Seanad debates

Wednesday, 20 June 2018

Short-term Lettings Bill 2018: Second Stage

 

10:30 am

Photo of Kevin HumphreysKevin Humphreys (Labour) | Oireachtas source

I move: "That the Bill be now read a Second Time."

I welcome the Minister of State, Deputy English, to the House. We have spoken about this Bill several times but I want to go back over some of the history. I brought this Bill forward in early 2017. I did not push it in the hope that we would see the report commissioned by the then Minister for Housing, Planning and Local Government, Deputy Simon Coveney, who was succeeded by Deputy Eoghan Murphy, which was due in late 2017. We have still not seen that report and we are now seven months behind. There have been several leaks but nothing substantial. I had concerns because it was being chaired by the Department of Transport, Tourism and Sport, which has skin in the game. If we introduce legislation and regulation in respect of short-term lets, and I want to be honest with the House about this, it will lead to a reduction in holiday bedrooms in many of our urban areas.

I have always realised that this is not zero sum as it will effect on another part of the economy. The tourism industry will be affected. More and more, however, we see that working people cannot get accommodation in our urban areas, and not just in urban areas. I have received complaints from Leitrim, Galway, Kerry and elsewhere where people are competing against short-term lets. I use the phrase "short-term lets" because many people use the language of Airbnb. That is not, however, the only platform with short-term lets. There are 16 different platforms operating and it is a wild west show. That is why we need legislation and regulation.

On my street alone, in the heart of Dublin, there are nine short-term lets. Up to two years ago, they were all being let to families working in the economy. They have now being displaced. We were in the headquarters of Airbnb two weeks ago with the now mayor of Galway, Mr. Niall McNelis. He explained the impact that Airbnb is having in Galway. The specific example he used was of one family being evicted to allow the house to be substantially upgraded. When that was finished, the house was going to be a short-term let. We are looking at a working family losing its accommodation because of the unit being turned into a short-term let. That example can be repeated across Ireland.

One of the Minister of State's own officials gave me the figure of approximately 20,000 short-term lets operating across the country. That is a substantial figure when we are fighting to get working people back into homes. It is also a frightening figure because fewer flats and homes mean higher prices. The Government constantly tells us that if we get the supply right, prices will equalise. I am not saying this Bill will fix all the problems, but it will have a significant impact now. It will bring a significant number of units back into the market across Ireland, reduce rents and allow working people an opportunity to get into accommodation.

At a meeting this morning in Buswells Hotel, which many Senators attended, the students' unions pointed out the impact of short-term lets on student accommodation across the country. The rent-a-room scheme can no longer compete with short-term lets. These warning signals have been there for two years. One of my earliest speeches in this House highlighted the impact of short-term lets and we are still waiting for action. We have been promised reports but there has been little action. This is now big business but not necessarily good planning. We have seen communities hollowed out when residential units become a holiday village. Where there were families, we now have tourists. This has to change. I am not saying this is a perfect Bill because it was drafted prior to the committee.Members of this House did a lot of work on short-term lets. The recommendation from the committee was 90 days. I will show flexibility in respect of amendments to the Bill. My preference is to have engagement with the Minister's Department and to speedily bring forward proposals that will alleviate this problem for so many of our citizens, our families and our workers. How am I doing on time?

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