Fianna Fáil TD hits out at Tánaiste's rejection of stamp duty relief for first-time buyers

Cork South Central TD Séamus McGrath said the proposal 'would make our overall Government approach more consistent in assisting first-time buyers'

Cork South Central TD Séamus McGrath said Simon Harris’s outright rejection of the first-time buyers stamp duty relief proposal as 'disappointing'. File picture

A Fianna Fáil TD has hit out at Tánaiste Simon Harris after he ruled out any changes to stamp duty, as pre-budget tensions ramp up ahead of October 6.

Cork South Central TD Séamus McGrath said there must be an “openness” towards removing stamp duty for first-time buyers, as he described the Tánaiste’s outright rejection of the proposal as “disappointing”.

“The stamp duty relief proposal for first time buyers is sensible and would make our overall Government approach more consistent in assisting first time buyers,” Mr McGrath said.

However, Tánaiste Simon Harris pushed back on the proposal earlier this week, saying such a measure is not included within the programme for Government and would not be brought forward in the upcoming budget.

It is understood the measure would cost €61m per year.

Mr McGrath first proposed removing stamp duty for first-time buyers earlier this year, with the TD receiving backing from Taoiseach Micheál Martin who said he had a “favourable disposition” towards the measure.

“As far as I am concerned, this absolutely remains in contention as a viable measure for the Budget,” Mr McGrath said.

“In a coalition Government, budgetary proposals understandably must be discussed between all elements of the Government and there must remain an openness to those proposals until detailed discussions can take place.”

The Fianna Fáil TD added the Government must also remain “agile” in any policy response and “remain open to proposals outside a Programme for Government”.

Mr McGrath said the Government currently provides support to first time buyers through the Help to Buy scheme, while some of that funding is taken back through stamp duty.

It is understood officials within the Department of Finance have raised concerns that the removal of stamp duty would lead to higher house prices.

Chambers: Focus on tax package

While Mr Harris has now ruled out the possibility of relief on stamp duty twice, Public Expenditure Minister Jack Chambers said it was still “early days” in the negotiation of the tax package.

“What we’ve predominantly done thus far is focused on the tax package, which myself, the Tánaiste and others have been clear about.

“We’ve a number of weeks to go before the budget and we have to conclude all matters relating to the tax package. Some relate to income tax, some relate to the enterprise tax and also on inheritance tax and to see what’s possible within the €1.5bn allocation.

“I’m not going to insert myself into that more generally, except to say that we have a long way to go.”

Mr Chambers said “nothing is agreed until everything is agreed”, while adding there are different perspectives within the Government’s respective parliamentary parties.

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Mr Chambers was speaking alongside Fine Gael junior minister Jerry Buttimer, who agreed there would be different perspectives between the two parties.

However, he added: “I think it’s important that we, when we’re articulating and flying kites, we do so conscious that people are watching and listening.

“It’s a duty on us as a Government to put a budget together, which we will. I’m confident the budget, when its delivered in October, will be one that people will be happy with.”