Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

-----to the process. I wish to say one other thing in the context of rent pressure zones. There has been much conversation in recent days with various different parties, but from my perspective, particularly with Fianna Fáil. There are a number of matters I would like to clarify in that context. Until now, the data has not been available to allow an area analysis deeper than at local authority level. The only local authority areas in which the qualification criteria have already been met according to the most recent available data from the RTB for the third quarter of 2016, are, as I said earlier, Cork City Council and the four Dublin local authority areas. For this reason, I propose to designate these areas immediately upon the enactment of the Bill before the end of the year.

What we urgently need, therefore, is to establish a means by which we can look at more local circumstances in real pressure areas in order that towns or electoral areas can be considered in their own right. Following extensive discussions with my colleagues in Fianna Fáil, the Government is proposing to acknowledge the pressures in commuter towns and counties contiguous to, and in cities outside of, Dublin and Cork. We acknowledge that families and households in these towns are under extreme pressure and face real challenges, as well as having difficult choices to make in their monthly payments. By way of ensuring that other areas can be designated soon and on the basis of sound evidence, we propose to have the RTB look at a more granular level at local electoral area data. The RTB has already commenced this work in advance of the agreement of the legislation by the Oireachtas. I accept the need to immediately examine and include several areas beyond the Dublin local authority areas and, of course, Cork city. On the basis of current trends, these areas are very likely to meet the criteria when data becomes available for this quarter in early 2017.

Any designation of an area as a rent pressure zone must be based on legally-sound data to ensure that it is sound from a legal perspective. I agree with Deputy Cowen and his party that we need to bring in other areas and I think I have made that very clear. I propose, therefore, to instruct the RTB to accelerate its work in order that I can put together the more detailed picture of conditions in these counties and urban areas in smaller geographical areas that better captures pressures. With a more detailed local assessment, it is more likely that the real pressure parts of counties around Dublin, for example, will meet the criteria sooner.

I wish to respond directly to conversations we have had with Fianna Fáil in particular. I am asking the RTB to immediately prioritise the commuter areas of Meath, Kildare, Wicklow, Louth, as I mentioned earlier, areas contiguous to Cork city, and the cities of Waterford, Limerick and Galway. Naturally enough, these are areas that are more likely to qualify as rent pressure zones and it makes sense, therefore, that we look at them first. The director of the RTB will be requested to make a priority to ensure that the data on an area-specific basis is available for all of these areas by the end of February to allow the designation process occur where the qualification criteria have been met. I have also instructed the RTB to progress this work on a rolling basis in order that where data is available for the first areas in January, the process can get under way quickly. If it needs them, the RTB will be given extra resources to get the work done. I expect to be in a position to make new designations by mid-January in some cases.

As already stated, we are accepting amendments Nos. 3 and 4 to amendment No. 68. These propose to shorten the timeframe for the overall designation process, which help to ensure that tenants in pressure areas will get the benefit of protection from the rent pressure zone designations without delay. In other words, I understand the pressure that people are under to try to get other areas included in rent pressure zones. We are going to move as fast as we can to assess those areas but we can only make the decisions to designate areas on the basis of the data.

Following extensive discussions with Fianna Fáil, I confirm the actions that will be taken by Government as part of the implementation of the overall rental strategy. The Government commits to reviewing the effectiveness of the implementation of the rent pressure zone criteria in June 2017 and to asking the RTB to refine its guidelines on the use of substantial refurbishment in order to ensure that the relevant exemption in rent pressure zones is properly applied. It is a genuine concern that some people have that landlords may use refurbishment as an excuse to try to bump up the rent. We need to make sure that if a refurbishment is taking place, it is substantial and that guidelines are clear on that. The Government will ensure the use of the District Court by the RTB to ensure more effective enforcement will be prioritised as early as possible in 2017. There is a strong commitment on that in the rental strategy. In order that the RTB will resolve disputes quickly and enforce those resolutions quickly, it is important that the District Court can be used quickly in that regard. The Government commits to ensuring that the RTB is fully resourced and that it undertakes the enhanced role that is envisaged for it within the rental strategy. It also commits to rolling out the repair and leasing scheme nationally in the second quarter of 2017, as committed to in the strategy, and to bringing forward initiatives to encourage property owners to bring vacant properties into use in the private rental sector, also as committed to in the strategy.

In the broader housing context, the Government will introduce a revamped local authority mortgage product in the first quarter of next year and will also undertake an independent financial assessment of financing costs across the construction sector, which is a concern that has been raised. Finally, the Minister for Finance, as a priority, will establish a working group on tax and fiscal treatment of landlords, property owners and accommodation providers, as outlined in the rental strategy. The Minister will invite Fianna Fáil and all other stakeholders to make detailed submissions to inform the work of that working group at an early juncture.

After that marathon contribution, I look forward to hearing the views of other Deputies.

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