I want to rise and speak in favour of all four amendments. I am surprised the Minister is not accepting at least one of them. First, I will deal with the amendment that relates to the Residential Tenancies Board and its capacity and resources. To my mind, that is a no-brainer. It is obvious.
There is also an amendment looking for a review of the Act, and the impact it is having. Senator McCarthy's amendment seeks to review the Act within two years. These are very reasonable requests. I have been in this House since 2016. I worked in civil society before that for 15 years. Frankly, the parties of Government have had such a long record of getting things wrong in this area that there should be no hubris here. There should be a level of humility that says we are willing to engage and we want to review the legislation. Senator Cosgrove said the Residential Tenancies Act is getting changed every 18 months. I have seen a litany of bad ideas and poorly thought-through ideas in which there was constructive engagement from the Opposition and civil society, economic experts and others, signalling the potential problems, and an unwillingness to take that on board.
I could go through them but the list would be too long. In terms of the question of review, it is relevant to mention a couple of them. The local authorities were being blamed by the Minister. However, they were effectively forced to enter into ten- and 20-year leases during the recession, paying €20,000 a year to rent houses for ten and 20 years which they could have bought for €200,000 and which would then have become part of our public housing stock. During that time, the seven-year capital gains tax exemption was definitely used to inflate property prices, quite successfully, during a period of recession, rather than risk letting property prices fall. In 2017, my group brought in legislation asking for proper measures to tackle vacant housing and vacant properties. It was dragged kicking and screaming to a point where now there are some grants and a vacancy tax which is not enforced. This is very relevant because, looking at the increases in vacancy, it is not effective or enforced to the degree it should be. That is relevant to a point made by Senator Andrews earlier. I live in the city centre and I see the empty apartments there which are part of investor portfolios. That gives the lie to the narrative that when these apartments are built they will automatically address the housing and homelessness crisis. In many cases, having those properties lie vacant as part of a portfolio with a theoretical rent of €3,000 a month is actually worth more because they can be sold on repeatedly. There is no need to rent them. We know that happens, particularly in Dublin and the city centre.
In regard to the strategic housing development system, we pushed for use it or lose it clauses to be attached at that time. Instead, there was fast-track planning permission which led to very poor decisions, many of which were rightly challenged. They were poorly made decisions. We talk about the challenges. Many of those happened only when strategic housing developments were happening because they were done in such a poor way. You do not lose 80% of your cases because people do not like the development. It happened because the process was poorly done in many cases. Some 40% of those planning permissions were never commenced, never built, because that use it or lose it clause for which the Opposition asked was not put into the legislation. These people got the planning permission and are allowed to build but they have not gone ahead to build.
That type of scheme was then abandoned and pushed to the past. There was then the suspension of the EU fiscal rules which we were told were the reason we could not invest massively in public housing for years. We were told the EU fiscal rules would not allow it. However, those rules were suspended for a period. I spent three to four years pleading with then Minister, Paschal Donohoe, to let us start using that moment of opportunity, when Ireland had a massive surplus and the EU was not restricting us, to invest heavily in public building. However, we did not do that. That decision was framed as prudent but I do not believe it was. It was a moment when very low interest rates of less than 0% were available to Ireland. Anything we spent then was at 0% interest. There were no restrictions and we had the resources.
Moving along, there is case after case on the residential tenancies - issues we pointed to, inadvertent consequences, the loans that went out and drove up the prices when the economic forecast told us they would drive the prices up and that is what happened. There is a fundamental misapprehension that is never challenged, a core wrong starting assumption that we see repeatedly, which is that what the market wants, what shareholders and investors want and what the public needs are aligned. However, they are not necessarily aligned. Investors are entitled to seek profit. That, however, does not care about delivering the public need, which is a secure housing stock, a security of homes that would allow people to plan and live, rent or buy in a way that is secure. They have different goals. Scarcity drives up prices and that benefits shareholders. There is a constant narrative that if we give developers and others what they want and make sure restrictions are not too restrictive, they will somehow magically build or rent a great many houses at a reasonable price. Why would they? That is where the State needs to be coming in with policies and measures that deliver for the public because that is who the State works for. By all means allow the market to prosper but not simply appease or plead with the market to maybe deliver.
We have here another set of measures about which people who are more expert on the rental sector than I am, such as Threshold and many others, are flagging problems. They are pointing to the risk of massive spikes in rent. They are pointing to the risk of persons who are forced to move for whatever reasons being in a situation where their rent may be greatly hiked. They are pointing to the dangers of the many notices to quit that we know have come before them. They are flagging reasonable concerns. For the Government to state that it does not even want to agree to a review is unacceptable. This is not about bashing the Government; this is about years of hearing constructive ideas, not just from me but from everybody, even Government backbenchers sometimes, which are not listened to, and then the problem happens.
While we have not been seeing the construction of housing, what have seen over the past decade is the construction of ever more elaborate excuses. I have seen the excuses moving through, such as, "It is all down to planning objections." We know it is not about planning objections. Look at the figures. Half of the judicial reviews are taken by developers. Most of them were against SHDs, vast numbers of which had planning permission that was not used. Another excuse is to blame local authorities whose hands were tied on housing delivery for many years and whose powers have been chipped away in successive Bills coming through these Houses. The local authorities should absolutely be doing more. They should, for example, be getting that vacant property tax into their own coffers. That would incentivise delivery. The latest excuse frames gold-plated standards for things like basic fire safety as the big issue, decent standards which lead to apartment living being a liveable option for people, as it is in many European countries where there are housing standards. Instead, we have seen the lowering of standards. Every time the standards were lowered it led not to more housing but, rather, to developers reapplying for planning permission in order to cram in more units, which actually delayed delivery. That is one more example of the inadvertent consequences of policies formed without listening to well-flagged concerns.
If the Minister will not accept the well-flagged concerns in terms of the amendments to the substance of the Bill, the very minimum would be to accept amendments on a review in order that, rather than in two years' time looking at the excuses for why it did not work and all of us speculating in that regard, we will have some form of independent assessment of what went wrong and what could have been done better such that maybe we will be able to learn from things this time. The Government should not brainstorm another idea and yet again ram it through without proper consideration of the consequences. This is a genuine appeal to the Minister to accept one of these amendments on the question of review and impact.
I will come in later on the question of the downward and upward rents, because I believe there is an issue in section 8 and others in regard to that question. The Minister said rents may go down because of market supply. I do not believe market supply will necessarily drive rents down. What might drive rents down is a large-scale global economic recession, which is being forecast as a possibility. I do not believe the Bill is very well designed in terms of its rent calculators to allow for that to be reflected. If such a circumstance occurred that led to downward pressure, I worry that we would end up trapped in the same way as we were trapped in the ten-year leases at unrealistic prices, where councils were paying for properties that they could have bought for a fraction of the cost.
Indeed, we all recall the upward-only rent review scandals of the previous years. I say this having had the unfortunate experience of going through two recessions in my time, both the dot-com recession and the 2008 collapse.
I urge the Minister to accept one of these amendments in respect of review and show there is a level of learning, understanding and willingness to engage with the fact that when people raise flags it is not just to wave a banner or to use as a stick to beat the Government. Maybe it is because they have some genuine concerns the Government should be listening to. Maybe the Minister should be trying to learn better so we do not make mistakes. I do not see an acknowledgement of or learning from those mistakes of the past. I say that with absolute sadness because I want this issue fixed. I will be very happy if this Government manages to fix it but unless there is a level of genuine engagement and recognition of some of the assumptions that have not worked out in the past, I do not see that happening.