Kieran O'Donnell (Limerick City, Fine Gael)

I thank Senators McCormack and Fitzpatrick. I cannot accept amendment No. 1 tabled by Sinn Féin, which appears to have the aim of introducing a ban on rent increases. The Government's firm view is that the imposition of a ban on rent increases is highly likely to be the subject of a legal challenge, would almost certainly deter continued investment in the rental accommodation market and would cause greater recourse to the State for social housing supports. The current rent pressure zone arrangements, under which rent increases are capped at 2% growth pro rata where inflation, as measured by the harmonised index of consumer prices, is higher, were introduced as a balanced set of arrangements to regulate rents. The most effective way to reduce and stabilise rents in the medium to long term is to increase supply and accelerate the delivery of housing for private rental, cost rental and social rental sectors.Allowing a rent increase of up to 2% pro ratais considered to provide a reasonable balance between stable rent control and allowing landlords to adjust rents in line with general inflation, bearing in mind that achieving 2% general inflation is a stated price stability mandate target of the European Central Bank. I cannot accept the amendment.