Robert Troy (Longford-Westmeath, Fianna Fail) | Oireachtas source

It is regrettable that in the dying days of this year and Dáil session such important legislation will be rushed through. Did the Government learn nothing from the mistakes of the previous Government which introduced the Water Services Bill 2013 in Christmas week several years ago and rushed it through? The Government had to deal with the aftermath of that for many years. I have grave concerns about the 4% rent increase. My party colleague, the spokesperson on housing, has articulated the party's concerns.

The rise in rents in recent years has been beyond belief. Many find it hard to get places to rent or cannot afford to pay their rent because of the vast increases, yet we are giving landlords permission to raise the rents further over the next few years. I am not averse to landlords. I think they have a very positive and meaningful role to play in the rental market and in helping to address the housing crisis, but to incentivise and encourage them to stay in the market, we cannot put that pressure on tenants. We need to incentivise landlords to come into and stay in the market because they are leaving continually. They are paying PAYE, USC and PRSI. A landlord told me last night that 62% of his rental income is paid in taxes. Instead of putting the pressure on the tenants, this plan lacks ambition and the Minister should have reviewed the tax allowances available to landlords.

There are accidental landlords. I met a lady last night who was a teacher, but because her job changed, she had to let her house in Mullingar and she now lives in Dublin, paying huge rent. The rental income does not cover her mortgage. She pays tax on it. When she lived in that house renting out two rooms, she was able to avail of €15,000 tax free a year. There is no help or support for somebody in a situation like hers. It is regrettable that the Minister felt the need to push this 4% because it could have been done in different way that would have incentivised landlords to continue in the rental market but not at the expense of tenants who simply cannot afford to pay more. Today in the press people compliment the Minister for facing people down but I think he will be remembered as the Minister who helped to make accommodation less affordable for working people who are trying to keep a roof over their heads.

I have grave reservations about the capacity of the Residential Tenancies Board, RTB. Anyone I know who has had dealings with it has only negative things to say about it. I note the Minister has committed to increasing the resources of the RTB but he needs a tight timeframe to reassess it and ensure it is fit for purpose and does its job.

2 o’clock

Anyone living in, working in or representing a commuter town or commuter belt, including, I am sure, his party colleagues and Independent colleagues that are supporting the Government, will tell the Minister that the rents in those areas have increased significantly in the past number of years as well. I do not know why at the outset the Minister is only including the two cities as being areas identified as pressure zones. Without question, the biggest pressure lies there, but it is not exclusive to those cities. The other areas should be included. I realise that the Minister has acceded to my colleague's request to examine the possibility of extending this during the first quarter of 2017 and I ask that it is done as quickly as possible.

See this speech in context