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

First, I will address the question of two years versus one year. As Deputy Coppinger knows, my predecessor introduced legislation to the effect that rent reviews could only happen once every 24 months. That is still the position. For those who have had a rent review, there will be no rent review for a further 24 months after that review. I will explain how it applies in the case of rent pressure zones. When a tenant's rent review is up in the context of the 24-month rent freeze, at that point, the 4% ceiling or maximum of 4% will apply in a rent pressure zone. Thereafter, it will be a maximum of 4% annually while the designation remains intact. That is the position we have outlined.

I will explain the wording in our amendment. We are removing the t/12 element in the amendment. Essentially, this is the 4% per year element. This caused a problem. It will be fine after the first review because then would be 4% per year thereafter. However, it is somewhat different in respect of the first review of rent within a rent pressure zone. Let us suppose someone did not have a review for two years. If we are applying a ceiling on the basis of 4% per year, then the calculation would have been 8%. That was pointed out by several people. That was never the intention or policy decision, despite the fact that Deputy Doherty is trying to create that impression. I would be surprised if his colleague, Deputy Ó Broin, accepted that interpretation of events.

I have been clear on this every time I have explained it, given interviews on it or spoken about what we are trying to do, whether in Cabinet, the House or in the media. The whole point is to be able to assure renters throughout Dublin and Cork city that when they face the next rent review, provided they are in a rent pressure zone, they will not have a rent increase of more than 4%. Thereafter, the tenant will not have a rent increase of more than 4% per year. We are introducing an amendment which simply deletes the t/12 element of the calculation to ensure that there is not an unintended consequence in respect of the way the formula was put together in our amendment.

There is no mystery here. This was a drafting error that was not delivering on the intent or what we were looking for. We are correcting it. I am informing the House as early as I can. As I have said, I am happy to recommit to Committee Stage in order that we can have toing and froing such that everyone understands the intention of Government. Other parties and individuals may wish to do other things, and that is fine. However, I want to be clear about what we are planning to do. We want to ensure that the amendment is corrected to ensure this aim.

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