Seanad debates

Wednesday, 16 November 2016

Planning and Development (Housing) and Residential Tenancies Bill 2016: Second Stage

 

10:30 am

Photo of Pádraig Mac LochlainnPádraig Mac Lochlainn (Sinn Fein) | Oireachtas source

Cuirim céad fáilte roimh an Aire. Nuair a bunaíodh an Rialtas seo, gheall sé go ndíreodh sé ar ghéarchéim na tithíochta a réiteach. D'admhaigh an Rialtas go raibh géarchéim ann agus go mbeadh sé ag feidhmiú dá réir seo. Leis an mBille seo, bhí deis ann reachtaíocht láidir a thabhairt isteach chun éifeacht a thabhairt do na rudaí is tábhachtaí a bhí leagtha amach sa phlean tithíochta.

The cited aim of the Planning and Development (Housing) and Residential Tenancies Bill is to facilitate the increased supply of housing and to enhance the functioning of the private rented sector. Despite the Bill's laudable aims we believe that it represents a missed opportunity. To fix a broken housing sector we need to be bold. Increasing the supply of housing by tampering with the planning system and enhancing the functioning of the private rented sector, by providing a solution for 0.56% of landlords and an even smaller amount of tenants, will not do the trick.

Some of the smaller provisions are welcome. For example, Part 4 which allows universities to access Housing Finance Agency funds for student accommodation is a sensible development. Student accommodation is sorely needed in places like Galway and hopefully this measure will lead to more purpose-built student accommodation in the county. However, I hope that will be in mixed developments within the fabric of the city rather than in ghettoised areas. We also welcome the measures contained in Part 2, Chapter 3, which streamline the timelines for presenting and considering local authority development proposals through the Part 8 processes.

I am concerned about the provision on strategic housing developments in Part 2. The Bill proposes to introduce a fast-track planning procedure for residential developments of 100 units or more and large-scale student accommodation projects with 200 or more bed spaces. The Bill also places a statutory requirement on An Bord Pleanála to report back in 16 weeks.

One of the Minister's major urban housing delivery sites announced last Friday is in Ardaun in Galway city. While I welcome the announcement, at present it is just an announcement. Cé gur gcuirim fáilte roimh an fhógra seo, níl ann ach fógra go dtí seo. An rud is tábhachtaí faoi ghéarcheim na tithíochta ná nach mbeidh fógraí agus pleananna ann ach rudaí a dhéanfaidh an ghéarchéim a leigheas. We need to move forward from the announcement stage to actual bricks and mortar.

The problem with this provision is that the Government appears to be tampering with planning law in order to facilitate a few developments. The Minister has not provided a sufficient evidence base for this proposal, nor has he demonstrated that the move will not undermine good planning and further alienate communities from the planning process. Sinn Féin is not convinced that better solutions were not considered, such as facilitating greater use of pre-planning engagement with local communities. I am not convinced that planning delays are the main reason for housing projects being held up.

My main criticism of the Bill is saved for the lacklustre amendments to the Residential Tenancies Act 2004, contained in Part 3. We believe the measures in this section do not go far enough and we have stated categorically many times that the Minister missed an opportunity to amend the Bill and insert rent certainty provisions. The provisions that are contained in the Bill are weak.

The Tyrellstown amendment, a proposal to strengthen tenants' rights in developments of more than 20 units, is weak. The measure only covers 0.56% of landlords and a tiny percentage of rental tenants. The overwhelming majority of those living in the private rented sector will not benefit from this change. This means that those families at risk of homelessness because of buy-to-let properties being repossessed by the banks will continue to be at risk of homelessness. The sale of any rented property should not lead to the termination of a tenancy. Section 34 of the Residential Tenancies Act should be reviewed to remove sale as a justification for the termination of a tenancy in any case where the property is in the ownership of an institutional landlord or where the landlord in question works as a property professional.

The strengthening of the powers of the RTB is welcome as long as it is properly resourced to carry out the additional functions as required. The Minister's ongoing refusal to entertain the concept of rent certainty is incredible considering the impact of the rental crisis on all of society. Students, tenants on social housing supports, such as HAP, working families and young professionals are all being squeezed by rising rents. I note with some irony the Fianna Fáil conversion on the road to Damascus on this issue in recent days, even though it did not support our Rent Certainty Bill earlier in the year.

Let me provide some facts that highlight the severity of the crisis we are facing. The Government is failing the 705,000 people currently living in the private rented sector. This is evidenced by the data contained in successive daft.ierental reports. The most recent report on the market for the third quarter of 2016 is hugely concerning. The average monthly rent is now €1,077. This is an increase of almost 4% on the second quarter of 2016. The annual rate of rental inflation in the State is now 11.7%, which, according to daft.ie, is the highest recorded by it since its records began in 2002.

Rents in Galway city have increased by 10.9% in a year and in the county by nearly 8%. Compared with eight years ago rents are up in Galway city by 14%. That is a massive rise for people who are already struggling with stagnant wages and other high living costs. It means at best that people have had to move out from the city and at worst rent hikes such as this have resulted in people becoming homeless.

The rising cost of rents is unsustainable and is pushing more and more families into emergency accommodation. The recently released homeless figures for September 2016 reflected this. There were 4,283 adults, 1,173 families and 2,426 children sleeping in emergency accommodation in September. That represents a significant increase on the previous month. These figures do not include those who are sofa surfing or those refused access to emergency accommodation despite having no home of their own.

The tenants who are managing to pay the exorbitant rent prices have little or no security of tenure. As it stands, the property can be sold from under them at the whim of the landlord. As a report by National Oversight & Audit Commission on local authority inspections of rented accommodation shows that 55% of properties inspected were substandard. Rent certainty would have put a break on rising rents. If Fine Gael and Fianna Fáil had supported our Rent Certainty Bill back in June, hard-pressed renters could have saved up to €2,000 per year. Fine Gael opposed it again in this Chamber a couple of months ago, again aided and abetted by its partners in government, Fianna Fáil.

If the Minster really wanted to enhance the functioning of the private rented sector, he would have tabled a rent certainty amendment and he could have given tenants real security of tenure by amending the Residential Tenancies Act to remove the criteria for serving notices to quit relating to sale of property, own use or use of family member, and change of use.

Is léir ón méid a chloisim ón bpobal go bhfuil tacaíocht ann dá leithéid de reachtaíocht. Bíonn eagla agus éadóchas ar dhaoine nuair nach féidir leo bheith cinnte faoin todhchaí. Mar shampla, i gcathair na Gaillimhe, cén cinnteacht ata ann do dhaoine nach mbeidh na cíosanna ag ardú 14% mar atá ag tarlú le hocht mbliain anuas? Mura bhfuil an chinnteacht sin ann, ní féidir le daoine aon phleanáil a dhéanamh. Tá sé deacair aon suaimhneas nó sonas a bhaint as an saol má tá an chontúirt ann i gcónaí don duine nach mbeidh sé in ann a chuid a íoc.

We will have an opportunity to submit amendments to the Bill next week on Committee Stage. It is ambitious to think we will finish Committee Stage next week because I think there will be many amendments from across the House. I appreciate what the Minister has said, but it is important to get the legislation right. He said that he was open to constructive proposals for improving the Bill and they need to be fully debated. Sinn Féin will be tabling amendments designed to improve the legislation and we hope the Minister will give them serious consideration.

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