Coveney makes his housing move

Cast your mind back to the final months of the Fine Gael-Labour coalition. Housing, homelessness and rent were major issues then as they are now, and the-then minister on the bridge, Labour's Alan Kelly, was embroiled a very public and bitter row with colleagues over proposals to introduce rent certainty.

Kelly had initially wanted to link rent increases to the rate of inflation for three years. Against stiff resistance from Fine Gael and others, he settled for a commitment that rent reviews could only take place every two years.

Judging by the early leaks of Simon Coveney’s strategy on the rental sector, the Minister for Housing has secured something more in line with Kelly’s thinking than that of some in his own party.

While he did face internal resistance in recent weeks - with Michael Noonan and Paschal Donohoe ranged against him, and one senior Fine Gael source remarking Coveney was trying to "push a piano up a stairs" - he went about his business quietly and without the pyrotechnics of Kelly.

It seems to have worked, and our report on Coveney's plan is here. It will see legislation before Christmas to cap annual rent increases in Cork and Dublin at 4 per cent, and the introduction of "rent pressure zones" where rents have increased sharply in recent years.

Of course, we are now in a different political situation than this time last year, and Coveney will need the help of the Dáil to pass the legislation to give effect to these measures before Christmas.

The reaction of not just Fianna Fáil, but Sinn Féin's Eoin O'Bróin, will be watched keenly. While it is unlikely, the Government can pass legislation with the support of Sinn Féin and some others if Fianna Fáil does play ball.

If Fianna Fáil is to back these measures, Barry Cowen, its housing spokesman, will have to secure some sort of win for his party, similar to how the cap for the budget-day Help to Buy scheme was reduced.

Much has been made in recent weeks of Leo Varadkar streaking ahead of Coveney and Frances Fitzgerald in the as-yet undeclared race to succeed Enda Kenny as Fine Gael leader.

Coveney holds what many would see as a naive belief that his work on the housing and water fronts will stand to him in any leadership contest. Schmoozing backbenchers is not his style, his supporters say.

If the early reports on his rental plan hold up, Coveney can chalk up a significant achievement in what is likely to be the Government’s last significant intervention in the housing sector. Much of the debate with Noonan, Donohoe and others focused on whether there should be interventions at all - and not what shape any interventions should take.

Various housing initiatives this Government and its predecessor have taken will largely be allowed take their course over the next 18 months to two years.

Government sources have said early data - from planning permissions and the take-up of already announced schemes designed to help drive supply - indicated a significant pick-up in the construction sector next year.

Fine Gael sources say the best leadership Coveney can now show is by standing back and letting his proposals do their work. As the housing market improves, so will the market for shares in a Coveney leadership, supporters of the Cork South Central TD hope.

Public sector pensions thrown into pay talks pot

It used to be poor retired judges who had to be wary of a call from Government Buildings asking them to chair some commission of investigation or another.

Former chairs of the Labour Court seem to be replacing the judiciary as the Government's problem solvers of choice: Kevin Duffy chaired the commission on the future of d'water charges and will also chair the Public Service Pay Commission.

John Horgan - another former chair of the Labour Court - was asked, as part of the Haddington Road Agreement, to assess pay and industrial relations in An Garda Síochána.

Horgan's report, released yesterday, found while the average pay for gardaí last year was €63,450, the total value of the average package is €100,000 when pensions are taken into account. A report from Martin Wall on Horgan's contents is here.

The value of public sector pensions has for years been an issue that those urging restraint in pay levels have asked to be taken into account.

The significance of Horgan’s report is that it has put a value on pensions for one section of the public sector, so preparing the ground for the value of all pensions to be examined in any future pay talks process.

Horgan also says striking gardai should lose the right to build up pension entitlements for five years, but this is unlikely to fly.

As reported by The Irish Times on Saturday, Government moves to restrict the right to strike are likely to focus on some kind of ground rules in exchange for access to the Workplace Relations Commission.

Our Political Editor, Pat Leahy, says the case for public sector pay increases has been undermined by Horgan.

In our lead story this morning, Martin Wall reports the Government, in its submission to the Public Sector Pay Commission, indicated pay pressures are being felt at the higher levels of the public sector.

This will come as a surprise to many who are used to listening to unions highlighting the pay claims for those at the lower end of the scale.

Many in Government hoped the Public Sector Pay Commission would serve to temper the expectations of unions ahead of any talks on a successor to the Lansdowne Road deal. If the commission follows the template set down by Horgan in his report, it is likely to achieve that aim.