(Cavan-Monaghan) asked the Minister for the Environment if he is aware that local authority tenants, including old age pensioners living alone, have had their rents substantially increased and if he will make a statement explaining the increases.
Ceisteanna—Questions. Oral Answers. - Local Authority House Rents.
10.
I am not aware that local authority tenants, including old age pensioners living alone, have had their rents substantially increased under the revised rents scheme which came into operation from 1 March last. On the contrary, an old age pensioner living alone whose only income is the maximum rate of contributory old age pension is required to pay only the minimum rent of 10p per week under the terms of the differential rent scheme.
There may be cases where such old age pensioners are living in fixed rent dwellings, the rents of which have been increased by 25p per week. However, I would like to take this opportunity to point out that pensioners and other tenants on fixed rents have the right to opt to have their rents assessed under the terms of the national differential rent scheme which in many cases can result in a substantial reduction in the rent payable. In fact, I understand that a number of old age pensioners have already exercised this option and have had their rents reduced accordingly. Furthermore, it should be noted that the revised rates of pension applicable from 6 April were not taken into account when rents were being reviewed.
In the case of other tenants, I wish to emphasise that there has been no change in the basic method of assessing rent payable under the differential rent scheme. Maximum differential rents have been increased to compensate for the increased costs of providing, maintaining and managing local authority dwellings. However, an actual increase in rent will arise only in the case of tenants whose basic incomes, after deduction of income tax, social welfare contributions, personal, children's and other allowances, justify an increase. In order to cushion the lower income group of tenants against the effect of rent increases which would otherwise arise because of the rise in their incomes, the personal allowances in the graded scale were increased by 15 per cent over the 1978 level and the allowance for each dependent child was increased by 24 per cent. Finally, in cases of hardship, a local authority may agree to accept from a tenant for a specified period a lesser sum for rent than that applicable under the scheme.
(Cavan-Monaghan): Is it not a fact that the increases in question arose because of a ministerial order which came into operation on 1 March? Would the Minister be surprised to know that in Cootehill, County Cavan, old age pensioners living alone have been asked to increase their rent by £1.05 per month, that they were exempt from rates before the Minister's scheme came into operation and that they are now worse off than before derating? A great number of local authority tenants are now worse off financially than before their houses were derated. Can the Minister explain why on this occasion the rents were raised without any discussion with the tenants' organisations as was the case in the past?
There were discussions with the tenants organisations, NATO. I had discussions with them and the officials of my Department also had discussions.
(Cavan-Monaghan): Are the tenants' organisations incorrect in complaining that the Minister had no discussions with them?
They are if they made that statement because I had discussions with them and officials of my Department had discussions on more than one occasion with them. For the benefit of the Deputy I am meeting a further deputation from that organisation tomorrow afternoon.
(Cavan-Monaghan): I am glad to hear that. The Minister does not deny then that many local authority tenants are worse off financially now than before the derating scheme for private houses came in?
Fixed rents went up from 25p to £1. It may well be that some of the old age pensioners the Deputy refers to are on fixed rents. If they opt for the differential rent scheme their rent will be only 10p. They should at least be informed of that. If the Deputy gives me a list of those people I will acquaint them of it.
(Cavan-Monaghan): Does the Minister deny that he conned the local authority tenants in his party's famous manifesto?
I deny that. We did not con any local authority tenants.
(Interruptions.)