Tánaiste Eamon Gilmore has called for "a long period of repentant silence" from Fianna Fáil on property matters after it claimed the Government's new construction plan would inflate prices.

At a press conference this afternoon announcing a package of measures aimed at stimulating activity in the building industry, Taoiseach Enda Kenny said he agreed with Mr Gilmore’s remarks.

Mr Kenny said Fianna Fáil had "some cheek" to attack the new initiative, which includes a proposal to examine special Government support for first-time property buyers.

Fianna Fáil finance spokesman Michael McGrath earlier dismissed this proposal, claiming it was nothing more than an election gimmick. The proposal, he alleged, was designed to inflate property prices in order to boost the balance sheets of the banks.

However, both Mr Kenny and Mr Gilmore insisted today there would be no return to bad practices of the past which led to the property and banking crash. Mr Gilmore said there was only one thing worse than a property bubble - a burst property bubble. This was not what the Government had in mind.

The plan unveiled today also includes a proposal to establish a new taskforce for Dublin to address the shortage of housing supply. In addition, the Department of Finance has been told to engage with Nama and other stakeholders to explore "sustainable bank financing" for the construction sector.

One option on the table is for the Government’s new strategic investment fund to take an equity position in construction development.

The Department of Finance and Nama have been told to proceed with the examination of such initiatives immediately.