Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I strongly believe that, given the rising rents many are facing, further support from the State in a rental tax credit is merited and needed. The scheme we are bringing in will make a difference of €500 per taxpayer and there is an overall cost to the scheme of €200 million, which is a very significant new scheme to be brought in. It is being brought in because I accept it is needed. I accept that those who are in the rental sector, particularly those who do not have support from being in a rent pressure zone, need additional support. That is what this measure is doing and that is why it is a core part of the Finance Bill.

On the proposals Sinn Féin has on a rent freeze, Senator Cummins has already said that for the period in which this was in operation in Berlin, we saw a significant reduction in the availability of new rental stock. Over time, if less rental stock is available, it means rents will only go up. While I understand the attraction of being able to say rents will not go up for a period of time and that a rent freeze will be brought in, over time it will lead to less rental accommodation being available and that in turn will mean there will be higher rents. That is not a theory. It is the reality of what has happened in Berlin where that measure was introduced. As I said in my introduction to this section, this is a measure that will make a difference of €500 per taxpayer.I know that more is always needed and that the case can always be made for more but at €200 million of taxpayers' money, this is a strong response from the Government to an issue we know is causing a lot of difficulty to many.