Rose Conway Walsh (Sinn Fein) | Oireachtas source

I move recommendation No. 18.

“Report on income tax relief64.The Minister shall, within 6 months of the passing of this Act, prepare and lay before both Houses of the Oireachtas a report on an income tax relief equivalent in value to one month’s rent of an individual available to all renters not already in receipt of any State subsidy examining the social and economic impact of this measure in the context of historically high levels of rent for Irish citizens.”.

This recommendation relates to the income tax relief equivalent in value to one month's rent of an individual available to all renters not already in receipt of any State subsidy and examining the social and economic impact of this measure in the context of the historically high levels of rent for Irish citizens. This was part of a motion proposed by my colleague, Deputy Eoin Ó Broin. In this Finance Bill, landlords have been given accelerated tax breaks with no conditionality at all attached. What we propose is a tax relief equivalent to one month's rent for all renters in the State who are not already supported by the State. This would, therefore, exclude those receiving a subsidy, such as the housing assistance payment, HAP, for example. As we outlined to the Minister in our alternative budget and on Committee Stage, this one month's rent back each year for three years, would be accompanied by a rent cap or freeze during that period.

The third leg of this stool would be an increase in the supply. We argue and advocate for a larger, much increased capital programme which would see thousands more social, affordable and cost-rental houses being built with direct funding from the State.

The great solution to the housing crisis that the Minister came up with in budget 2019 was an increase for landlord tax relief on the mortgage interest of up to 100%. Sinn Féin's alternative, as I said, is rent relief for the renters who are facing the greatest crisis out there. The problem with the Government's proposal is that it is completely unconditional. There needs to be a large amount of conditionality. It should be ensured that landlords getting this very large tax break are providing affordable rents and security of tenure. This relief provides no incentive to reduce rents in an environment in which supply is still restricted. Many people out there are put to the pin of their collars and many young people can never aspire to what their parents had before them which was the simple ability to own one's own family home. This is particularly acute in the more urban areas of Dublin, Cork, Galway and elsewhere. It is also being felt more and more right across rural Ireland.

This is a clear example of how we are failing on the issue of housing. The Minister likes to say we are never returning to boom and bust but that is exactly what is happening here. We went from boom to bust and now we are going to boom again. There is lack of ability to manage the issue of housing in this State. The Government never seems to be able to get a handle on it.

Rents have risen for the 25th consecutive quarter and have reached an all time high in each of the last ten quarters. Every single one of those quarters broke new records. Year on year we are seeing inflation of more than 10% and the Government is discussing accelerating tax relief for landlords. We want to see the tax relief going to the renters. We want to see one month's rent back for every person renting in the State for a period of three years. That is what this report calls for.

It is about giving real relief to people and introducing a cap so that landlords cannot increase these rents any further. It is about giving breathing space at a time when the Government needs to ramp up the amount of money it is putting in to social, affordable and cost-rental houses to deal genuinely with the supply issue rather that tinkering around the edges.