Dáil debates

Wednesday, 22 November 2023

Finance (No. 2) Bill 2023: Report and Final Stages

 

5:35 pm

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Our amendment relates to rent relief. My colleague, Deputy Conway-Walsh, has addressed many of the issues. It is interesting to listen to members of Fianna Fáil, a party of government, talking about how well the rent credit is working. We argued with the Government for years, until we were blue in the face, to do something for renters, only to be repeatedly told "No". We were told very clearly that any such relief would just go into the pockets of landlords, which, unfortunately, is what is happening. The point is that we did not just ask the Government to introduce rent relief; we also asked for a ban on rent increases. The problem right now is there is no ban on rent increases and, therefore, as the rent relief is paid out, it is going into people's pockets and immediately out of them and into the pockets of landlords. That is the reality for a lot of people. I acknowledge that without this measure, the situation would be worse for them. However, the problem requires a two-pronged strategy. When the Government fought tooth and nail against introducing any relief, saying it would end up in the pockets of landlords, they were right because without also introducing a ban on rent increases, that is exactly what was bound to happen.

Deputy McAuliffe wants to find out the impact of the rent credit on people who are paying rent. I suggest he look at the legislation that was passed in this House in previous years. We did not think up a rent relief proposal all by ourselves. Rent relief used to exist in this State right up until 2018, at which time it was phased out completely. The previous rent relief provision was not a one-size-fits-all measure. It was based, in some cases, on age, with particular caps according to age, and the relief applied to the rent that was actually paid. What we have proposed is not something new. If Deputies opposite want to know how it worked, they should ask anybody who was renting during the 2000s, the 1990s or, indeed, the 1980s, when they received rent relief on the basis of what rent they paid, at a rate of 20% and up to a cap. We recognise that the Government has done a major U-turn this year in introducing a rent relief. We have argued that it should be based on one month's rent, up to maximum of €2,000, with a minimum support for all renters. Crucially, it needs to go alongside a ban on rent increases.

Deputies, particularly backbenchers, understand what is happening in their constituencies. In my constituency of Donegal, rents have gone up since the Minister came into office. New rents in Donegal have gone up by more than €5,000. Donegal has the lowest incomes in the State. Just to pay the additional increase on new rents in Donegal since the Government took office three and a half years ago, an average worker in Donegal would have to work full time for ten full weeks.

That is ten full weeks of work just to pay for what has happened with rents over the past three and a half years in Donegal. That is how bad things are. Can you imagine that? Imagine somebody who has to work: they start off in January, they work all the way through January, they do not pay a penny, they do not buy a loaf of bread or a carton of milk. They must keep all that money and work right through February and right up until St. Patrick's Day. That is the portion of rent that has increased since this Government took office. Then the person needs to keep on working to pay the remainder of the rent. What is happening is scandalous but the penny seems not to drop.

The Government is doing a half-arsed job in accepting Sinn Féin's proposals, for which we argued over many years, and says "Actually this is having a wee bit of an impact and is really good for our constituents". Why not just take on our proposals, do not allow landlords to increase rent for the next three years and give people that proper relief? Alongside that, make the type of capital investment we need to increase the type of supply that is required for cost-rental, affordable and social homes. Many people in the rental market do not want to be in the rental market. They should be in a social home but there are not enough social houses or they should own their own property but cannot due to lack of supply and increased prices of properties. Prices have increased by some €70,000 since this Government took office. What is happening out there is criminal. We hear all the time of young people just giving up because it just does not end. But it will end. It will end when Fianna Fáil and Fine Gael are put out of office. That is my view. I have been of that view for quite a while because the reality is the longer they stay in power, the worse things get. Rents are going up, prices are going up and house prices are going up, as is homelessness. It is absolutely ridiculous. It seems that the Government is simply out of ideas. It comes with a new press release or a new initiative but the facts speak for themselves: all the indicators are going in the wrong direction. I boil it back down to that person in Donegal who now has to work ten full weeks just to pay the increase in rents in that county since the Government took office. We cannot afford the Government to remain any longer. The people cannot afford this Government to remain any longer. This amendment would at least give some comfort to people who are really under the cosh as a result of Government policies. Again, I am sure the Minister will come to his feet and reject it again.

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