Aidan Davitt (Fianna Fail) | Oireachtas source

I clarify that Fianna Fáil is committed to providing for rent certainty. We are bringing forward a comprehensive Bill as outlined by our spokesperson, Senator Jennifer Murnane O'Connor. While there is merit in what Sinn Féin proposes, the mechanics and fundamentals of some of the points made will not stack up.The fundamental principle of supply and demand is where this issue lies. We have a problem because we have little supply. We know the reasons - increased building costs and increased regulation. There will be much more of the latter if this amendment passes. Other reasons include dezoning, the spatial strategy and the pre-1963 housing alluded to by Senator McDowell.

As I told the Minister of State's ministerial compatriot, Deputy Coveney, when he was present, this is down to the cost of building. The Government's Front Bench has told him. Prior to each of the past two budgets, I made submissions regarding building costs. We introduced a good measure and changed the VAT rate for the tourism and hotel sectors. As a result, they have flourished. That has been one of the great successes of Fine Gael's tenure in office. We are a long way off discussing developments of more than 100 units, but if anything comes of this debate, the Government needs to consider the VAT component of building costs. We are tinkering with everything - the Governor of the Central Bank, Dr. Philip Lane, has moved from 20% to 10% and there is also the new grant to help first-time buyers - except the logical element, namely, reducing the cost of building. If it reduces, supply will increase, which will solve many problems. It will certainly stabilise or reduce rents. It is a numbers game, and costs will keep increasing if the numbers are short.

Senator Gavan made a good point. He referred to 70 people from Limerick who had presented to him. He is a hard-working Senator. Coming from Westmeath, he could be nothing else. How many of those are presenting for the first time, that is, people who are starting off in life and are approaching their council only to be told that it has nothing for them and they should present to the private sector, which is where the council is sourcing its own housing? Social housing building needs to be addressed. The Government is making inroads, but this will solve much of the problem.

Vulture funds have appointed receivers where people have gone bust, but the number of individuals entering the market as landlords is small. People are not jumping into the property market. We need not fool ourselves about the killing that is to be made. I do not know whether all of those Senators to whom I listened are aware, but if a landlord gets rent, he or she must pay tax on it. That is 40% for most people. Landlords must also pay USC. After all of that and whatever expenses they incur, they have lost up to 50%. If people believe that there is a pot of gold and everything goes into the landlord's back pocket, I wish that I could use that accountant. I could do with seeing him or her. The belief is not the reality.

I implore the Minister of State on the matter of building costs. We are tinkering around with schemes, but that is a load of rubbish. Helping with building costs will help everyone.