Norma Foley (Kerry, Fianna Fail) | Oireachtas source

I thank the Members of Seanad Éireann for making time today to discuss this motion concerning the order I propose to make to extend the termination date of the financial contribution scheme for hosts of temporary protection beneficiaries from Ukraine, known as the accommodation recognition payment, ARP, scheme. The extension of the scheme is only item for consideration today.

The scheme was introduced in July of 2022 in response to the outpouring of support from the Irish public, who opened their homes to provide shelter to Ukrainians seeking protection in Ireland. It involves a tax-free monthly payment of €800 per property used to accommodate beneficiaries of temporary protection, irrespective of whether the property is vacant or shared with the host. The rate, originally set at €400, was doubled to €800 from 1 December 2022 following a Government decision. This coincided with the offer a home scheme, launched by the Minister for housing and run by local authorities in conjunction with the Local Government Management Agency. That scheme has been invaluable in making mainly holiday homes available for beneficiaries of temporary protection. To date, there have been almost 3,400 properties allocated under the offer a home scheme to accommodate more than 10,340 beneficiaries. The ARP monthly rate is not linked to the costs incurred by the person providing accommodation. It is merely intended to recognise the valuable contribution of those who host beneficiaries.

I acknowledge the generosity of people who have pledged accommodation and who have opened their homes and hearts to displaced people from Ukraine. I also acknowledge the great work of the Irish Red Cross and its partners in matching beneficiaries to pledgers and in supporting them.

A 2024 report by the International Federation of Red Cross and Red Crescent Societies on private hosting arrangements for displaced Ukrainians in a number of European countries acknowledged the role of financial support packages like the ARP in enabling the hosting period to extend. It should be noted that the ARP scheme does not apply where there is a rental agreement in place and that it is not intended to substitute rent.

To date, almost €272 million has been paid to almost 23,000 applicants hosting more than 52,200 beneficiaries. Some 37,600 Ukrainians are currently in more than 20,000 properties under the scheme. There has been consistent growth in the scheme over time. That growth continues, even though the future of the scheme has been uncertain. The scheme is due to end on 31 March 2025 but may be extended by ministerial order, subject to Oireachtas approval.

As the temporary protection directive has been to extended March 2026, I propose to make an order to extend the scheme to mirror that extension and provide certainty to those living in hosted arrangements. This scheme is not only a means of recognising the part played by hosts. It has been instrumental in supporting Ukrainians to integrate within local communities nationwide. It has been pivotal in diverting Ukrainian individuals and families away from State-contracted accommodation, which is often in hotels and guest houses. The scheme is also far more cost-effective for the Exchequer. The average cost of the accommodation recognition payment per person per night is €13, compared with an average of €45 per night in commercial self-catering accommodation.

The scheme has allowed the Department to move away from a total reliance on tourism and hospitality settings and has enabled the Department consolidate contracted accommodation portfolios. As the numbers in hosted accommodation have increased, the numbers in State-contracted accommodation have fallen from a high of more than 58,600 at the end of 2023 to just over 25,800 at present. As a result, the number of beneficiaries in hosted accommodation now exceeds those in contracted accommodation.

I acknowledge the concerns expressed on the potential impact of the scheme on the private rental market. I accept that it is likely, particularly in some rural areas, that €800 a month tax free may have been more beneficial to an owner than making the property available on the rental market. However, as those who attended the recent Irish Red Cross briefing in Leinster House will be aware, its survey found that the vast majority of hosts - 91% - are not landlords. They have never been registered with the Residential Tenancies Board and they do not wish to become landlords. For many, their primary motivation has been solidarity with Ukraine, which is a very important consideration. Therefore, clearly, rather than interfering with the rental market, the scheme has been responsible for introducing a stream of accommodation that would not otherwise have been available, a view expressed by a number of support organisations in submissions to the Department regarding the extension of the scheme.

That being said, I am cognisant of Senators' concerns and have recently met with Government colleagues to consider this scheme. Some of my current functions will shortly transfer to the Minister for Justice. I know he will continue to work as part of the whole-of-government response to the Ukraine war, with a focus on providing access to emergency temporary accommodation to those fleeing the Ukraine conflict who request it, in line with Government policy. The ARP scheme will be included in the transfer of functions.

Should the scheme's extension be approved by the Oireachtas, further consideration will be given to operational improvements to the scheme. The future of the scheme will also need to be reviewed in the wider context of considering what comes after the temporary protection directive. While the scheme is not without issues, to not extend it would risk placing significant pressures on an already strained private rental market. The potential loss of hosted accommodation risks displacing some 37,000 beneficiaries, many of whom would be forced to compete in the private rental market.Humanitarian hosting facilitated by the ARP scheme represents a sustainable, community-driven response that is built on the principle of dignity. It goes beyond simply providing shelter and basic needs. It offers respect, compassion and a sense of belonging in community. I wish to take this opportunity to acknowledge the huge wave of solidarity throughout the country in response to the war in Ukraine in meeting accommodation of Ukrainians, whether in commercial or hosted settings. In addition, I acknowledge the great work of local communities and how they have actively supported families in integrating through access to employment and indeed spectacularly through education.

With regard to today's proposals, Part 2 of the Civil Law (Miscellaneous Provisions) Act 2022 introduced the scheme with the termination date of 31 March 2023. That date reflected the duration of temporary protection under the 2001 Council directive. The directive had subsequently been extended a number of times and each time the ARP has been extended to mirror those extensions. In a continued spirit of unity and support for the Ukrainian Government and its citizens, the European Commission has extended temporary protection until March 2026. It is therefore appropriate to make an order to extend the ARP scheme to the end of March 2026. Section 4(2) of the Civil Law (Miscellaneous Provisions) Act 2022 enables me to make such a change to a date considered appropriate following consultation with the Ministers for Social Protection, and Public Expenditure, National Development Plan, Delivery and Reform. I confirm to the Seanad that I have undertaken those consultations and both Ministers support the extension of the scheme

In wishing to extend the scheme, I was mindful of the need to continue to make provision for a financial contribution to assist in maintaining the availability of accommodation for beneficiaries of temporary protection. I note the amendments that have been tabled concerning the monthly rate of payment. I want to be abundantly clear that the motion relates only to extension of the scheme for a further year and nothing else. There is no other consideration. I advise Members that it is intended in due course to reduce the monthly ARP from €800 to €600 from June 2025, with the first reduced amount payable in July. That decision has been made following consultation with, and agreement by, the relevant Ministers. Such reduction seeks to address concerns voiced in the Oireachtas and other fora on the possible displacement effect that ARP is having on the private rental market. It is also a means of winding down the scheme in an orderly and gradual way with due regard to all those involved. That matter will be taken forward by the Minister for Justice following the transfer of functions.

The 2022 Act requires a draft order to be laid before and approved by both Houses of the Oireachtas. The motion was taken in Dáil Éireann yesterday. Approval of the motion in Seanad Éireann is essential to ensure the continuation of the scheme beyond March 2025. The scheme has been an effective instrument of public policy that we cannot afford to abruptly lose. Approval of this motion will provide certainty to all involved in hosting arrangements.