Fintan Warfield (Sinn Fein) | Oireachtas source

Senator Mullen is being good to me today.

There is a concern that the owner can seek a revocation of the cost-rental designation once the minimum cost-rental designation period comes to an end and that the Minister must revoke it, given the mandatory meaning of "shall" in section 39. The minimum period is at least as long as the cost calculation period of 40 years, which we have debated and in which respect amendments have been accepted. The provision in the Bill builds in what is essentially an automatic end to the cost rental designation. For us, this raises a number of concerns.

I have with me a note from Threshold, which I would like to cite for the record. It states:

The process of mandatory revocation upon application undermines the long-term benefit of cost rental. It means the occupants, over the 30 years, will pay off the cost of the building for the owner and no further tenants can benefit from this, either in the form of lower rent or investment of the rent in further cost-rental projects. Cost-rental is its most effective when done over an extended period of time and across multiple sites. Building in this revocation undermines the cost-rental project.

Essentially, I propose that we delete section 39.