Paul McAuliffe (Dublin North West, Fianna Fail) | Oireachtas source

My amendment also deals with the issue of the rent tax credit and it calls on the Minister and the Department to lay a report on the impact of that rent tax credit, particularly the distributional impact, and where and what parts of the rental market it is having an impact on. First, I think the renters tax credit is a really important short-term measure - and I use that term, "short-term" - to address the pressure renters are under at this time. Ultimately, the solution to the high rates of rent that exist in the city and other parts, particularly urban areas, is the Government's plan in Housing for All, particularly measures such as the cost-rental scheme and some of the other measures we have put in place. The long-term addition of supply will have an impact on the prevailing rents and the new model of cost rental will have an impact on the prevailing rents because it sets a rate 25% below the market value. That will have a contributing effect and impact as supply increases.

We do want to find out where this rent tax credit is having an impact. I want to start by welcoming the Minister's decision to extend the renters tax credit to parents who pay for student rental accommodation, or "digs" as it is often called. I know this will apply for the assessment years 2024 and 2025, and retrospectively for 2022 and 2023. That is a really important decision because it was an element of renters that was not dealt with and I welcome that decision. I also welcome the decision to increase the rent tax credit from €500 to €750. It is important that renters know that this is on a per tenant basis. Depending on the number of people in a home, or if it is a shared home between three workers or a couple, it could be between €1,500 or €2,250 in any given year. One of the other crucial elements is that it is an in-year credit, and that will mean that renters can get their credit from 1 January 2024.

I hear criticism from the Opposition with regard to their alternative proposals. First, it was said here on the floor that we have not capped rents. We have actually capped rents, and we have capped them below the rate of inflation. That is important because there is often an attempt to say that we are taking no measures or that we are somehow in league with landlords to try to screw tenants. Nothing could be further from the truth. In fact, we have had lots of criticism from landlords because we have capped rents in those rent pressure zones. The phrase that was used in the previous contribution was that rents were being increased "hand over fist". However, we know that when that is lower than the rate of inflation, those two sentiments cannot be correct.

I would like to see more detailed analysis of who is claiming the credit. I often think that, like any of these credits, sometimes there is not the widespread take-up by the public that there should be. Sometimes that is about the confidence of the people and the insecurity of their relationship with their landlord. I do not think any tenant should be afraid of claiming this, and I know we have sought to simplify the amount of details that are required for tenants to reduce it in order that they do not feel they are being put in a vulnerable position with their landlord. It is a credit that is designed to reduce the burden that high rents currently have on people, and it is very welcome.

One other point that I am a little bit lost on is how the one month's rent that the Opposition has proposed would be calculated. Obviously, it would be different for every different person. I have some concerns about what the validation process for that would be, how that would be applied within Revenue, and how it might be audited. I accept that €750 is a blunt figure but I imagine it is done on the basis of trying to have the maximum amount of impact without increasing the burden of administration.

Regarding the rate of 8.16%, I have a whole plethora of questions about it.

I am asking that a report be laid before the House principally because the rent credit is a new measure. When we implement new measures, we should ensure they have the maximum possible benefit. Whatever resources we put into this provision, it is a short-term, interim measure. The billions of euro we are putting into the implementation of Housing for All and increasing supply ultimately will provide the real solution to the housing crisis. The rent credit is an interim measure to demonstrate that the Government understands and acknowledges that rents are unacceptably high and is taking measures to reduce them. Increased supply and new models of delivery will do that. I urge the Minister to prepare a report in order to provide more detailed analysis of the measure and enable us to see who is impacted by it.

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