I propose to take Questions Nos. 57 and 61 together.
Under the terms of the supplementary welfare allowance scheme administered on behalf of my Department by the health boards, payment of a weekly or monthly supplement maybe made in respect of rent to eligible people in the State whose means are insufficient to meet their needs after they pay their rent.
The purpose of the supplementary welfare allowance scheme is to deal with emergencies and short-term needs that arise when a person suffers a change in circumstances, for example, when a tenant becomes unemployed and can no longer afford his or her rent. Rent supplements were never intended to meet a person's long-term housing needs. The scheme is not a housing programme, but over the years it has in practice become such. It does not make sense to have two parallel but entirely separate programmes, one operated by the housing authorities and the other by the health boards.
The rent supplement scheme does not give a good long-term outcome to the individual. Such people have limited security of tenure, their accommodation standards can sometimes be poor and they must remain on social welfare in order to retain their accommodation. Neither does the scheme give a good outcome to the State, as it provides poor long-term value for money and in effect by-passes the priorities set by the local authorities in their housing programmes. This is why I have taken a number of initiatives in this area.
First, rent supplement will be payable only where, at the time of application, the person has been in rented accommodation for a period of six months. Provision will, however, be made for cases where a housing authority designates that a person is homeless or a person has been identified by a housing authority as having a housing need which cannot be met by the housing authority, by a voluntary housing organisation or by the person concerned. This will help re-focus the rent supplement scheme on its original objective of short-term support.
Second, rent supplement claimants will be referred to a housing authority for an assessment of their housing needs in a more systematic manner. This will provide the housing authority with a more accurate picture of the long-term housing needs of those living in its area.
Following a meeting I had with the chief executive officers of the health boards earlier this year, four pilot projects were set up in Donegal, Fingal, Cork and Offaly to address this issue. The relevant officials from the health board, the local authority and my own Department's local office met to make practical progress in meeting the needs of people relying on rent supplement on a long-term basis.
Discussions between my Department and the Department of the Environment, Heritage and Local Government on the future of rent assistance are well advanced, and I expect that concrete, positive proposals will be agreed shortly to determine the appropriate roles of local authorities and my Department in relation to people on rent supplement with long-term housing needs. In the meantime, I recognise that there will be situations where rent supplement is the only viable solution available to meet the needs of some people who have not been renting for six months. Rent supplement will continue to be available to people with housing needs whose safety or well-being is at risk, such as people with disabilities, the elderly or those experiencing severe social problems. With the involvement of the housing authorities, full and sympathetic consideration will be given to the needs of these people in implementing the new rent arrangements.
I know that Deputies on all sides of the House agree with me that having unconnected housing programmes is inappropriate, unfair and unsustainable. I am determined to make progress in tackling this, to achieve a better outcome for all concerned.
With regard to the maximum rent levels that will apply in 2004 for the purpose of the rent supplement scheme, I will be drawing up regulations this month. Deputies can be assured that the limits will be realistic, as were the limits I set last year.