asked the Minister for Finance whether he is aware of the anxiety and feeling of injustice of the tenants in the Mespil Flats, Sussex Road, Dublin, the property of Irish Estates Limited, as to the recent increasing of the rents of such tenants; and whether he will intervene as controlling shareholder in the Irish Life Assurance Company to secure a reduction of such rents and prevent any further increase.
Ceisteanna—Questions. Oral Answers. - Rents of Dublin Flats.
108.
I have no function in relation to the management of the Irish Life Assurance Company Limited or of its subsidiary, Irish Estates (Management) Limited, and I am not in a position, as a shareholder in Irish Life, to intervene with that company regarding the rents charged by Irish Estates.
I have, however, made inquiries about the complaint mentioned in the question and I have been assured that the rents charged for Mespil Flats compare favourably with those for similar accommodation in Dublin. The Irish Life is, of course, obliged in the interest of its policyholders, to have regard to commercial considerations in ensuring an appropriate rate of return on its investments.
Do I understand that having made inquiries, the Minister for Finance has been furnished with the facts on which the complaints of the tenants of injustice and high rents are based? Is he aware from those inquiries that not merely were the rents increased on the tenants but that they were also deprived of certain amenities which were some of the attractions held out to them when they originally became tenants of these flats? Their garages were taken, their tennis courts were taken and the gardens in which their young children were given an airing in the morning were taken. In connection with his allegation that he has no function, is not the Minister, through his nominees, in this case carrying on a commercial business on behalf of the people? Therefore, should he not have regard to the fact that the company in the process of business are doing something which will increase rents unduly and do injustice to certain people? Is it not a matter of concern for the Minister for Finance?
I am afraid the facts are that the Irish Life Assurance Company must meet obligations to their policyholders. That is the primary obligation of the company under the 1936 Act. The company must be allowed to operate in a commercial way for the benefit of their policyholders. Otherwise, we would be frustrating the whole purpose of the legislation establishing the insurance company.
Must the company not have regard to the wishes of the Minister? Are they absolutely independent?
They are supposed to carry on business in a commercial way so that the interests of their policyholders will not be prejudiced. It is the function of the Minister to see this is so.
Would the Minister agree that this is consistent with the action of the Minister for Local Government as indicated by the circular sent to the local authorities directing them to increase rents?
Is it not a fact that the basis on which the rents were sought to be increased in this case was that these people thought they were not getting as much as others were extracting from their tenants, that they wanted to get more because other people were getting more? That may be good commercial practice, but where the Minister is carrying on business on behalf of the public, he ought to have some regard to the public interest and not allow this company to say: "We shall get as much as we can".
The main purpose of an insurance company is to look after the interests of the policyholders.
I can understand that the Minister does not want to have anything to do with morality, but surely there is such a thing as commercial morality? If it becomes evident that people are trying to make too much out of rents at the present time, it ought to be the concern of the Minister to see that certain standards of commercial morality are re-established.
I shall bring the matter to the attention of the Minister for Finance.