asked the Minister for Local Government if he will state the amount of (a) subsidy and (b) grant payable from the Transition Development Fund to local authorities in respect of houses let under the differential rent system.
Ceisteanna—Questions. Oral Answers. - Transition Development Fund Grants.
(a) The subsidy payable towards loan charges on houses in respect of which differential rents are in operation is determined on the same basis as in the case of houses where flat rents are charged.
(b) In the case of grants from the Transition Development Fund the amount of the grants is determined on the merits of each particular scheme. The all-in-cost of the houses, the estimated rent yield and the amount of the contribution from the rates are taken into account in assessing the amount of the grants to be paid from the fund. It is the aim that, within the existing maxima rates of State subsidies and grants, no extra financial burden should fall on the local authority arising from the abandonment of the flat rent system and the adoption of the differential system.
Is it not true to say that the differential rent system really means an increase in rent to the worker and a relief to the State of its contribution?
There is no difference between the Transition Development Fund system and that in connection with flat rents.
Is it not a fact that the differential system covers the all-in gross cost, excluding any subsidy? That is very high. It brings the rents of houses up to 28/- or 29/- a week.
Nothing in the differential system of rents is intended to increase the local rate contribution. I have sent a man to inquire into the system in so far as the council of which the Deputy is a member is concerned. I suggest the Deputy should examine the position as it applies to Cork.
I would point out that in Cork they have not got a penny out of the Transition Development Fund for houses.