Labour official fails to back minister on capping rents
Speaking after the latest cabinet meeting, a spokesman for Tánaiste Joan Burton would not commit to capping rent prices, instead saying while it “could be an option that is potentially useful”, he “can’t sit with a straight face” and predict the plan will still happen.
He said the issue is still being discussed with Fine Gael, but declined to say when agreement will be reached or whether rent certainty will form part of future housing policy.
The failure to fully back Mr Kelly is the latest indication that rent certainty is far from likely under the current Government, despite the environment minister’s repeated comments over the past year insisting the move is necessary.
Earlier this week, Mr Kelly and Finance Minister Michael Noonan stressed that they are not opposed to each other on key elements of rent reforms and a housing package.
However, it is widely accepted from multiple officials in Government — including at the Departments of Finance and Environment — that the exact opposite is the case.
The Labour minister is pushing for the linking of the rent price rises to the consumer price index for two-four years to cool cost increases. The Fine Gael minister is understood to be opposed as it may impact negatively on the market.
Mr Noonan’s position was underlined further yesterday, as a Fine Gael spokesperson said the “first part of the solution” to housing and homelessness “is to build more units” — a point repeatedly emphasised by the party and shared by Labour’s Public Expenditure and Reform Minister Brendan Howlin last week.
Taoiseach Enda Kenny denied an internal Coalition rift is occurring over the issue, saying “seeming is not happening” when asked about the apparent difference of opinion among Government.
Mr Kenny was speaking in Claremorris, at his Mayo constituency general election selection convention, on Monday night.
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