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Irish Mirror
Irish Mirror
National
Ferghal Blaney

Budget 2023 aftermath sees Taoiseach face barrage of criticism for not doing enough on housing

Taoiseach Micheál Martin faced a barrage of criticism in the Dáil for not doing enough on housing in the Budget.

As the dust settled on the day after the massive €11billion giveaway budget, the opposition came out to criticise the perceived shortcomings in it, with housing the key focus for many of the Government’s critics.

Sinn Féin leader, Mary Lou McDonald, got into a heated row with Mr Martin during Leaders’ Questions in the Dáil on the issue.

Read More: Budget 2023 'pushes squeezed middle to bottom of pile', says Sinn Fein

She said: “The Government's record in office is that a housing crisis has morphed into a housing disaster.”

Ms McDonald accused the Government of not doing enough for renters with the “measly” €500 a year rent credit introduced by Housing Minister, Darragh O’Brien.

The opposition leader said it was “inadequate” and needed to be paired with a rent freeze to have any meaningful impact.

She said: “Sinn Féin has consistently and repeatedly called on Government to tackle the extortionate rents that are crippling workers, families and students.

“We told the Government the way to do this is by cutting rents through a refundable tax credit equivalent to one month's rent and crucially by banning rent increases for three years.

“We were very clear.

“Both measures must go together to give hard-pressed renters the relief they so desperately need.

“The tax credit for one month's rent would put a meaningful amount of money back in renters' pockets and a ban would provide renters with the certainty that they will not be hammered by further rent hikes.

“To work the two measures must go hand in hand.

“On countless occasions, I have asked the Taoiseach directly to introduce these measures with urgency and every time his answer has been ‘No.’

“We should make no mistake the Government's refusal to act caused already unaffordable rents to spiral further out of control.”

Ms McDonald added: “ Incredibly, it (the Government) has done all this without introducing a ban on rent increases.

“As a result, renters have no certainty and no real protection.

“In the absence of a ban on rent increases, the €500 credit will be wiped out by further hikes. “This is true even in rent pressure zones.

“There is a real risk that without a ban on rent increases the tax credit will in fact fuel a further rent hike.”

The Taoiseach responded by saying there were “holes” in Sinn Féin’s housing proposals.

He said: “The rent tax credit the Government has introduced is €1,500 for this year in 2022. “People have paid their rent but they will be able to claim a €500 tax credit on that this year. “It will be €500 for next year, 2023, and on an ongoing basis.

“The Sinn Féin budget just suggested €1,500.

“However, based on 400,000 renters, that proposal would have an estimated cost of €600 million.

“There is a massive hole in Sinn Féin's provision.

“There is a €300 million black hole in its housing plan.

“Its figures do not add up.”

Labour leader, Ivana Bacik, also honed-in on housing in her Budget criticism yesterday, pointing to the link between unaffordable housing for young people and emigration.

Ms Bacik said: “The young people trapped in spiralling rent prices, who now feel forced to emigrate because they see no future for themselves here because they cannot aspire to ever owning their own homes.

“Once January arrives, it now looks like another mini budget may well be necessary to address the real supports that are necessary for households through this winter and beyond.”

The Social Democrats addressed the small increase in the children’s allowance of just €2 a week, describing it as “shamefully inadequate” in the context of an €11billion giveaway.

The party’s social protection spokesman, Gary Gannon, said: “This miserly increase is an insult to vulnerable families and proves that this Government is not serious about ending the scandal of child poverty.

“The €2 increase per child must be seen in the context of an €11 billion giveaway budget, which saw generous tax concessions for the better-off and universal energy supports for all income brackets, including higher earners.

“The Children’s Rights Alliance had urged the Government to invest in the Qualified Child Increase, which it said would have been a crucial intervention.

“They point out that the €2 increase falls short of what is required and will not be enough to support children or families on the brink of poverty.

“The Social Democrats’ alternative budget had proposed an additional €7 for children under 12 and an extra €12 for teenagers, bringing the weekly amounts to €47 and €60 per week respectively.

“Research from the ESRI shows that the Working Family Payment and Qualified Child Increase contribute most to poverty reduction.

“It is unfortunate the Government did not take this into account in Budget 2023.”

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