Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I am not sure how I will follow that.

I recognise the role of international capital in a modern economy. I recognise the role of collective investment vehicles. They are widely used internationally. I understand the taxation rules that apply and the objective of avoiding double taxation and of ensuring that the profits are taxed on distribution.

What we are lacking here is a proper analysis. The Minister published on budget day the 136-page report of the working group on tax and fiscal treatment of rental accommodation providers. I wonder how many people read it. The report needs to be gone through in some detail.

The issues raised in these amendments, REITs and IREFs, got scant attention in that report. There was less than two pages on REITs and the taxation of REIT shareholders, and literally a few lines on IREFs. There was no analysis whatsoever on their role in the economy. The report states that 18% of households now are in the private rental sector. That figure is rising rapidly for a whole host of reasons.

What we need here is a detailed analysis of the impact of these collective investment vehicles. Obviously, when one has limited residential supply in the market, ordinary buyers are competing with REITs and IREFs. That is a statement of fact. I would like to know what impact they are having on supply, on the traditional landlords in the market and on the rental market, for example, on tenants. We need an evidence-based approach to this issue.

I understand why the taxation environment and taxation laws were designed to facilitate them coming into Ireland and I recognise their role in a modern economy, but there is a lack of analysis. There is a lack of detail on the impact that they are undoubtedly having. We need that analysis.

There are amendments before the Minister. On Committee Stage, there was a commitment given that the tax strategy group would examine this issue and the role of REITs, IREFs, etc., in some detail. Can the Minister elaborate on that? Can the Minister give us more detail on exactly what he is asking the tax strategy group to do because it needs to address all of the issues that have been raised here by a number of Deputies?

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