Rebecca Moynihan (Labour) | Oireachtas source

I want to address the issue of cost being cost. The cost over a period of 20 years is much different from cost over 40 years, 60 years or 80 years. I prefer the term "affordable rental", which is rent that is affordable for people on median incomes. This is at the heart of Senator Boyhan's amendment. All of the experts in the pre-legislative scrutiny stated affordable rental for people is approximately one third of the value. We need to work to try to make sure that what we are calling cost rental, but which is affordable rental, is linked to this.

I remind the House that what the Government has in the Bill is not cost rental. It is cost plus profit. The Government is saying it might be a reasonable profit but it is cost plus profit. This is what the Government is including and allowing in the Bill. Germany and Austria have in place limited profit associations, which are legislated for and which we do not have.There is nothing stopping a housing association or a private ethical operator coming in here and charging cost per profit under current legislation, guidelines and market policy. However, this is putting cost plus profit into the Affordable Housing Bill. When we talk about cost being cost, end of story, we must remind ourselves that in this Bill cost is not cost, but cost plus profit, and we must ensure what this is costing is affordable. If that means extending the term loans then so be it, but it must be affordable for people in this country who earn median salaries.