Local authorities are responsible, as an integral part of their housing management functions, for the determination of the rents of their dwellings under the differential rents scheme and of the income to be assessed for this purpose. Authorities have full discretion in these matters subject to compliance with following broad principles: the rent payable should be related to the income of the tenants and a smaller proportion of income should be required from low-income households; allowances should be made for dependent children; a contribution towards rent should be required from subsidiary earners; and provision should be made to accept a lower rent in exceptional cases where payment of the normal rent would give rise to hardship.
In setting rent levels local authorities should also ensure that overall rental income reflects adequately, in so far as is practicable to do so, the management and maintenance costs of their housing stock, having regard to appropriate local factors. The most recent information available indicates that, in 1999, rental income amounted to only 63% of the cost of the management and maintenance of their rented housing stock.
I understand that, for example, in the case of the Dublin local authorities, differential rent increases would absorb between 10% and 15% of income arising solely from social welfare or general wage increases. I am satisfied that authorities have discretion to deal with hardship cases, poverty traps and any other anomalies that arise in individual cases.
I have, therefore, no proposals to change the existing arrangements, which are in keeping with Government policy of maximum devolution of local functions to local authorities.
