Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I will move amendment No. 16 later on. We have long argued for a refundable tax credit for renters. In the last session on the Finance Bill, I put it to the Minister that his policies and those of his Government had led to runaway rents and that families, renters and individuals are under great financial pressure as a result of the inaction of his Government. In one incident, the Cabinet had a brainwave and signed off on linking rents to inflation. At the time, Deputy Ó Broin and I released a statement saying that inflation was rising and that it would be over 2% within a very short period. The Government was forced to change the law to get rid of that daft idea.

Rents have continued to go up for families. We have argued for a two-pronged approach. First, there should be a rent freeze for a number of years and, second, we should bring in a refundable renter's tax credit equivalent to 8.3% of annual rent for all private rental tenants not already in receipt of State subsidy based on tenancy. This would allow for one month's rent to be put back in the pocket of someone holding each tenancy. We argued for such a credit worth up to €1,500 per annum. The Minister decided to turn his face against this. Indeed, he suggested that this measure would benefit landlords and the value would go directly into their pockets. He has obviously now come around to the idea that Sinn Féin was right. He has argued against me for years in this committee and others but has now seen at least half the light because he is now introducing a renter's tax credit, although not of the same level or design as that we proposed. However, he is leaving out the rent freeze, which is crucial. The Commission on Taxation was right when it noted many years ago that, without a rent freeze, a renter's tax credit will actually benefit landlords. Like many of the Minister's other policies over the years, this runs the real risk of increasing rents further right across the State.

This amendment calls for the Minister to produce a report on one part of this two-levered policy, the introduction of a refundable tax credit. This would mean that all of those who do not have a tax liability would be able to benefit from the rent freeze. We propose that it should be at a level of up to €1,500 or one month's rent. Crucially, we argue that Government needs to introduce a rent freeze.

As I say, the Minister is seeing half the light. Perhaps he might yet see the rest of it.