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

I thank the Deputies. I very much acknowledge the pressure that so many are facing within our rental sector at the moment. I experience it in my own constituency clinic in the engagement I have with my own constituents. I am really aware of the pressures that have been referred to by Deputies Doherty and Mairéad Farrell. On Deputy Doherty's point about students over the age of 23 whose parent are not going to be in a position to claim the credit, it is important that there are some cost constraints brought into the operation of the relief. If there is an age limit within the SUSI system, it is appropriate for students that it be paralleled and that we have a similar cut-off age. It does not have to be there but if it was not there, I am sure critics would argue that the SUSI system was inconsistent with the operation of this tax relief for students. It is worth saying that if an individual is over the age of 23, is a student and has a tax liability, they are going to be able to avail of the tax credit anyhow.

On Deputy Doherty's point regarding what I have said in not wishing to support this in the past, he is correct. At other times in the past I, in front of this committee, have argued against making available such a tax credit. A number of things have happened over the last 12 months that convinced me that it needed to be introduced in this Bill. The first is the huge change in the cost of living experienced by everybody within our society. I acknowledge that because there is a continued decline in the availability of rental accommodation with an associated rise in rents, these pressures are particularly being felt by those who are renting. That is the reason I believe this is now needed.

I know what the Sinn Féin argument is regarding why a rent cap needs to be introduced. I wonder if the Sinn Féin members of the committee are aware of the impact a rent cap has had on the rental market in Berlin and what it has meant for the availability of rental accommodation there. The Deputies may be aware that since a rent cap has been introduced in Berlin, the number of apartments available to new renters has dropped sharply. My contention back to the Deputies is that, while of course I understand its attraction and appeal for those who are grappling and dealing with the pressures of higher rents and the trauma and stress they are creating for many who cannot get rental accommodation, bringing in a rent cap would only make things worse. It would over time lead to a reduction in the availability of rental accommodation and drive rents up even further. There is clear evidence that this is happening in Berlin, where the number of rent-controlled properties available has dropped very sharply according to independent evaluation of the rental market since the rent cap was implemented. That is a concrete example of how a measure like that can make things worse. It is why I believe this credit is now needed and that a cap would, over time, make our difficulties even more acute and unmanageable for many.