Seanad debates

Friday, 11 December 2020

Finance Bill 2020: Committee Stage

 

10:00 am

Photo of Seán FlemingSeán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I acknowledge the new section proposed to be inserted in the Bill. Years ago, there was such a provision but it was abolished, I think, in 2010 or 2011, following a recommendation from the Commission on Taxation that rent relief should be discontinued. The view of this independent commission was that, in the same manner in which mortgage interest relief increased the cost of housing, rent relief increases the cost of private rented accommodation.

I would link this to the previous points made on the help to buy scheme, where people said that by giving an incentive to the person, one is helping to put up the price and put money in the builder's pocket. The Senator felt the scheme was bad because of that. I would say the scheme the Senator is proposing would have the exact effect he warned against under a previous recommendation. If we gave tax relief, it would allow landlords put up the price of rent, knowing the renter was getting such relief. To use the Senator's logic, the outcome of this would be to make landlords wealthier. By increasing the incentive for a purchaser or a renter, who is the ultimate beneficiary when they know the taxpayer is giving a subsidy or support? The logic the Senator has used tells me that the only beneficiary of this would be landlords who would get extra money because they would put up the rent in the knowledge that the tenant is getting tax relief. On that basis, I am not in a position to accept the recommendation that we have a report on this matter within six months.

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