Paudge Connolly (Cavan-Monaghan, Independent)

The private rented sector is the fastest growing component of Ireland's housing system. In 1991, 7% of houses were rented, which equated to about one in 12 or one in 14 houses. By 1995 that figure had grown to 16%, which equates to one in six houses. We obviously have a growing difficulty.

People on low incomes who cannot afford to buy their houses account for that growth in the rented market. Many employees who are on or close to the minimum wage cannot buy their own homes, but they are ineligible for the rent supplement because they do not work less than 30 hours a week. Another difficulty facing people on low wages is that, as they are now competing with non-nationals who are also at the lower end of the scale, the likelihood of their wages increasing is quite slim.

I wonder where the Government's housing support schemes will stand in the future. It would be necessary for the Government to introduce a scheme of support for landlords to provide affordable rental housing to the working poor and low income earners who are ineligible for the rent supplement. That would, however, be a disastrous situation. Discussions were held in 1999 on the introduction of such a scheme but it was decided not to rush the matter because it would have taken a minimum of two years. However, seven years later, we are still grappling with the issue and, all in all, the situation in the rental sector has become much worse.

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