Matt Carthy (Cavan-Monaghan, Sinn Fein)
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91. To ask the Tánaiste and Minister for Justice and Equality when he will introduce changes to the accommodation recognition scheme in the light of its impact on the private rental market and the fact that landlords are using this scheme to avoid tenancy obligations; and if he will make a statement on the matter. [68324/25]

Matt Carthy (Cavan-Monaghan, Sinn Fein)
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The Minister and Department seem to have at last recognised that the accommodation recognition scheme paid in respect of Ukrainian accommodation has had and is having an impact on the private rental market and what I consider the undisputed fact that landlords are using the scheme to avoid tenancy obligations. Will the Minister outline when he intends to bring forward proposed changes to the accommodation recognition scheme?

Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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As the Deputy will be aware, this year we changed the payment under the accommodation recognition payment, ARP, from €800 per month to €600 per month. I know there were concerns about that change as to what impact it would have on those individuals being accommodated. I am pleased to say it has not had, in our opinion, a significantly detrimental impact and has not led to very many people who were being accommodated pursuant to that payment losing their accommodation. The accommodation recognition payment was a useful measure. It was a goodwill payment to recognise the contribution of hosts who opened up their homes to temporary protection beneficiaries from Ukraine. Some 41,500 people are being accommodated in over 23,000 hosted accommodations supported by this scheme. The ARP is not intended to be a substitute for rent. Indeed, it is not payable where there is a rental agreement in place between the host and the guest. According to research from the Irish Red Cross, the vast majority of hosts who avail of the ARP were never and have no future plans to be landlords. I am aware of concerns about the impact of the scheme on the private rental market. Analysis carried out by the RTB for my colleague, the Minister for housing, suggests that some landlords could be diverting accommodation from the private rental sector to benefit from the ARP. It is difficult to reach definitive conclusions on the matter given wider issues impacting housing supply. I can, however, confirm that the Government agreed to a proposal brought jointly by the Minister for housing and me for the governing legislation to be amended to limit eligibility for the ARP to properties that are not rental properties. I think that will meet the Deputy's concerns. I am pleased to inform the Deputy that drafting of the necessary legislative amendments to give effect to the decision is well advanced. The proposal follows the measure implemented earlier this year where we reduced the ARP from €800 to €600.

Matt Carthy (Cavan-Monaghan, Sinn Fein)
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I will agree with the Minister on one point - the accommodation recognition payment was a goodwill gesture for people who opened up their homes to Ukrainians fleeing war. It is very laudable and supported by everybody, I think, in this House. It was then extended and since then the impact of the ARP scheme on the rental market is seen in communities across the State. The Minister and the Government have refused to accept amendments Sinn Féin has brought forward that would limit the scheme to avoid the damage being done in the private rental sector. I welcome that there has been a belated acknowledgement by the Government that the scheme has impacted the private rental sector. We know landlords are availing of the scheme because they are incentivised to do so. Under the ARP, landlords get a tax-free payment. Crucially, and this is the reason we have not seen any distinction in the number since the reduced payment, they are able to avail of a top-up payment from their tenants without any regulation whatsoever. They are completely freed of any tenancy obligations that they would have for any other tenant.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Thank you, Deputy.

Matt Carthy (Cavan-Monaghan, Sinn Fein)
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It was blatantly obvious this was going to have an impact on the private rental market, and it is blatantly obvious that it is having an impact on the private rental market.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Thank you, Deputy. Please conclude.

Matt Carthy (Cavan-Monaghan, Sinn Fein)
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When will changes actually be brought forward, rather than just these cloudy timelines the Minister has been providing?

Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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I disagree that it was blatantly obvious at the time it was introduced that it was going to have an impact on the private rental sector. We are not even sure at present that it is having an impact. There may be issues in respect of it. It is hard to definitively establish that. We are ensuring it will not be able to affect the private rental sector because we are going to limit eligibility for the ARP to properties that are not rental properties. That will ensure it will not have any distorting impact on the private rental sector. We also reduced the fee from €800 to €600 per month in respect of individuals giving goodwill accommodation. We also need to recognise, when you look at the number of people accommodated under the ARP - at present, it is about 41,500 - if it fell apart, if it was taken away and if there was no ARP, where would those people be accommodated? The Minister of State, Deputy Brophy, and I are trying to insist that if people with temporary protection are working, they have to pay for their own accommodation. There are people who will still need to be provided with State accommodation. This is probably the cheapest mechanism available at present.

Matt Carthy (Cavan-Monaghan, Sinn Fein)
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Here we go again. The Minister finally announced that there would be a recognition of the potential impact on the rental market months ago and he is still talking about himself and the Minister for housing bringing something forward at some unspecified time. What is really infuriating for so many people is the Government has yet to recognise that this scheme is deeply unfair. It provides a non-means-tested housing support to one group of people in need of housing that is not available to others. There is a situation where one person might be in employment, on good wages and is able to access housing support through the ARP and somebody else who might be on a lower income is not able to avail of it. Landlords tell me this is the absolute best in terms of their conditions because they have no obligations to the tenant and they can get a tax-free payment and top-up payments. For most of the period this scheme has been in place, the Government has refused to accept Sinn Féin's concerns or take on board any of our amendments. Now, the Minister is saying he recognises there are problems and he will bring forward some changes but will not specify exactly what they are or tell us when they will actually be brought in. It is time for real clarity and honesty.

Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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I do not recall Sinn Féin objecting to the ARP when the previous Minister, Deputy O'Gorman, introduced it at the time temporary protection was granted.

Matt Carthy (Cavan-Monaghan, Sinn Fein)
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It was for hosts in their own homes at that stage.

Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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It was a necessary measure for the purpose of providing accommodation to the large number of people from Ukraine who came here. The Deputy said the Minister of State, Deputy Brophy, and I have not done anything but we have. We reduced it from €800 to €600. I would have thought it is clearly the case we are gradually trying to introduce further measures in respect of it. We are bringing forward legislation to ensure it cannot be used in respect of rental properties so that the issues about which the Deputy and I are concerned will not apply. It is wrong to suggest it is having a completely distorting impact on the rental sector. It is predominantly used to accommodate people who have been granted temporary protection and individuals whom, if they are not accommodated pursuant to the ARP, the State will probably have to look at some other mechanism of accommodation.