Joan Burton (Dublin West, Labour) | Oireachtas source

The caps are based on what is indicated to us on the basis of analysis of the data.

I want to say the following again. Social protection accounts, through rent supplement, for about 30% of the housing rental market nationally. Last year we raised rents, particularly in the Dublin area but in other areas of tight supply, by about 9% which was a very significant increase compared, for instance, with the rate of inflation. As a consequence the increase was absorbed within a month or two.

We have to be concerned about whether such increases cause and put upward rent pressure on people in low-paid employment who are renting and, therefore, we act to increase rents. For people at work who pay their own rent or retired people in rented accommodation, social protection just adds to the pressure of rent increases. That is a very delicate balancing act.

With regard to Killarney and other areas, it is critical to increase supply. If we can do so then we will relieve the pressure, which there really is, to find scarce accommodation of a suitable kind.

With regard to RAS, as people will know local authority standards are understandably high. Often a property that may be rented privately will not be accepted by the local authority. I refer to the standards of suitability necessary to qualify for the RAS scheme and that is a fact.