The Department of Public Expenditure has raised concerns over the impact of new short-term letting rules on rural communities.
The new rules, which envisage an effective prohibition of planning permissions for Airbnb-style lettings in towns of 10,000 people or more as well as the creation of a register for the properties, were due to go to Cabinet this week.
However, the plan was stalled at the last minute amid disagreements between the Department of Housing and the Department of Tourism over what was due to be a plan jointly presented to the Cabinet by their respective Ministers, James Browne and Peter Burke.
It is understood that in observations circulated by the Department of Public Expenditure to other Ministers in advance of the meeting of Government, officials outlined concerns about the impact on tourism.
Round Hill Capital appoints UK manager to operate its Irish student rooms portfolio
Officials warned of ‘uncertainty’ in housing completions outlook
Housing Minister James Browne: ‘If we don’t get this right over the next four to seven months, we’re going to be in serious, serious trouble’
Developer granted permission for €200m Waterford North Quays project
Sources familiar with the observations said they outlined that the demand for private rental tends to be higher in more urban areas, while the tourism sector is important in many rural regions for jobs and economic growth.
[ Planning permissions for Airbnb-type lettings may be curtailed in some areasOpens in new window ]
The observations outlined that “a more balanced view may to be consider targeting the short-term let regulations to urban areas and cities”.
It is understood that Minister for Children Norma Foley, whose home county of Kerry is a tourism hotspot, also harbours concerns about the plan as currently outlined, while Minister of State and Kerry TD Michael Healy-Rae has also outlined misgivings.
Government sources said the envisaged prohibition of planning permission for new short-term lets in towns of 10,000 people or more would address concerns raised by the Department of Public Expenditure, with smaller rural areas able to continue catering for short-term rentals.
However, some tourism hotspots such as Killarney, Co Kerry and Tramore, Co Waterford, have populations of more than 10,000.
Senior Coalition figures are insistent that the legislation will go to Cabinet next week and expect it to be unchanged, save for technical adjustments which delayed its approval by the meeting of Government this week.
One source claimed the Cabinet memo - the document that outlines and explains the rationale for any decision the Government is being asked to take - as presented this week was incomplete and was missing a “key decision point” to include necessary legislative amendments.
They also said there were changes made to the memo, which was brought before Government by Mr Burke, in the run-in to the Cabinet meeting.
This would have meant that a second amending memo would have to be taken to Government the following week, this source said. A second Government figure said there was disagreement, as the plan had been to present it jointly by the Ministers, but that it was taken to Cabinet by Mr Burke alone.
A Fine Gael source said the memo had been circulated before Cabinet and had been the subject of comments by Fianna Fáil Ministers, although not from the Department of Housing, and that the proposal was considered at the Cabinet committee on housing last week.
A source familiar with the discussions said Mr Browne felt there were more items that needed to be added, as the memo did not include items he believed would be in it.
Meanwhile, Mr Burke said he was not open to changing it on the day.
A source briefed on the Cabinet discussions said Mr Burke had sought a meeting with Mr Browne and that his department was seeking to meet with officials in housing.
The source said Mr Burke did not receive a response - although this was disputed by a source with knowledge of Mr Browne’s thinking.
