Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

No, it is not the truth. The first point I would make is the overall context of this budget is that as we are emerging, we hope, from the pandemic, and there are still some challenges so we are not out of the woods yet regarding Covid-19, the vaccination programme and the phased reopening of the economy and society have meant a more accelerated economic recovery than anybody anticipated two or three months ago. That is of value to everybody in society, including renters. Between 2021 and 2022, we are looking at potentially 400,000 jobs returning to the economy. That is fundamental to people who are renting and to all our people. We now need to try to consolidate and maintain that. The budget is in the context of dealing with a once-in-a-century pandemic. Notwithstanding that, we were in a position to give modest relief to people. I am not saying this is the be-all and end-all. The indexation of tax does help people. I do not know whether the Deputy is opposing it. We think the indexation of tax credits and bands modestly helps many people on low and middle incomes, including renters.

There is other cost of living assistance. For example, the investment in childcare will consolidate capacity within childcare and assist people working in childcare who are also renters. Yesterday's budget is a significant turning point for pay and conditions within the childcare sector and creates career pathways for people in childcare which we urgently need to do. We need to build on that in subsequent budgets to make childcare more affordable. Childcare and rent are the two big pressure points for many people in society.

The most effective economic way to deal with rents is to get more houses built - more affordable houses and social houses. Our resources are targeted in that direction while at the same time providing about €600 million to support those on very low incomes who, because of insufficient social housing, are renting using the HAP scheme and RAS and are benefiting from rent supplement. That cannot be ignored and represents a significant targeting of resources by Government to people on very low incomes who are renting.

In the health area, the individuals the Deputy mentioned will benefit from the expansion of access to free GP care, the reduction in the contributions for drug payments and other initiatives such as the abolition of hospital charges for paediatrics. When all that is taken in the round along with the investment in education, including, for example, a significant expansion of DEIS investment and investment in special needs education, we are helping many people in a very targeted and effective way. Most economists do not believe the proposals for more direct relief for renters would have the desired impact in improving the rental market. They believe it could have the opposite effect.

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