Seán Kyne (Fine Gael) | Oireachtas source

I move recommendation No. 16:

16.In page 35, between lines 6 and 7, to insert the following: “25.The Minister shall, within 3 months of the passing of this Act, prepare and lay before the Houses of the Oireachtas a report on the operation of the tax relief measure introduced in Budget 2023 to encourage the retrofitting and the making of rental homes warmer and more energy efficient for renters.”.

We know the importance of a warmer home to any tenant. It is hugely important. Obviously, there is a cost incurred by landlords. Unfortunately, we have seen cost inflation and price inflation through all sectors of the economy, particularly in construction. I will give an example that my colleague, Senator Micheál Carrigy, gave in a Commencement debate recently of some of the costs that have increased over the period. The grant per house for retrofitting is €11,000. In 2020, the average amount expended on retrofitting was €20,865. In 2022, it was €35,926. This means that there was an increase of 72% over the three-year period. In 2023, these costs are projected to be an average of €45,280, due, in particular, to construction cost inflation. This is coming not just from the local authority but also from the Society of Chartered Surveyors Ireland, who are obviously experts in this regard.

The maximum reimbursement from the Department to local authorities is €11,000 per dwelling, with additional costs to be funded from the authorities' own resources. Senator Carrigy has raised questions about the refunding of that money to local authorities. That gives an example of the added cost that has incurred in respect of this very important retrofitting work.