Seán Ardagh (Dublin South Central, Fianna Fail)

I want to declare an interest in that I claim relief under section 23. I want to refer to this measure not in regard to my case but to a more general case. Deputies Ó Snodaigh and I are in an area where there are hundreds if not thousands of empty section 23 apartments along Cork Street and in that vicinity. Many people who have purchased and are the landlords in those apartments are civil servants, public service workers and people who earn a PAYE income. They are good landlords who look after their tenants. Some of them operate through the rental accommodation scheme. The amount of trouble that emanates from the section 23 measure is minimal in comparison with the rogue landlords who sometimes operate in the multi-unit old houses who act in a totally different manner. If those hundreds of apartments are to sell in my constituency, for a two-bed apartment one is talking about €250,000 and if one gets a rental income of €1,000 a month, €250,000 at 5% is €12,500, the interest on the loan would not be covered by the rent, leaving aside management charges, insurance cover and all the other items.

I would like the Minister to consider in the Finance Bill the implication of the loan that has been taken out on the understanding that there would be the wherewithal to pay it from other rental income that would have offset to some extent the tax that would otherwise have been paid. There is no way that in ten years the capital cost of any section 23 apartment will be covered by the rental income from that 23 apartment. It is inconceivable, unlikely and cannot be done.

In regard to the artists' exemption, most of the artists in this city earn significantly less than €40,000. They are more likely to earn €20,000, €25,000 or €30,000 per annum. Taking into actors who are resting, which is the term commonly used, for a long period, the idea of having a €40,000 base is excellent. At the same time it means that those such as Bono and other members of U2 and major authors who can afford it will be able to pay on the basis of what they can afford.

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