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Matt Carthy: Challenges ARP for distorting rental market

Matt Carthy: Challenges ARP for distorting rental market

Matt Carthy moved a Sinn Féin amendment in the Dáil challenging the accommodation recognition payment (ARP), arguing it has morphed from emergency support into a tax-free subsidy that distorts the private rental sector. He warned the scheme should not be extended without the significant amendments Sinn Féin has proposed, and cited a Department of Housing report confirming the ARP's negative impact.

Main claim and immediate evidence


Matt Carthy sets out Sinn Féin's position: the ARP began in July 2022 as an emergency measure to support households who opened their homes to Ukrainians, but it now functions as a non-means-tested, tax-free payment that has incentivised landlords to divert properties into the scheme. He refers to a Department of Housing report that states the ARP is having a negative impact on the private rental market.

Unfairness and market distortion


The speech emphasises that the ARP is uniquely available to Ukrainians regardless of income, while other people in need of housing receive no comparable support. Carthy argues this creates perverse incentives, inflates rental returns in some areas and enables landlords to avoid normal tenancy obligations while receiving top-up payments.

Accountability and political consequences


He accuses the government of failing to listen to repeated warnings and describes ministers as disingenuous for citing unreliable surveys. Sinn Féin’s amendment is presented as the remedy; Carthy challenges other parties and individual members to explain their support for the scheme and to show whether lessons have been learned.

What Sinn Féin proposes next


Sinn Féin asks that the ARP not be extended without the significant reforms the party has tabled. Carthy frames the amendment as an opportunity for the Dáil to decide whether to protect renters and the private rental market or to continue a policy he describes as a landlord's charter.

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Transcript
Lascan Comhairle, I move the Sinn Féin amendment. The accommodation recognition payment was originally introduced in July 2022 at a rate of 400 euro per month tax-free in the months following Russia's invasion of Ukraine. It was designed as an emergency measure to support those who opened their homes to provide accommodation to beneficiaries of temporary protection arriving in Ireland and Sinn Féin commended and we commend again all those who opened their homes, opened rooms in their houses to accommodate those fleeing war. But since then the scheme has morphed into something entirely different. Something that has impacted on rents in the private rental sector and has enabled landlords to evade their usual tenancy obligations while getting a tax-free payment of up to at some points 800 euro per month plus top-ups. The rate which had been increased to 800 euro in September 2022 was reduced to 600 euro in the middle of last year and government are talking about changing it again. The ARP provides a non-means-tested housing support to Ukrainians that's not available to anyone else in need of housing and that's unfair because those who receive this support could be in well-paid employment, they could be working alongside others who receive no housing supports but might need them. And repeated warnings around the impact and unfairness of the ARP were ignored and that is a real problem here. The government failed to listen and failed to act and again we hear the Minister being entirely disingenuous citing a survey that he knows that no landlord would actually complete and any measures that you've taken to address potential impacts have been too little and too late. And how do we know that? Because a report published by the Department of Housing tells us it states and this is what it says in relation to the ARP that it still represents a substantial incentive to divert properties from the private rental sector to the ARP scheme. The report pointed out that the tax-free nature of the ARP means that it is more attractive than the rental returns in some parts of the country including the maximum levels of housing assistance payment available to some households nationally. I could have written it myself because it's exactly what Sinn Féin have been saying and government ministers I have to say have serious questions to answer about their failure to be honest with the Dáil about the impact of the ARP and I have to say opposition parties that have taken government at their word should also reflect on their position. So put simply this scheme should not be extended without the significant amendments that Sinn Féin have proposed. So just to recap Lask and Córla. The accommodation recognition payment was introduced as a payment for people who house Ukrainians in their own homes after the Russian Ukrainian but it's morphed into something very differently. It's uniquely uniquely a tax-free payment to landlords who can then get top-up payments which are completely unregulated. Uniquely. The landlord is exempt completely from all the rules that would apply if they had any other tenants. It's a landlord's charter and it's not surprising that Fianna Fáil and Fianna McGill came up with it. It is surprising I have to say that other opposition parties have backed them all the way. Uniquely as well those who are accommodated under this scheme are not means-tested. There are precisely zero other housing supports where families can benefit regardless of their income or wealth and that it's available to Ukrainians and not to anyone else it means it's exactly the type of policy that leads to resentment and to division and again it's hard to understand how it has had such support among all members of the parties on both sides of this chamber. The ARP does distort the rental sector and Sinn Féin has stated this time and time again and government have dismissed it time and time again. In fact opposition parties have stood up here and accused Sinn Féin of all sorts simply for stating what is now an absolute fact. The amendments that Sinn Féin have put forward that would have addressed that problem have been rejected time and time again and all the while the numbers of properties in the ARP continued to grow. There was an increase of 5,000 properties last year alone and now we get confirmation of what we've been saying all along. An explicit confirmation in a government report and it states categorically and let me quote the ARP scheme is having a negative impact on the private rental sector. And what's your answer? To extend it for another year. Absolutely crazy stuff. But I have to say I can't call it once again Sinn Féin are moving the amendment that would resolve the deficiencies in this scheme and I have to say it's an opportunity for every member of this house to let the public know whether lessons have actually been learned.