Labour minister reignites dispute on rent controls

A Labour minister has reignited the war of words within the Coalition over rent control, as a solution to the crisis has yet to be found.

Kathleen Lynch, the mental health minister, weighed in to the rent row by backing Environment Minister Alan Kelly’s proposals and the introduction of rent control.

The disagreement is expected to come to a head next week where a package on resolving the rent and housing crisis could be brought before Cabinet on Tuesday.

Alan Kelly

Speaking to the Irish Examiner, Ms Lynch claimed that the housing crisis requires “extraordinary measures” and said rent certainty is now “hugely important”.

It comes after reports that Mr Kelly turned down a budget deal as it did not include ‘rent certainty’, causing fractions between the Government parties.

He has since hit out at what he called “anonymous cowards” in Fine Gael who have criticised his efforts to introduce rent certainty.

Asked whether she backed Mr Kelly’s package on rent, Ms Lynch said: “I must admit, in times of crisis — and I think we have a crisis in relation to housing, for all the reasons that we could spend a day talking about — but in times of crisis I think extraordinary measures need to be taken. I think that rent certainty is hugely important.”

Ms Lynch said that for those families on the verge of homelessness, a full package of measures — which Mr Kelly had proposed — is needed.

Ms Lynch said: “The thing about it is for each individual family that either lives in a hotel room or is under threat of being homeless, it’s a crisis.

“I’m not certain that you could actually say to them we are going to give you half a home or we are going to give you half a package in order to access proper accommodation.

“So I think you are either going to do it or you are not, it’s as simple as that.”

Asked whether Mr Kelly was right to dig in his heels in demanding a rent freeze, Ms Lynch said: “Well I think he was, yes.”

She added: “The difficulty you do have with building supply is that it does take 18 months and that’s your difficulty, so in the meantime there has to be an immediate, medium- and long-term solution and I think he has that entire package.”

Speaking before the launch of a Clúid report into housing and support for older tenants, Ms Lynch hinted that the Department of Justice and landlords also need to be involved in finding a solution, not just the Department of the Environment.

She said: “If you control rents in that way then I think you have to start controlling other things as well, like the cost of building.

“The private sector can’t be seen to carry the entire burden, you have to control other issues as well around supply.

“If the private sector want supply then you are going to have to look at mechanisms to bring on that supply.”

Finance Minister Michael Noonan is against interfering with rents in case it scares off investors.

Michael Noonan

Taoiseach Enda Kenny has warned that any wrong intervention could make the housing crisis worse.

Senior Government sources last night said crunch talks are expected between all sides ahead of Tuesday’s Cabinet meeting, where a package could be agreed.

“A holistic package is on the cards,” one source said.

However, people close to Mr Kelly warned he would not leave the table without some progress on implementing rent progress.

“The big thing that people are under-appreciating is that if both [ministers] of them dig in their heels, homelessness will get worse. Events will take over and something will have to be done in relation to housing,” one source said.

“If he yields for this pat-on-the-head stuff from Fine Gael, it will only get worse. Alan’s got the support of Labour.”