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Dáil
‹ Leaders' Questions

Public sector pay and rent certainty

Summary

Deputy Gerry Adams urged urgent talks with public sector workers and pressed the Taoiseach to commit to rent certainty amid rising rents. The Taoiseach said workers had already made sacrifices, outlined an upcoming comprehensive rental strategy, and said it would address security, supply, standards and services after consultation.

Yesterday, I encouraged the Taoiseach to engage in urgent dialogue with public sector workers and their representatives, but he declined. Yesterday also saw the announcement by the private sector committee of the ICTU that it is seeking a 4% increase in wages in the private sector. I presume that the Taoiseach will be dismissive of that also. It is easy for us. We are well protected from economic difficulties. However, the issue of pay for workers who have suffered the brunt of the Government's policies is now front and centre and is not going away. I urge the Taoiseach, again, to enter into dialogue to address the very real issues affecting workers in the public and private sectors. What comes out of those negotiations is another matter, but refusing to engage is only making the problem worse. It does not make sense.

This morning, I wondered to myself if the Taoiseach ever asks himself why workers are seeking wage increases. Does the Taoiseach ever ask himself that question? Does he think they are being greedy or self-serving? Does he think they are trying to keep the recovery going? Perhaps the Taoiseach thinks it is because hundreds of thousands of citizens are in dire straits.

There is a cost of living crisis crippling families in the context of rents, mortgages, insurance, child care fees, student fees and medical bills. People are justifiably seeking the restoration of wages so they can pay their bills. That is not unreasonable, yet the Government's position is that there will be no increase in pay despite the cost of living going through the ceiling, for those who are lucky enough to have a ceiling. It is not tenable. Ultimately, it will lead to industrial action and that will mean more school closures and emergency departments without doctors. Today, 528 citizens of this State are on trolleys in hospitals. It will mean unrest in the private sector as well as in the public sector. Not only does the Taoiseach need to get round the table with the unions, he needs to deal with the cost of living crisis.

Chief among the difficulties people face is the cost of spiralling rents. The average monthly rent is now almost €1,100. In Dublin, people are paying an average of €1,500 per month. That means low and middle-income families renting homes are paying between 40% and 60% of their incomes on rent. That includes those who have children in student accommodation. It is not fair. The Taoiseach is bound to know that, yet he and Fianna Fáil have consistently refused to tackle it and stop these outrageous rent increases. The Taoiseach is failing these citizens. In recent months, the Government and Fianna Fáil have twice voted against Sinn Féin rent certainty proposals. Rent certainty would put a break on the unaffordable rent increases that thousands of families and people are facing. My question is very straightforward. Will the Taoiseach commit to introducing rent certainty linked to the consumer price index without delay?

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Enda Kenny The Taoiseach Fine Gael

Deputy Adams raises a number of important issues. The first thing I want to say is that in recent years every person in the public sector has had to make real sacrifices in the interest of keeping the economy moving. The same applied in an even more serious situation in the private sector, where hundreds of thousands of jobs were either in jeopardy or lost. The situation is that the country is in a better position economically than it was but we still face very serious challenges ahead.

The Minister for Housing, Planning, Community and Local Government has committed to introducing a comprehensive rent strategy in the next couple of weeks. He has dealt with this matter at some considerable length and the strategy will be the point of discussion in this House. He is focused on the undoubted pressure that has arisen from increased rents particularly in the greater Dublin area. The Minister for Public Expenditure and Reform instructed his officials to meet representatives from ICTU last evening.

What the Government wants to do is have a co-ordinated approach - by means of a well-managed strategy - to deal with the challenges we face. There are many. Every day of the week, as a result of the success of Government in creating more and more jobs, people are under pressure to get out of their housing estates to travel to work. They spend longer times doing so. They want to work. As a result of the increase in employment and the rise in demographics, people are struggling because of the issues relating to the construction sector. The latter is a major focus of what the Government will be doing in the next number of years, with a €5 billion fund to back it up across five different pillars. It is very important that this country remains competitive in terms of the national and international situation. That means keeping costs down. This is why we have to focus on the issues of rent, mortgages, housing, public transport, access and the costs relating thereto. The Government has repeatedly attempted to reduce income tax, thereby making it easier for people to live. It increased the minimum wage on the recommendations of the Low Pay Commission and continues to focus on the creation of jobs and employment right throughout the country. That is why there will be a major programme over the coming years to provide access to broadband right throughout the country. It is an enormous physical and structural challenge, with a very substantial amount of trenching work to be done in order to bring fibre directly to houses.

All of the issues raised by the Deputy are serious and they are all challenges for Ireland. A central consideration is that we keep costs down and be competitive. Otherwise, given the uncertainty abroad in terms of the outcome of Brexit and other international issues, we need to focus on how as a country we can best move forward.

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Tá díomá orm agus tá mé an-mhíshásta le freagra an Taoisigh. Níl freagra ar bith aige. I asked the Taoiseach to commit to introducing rent certainty. He ignored the question. Why not say either that the Government is not going to do it or agree to do it, which is what we want the Government to do? Instead, the Taoiseach has ignored it.

I was reading the remarks of Ken Loach, filmmaker and activist. He was talking about his Government and he said:

If they don’t know what they are doing to people they are incompetent and shouldn’t be in Government...If they do know what they are doing then they are not fit to be in Government.

From listening to the Taoiseach's answer, the only conclusion any sensible person could come to is that the members of the Government are both incompetent and unfit to be in government. I have asked already but I will ask the question again. Why does the Government not introduce rent certainty to lift the load and the burden off the thousands of people who cannot afford to pay rents without foregoing some other essential? The Taoiseach ignored the question.

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Pat the Cope Gallagher An Leas-Cheann Comhairle Fianna Fáil

Go raibh maith agat.

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Ní bheidh mé ach bomaite, a Leas-Cheann Comhairle. This week in the Seanad, the Government introduced legislation to amend the Residential Tenancies Act. The Government is happy enough to change its rental strategy whenever it suits. The Government could table an amendment to the Bill in the Seanad that would put a halt to the spiralling rents. I invite the Government to do so. If the Government is not going to do that, will the Taoiseach simply say that he will not do it?

Comment on this
Enda Kenny The Taoiseach Fine Gael

Maidir leis an gceist eile, dúirt an Teachta go raibh díomá air, ach níor mhiste leis an fhírinne a chloisteáil am ar bith.

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Enda Kenny The Taoiseach Fine Gael

Dúirt mé leis an Teachta go bhfuil an tAire tógála ag teacht isteach anseo le straitéis iomlán faoi chúrsaí tithíochta. I have already pointed out to Deputy Adams that the Minister has committed to bringing in a comprehensive rental strategy for the private sector as one of the pillars in dealing with housing responsibilities.

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Does it include rent certainty?

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Enda Kenny The Taoiseach Fine Gael

That will be finalised by the end of this year. Pillar 4 of his programme, which relates to improving the rental sector, commits to developing that strategy by the end of this quarter. It covers four areas: security, supply, standards and services. I imagine Deputy Adams would agree that it would be appropriate for the Minister to have undertaken a public consultation on the matter to get very decent and good views from a range of people and organisations.

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He would get views from Fine Gael landlords.

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Pat the Cope Gallagher An Leas-Cheann Comhairle Fianna Fáil

The Taoiseach, without interruption.

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Enda Kenny The Taoiseach Fine Gael

He has committed to examining those standards, the costs and the feasibility of things like build-to-rent on a large scale as well as undertaking research in other ways to examine how investment in the rented sector can be encouraged.

Deputies will have the opportunity in the coming weeks to listen to, debate, give their views and agree whether they like it. The Minister wants to recognise the problem in the private rental sector and do something about it. That will be happening before the end of this session.

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