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Dáil Éireann debate -
Tuesday, 14 Jun 1994

Vol. 443 No. 7

Ceisteanna—Questions. Oral Answers. - Housing Costs.

Helen Keogh

Question:

9 Ms Keogh asked the Minister for Social Welfare if he will establish a special review committee on housing needs and costs comprising of representatives of his Department and the Departments of the Environment and Health including representatives from local authorities and voluntary organisations which would consider the introduction of a housing benefit scheme; and if he will make a statement on the matter.

Desmond J. O'Malley

Question:

12 Mr. O'Malley asked the Minister for Social Welfare when he will publish the new guidelines on rent and mortgage allowances promised in April 1992; and if he will make a statement on the matter.

I propose to take Questions Nos. 9 and 12 together.

There is a wide range of Government support to assist people with housing costs, either through direct assistance for people in private or public housing or through various reliefs in the tax system.

Under the income maintenance schemes for which I am responsible, help with housing costs is provided through the supplementary welfare allowance scheme administered by the health boards on my behalf. Under that scheme people dependent on social welfare are entitled to help with rent or mortgage payments in certain circumstances. Expenditure on rent and mortgage supplements under the SWA scheme amounted to some £47 million in 1993. My Department also administers a separate rent allowance scheme for tenants of formerly rent-controlled dwellings.

Other schemes of direct housing assistance are operated by local authorities or by voluntary organisations with local authority support.

The question of a housing benefit scheme which would subsume the different schemes which currently exist for assistance with housing costs would have major implications from a financial and administrative point of view and in terms of its possible effects on existing recipients of housing support.

My Department is at present, in consultation with the health boards, revising the guidelines for the operation of rent and mortgage supplementation under the SWA scheme and the revised guidelines will be available by the end of the summer. In this context the issue of housing supports is at present under examination in my Department.

I am somewhat bewildered because the Minister has not answered the question asked.

That is nothing new.

Yes, that is nothing new. The Minister says that what is suggested in my question would have major cost implications and so on whereas I suggest it would have major cost savings implications. Would he agree that it is vital to co-ordinate the activities of all those bodies associated with housing, with housing benefit and so on? Would he agree that at present many voluntary organisations are endeavouring to help people with their various housing needs, people who are not at all adequately provided for under the existing house letting schemes? Would he not re-examine the possibility of co-ordinating their efforts under the aegis of his Department or, alternatively, reach agreement with other Departments that at least one of them should undertake a co-ordinating role in this respect?

I have answered the Deputy's question in so far as it applies to my Department, the remaining aspects being applicable to other Government Departments. I have said that we are examining some aspects. There is not a housing benefit scheme under the aegis of my Department; I am not responsible for such a scheme. The Deputy would appear to be saying that perhaps there is a need for one. It is the Department of the Environment that is responsible for housing. Most of the people the Deputy mentions appear on the Department of the Environment's lists within local authorities, who would provide rent supplements of various kinds, such as rent supports, grants towards housing or whatever. We are involved only in the supplementary welfare arrangements with regard to rents.

I have gone somewhat further than my brief in replying to this question. It may appear to the Deputy that my reply does not specifically cover, say, the responsibilities of the Department of the Environment in that area, but those are issues which would warrant a separate question tabled to another Minister. We are undertaking a review, part of which could lead to such proposals. There will have to be some sorting out of that overall position because, among other things, there is a large switch into voluntary housing, as the Deputy will know, which is being supplemented by the Department of Social Welfare rather than the Department of the Environment. It will be seen that a new position is developing. It was for that reason I initiated this review, to examine overall what is happening. Expenditure on rent and mortgage supplements under the supplementary welfare allowance scheme now amounts to £47 million, a substantial amount. We are currently examining that position but it is a matter that would have to be referred back to Government. I cannot give commitments on behalf of the Government.

It would appear the Minister is making a case for what I am seeking. The position is not that I do not accept a certain amount of what the Minister is saying. I am making the case for co-ordinating all of these efforts. My question is as follows:

To ask the Minister for Social Welfare if he will establish a special review committee on housing needs and costs comprising of representatives of his Department and the Departments of the Environment and Health including representatives from local authorities and voluntary organisations which would consider the introduction of a housing benefit scheme; and if he will make a statement on the matter.

Many efforts are falling between the cracks. The Department of Social Welfare is doing its own thing whereas the Department of the Environment has responsibility in relation to housing. My contention is that there should be co-ordination of the efforts of all Departments involved.

I cannot answer technically for other Departments. I can say that I perceive the problem and that we are undertaking a review, following which I will make the position very clear to Government. Total expenditure on rent and mortgage supplements has risen from £7 million in 1989 to £12.2 million in 1990, £30 million in 1992 and last year £47.9 million, clearly demonstrating that expenditure is increasing substantially on the supplementary welfare scheme. These issues are being addressed and I will make known the outcome of those discussions and review.

With whom is the Minister consulting? Is he giving the House a commitment that a co-ordinating role will be undertaken by his or another Government Department?

It is not for me to say who has the co-ordinating role; that is a matter for the Government. I have responsibility for a certain number of schemes, one of which is the voluntary housing scheme. There has been a substantial increase in the number of voluntary housing groups throughout the country, responsibility for which is shifting to the Department. That whole issue is being discussed. I cannot say what the outcome will be but it will be a matter for the Government to decide. I am doing the homework to provide the basis on which that matter can be examined in detail by Government.

One matter for which the Minister has responsibility is the guidelines in relation to exceptional needs payments. Twelve months ago the Minister told us they would be published shortly. Now we are told they will be published by the end of the summer. What is the reason for the undue delay? Can the Minister justify that long delay in view of the fact that the bill for supplementary welfare allowance has escalated in relation to rent and mortgage payments? Can the Minister say what proportion of that £47 million is paid by way of rent subsidy to persons on local authority waiting lists who are in subsidised private accommodation? The vast bulk of the £47 million is haemorrhaging from the system into the private sector.

That is a separate question. If the Deputy tables a question on the subject he will get the answer.

I put down a question last year and the Minister could not give me an answer.

I have given a comprehensive reply to the two questions, one with which most Deputies would be happy. The matter is under review and I hope to have the outcome of that review in the near future. These are matters on which the Government must decide and, as I have stated in the reply, have substantial financial consequences. The matter is being reviewed. I have established a special committee who are carrying out the review and we will report in due course.

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