the Seanad for two days’ debate.