Duncan Smith (Dublin Fingal East, Labour)

The Labour Party will not be supporting the Government motion to cut the accommodation recognition payment from €800 to €600, nor will we be supporting the Sinn Féin amendment, which I call on its members to withdraw. Sinn Féin should support the parties of the left in opposing the motion and the €200 cut to the payment.

Since the outbreak of the Russian war of conquest against Ukraine, we have been proud to stand in solidarity with Ukrainian people. When the Dáil last discussed this motion to extend the scheme in March, it was confirmed that over 37,000 Ukrainians were being provided with accommodation in over 20,000 properties, down from a high of over 52,000 beneficiaries. This is by any measure a very successful scheme that has ensured Ukrainians have a place to call home and it saved the State millions of euro that would otherwise have been spent on private or commercial accommodation. As the Minister said in March, the average cost per night is €13, compared with €45 in commercial self-catering accommodation. There is a significant risk now that the cut to €600 will result in extra cost for the State by putting Ukrainians at risk of homelessness. That would pile further pressure onto the private market and worsen the housing crisis.

Internal documents on the ARP scheme obtained by the Irish Daily Mail and published last Wednesday by Craig Hughes show officials in the Department of public expenditure are concerned about the knock-on effects as there is a risk that it will end up costing more than it saves. A memo from the Minister stated there was a risk that this could undermine ongoing efforts to reduce reliance on expensive commercial accommodation and that, in effect, Ukrainians would be transferred from homes to hotels. The Minister of State should confirm if a business case was produced for the decision. It is estimated the current system is saving the State €1 million to €2 million every day based on current numbers. It takes pressure off the private rental market and, importantly, helps people integrate and learn English faster. It embeds people in their local communities through their hosts. A price cannot be put on those benefits to Ukrainians and local Irish communities.

The stated reason for reducing the payment is that it will facilitate the winding down of the scheme in an orderly way in advance of the temporary protection directive ending in March 2026. The Minister of State should clarify what will happen later this year and into 2026 if the directive ends next March. What is the transition plan? Is it to end the scheme entirely next March? If the war continues with Putin showing no sign of ending it, what is the Government prepared to commit to support the thousands of Ukrainians now living here?

Sinn Féin's amendment refers to the impact on the private rental market. However, I refer the Sinn Féin Members to the survey of hosts by the Irish Red Cross which showed that the vast majority of hosts, 91%, are not landlords, have never been registered with the RTB and do not wish to become landlords. Some 86% of hosts reported that their ARP is important for them to continue their hosting arrangements.

We all know the solution to the housing crisis is to build more homes and renovate and restore thousands of derelict properties across the State. We should also look at measures to bring holiday homes back into use. How many empty homes are there right now across the State, whether second homes or being used as Airbnbs? Putting the blame on Ukrainians is cynical and exploitative. Across our communities, they have worked hard to contribute and play their part. Nearly 25,000 Ukrainians are at work and over 17,000 children are in school. They are helping small schools across the country stay open. They are contributing to our economy and providing vital skills and filling jobs in every sector, addressing a shortage of labour in our economy. This scheme is supporting mostly women, children and older people who have fled their home country because of the Russian war of invasion.

The cost of living is not coming down in this country. It is the opposite; costs are going up. Electricity, grocery prices, insurance - you name it, the costs are rising. The cut will impact host families and change the basic economics for them. There will not be a once-off cost-of-living package in this year's budget, thereby piling further pressure on families. The Government is taking a huge risk by cutting this payment. It could have major ramifications in the private rental sector if more Ukrainians have to find accommodation there and, as internal Government memos show, there is a real risk it could result in higher costs if more commercial accommodation is needed. In a world of great uncertainty, I urge the Minister of State not to add to it but, instead, to maintain the payment. The ARP is a model scheme and has worked well. The Minister of State must also outline to us the long-term plan for the supports in place for Ukrainians and continue to pledge Ireland's solidarity for their cause.

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