Jan O'Sullivan (Limerick City, Labour) | Oireachtas source

I do not agree that the 15% variation in property tax will always vary upwards. In the Deputy's local authority area 80% could be retained. Given the valuation of houses on the east coast there will be considerable scope in that area generally to vary the tax. Many local authority members will not agree with the Deputy. In fact, the entire Sinn Féin membership said yesterday it would campaign and say it would reduce rents by 50% if it was in government next time. I have no doubt other candidates for local elections will say exactly the same thing. They will have to fulfil that promise when they are elected.

If the Deputy is making the point that because of financial pressures local authority members will somehow want to increase rates in their areas, I do not agree. If it is decided at a national level it is probably more likely to increase than if it is decided at local level. I do not see why deciding it at national level will automatically make it less likely that rents will be higher or lower.

This is essentially about protecting an element of local democracy while at the same time having statutory guidelines in place to ensure there is harmonisation across the State. Transferring the rent supplement is an important element of that in the context of the difficulties, pointed to by many Deputies, that people are experiencing. The application of a differential rent scheme to tenants who are currently on rent supplement will be of great benefit to large numbers of people. In order to achieve that, we must have model rents. We will be setting a model rent framework for different types of household at national level, but it will facilitate a certain level of variation for local authorities. It is a good balance and I do not propose to accept the amendments.

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