Vol. 296 No. 7
asked the Minister for Local Government if he instructed Galway Corporation to increase rents retrospectively to 1st July, 1976, and to demand arrears arising from the implementation of this instruction; and if he will make a statement on the matter.
10.
asked the Minister for Local Government if he is aware that a person (name supplied) in Galway received a letter from Galway Corporation in January, 1977, informing him that the rent of his local authority house had been increased from £4.42 to £7.11 and that arrears as at 17th January, 1977, were £82.43; and, if so, if he is satisfied that arrears arising from a retrospective rent increase are properly charged.
With the permission of the Ceann Comhairle, I propose to take Questions Nos. 9 and 10 together.
On 3rd September, 1976, my Department circulated a revised national differential rent scheme to local authorities generally, including Galway Corporation. The authorities were informed that the scheme was to apply uniformly throughout the country with effect from the commencement of the rent week, or other period, immediately following 1st July, 1976, apart from the change in the manner of assessment of income from short term benefits for rent purposes and the proposed increases in maximum rents which were to apply from the commencement of the rent week, or other period, immediately following 17th September, 1976. The terms of this scheme were accepted by the National Association of Tenants' Organisations.
As far as local authorities generally were concerned, rent increases backdated to the beginning of July, 1976, were due mainly to increases in the incomes of the tenants concerned since the general review of incomes was carried out in July, 1975. The 1976 general review of incomes, which was due to take place in July last was deferred in most areas following the issue of a circular letter to local authorities on 9th July pointing out that any revisions of the rent scheme subsequently decided on would have effect in due course from the beginning of July. Tenants on low incomes benefited from the improvement in the graded rents scale announced in September.
I understand that, in the particular case referred to by the Deputy, the revised rent was calculated in accordance with the terms of the revised national differential rent scheme. The revised weekly rent exclusive of rates, is £4.50. The weekly assessment in lieu of rates is £2.61. I would point out that but for the phased transfer by the present Government of health and certain housing charges from the rates to the Exchequer, this amount would be substantially higher. The average saving to the rates contributed by this transfer in 1976 has been calculated at over £5.50 in the £. In the case of Galway Corporation, the saving is estimated to have been much greater; in fact, a continuation of 1972-73 rates policy would have produced a rate in Galway city in 1976 of over £7 in the £ in excess of that actually struck. This would have imposed a most serious burden on ratepayers, including local authority tenants such as the person mentioned by the Deputy.
In addition to the further relief on rates being provided this year by the completion of the phased removal of health and certain housing charges, the tenant in question will also have his weekly rates assessment reduced as a result of the 25 per cent reduction on domestic rates announced by the Government for 1977.
Would the Minister state that reductions have also been given to tenants due to this revision?
Yes, quite a number of tenants on the lower end of the scale did receive a fairly substantial reduction in their rents and it is fair to say that part of this trouble has been caused by the fact that Galway Corporation apparently did not carry out the regulations as per instructions received from 1973 onwards.
Too true.
When the Minister talks about Galway Corporation does he mean the officials or the members.
Members.
I am quite sure that the Deputy understands it is the officials who take charge of those things because the members do not have any say in the fixing of rents.
