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Dáil Éireann debate -
Wednesday, 12 Feb 1986

Vol. 363 No. 11

Ceisteanna—Questions. Oral Answers. - Differential Rents Scheme.

8.

asked the Minister for the Environment if he will assure the House that there will be no revision of the differential rents scheme in 1986 which will increase the take from tenants.

I cannot give an assurance that there will be no revision of the differential rents scheme in 1986. The intention was indicated in the national plan that rents should be raised progressively to a level more in line with the actual costs of the dwellings. Changes in the rent levels would, however, be made within the framework of the differential rents scheme which ensure that rents are reasonable in relation to family incomes. I can assure the House that it will be a priority in any review of the rent scheme to ensure that rents are reasonable in relation to family income and do not bear unduly on those with low incomes.

We have now been told that there is a rent increase structure on the way. Can the Minister say when this rent review will be announced?

I expect to hold discussions with NATO in the near future. We expect to renew discussions which took place last year.

The Minister backed off from the discussions last year when it became clear that the figure the Minister had in mind was an increase of about 20 per cent in the national take and this was unacceptable to NATO. Also unacceptable were the proposed changes in overtime and other earnings. What percentage take have the Department of Finance in mind this time?

I did not back off last year. An election which took place last year perhaps clouded the issue a little.

The Minister backed off because of the election.

As regards the detailed discussions to take place, I do not intend to negotiate the content of those discussions on the floor of the House.

I would not expect the Minister to go into the details of the negotiations but will they be negotiations or will the Minister just inform NATO of the increases? What is the global total which the Minister envisages taking this time?

I do not intend to give the Deputy that information. It is only right that I should make the decision quite clear in the negotiations. An increase is obvious since there has not been an increase in the last three years. Even if one were to take the rate of inflation into account, an increase is required. The Deputy can be assured that no matter what is done the high priority will be to ensure that the income of families is taken into account.

Question No. 9. This is to be the last supplementary.

Will whatever new scheme is negotiated in relation to the differential rents scheme have any statutory standing and will the Minister explain the legal standing of the present scheme?

The rent review which has taken place regularly over the years has a basis in legislation. I cannot give the Deputy the exact details but I assure him that it is based on legislation and nothing is being done outside of the law.

One final supplementary. A large number of tenants of local authority houses, unfortunately an increasing number of them, find themselves being recipients of unemployment benefit and assistance. Can I take it from the Minister's reply that tenants on assistance from the State will be excluded from these rent reviews?

I do not expect to exclude anybody from a review, but that does not necessarily mean there will be an increased burden imposed on a particular group. Consideration will have to be given to all groups since there has not been a review for three years.

One more budget on the way.

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