Ciarán Lynch (Cork South Central, Labour)

I will speak on the issue of rent relief. The Minister proposes to phase out this relief over a period of eight years. I ask him for an explanation of how this can be achieved. Does it mean that people will need to remain in singular accommodation over the next eight years or is it aimed at people who are currently in receipt of rent allowance in a multiple of locations over that period?

My colleague, Deputy Rabbitte referred to the fact that in the past decade and a half there was significant incentivisation in the property sector where investment properties were prioritised over residential properties. While this may have been redressed in the budget, it is ironic that those at the bottom end of tax reliefs are the first to face the chop on this issue. Those in receipt of rent relief are in income limbo. They are not earning enough to buy a home but they are earning too much to qualify for rent supplement. This vulnerable group is being targeted.

The Minister for Finance indicated that a property price register database would be introduced. Perhaps it is about time we saw similar reform in the area of rent where we have a rental database and rents are calculated and identified in a more accurate and measurable way. Reform in this area is long overdue so that rents, as they are in other jurisdictions, are tied to the CPI and other matters. Ultimately people joining the workforce need to have some level of flexibility which can often mean travelling from one part of the country to another in order to take up work and in doing so not wanting to purchase a home meaning that rents are a critical factor. I ask the Minister redress the matter.

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