Willie O'Dea (Limerick East, Fianna Fail)

Most of the recommendations and amendments put forward today and in the other House are, on the surface, quite acceptable. Were I on the other side of the House I, too, could make as good a case in respect of some of them. However, the Minister must strike a balance. Resources are not limitless.

Section 6 of the Finance Bill implements the budget announcements to improve the level of rent relief. The section amends section 473 of the 1997 Taxes Consolidation Act which grants reliefs to taxpayers for rent paid in respect of private rented accommodation which is their sole or main residence. The changes introduced by the Tánaiste will increase the amount of rent relief due to all categories of claimants. For single persons under the age of 55, the credit will be increased from €1,800 to €2,000. For single persons over the age of 55, the credit will be increased from €3,600 to €4,000. For married and widowed persons under the age of 55, the credit will be increased from €3,600 to €4,000 and for married and widowed persons over the age of 55, the credit will be increased from €7,200 to €8,000.

The recommendations proposed by the Senator would increase the amounts due for single persons only. The tax code generally ensures a married couple should get the same level of relief as two single persons and it is not proposed to depart from that principle on this occasion. The cost of the recommendation, if implemented as proposed, would be approximately €29 million in a full year. Over the past four budgets the Tánaiste increased rent relief by 57% in total and the cost of living increased by approximately 27% during that period. Therefore, the real value of rent relief increased by approximately 27% or 28%. This change proposed to section 6 would increase rent relief by 11%, which would be quite significant. The Tánaiste is satisfied that the increases in the relief provided for in the Bill will help to reduce the burden of rent for tenants in the private rented sector, particularly in light of reports showing recent increases in the supply of rental accommodation which should lead to reduced rent levels.

The changes in this Bill, in conjunction with other changes introduced by the Minister, Deputy Cowen, in the previous four Finance Bills are generous. Owing to the excess in supply of rental properties, there is a downward pressure on rents.