Tánaiste: Junior minister's vulture funds tax call 'not sensible'
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Tánaiste Micheál Martin said he was "surprised" a Fine Gael junior minister suggested changes to taxes levied on vulture funds, suggesting it was not "sensible" to do so.
Speaking in Newry on Monday, Mr Martin said Neale Richmond had not "given a heads up" to senior Finance Minister Jack Chambers on the issue.
At present, institutional investors that purchase more than 10 homes in the same development within 12 months must pay a 10% tax. Mr Richmond wants this doubled to 20% and wants it to be introduced in the upcoming budget.
While Mr Martin accepted coalition partners would jockey for position between now and October 1, he said a review into the stamp duty was ongoing and would be considered.
"I’m surprised at Neale Richmond’s comments yesterday because I would have thought the sensible thing would have been to await the outcome of the review.
“We must approach these issues in an evidence-based way and in a substance-based way, and I think the sensible thing would have been to await the review.
The Tánaiste said: "We’ll engage on it. I think the review will have to be published in the first instance. I’m conscious of the Housing Commission’s report as well which warned against a reactive approach to the rental market and to the market in general, and I’m conscious of the need for investment from the private sector in housing as well, and if we keep chopping and changing, that could damage investment in housing.”
Mr Martin said he would "urge caution in terms of market-sensitive issues" and said there needed to be certainty for those building homes.
“Generally speaking, at budget time there can be different ideas and proposals floated,” said Mr Martin.
“I think the Government does need to be careful in terms of how we go about this. There will be different areas, the welfare package, which is par for the course.
"I would urge caution in terms of market-sensitive issues, so in terms of the stamp duty issue for example, the minister for finance had already commissioned a substantive review of that."
Asked about the issue, Taoiseach Simon Harris said Mr Richmond's intervention was "appropriate". He said taxation changes needed to be made in the budget, which is why the Government rejected a Sinn Féin plan on vulture fund taxes in January.
“I would have said it many times, since becoming leader of my party and Taoiseach, that we do need to keep the issue of stamp duty constantly under review,” Mr Harris said.