A Government scheme that gives an 800 euro tax-free payment to homeowners who rent their homes to Ukrainians is reducing housing supply and is an “incentive” to chose a renter “based on their nationality”, a Sinn Fein TD has claimed.
Pearse Doherty said the design of the scheme creates “resentment and inequality” in the rental market.
Mr Doherty told the Dail on Wednesday that the latest figures show the number of new payments made under the Government scheme is increasing at nearly a rate of 1,000 per month.
Minister for Children, Equality, Disability, Integration, and Youth Roderic O’Gorman said the scheme is under review but warned that any changes would have an impact on Ukrainians.
He said the State has provided refuge to over 100,000 Ukrainians over the last two years, and at its height, was directly providing accommodation supports to about 75,000 of those Ukrainians.
But he said that those numbers have since decreased.
Mr Doherty said the scheme should only be available to host families who open up their own homes to Ukrainians.
“We (Sinn Fein) argued it should not be available to homes that should really be on the private rental market and we argued it should not be available for rooms that should really be used as student digs. We told you it was unfair,” he added.
“The scheme, as you know minister, provides 800 euro a month to pay for rent for Ukrainians, regardless of whether they are working and regardless of their income.
“The payment is tax free, and that means to a landlord it is worth 1,600 euro. Indeed, in constituencies like mine in Donegal, where the average rent is below 1,600 euro, it is pricing other renters out of the market and reducing supply.
“That flies in the face of the commitment your Government gave and assurances it said that any measures to temporarily accommodate Ukrainians would not impact on housing supply.
“You yourself minister said that we do not want to pursue a measure that interferes with the private rental market, but that is precisely what you have done.”
Minister for Children, Equality, Disability, Integration, and Youth Roderic O’Gorman said the scheme was under review (Brian Lawless/PA)
He added: “Since you extended your scheme earlier this year, thousands of homes have been taken out of that (rental) sector, and you have built in an incentive for landlords to accept one renter over another based on their nationality, when the housing needs of both are acute.
“That is wrong. Two people working side-by-side, earning the same wages with the same family size under your scheme, you pay the rent for one but not the other.
“We can see why more and more people are questioning the fairness of this payment. It is provided regardless of income, regardless of employment status, and that is simply not fair.”
The Donegal TD said that anyone who is working should pay for their own accommodation.
Green Party leader Mr O’Gorman defended the Government’s scheme, saying that many of the benefits and entitlements given to Ukrainian people who have sought refuge in Ireland have been scaled back.
“Under the legislation, there’s a provision for the review of the workings of the the recognition payment,” he added.
“There is a review under way at the moment, and that will feed into the decision now as to whether we extend it in line with the Temporary Protection Directive, and whether we extend it unamended, or we make changes in terms of its ambit.
“But it is really important to say, there are thousands of people supported by this payment right now deputy and if we were to cut this payment, if we were to end it immediately, it is important that we understand the impact that that would have on Ukrainians, who we are hosting as a country.
“I think that has to be borne in mind in terms of any decision this Government or future governments makes in terms of the recognition payments.”