Tax changes:The Department of Finance has already begun work to draft legislation to implement Fianna Fáil's proposals to abolish stamp duty for first-time buyers, which is expected to be ready by the time the Dáil meets in mid-June.
During the election campaign, Fianna Fáil promised to abolish stamp duty for all first-time buyers, regardless of the cost of the house, and to backdate it to cover all deeds presented for stamping to the Revenue Commissioners on or after April 30th.
However, Minister for Finance Brian Cowen deliberately opted not to match more expensive proposals from other parties, including the Progressive Democrats, arguing that it would destabilise the property market. The Minister ordered officials to begin preparations to change the Finance Act immediately after the election and the work is to be ready in time for the first meeting of the 30th Dáil on June 14th, The Irish Times understands.
The decision can, perhaps, be taken as an indication of the tough stand Fianna Fáil intends to take with possible coalition parties, including the Progressive Democrats and the Greens, which have both proposed more substantial alterations.
The Progressive Democrats also want to abolish it for first-time buyers, but they also want to "band" rates so that homebuyers pay higher rates only on the portion of the price over each threshold. The party wants the changes to be made before the Dáil's summer recess.
The Progressive Democrats' proposals would mean that the duty paid on the average house would fall by €8,250 from €15,500 to €7,250, while the fall in Dublin would be even sharper, since it would fall by €17,050 - from €32,250 to €15,200.
The Green Party said it wanted to review existing stamp duty rates and abolish stamp duty for older people who are down-sizing and extend relief for first-time buyers who wish to purchase the same property.
Taoiseach Bertie Ahern is expected to meet or be in contact with Mr Cowen today or tomorrow to begin preparations for coalition negotiations, which will be followed by some preliminary contacts with Independent TDs tomorrow, it is believed.
No final decisions have yet been taken about who will be involved on the Fianna Fáil side during the early stages of the talks to come, though the Taoiseach's programme manager, Gerry Hickey, was the one who made the opening contacts with Independents in 1997.
The Fianna Fáil negotiating team for the talks proper will be led by Mr Cowen, while Séamus Brennan and Noel Dempsey have carried out similar duties in the past for Mr Ahern.
The real negotiations are unlikely to take place until after the bank holiday weekend since Fianna Fáil is unlikely to want to have a deal finalised too far ahead of the Dáil's first meeting, lest problems emerge.
However, Fianna Fáil is continuing to send messages to potential partners that they must be ready to sign up for a five-year government, with a clear policy programme and not waver during it.
Fianna Fáil has noted Fine Gael leader Enda Kenny's continuing determination to form a government with some surprise, believing that there "is no conceivable way that he could bring it about".
Meanwhile, Green Party TDs, general election candidates and other senior figures in the party were told yesterday to "stay mum" for a few days by party leader Trevor Sargent until the situation becomes clearer.
