A number of Fianna Fail TDs are concerned that the stay-at-home tax package announced yesterday by the Minister for Finance, Mr McCreevy, will not go far enough to address the problems from last week's controversial Budget.
Last night several TDs privately expressed their fears that the £3,000 a year tax allowance for one-income family spouses omits women at home whose children are aged over 18.
However, the Fianna Fail Parliamentary Party yesterday passed a motion welcoming Mr McCreevy's plan to bring forward the party's election commitment to give allowances to spouses working at home, and to increase the allowance promised by 50 per cent.
A total of 37 TDs and senators spoke at the two-and-a-half-hour meeting. Many were critical of the way the controversial Budget announcement was handled and appealed for more consultation with the party back benches.
Cork East TD Mr Michael Ahern suggested at the start of the meeting that Mr McCreevy should make a statement to them before any debate.
Tongue in cheek, Mr McCreevy started by thanking all the parliamentary party members for their support and loyalty in the last week. He said he understood the strong feelings of deputies and people all over the State and said it was only right and proper to bring forward the promise to introduce an allowance for women who worked in the home.
The Minister then outlined the Government decision to bring forward a £3,000-a-year tax allowance at the standard rate for spouses of married one-income families who work in the home caring for children or old or handicapped people.
The Minister admitted that the Budget was badly presented and could have been explained better. But he appealed to the parliamentary party to "go out on to the plinth", as they did in criticising the Budget during the week, to sell the new measures.
Speaking about personal criticism of him and the Budget, the Minister referred to a placard erected at Bodenstown Cemetery comparing him to Henry VIII. To loud laughter Mr McCreevy said he could not be fairly compared to Henry VIII yet as he was only on his second wife.
The first deputy to speak after the Minister was Dublin West TD Mr Brian Lenihan, who said he was happy with the new tax breaks.
Afterwards, Mr Lenihan said the Minister had recognised women at home minding children, the elderly and the handicapped in principle. He was happy that the new tax measure would benefit people on the standard rate as well.
Mr Lenihan said he would be pressing the Minister to increase allowances at the next Budget. "That is the next step forward in my view," he said.
The Minister and the Government were criticised at the meeting for the way the announcement of the controversial tax measure favouring two-income families was handled.
Dublin North Central TD Mr Sean Haughey accused the Cabinet of not listening and criticised the fact that the Budget provision was made with no reference to backbenchers.
Dublin North West TD Mr Noel Ahern said in future major policy change should be brought before backbenchers and said ministers should not have the monopoly on wisdom.
Cork South Central TD Mr Batt O'Keeffe told the meeting he had great difficulty with the word "individualisation", because it had connotations of selfishness and self interest. He said he felt the current debate was going to continue and would turn from a tax debate to a debate about the well-being of society.
He said he did not think what Mr McCreevy outlined would be enough.
Donegal South-West TD Ms Mary Coughlan said the Budget backlash was a symptom of the fact that we as a people had become greedier. She said there was more and more pressure on people to have a bigger house and drive a better car and there was an element of begrudgery now.
Cork North Central TD Mr Noel O'Flynn last night described the announcement as an "important first step".
"The Minister and the Government have recognised the importance of the stay-at-home spouse. Not only are they implementing the £2,000 allowance promised in the last general election campaign but this has been increased to £3,000."
Mr O'Flynn said he would be supporting the Budget. "We should take stock of all the reaction to this year's Budget and redress any outstanding matters in the next budget," he added.
Wicklow TD Mr Dick Roche said he was pleased that the Minister listened to the backbenchers. While he said the Minister went as far as he had expected by bringing forward the general election promise of tax breaks for stay-at-home women, he admitted he was concerned that women who no longer have dependent child had been excluded.
One backbencher, who did not want to be named, said the concession announced yesterday would open a Pandora's Box, with pressure now likely to pile on for more money for other groups. "This is not going to work and I am still not happy."
The Taoiseach, Mr Ahern, addressed TDs and senators at the end of the meeting and said there was a landmine and a banana skin in every budget. "I had a landmine in all of my budgets," he said. He appealed to the parliamentary party to support the new measure.