The Progressive Democrats have pledged to abolish stamp duty for first time buyers by the summer if they are part of the next government.
Unveiling the party's economic policy document this morning, Tánaiste Michael McDowell, said that, "subject to maintaining budgetary prudence", the PDs would commit to abolishing stamp duty for first time buyers before the Dáil summer recess which begins in June.
But the Tánaiste refused to be drawn on whether acceptance of the party's stamp duty reforms was a precondition for entering into coalition with Fianna Fáil.
Speaking at the Dublin City Chamber of Commerce this morning Mr McDowell said, "I'm not going round talking about preconditions in relation to this issue. However, we believe that it should be dealt with soon and that it should be dealt with befor the government breaks up for its Summer holidays after the general election.
We believe that is the time to deal with this issue and that there is a very strong argument for it in terms of revenue and employment and in terms of fairness and to end uncertainty."
In addition to promising to scrap stamp duty for first time buyers, the Progressive Democrats also said that they would make it fairer for other home owners by 'banding' stamp duty rates so that owner occupiers pay the higher rate only on the portion of the price over each threshold.
Such a move would mean stamp duty on the average national house price would fall by €8,250, the PDs claimed. In Dublin, the reduction would see stamp duty reduced by €17,050 on average.
"Large stamp duty bills are impacting upon workers who need the freedom to move between regions, as well as older people who want to move to smaller second-hand homes when their children leave the family home.
"To ensure maximum market stability, we will implement our reform with immediate effect," he said. "There will be no 'phasing in' period. We will do this through legislation enacted before the new Dáil rises for the 2007 summer recess."
Fianna Fáil, the PDs current coalition partners, have not ruled out a reform of stamp duty, especially for first-time buyers, but refuse to make a commitment, citing concerns for the stability of the property market and the financial security for those already on the ladder.
The PDs' stamp duty pledge comes a day after Fine Gael and Labour promised to abolish the tax but crucially gave no time frame for the move.
Mr McDowell also announced plans to reduce both rates of income tax by two percentage points to 38 per cent and 18 per cent, respectively, "in the lifetime of the next government".
In addition, the PDs vowed to eliminate the national debt by 2013 and to maintain the current corporation tax and capital gains tax rates of 12.5 per cent and 20 per cent respectively.
In terms of promoting a 'knowledge economy,' McDowell promised to invest €8 billion in science, technology and innovation and €26 billion in education and training as well as providing greater support for Research and Development (R&D).
Other plans revealed today include increasing the children under-6 payment from €1,000 to at least €2,000 per annum, a €12 billion budget for childcare services and 50,000 new childcare places by 2010.
The PDs also promised to make schools accessible to students outside normal school hours to help commuting parents and to offer one year's free community based pre-school for families on low incomes. Child benefits will also rise in accordance with any rise in the cost of living, according to Mr McDowell.