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

The comments in respect of the reports did not stick to them either. I will respond to the points that have been put to me as quickly as I can. As I understand it, Deputy Barry put forward the case that, every time a landlord exits the market, the State should step in and buy the rental property in question. I understand that local authorities are doing this in some cases. They are stepping in and acquiring rental accommodation when landlords are leaving. However, we cannot give an unqualified open-ended commitment that this will happen in all cases because, ultimately, all of this has to be paid for.

The Deputy has many other expectations regarding what the State can do in housing, from directly building homes to investing in infrastructure. We must have the money to do that as well. I think the Deputy is advocating for a situation whereby in any case where a rental property ceases to be available to the tenant who is in it because the landlord is exiting, the State would automatically step in and buy it. I do not believe that can happen because ultimately we have to ensure that the State has enough money to do all of the other things that it needs to do within housing and in many other public services as well.

The Deputy asks me if there are risks. There are risks, as there are in any policy that is brought forward that impacts the housing market or indeed any other area of Government policy. If any other Minister sits in front of the Deputy and says that there is no risk or trade off in a decision that they are making, then they are being less than honest. Are there risks or trade-offs with this particular measure that is in the budget? Yes, there are, as there are with every single budget measure. There are consequences and risks that can materialise. I am aware of them and I am acknowledging them in the answers that I am giving to the committee today. To pretend that they do not exist would not be to live in the real world and would not be honest with the Deputy.

To Deputies Farrell and Doherty, I again put to them what has happened in Berlin as a result of the impact of the measures that are happening there. A rent cap that freezes rental levels in a major European capital city was brought in. That is what is what the Deputies’ party is advocating. According to the studies that have been conducted regarding the operation of it, the number of classified ads for rentals has fallen by more than half. According to analysis that was carried out by German economists, the number of rent control units that are available for new tenants has dropped sharply since the measure was implemented.