John Curran (Dublin Mid West, Fianna Fail) | Oireachtas source

I will not reiterate the debate in full that we had yesterday and I will observe the two-minute rule. Specifically, I raised the issue yesterday that the 4% increase was something we were not comfortable living with, not because of an ideological perspective but because it was something coming on top of a very high market. The market has been out of control. The issue is one of affordability. If someone is paying a rent of €1,500 and there is a 4% increase, that is €60 a month and €720 a year. For a worker to afford that increase, he or she must be on a salary where he or she is paying the high rate of tax and he or she would need an income of €1,500 per month to pay €60 a month extra. That is the reality and so I was concerned.

That said, I acknowledge that 4% is a lot better than where we are today, where the increases in the Dublin area in particular, are double-digit increases. I also compliment the Minister on the amendment on foot of the difficulties we had last night in terms of the unforeseen consequence where the initial increase could have been 8%. The Minister and his officials dealt with it effectively and now the first increase can only be 4%. That 4%, effectively, is based on the conclusion of a two-year lease, which is 2% per annum. It amused me as I sat here looking at the figures and I speculated as to why the 2% per annum could not continue into the pressure zone, considering it is the amount one would provide for on entry to the pressure zone. For the two years before entry, it is a maximum of 4% for two years - 2% per annum - and the Minister is agreeable to that. However, after the first increase the annual increase is 4% per annum rather than the 2% per annum that preceded it. I am disappointed that could not be accommodated.

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