Independents push for concessions as crucial Finance Bill vote looms

Independents Mattie McGrath, Michael Lowry and Jackie Healy Rae have cast fresh doubt on the passage of the Finance Bill.

A crucial vote takes place at noon. If defeated, it would mean the collapse of the Government and an immediate election.

The Independents are demanding further changes to the Bill and have further meetings with the Finance Minister this morning.

Mr Lowry said he was likely to vote against the Bill if four demands were not met as he had no obligation to support a "dysfunctional, half-government".

Finance Minister and Fianna Fáil leadership candidate Brian Lenihan moved to comply with one of the rebel demands by bringing in a lower rate for the new Universal Social Charge to those on medical cards, while increasing it for those earning more than €100,000.

Meanwhile, Deputy McGrath said the plan to end Section 23 property tax reliefs had to be stopped, not for the sake of property developers but for "ordinary people who were encouraged by their accountants" to avail of the reliefs.

Lobby groups had criticised the proposal to end the reliefs, arguing that they represented a form of retrospective tax and that they would lead to widespread bankruptcy and job losses.

It emerged last week that property investors had won a reprieve in the Finance Bill, with the restriction of section 23-type tax reliefs being postponed until at least 2012.