Paschal Donohoe (Dublin Central, Fine Gael)

The estimated cost of the measure is based on estimates of profitability of current rental units subject to tax. The full-year considerations take into account expected growth in the number of units to meet the target of 18,000 by 2030 and assumes that the current portion, of around 60%, will be delivered by local authorities and AHBs, with the balance delivered by taxable entities.

The first-year cost estimate was reduced to reflect the potential availability of capital allowances, which would reduce taxable profits. We estimate that in year one, the figure would be €4 million, rising to approximately €20.4 million per annum over time. It is also likely, however, that STAR expenditure will decrease on a project-by-project basis once this relief becomes available and that will offset the costs to a degree.

On the second question, it is not at all my intention that this measure would facilitate the LDA in disposing in any way of cost-rental properties in the future. If anything, my view is the opposite, namely, that the income the LDA generates over time from having a larger amount of cost-rental accommodation will help it to achieve and do more.