Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I acknowledge that many options were set out in the report of the working group on the tax and fiscal treatment of rental accommodation providers. Deputy McGrath and his party called for these options to be implemented as part of the budget. As the Deputy is aware, for reasons primarily relating to cost I was not in a position to put in place the two additional measures outlined. I continue to have concerns regarding some perverse incentives that might have been created, in particular in respect of long-term leases and possible unintended consequences.

As Deputy McGrath will know from some of the engagement we have had, the issue that has emerged is that the purchase of a rental unit with a tenant would likely cover the majority of purchases of rental accommodation. The costs of some of these proposals would be significant. For this reason, I was not in a position to proceed with the options. What I will do in the context of next year's budget and our continued efforts to look at how we can improve our rental market is continue to keep this matter under review. For reasons of cost, I was not in a position to undertake the two additional measures specified by Deputy McGrath. I will examine the matter during the coming year.