Dáil debates

Wednesday, 5 March 2008

Finance Bill 2008: Report Stage (Resumed)

 

5:00 pm

Photo of Martin ManserghMartin Mansergh (Tipperary South, Fianna Fail)

I agree with Deputy Burton that the right to buy council houses is a good policy. There was also a scheme in the late 1980s for buying them out and many of the older council houses, from the 1920s to the 1950s in particular, were very solidly built. Some of them look absolutely terrific in private ownership, having been refurbished.

It could be said that, particularly in another jurisdiction and perhaps occasionally in this jurisdiction, there was much criticism of that policy from a very left-wing perspective. I also agree that landlords should pay tax and the existence of this relief is an incentive to see that happens.

The amendments may be put down to simply discuss the subject but taken literally, they involve an increased cost to the Exchequer in what is an acknowledged tighter position. There is also an economic impact to be considered, which is that whenever a rent allowance against tax is increased, or mortgage interest relief is raised, we must always consider the knock-on effect.

If it simply enables landlords to charge higher rents without much benefit to tenants, it clearly would not be a particularly good idea. Whenever those limits are raised, and particularly by a relatively large step as proposed here, that issue must be considered.

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