Micheál Martin, the Tánaiste and Fianna Fáil leader, expressed his dismay at a Fine Gael suggestion to bump up the stamp duty for investment funds making wholesale house acquisitions. He voiced that they should have been “prudent” enough to await the results of an examination on the issue.
This reprimand comes in the wake of Neale Richmond – junior finance minister and delegate of Fine Gael – proposing over the weekend that the stamp duty fee on such transactions, currently at 10%, should be amplified twofold.
Richmond revealed that the 10% rate introduced in 2021 had been effectual in mitigating the trend but called for more substantial measures presently. He also mentioned he would bring up this concern during financial discussions with Minister for Finance Jack Chambers during the week.
The earliest meeting to discuss the budget, involving the tripartite coalition leaders, Chambers and Paschal Donohoe – Minister for Public Expenditure, is set to occur on Monday night.
During a press meeting earlier in the day, Martin stated that varying ideas and schemes are typically mooted during budget times. He emphasised the necessity for discretion concerning “issues that could influence the market”, clarifying that a profound audit of the stamp duty issue has already been set in motion.
Slightly taken aback by Richmond’s recent remarks, he stated that it would have been more level-headed to anticipate the audit’s results. He stressed the importance of basing decisions on evidence.
Martin also emphasised that there had been no preceding indication to the Minister for Finance prior to this decision but assured that they would address the issue nonetheless.
Richmond refuted any claims of political manipulation regarding the suggestion during the past weekend.
Martin, being acutely aware of the necessity for private sector investment in housing, expressed potential concerns. He mentioned that constantly alternating or the absence of certitude could negatively impact housing investment.
Upon the release of the stamp duty review, Martin assured that the Government would make knowledgeable decisions based on its findings.
Previously, a Sinn Féin suggestion for a rise in taxes on the purchase of over 10 properties within a year, raising the rate to 17%, was dismissed by the Government. On Monday, Fine Gael’s most recent plans for stamp duty were defended by Taoiseach Simon Harris, who refuted claims they represented a policy reversal, stating that typically, tax alterations form part of the overall budgetary procedure. Harris expanded, indicating that the Government’s three principal parties will determine the best approach to handle this, with the Budget to be released on October 1st. Although progress was anticipated by Harris, he noted this would depend on decisions made on Budget day.
Simultaneously, the Green Party is advocating for the inclusion of a single €560 child benefit payment for new parents in the Budget negotiations. Roderic O’Gorman, party leader and Minister for Children, highlighted additional expenditures new parents tend to encounter, such as purchasing a cot or car seat. The proposed one-time benefit, which is quadruple the regular €140 child benefit payment, was defended by O’Gorman as a clear display of support for parents and their newborns in the early weeks.
Without making a direct response, Taoiseach Harris emphasized his priority of prioritising children, families, and addressing child poverty in this budget and acknowledged the shared priority among other members of the Coalition. Meanwhile, Mr Martin characterised the Green Party’s proposal as “intriguing”, having previously supported a €10 increase to the standard child benefit payment.