David Cullinane (Waterford, Sinn Fein)
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I took from that report that there was a clear sense that capital investment is much better than current expenditure investment. That was one of the take-out points of that report, yet we seem to be increasing our expenditure. We are going to double it yet the Department of Public Expenditure and Reform report, which is independent, is saying there will always be a need for some level of supports for people in the private rented sector because of the nature of housing. The more fundamental question in terms of value for money, which we have to look at, is we have a target to double the investment in HAP, yet we are not using that money to invest in capital investment to build homes that people need. The State would then own those homes. We are adding to a problem. All of this is having a consequence on the private rented sector. We are funding almost everybody, including social housing tenants, into the private rented sector. What has happened? Rents have gone up. The average rent in Dublin is now €1,900. The average rent across the State is €1,400 a month. Part of that is a result of the policy solutions that are put in place.

Everybody is being pushed into the private sector. We are not building enough houses, yet it seems that the Department has not learned from it because the target is to double the spend and to double the number of people in HAP by 2021. Do the witnesses think that will reduce rents across the State or will it continue to play its part in increasing rent?