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Dáil Éireann díospóireacht -
Wednesday, 12 Oct 1966

Vol. 224 No. 8

Committee on Finance. - Vote 27—Local Government (Resumed).

Debate resumed on the following motion:
That a sum not exceeding £8,581,450 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of March, 1967, for the Salaries and Expenses of the Office of the Minister for Local Government, including Grants to Local Authorities, Grants and other expenses in connection with Housing, and Miscellaneous Grants including certain Grants-in-Aid.
—(Minister for Local Government.)

I was dealing with the matter of differential rents last night. There are a number of points which I wish to add. In particular, I wish to answer some of the criticisms raised, particularly by Deputies who have talked about Dublin and Dublin Corporation's proposed new rents scheme. I want to indicate, from what I know of this proposed scheme, some few facts and figures that, if they are known, are not apparently appreciated. These figures, to my mind, are very necessary in order that the workout of this new proposal should be understood.

The methods of applying the new scales, I understand, very briefly come in this manner. Assessable income is arrived at by taking the income of the tenant or the main breadwinner in the house. His income is first of all reduced by £1. A maximum of £4 for each subsidiary earner, excluding the first 10/- of any income this earner may have, is then added. A reduction of 10/- is made in respect of each child under 16 years of age who has no income and who resides with the parents in that particular house. The children's allowances — whatever number they may be — are excluded entirely from assessable income. The calculation of income from social welfare benefits, other than certain contributory benefits, will be at the 1957 level — not at today's levels. A comparison of this new formula in order to arrive at assessable income with that which has already been in existence would fall mainly under the following heads. Again, the principal income in the old scheme was reduced by 10/-. It is now proposed to reduce it by £1. Under the old scheme 5/- per child was allowed for each child after the second. That was a deduction from the ultimate income and it has to be compared now with a deduction of 10/- for every child under the proposed scheme.

With regard to subsidiary earners, their income under the old scheme was reduced by 5/- and was subject to a maximum consideration in the overall assessable income of £2. That has been changed. Under the new proposals that is now reduced by 10/- but is subject to a maximum of £4 to be added. These figures will give the Deputies a broad picture of the manner in which income for the purpose of determining rent on the various scales is arrived at. There again we have to consider the situation in relation to the application of the new proposed scales. In relation first of all to any rent revisions that take place in regard to existing tenants, it is proposed under the new schemes to spread any increases over five years. The highest increase in the first year will not exceed 9/- a week. It must also be deduced from these proposals that tenants with up to nearly £14 per week will, in fact, have their rents reduced, not increased.

There is then the point — most Opposition Deputies ignored it, deliberately or otherwise — that the increases apply only to maxima and therefore only the better off tenants will be affected.

That is not correct.

I can record only what I have been given to understand. If the Deputy finds my information is wrong, I am sure he will be only too happy to correct me. To continue with what is allegedly wrong. I should also point out that the new scales, as will be clear from an examination of what I have said, provide for enhanced allowances which will benefit poorer tenants in particular. I understand that no tenant will pay a greater amount in the ordinary run of things, excluding newly-weds, than one-sixth of his assessable income in rent. Percentages may give the picture more clearly. On the calculations made, 35 per cent of the tenants affected will, in fact, be affected downwards; they will have their rents reduced. These things must be taken into consideration in discussing proposed rent increases and they should, in particular, be taken into consideration when the Minister is accused of causing rents to be increased.

(Cavan): Is it correct then that the earnings of children under a certain figure — it is, I think, £2 — are excluded?

No. What will be excluded from the calculation is the first 10/- and up to £4 of what they earn. A maximum of £4 will be included. That is, after 10/-, anything up to £4 may be included. Anything beyond that is not taken into account in calculating the assessable income of the particular family.

I have some other figures which are, I think, relevant. I do not want to load the House down with figures because I think everyone will agree that Dublin Corporation's overall differential rents scheme is a very complex one. However, in order to pay the maximum rent under the proposed new scheme, a tenant with three children will need to have an income of £28 per week, or over, if he is in a four-roomed house. If he is in a five-roomed house, he will need to have something around or above £31 per week assessable income. It is known that there are something like 100 tenants in the corporation scheme — it is a very small percentage — with family incomes of over £60 per week. There are a few thousand with family incomes of over £30 per week. I have not got the exact breakdown, but, as a guideline to what lies behind the proposed rationalisation of rents, I want to go on record as pointing out that the old maxima, much lower than are now proposed, worked out positively in favour of the better off tenant. That was demonstrated time out of number. When there was an increase in wages or earnings, the poorer tenant invariably found himself in the position in which part of his increase went in paying an addition by way of rent whereas the person on the maximum had naturally to pay no increase at all. The system, as I say, worked in favour of the better off tenant.

Is the Minister aware that the City Manager's proposals will have the effect that the rents of some thousands of corporation tenants will be increased 200 per cent?

There are no fewer than 35 per cent of tenants who will have their rents decreased. I did not hear anyone slap the City Manager on the back for that effort nor did I hear anybody comment on it from that side of the House. I am rather surprised, and a little disappointed, that the only utterances we have heard from the Labour benches were directed at supporting a system which aids the better off while doing nothing for the less well off. Genuinely I have been disappointed about that.

Would the Minister clarify the situation? The power lies solely with the manager, subject to the sanction of the Minister, to increase rents and the elected representatives have no function at all with regard to increases in rents.

So far as the fixing of rents is concerned, the manager does that, but it should be borne in mind that the members of the local authority are invariably heard, and, irrespective of whether their view is a majority or a minority view, it is, without doubt, taken into consideration by the manager in coming to his decision, particularly in regard to a matter as important as the fixing of rents, whether on a differential, graded, or any other scale.

If Dublin Corporation by a majority of the elected representatives decide that the differential rent system should not be changed and that there should be no increase and the manager refuses to take notice of this dissatisfaction among the majority, will the Minister then refuse to sanction the proposed increase by the manager in view of the majority's dissatisfaction?

If the Deputy is asking me would I do this in a broad way——

No, in this particular instance.

This has not yet been decided.

I am not generalising.

If the Deputy is not, I am not going to particularise in a case which I have not yet fully considered.

Then, will the Minister answer in the general?

In the general, any Minister, and that includes myself, must, does and will take into account in reaching a decision in a matter such as this, affecting local administration, the views of the council, whether it is on a matter which is their function or an executive function of the manager. The Deputy can take it that the views and expressions of opinion, and the local knowledge brought to bear on this or any other subject, will be taken into consideration by me before I make a decision.

I am asking the Minister if the majority of the elected representatives of Dublin Corporation do not agree with the manager's proposed increases — and the manager cannot implement them without the Minister's sanction — then in view of what the Minister said previously will he refuse to sanction the increases?

Not unless I know what I am saying I will refuse.

Surely the Minister must know as he was instrumental in getting the proposal by the City Manager.

If that is the attitude of the Deputy and others on the Labour benches there is not much point in my speaking at all. I do not see that there is any point in going out of my way to answer questions which undoubtedly are loaded and which I recognise to be so. Even there I would deal with them but not if I am dealing with a situation, which appears to be the case, that I am responsible for the increases and of course only the increases, and the other 35 per cent will not be told that I will get the credit for the decreases. There is no danger of that.

Does the Minister deny that by virtue of his letter to the City Manager regarding the revision of rents he is directly responsible for the proposed change in the differential system which the manager is now putting before the council?

I take full responsibility for the circular letter but as to the effect it has on any particular manager, and his actions thereafter, do not ask me to take full responsibility for those.

The Minister must if it is something he has to sanction.

Not until after I have sanctioned it.

The elected representatives have no redress, no function.

It is a funny thing — perhaps the Deputy was not at the meeting — but last February due to the discussion that took place and which was contributed to by quite a few members, the manager actually made reductions, I understand, in the interim scheme of rents he had then proposed.

As a result of your discussions.

The manager did, but the elected representatives have no power and they have no function. Only the manager and the Minister have. The proposed change is a direct result of a letter sent to the City Manager by the Minister.

It is surprising then, if you have no function and no power, that you should have wasted the time of the City Council discussing this matter last February and, more surprising, having wasted your time, that the result of it was to get the manager to reduce what he had proposed at that time.

The point is, you are entitled to express a view even if you have no power. I am not sure if the Minister coached him in this, to have a threat to increase the rents by £6 in the hope that someone would be idiot enough to say: "Do not increase them by £6 but by £5" and then have a Party member suggest that some other elected representative proposed that the rents be increased.

Believe it or not, I do understand the way the Deputy's mind works, but it is not easy.

I do not find it very flattering that the Minister does.

Deputy Cluskey has carried on this cross-examination for long enough; he should let the Minister continue.

The situation is that the Deputy and others — and I do not blame them for this attitude — are entitled to make a reduction in the 35 per cent but if it goes through they will want to harness somebody else with any unpopularity that may be aroused in the minds of those who have to pay more. It is very difficult for me, as the person on whom the unpopularity will be pinned, to have the popularity filched from me by those who accuse me——

I can promise the Minister I will give him full credit.

Would the Minister say what line he would take if he were on the Opposition benches?

When I get to them it will be time enough to ask me. When I do, if I do, you will not have to ask me.

We can read the Dáil debates. Nowadays it is an indication of the way you think.

Usually what one says is an indication, but not always.

(Cavan): Will the Minister say if the formula to which he referred is a formula for Dublin Corporation or the whole country? Am I right in thinking that each housing authority would have liberty to work out its own scheme?

As I have already said, what I read out is only a brief outline of some of what is in the whole scheme but this is for Dublin.

(Cavan): Each housing authority can work out a scheme, subject to the Minister's authority?

I think it was Deputy Treacy who suggested that a model scheme should be worked out. I am inclined to think that there is an amount of sense in that but, on the other hand, on fuller consideration I also see that each local authority may not necessarily have problems which are akin and, therefore, uniformity, which this model would seem to imply, might not necessarily work and it might not be a good thing. Different local authorities may devise their own schemes of renting to suit their particular circumstances and they might not suit another local authority. However, what I am talking about are the Dublin Corporation proposals as I know them at present.

On a point of clarification, I understand that these are proposals made by the City Manager which have not yet received the approval of the corporation or have been submitted to the Minister and the city council may utilise section 4 at some other stage and submit different proposals to the Minister. I take it that all we want is an assurance that whatever proposals come before the Minister will be examined by him and that he will only sanction them if they are just and equitable?

That is the position absolutely.

Deputy Lemass should not be as naïve as all that, having regard to the fact that the actions of the manager followed the specific circular issued by the Minister following a statement in this House that he was not prepared to deal with any application for increased subsidies unless and until the City or County Managers made the rents what he termed "realistic rents".

(Interruptions.)

I am just recalling something now on which the Deputy has jogged my memory. I have gone on record in this House as saying that it is a common belief in the public mind, as I understand it to exist in this city, that there are quite a few — maybe an exaggerated number — getting away with it, in so far as rents are concerned in the housing estates of Dublin Corporation. I have gone on record, before ever this circular was issued, as saying that until it is demonstrated that there is no truth in this belief, that there is no fat to be got from those who are battening on the ratepayers of Dublin by living in houses on subsidised rents far below what they could afford to pay, I did not, and could not, go to my colleagues in the Government to ask for more money from the taxpayers. I have not anything to quote from but I think you will find that this is in fact the full context of what I said.

(Cavan): Would the Minister admit that the overall position is——

You have members of the Fianna Fáil Party on the present corporation.

It suits the Deputy.

The fact of the matter is that this is an entirely unfair situation. I do not mind questions being asked of me and I do not mind allegations being made against me, but when it comes to Deputies being allowed to direct those questions and allegations to other Members on this side of the House, who cannot reply to them. I must call on the Chair to keep order.

I did not attack the Deputy.

(Interruptions.)

If Deputies do not cease interrupting, I will ask them to carry this on outside the House. The Minister should be entitled to make his statement without all these questions.

(Cavan): Might I address one question to the Minister? The Minister does not have to answer me immediately if he does not wish to do so.

Perhaps I could continue to the end of what I have to say on differential rents.

(Cavan): It is the same thing.

It happens that interruptions, whether by way of questions, points of order or otherwise, maybe not deliberately so, have the effect of putting one off what one wants to say.

(Cavan): I thought that was impossible.

It takes longer.

(Cavan): All I wanted to know was would I be correct in thinking that the overall direction of the Minister's circular is to get more money for rents?

It is to give more money away. Would that be the position?

It is not. I have two notes in reply to two Deputies who brought up the point that this was a revenue earner. I want to say this is not the purpose. It is certainly not the purpose I had in mind at any time, that it should be used as a revenue earner. My belief, in regard to this, for quite a considerable time, is that, first of all, we have rents at a level beyond the capacity of quite a number of people to pay. Those people, in some cases, are struggling to pay their rents. They are not able to do so. We have others who did not accept the offer of houses over the years because even at the lowest level of rents obtaining, they were not able to afford the rents asked. Those people still continue to live in unfit conditions. I want to see them rehoused.

I want to see local authorities in the position that they can rehouse those people. I want it to be clearly understood that if we are to build more houses and reduce the rents, we have got to find a lot more money than we have found, even up to now. If there is truth in the belief, and the allegations I have heard made outside this House, that there are tenants in corporation estates or indeed any other estates, who are in fact well able to pay more than they are paying, and that they are getting away with paying those low rents, when they could afford to pay properly for their houses, then I feel that those people in those circumstances should be asked to pay a little more so that we may charge a little less to those who are unable to pay the rents of the houses they are in, or who could not take houses because the present rates are too high.

The alternative to this is that we throw more onto the rates. This is the only alternative at the moment. In a few months' time, we will have the local elections. Many of the Deputies who oppose what I have said, in regard to increasing the rents for people who can afford to pay them, obviously have their eyes, when talking about the increased rents, on those local elections. The great majority of the people in this town are ratepayers at the moment. Do those people who oppose what I have said about these increased rents have an eye on the effect on the ratepayers?

(Cavan): Corporation tenants are ratepayers, too.

Yes. Those also can be added to the other ratepayers. As I say, the great majority of the people in this town, from the point of view of the effect they would have on the local elections, are, in fact, ratepayers. Is it that you want to play one off against the other? It is always better tactics politically, if for no other good reason, to try to play with the majority rather than the minority. Have the Labour Party slipped up in this matter? Some of them, not all, seem to have mixed the group they wish to pander to at the moment. That group is in fact the minority group. They are no better off, in pandering to those people, except to leave the poorer sections poorer, and without houses, because they cannot pay the rents they are asked to pay. This is something which the Labour Party should consider. As I say, not all of them seem to be of the same voice in this connection. We had other voices from their Party on this matter.

The Minister is suggesting we should determine our policy on this.

Would Deputy Cluskey cease interrupting the Minister?

I am suggesting that there are some people on the Labour benches who are in fact pandering to popularity, and to what may be gained from the better off people. They are trying to side with them. When they do so, they neglect the poorer sections of the same group in this city, and indeed in any other city. This really astounds me. I cannot understand it. That is why I feel this is not just the voice of the Labour Party, that it is not the voice of most of the Labour Party and that there are in the Labour Party yet many members who believe that the people who have first call on us are those poorer people for whom we should provide those amenities and that we should get around to the point where we believe that those who may have been of that class in the past, but have fortunately passed from that, by reason of a rise in their living conditions over the years, should be asked to pay more.

Those who are against what I propose say: "Anything you have got for a good period in the past, when you were poorer, you are entitled to hold on to, even if by so doing you make the poor poorer still." I do not understand this and probably I never will. Let me go further and say that there are over 100 cases of incomes of over £60 gross in the week and a couple of thousand with gross incomes of over £30 a week.

We have also got to get down to this point of whether the ratepayers of this city are better able to bear a greater amount for the subsidising of tenancies than the tenants of council estates or whether it is fairer in all the circumstances, if there is something to be got from the better-off tenants, that we should get that before we go to the ratepayers to ask them for more, and to pay subsidy to help the poorer elements in the community. As I said at an earlier stage, until it is demonstrated that such a situation does not exist, and some people would have us believe that there are no such people living in corporation houses, that there are no people who are living in corporation houses and subsidised, I cannot accept the idea put to me that the State, through taxes, should contribute a greater amount through subsidy towards this particular matter out of the taxpayers' pocket.

I think it only logical and fair that until we lay the ghost, if there is a ghost, that there are people well off getting away with small rents, I cannot see how the Members of this House or the members of any local authority can say to the ratepayers, about whom the same Deputies will scream, that we will leave these better-off people——

May I ask the Minister a question?

That we will leave these better-off people in the situation they are enjoying, with a subsidy from the rates and the subsidy from the Government, because they are already there, that even though they have good houses at very low rent and have much more than good value as a result, we will leave them there and charge on the rates so many more pence in the £ this year, that we will go to the Government and to the Minister for Local Government and try to get more pence put on the taxpayers in order that these people should be allowed to continue to get benefits. I do not think that in our circumstances we can afford to give that while so many people are yet unhoused, or are paying rents they cannot afford with the incomes and commitments they have.

Surely the Minister is not forgetting the whole picture he painted when he indicated quite clearly that he was not prepared to do anything unless the increased rents were imposed and the ratepayers said they could not pay any further rents? It is putting a tax on the ratepayers and the rent payers.

How about the SDA people being subsidised?

I will come to that.

Might I ask a question? I agree with what the Minister said earlier, that there are corporation tenants earning £40 a week, but does he not agree that they have gone through the mill and that this is an abnormal income from members of a family about to get married and that the father and mother will go back again to where they were? Are they not entitled to some pleasure during their remaining life?

This is a differential rents system which has been accepted by a great many people. It has its faults. No system was ever devised that has no faults. But, by and large, it has appeared over the years that it is making quite a lot of inroads in our housing estates throughout the country. The earnest of it is those who pay will, if they do come down, have to go down the scale again.

They do not have it.

There are those ghosts. This is the point I am trying to make if you adopt a differential rents system, everybody will pay less for better houses. Some people would have you believe that if you take more away, everybody will get houses and everybody will pay less.

Does the Minister know that the family with £60 a week are also paying income tax, turnover tax, and so on?

Deputy Cluskey has asked a question: what about the SDA people? These are the people who borrow from our Local Loans Fund. The average income of borrowers under the SDA scheme ranges between £16 and £18 a week.

(Cavan): And there should be an increase?

That may be a point to look at as well but £16 to £18 a week is the average income of those who borrow under the SDA for building their own houses. What are they repaying? An average of £4 to £5 a week, and they are paying their rates and other maintenance. They are providing their own houses and that is what they are earning.

What is the average income of the corporation tenant? Would the Minister answer that query?

I have not got that information.

The Minister should not be putting one thing against another if he has not the information.

The Deputy asked me what about the SDA people and I am telling him.

I asked the Minister why are the SDA people not subsidised?

The fact of the matter is they are paying £4 to £5 a week, on average, and their average income is £16 to £18 a week.

How does the Minister calculate £5 per week?

It is on the repayments system.

How much would they have to borrow in order to pay £5 a week?

Probably up to £2,600 or £2,700.

For how long?

Over a period.

A period could be a long time.

How is the Minister to reply if Deputies persist in interrupting him?

We cannot allow the Minister to distort the facts.

I have been most helpful to all last night and today. The Deputies are distorting the facts themselves because they want to.

(Cavan): Would the Minister agree that under the SDA he is talking of the income of the borrower and under the differential rents system he is talking about the income of the family?

The Minister is talking about the income of the borrower at the time of calculation only.

How can he calculate a rate of between £3 or £4?

Down our way we do not go for as much as they do in Dublin. They are allowed £2,700 here.

How long will it take to pay back?

Will the Deputy let me finish? The maximum is £2,700 for a period of 35 years and the repayments on a £2,700 loan for a period of 35 years are £18 a month.

Over 35 years.

Will the Minister agree to increase the subsidy?

I dispute the Minister's figure.

The Deputy is quite free to dispute it. My information is that a person who borrows £100 over a period of 35 years repays 2/10 a week.

According to my calculation, that does not make £18 a month.

I hope the Deputy is right because then he will be getting it cheaper than I was charging.

The manager of the county council must be wrong.

That must be the old money they were spending; they let it out now at those rates or something like that.

Would the Minister now tell me what is the return on £100 over 25 years at 2/10d a week?

I would suggest that the 2/10d is the interest on the £100.

Will Deputies please allow the Minister to continue?

We are not that bad in the country. We would not pay 2/10d on it.

The Deputy should take it from the nods of assent over there that, in fact, this £4 or £5 or £6 a week is unfortunately only too true.

Because it is a shorter repayment period and the person has money to pay it.

That is not the point. The point is I was asked about the SDA people and they are by virtue of the regulations which I am empowered to make in regard to SDA loans, of necessity low income people and the average weekly wage ranges somewhere between £16 and £18.

This is when they borrow. It also relates just to the borrower. It is possible that other members of the family work.

Yes, that is possible, but it is very likely that only the borrower is earning at the time and it is related to the rate of his earnings at the time of borrowing.

He might get a little note, like the Minister.

I checked on that little note last night. What I am trying to point out is that with the £16 to £18 a week, this is brought about because we do not take people on a high level of income. It is undoubtedly the income at the time of borrowing that is in question. On the other hand, while only the income of the borrower is in question, it is also very likely that that person borrowed at or around the time he got married or shortly afterwards, and for the next 20 years, even though his income may go up, his liabilities will, undoubtedly, all too often rise even faster. The last state of this poor man, probably 20 years later, is no better than the first state. The whole point is that we have those people whose incomes rise but whose liabilities also increase — they may get little notes — and unless they anticipate some liabilities, they will not buy a house. I do not imagine a single fellow will build a house for himself just for the pleasure of sitting on his own for the rest of his days. The type of person who undertakes to build a house, even without dependants, and whose earnings on average are around £16 to £18 a week and is undertaking this sort of repayment for 35 years of £4 to £5 a week or £3 to £5 a week, depending on how much he borrowed, is less well off than the great majority of those who are in council houses. They are undertaking these liabilities. They are not imposing on the community, and not standing around waiting for the community to build a house for them but taking the burden on themselves. These people are a credit to the country, particularly at that income level. They are a credit to any country and should be a headline to others better off who look for council houses. It would be doing those people a service, those people whose income is much higher, to give them a little nudge to wake them up to the fact that they should now go out and build their own houses, which is the ideal of every adult person in any country. It would be a service to those people to point out to them the courage of people who earn £16 to £18 a week, that is, the people who borrow under the SDA. Their courage should be brought to the notice of the others who are better off and the encouragement might induce them to build their own houses. They would thank those people who brought it to their notice every day of their lives thereafter.

It was desperation in many cases, and not courage.

Even if desperation were the motivating force at the time, there are very few people who would now give up the house they started from desperation and move in to the best of council schemes. This, I think, is true, and there is no point in trying to get away from it. The people who built those houses with that sort of income have shown their courage.

(Cavan): They showed the height of courage and encouragement should be given to them by way of lower interest rates.

Certainly. Local authorities, who are the lending agents in regard to SDA loans, are quite free to make the interest rates to those people as low as possible.

Those people are subsidised.

The City Manager, with the Minister's approval, is now suggesting that corporation tenants will not be subsidised.

Would the Deputy, or any other Deputy tell me one good reason, why any person who is better off than 75 per cent of the community and of the taxpayers, should, in fact, be subsidised?

Would the Minister elaborate on this? If a corporation tenant with one child, has £18 a week, he will pay the maximum rent?

How much will he pay?

It depends on his loan and the size of the house.

Answer me this——

I will not.

Will Deputy Cluskey cease interrupting?

A man and a wife who pay the maximum rent in a SDA house will be subsidised and the Minister is now suggesting that the people in council houses should be discriminated against.

I think I made it clear that I will answer questions on request from the Deputy but never on demand while I am on the floor of the House.

They are facts.

I have given the facts. There is no point in pulling little rabbits out. I have already given the facts.

This cross-examination has gone on for three-quarters of an hour. I think it should cease.

Would the Minister agree that it is fair and equitable that a tenant of a corporation house should be required to pay three or four times the economic cost of the house?

I gave a figure earlier. I will not agree or disagree with anything that is put to me in that way. I will, in every possible way, even at the risk of boring the House by talking too long on this Estimate, answer anything that tends to be useful to answer, but I will not answer questions that are merely loaded to get a particular answer in a particular context so that it can then be taken out of that context and used for other purposes. I want to reply on this matter of the £18. I gave a figure about the proposed new scheme of rents in Dublin city. Tenants with up to almost £14 a week will have their rents reduced. I have not got the figure for £18, where there are no dependants, other than the man and wife. By the time the £14 people have got £4 further up, they will be on the maximum, up the scale a bit. I do not doubt that; but I doubt the other, and I have not the figures to prove or disprove it so I cannot answer the Deputy further, but I do not agree with his assertion that what he says is true.

It is true all right.

We will be reducing up to £14 and I doubt if they will have reached the maximum by the time they will have got a further £4.

(Cavan): I should like to give the Minister some information. The country is not confined to Dublin and does not end in Dublin. A married man, with some children, earning £10 a week will have his rent substantially increased under a proposal submitted to my housing authority.

I have no doubt at all that those of you who are not from Dublin city must be rather weary of the discussion on Dublin city, but then there is in Dublin city a housing problem probably larger than in all the rest of the country put together, and it is terribly important. It is not that I am ignoring the rest of the country. I actually started to deal with the Dublin situation because of specific arguments being used and allegations being made that these happenings in the city are purely attributable to me.

(Cavan): I have only introduced the country after an hour of Dublin.

I have been trying to reach the country for the last hour myself.

That is what we want the Minister to do: go to the country.

No reflection on my colleagues in the House but I would not advise even Deputy Corish to go to my county if he wanted to go to the country. I would say it would be very unwise, particularly if he tried to get in between the two of us already there, because there would not be room, apart from anything else. Let us try to get on with Dublin and, when we are finished with that, we will be moving on to the country.

The rents problem is a very big one, a very vital one and has a bearing on the future development of and addition to our housing estates because if we feel — as many people say we should feel — that the ratepayers are already carrying in many cases year after year more than is fair, then we have got to look around and ask ourselves: "Is, the taxpayer contributing to this housing subsidisation business a fair share or can he reasonably be expected to add a bit more to it?" as I am being asked to do. Coming back from that, in so far as the taxpayers is concerned, until you have demonstrated that there are not people in the housing estates in Dublin or elsewhere getting away with it, I cannot — even if I wanted to — nor would I have any hope — go to my colleagues in the Government looking for an increased subsidy for housing.

If it is demonstrated that there is nothing in what is being said, in what is being brought to me and what is being said outside and all around the city — and the only way it can be demonstrated is by ascertaining whether or not people are earning the amounts we believe they are earning — then these increases do not take place because if they have not the income, they cannot and will not be asked to pay the increases. If they are not there, I will carry it along to the Government and say to them that Dublin Corporation, the elected members, have done this in a way that would have flushed out any of these people and we find there are none. If the ratepayers cannot be asked to pay any more to reduce the rents of the 35 per cent, I would be going and saying: "Look, the Government must come in on this to help the corporation to keep the rents down so that these poor people can afford to occupy the houses."

If we get to that stage, then the Minister for Local Government will have a case with which to go to the Government. At the moment he has no case; he cannot face up to the prospect of even talking, and this applies to any Minister for Local Government, not me today, yesterday or the next day. I have long since given this as a view and a tip-off to the people over there who are interested in the whole matter in Dublin, that this is the way to approach the whole problems if they are to hope to succeed. In raising subsidy rates from the central exchequer, they must demonstrate that it cannot reasonably be got anywhere else.

The Minister gives the impression that unless the rates burden is increased to that point, there will be no consideration for a revision of the level of subsidy which, apparently, has been dropping considerably year by year for the past ten or 15 years. The Minister has the figures.

The situation is this: I believe we have the responsibility, as a community, to provide for those who cannot provide for themselves and, as the demand in providing the standards of the various services rises with the change and modernisation of these times, the burden becomes heavier on the community. Therefore, any slipshod method of approaching the administration of the services which may have been capable of being covered in the past cannot be afforded in the future. Therefore the rationalisation of rents, in this particular instance, is one which Deputies and councillors should endeavour to carry out, with the very good object of enabling them to provide more for those who need something most and to charges less for the services to people who cannot at the moment afford to pay.

This document has been concocted by the City Manager, presented by the City Manager and will be processed by the City Manager.

The point is that it has been attacked without its having been discussed and I am merely giving a version, I hope as objectively as I can, of what I understand to be the proposal of the manager. It will have its airing, its discussion and will ultimately, in some form, be carried out or otherwise given to the Minister for sanction. I can assure the House that when a proposal does come to me, it will get the greatest possible consideration in every detail.

I will now step down the country for a moment and suggest that there is something in the Clonmel differential rents scheme — which has already been discussed down there — which I believe to be wrong and which I will not sanction in its present form. This comes from a statement made by Deputy Treacy in talking about these rents down there. He said that the rent increases up to 10/- applied indiscriminately and were a drag on the standard of living of the working classes. He said he was not against differential rents in principle; he was last year.

Neither am I.

That is at least three of us in the House who are not against them in principle. We would have come quite a way if we could convert all the others in the House. It is only a matter of working them out but what I want to say to Deputy Treacy is that he is completely wrong, or his scheme is completely wrong, if the increases are applied indiscriminately. That does not constitute the "differential rent" principle which Deputy Larkin, Deputy Treacy and I have agreed upon. Indiscriminate increases are not differential rents. Each tenant's rent is related to his ability to pay — that is the whole essence of differential rents.

Another point mentioned here — and I think it came from the country as well — was that rents might be increased without the tenants being told why. If that is a feature of the rents scheme of any local authority, they will be humped out the door of the Custom House faster than anything that ever came in before. These are only little odds and ends but they are an indication of my attitude towards the proposals that will come forward. When proposals come forward which appear to be fairly reasonably based and, above all other things, attain the end of reducing rents for those who cannot pay, I will begin to look favourably on them, but if I find that these proposals are put forward merely as revenue earners, I am afraid they will not be acceptable to me.

Their primary objective must be to bring down rents, and keep down rents to a sufficiently low level — even down to zero — that we will be in a position to say truthfully that there is no one in this country who cannot get a house because he cannot afford to pay rent. That is the aim and the ideal which I think we are entitled to set for ourselves. If a differential renting system, or any other system, can help to bring about that situation, it will be sympathetically considered. If it does not contain this very elementary and, I would say, primary object of enabling rents to be put down and kept down and reduced further to cater for all our people, and for the poorest of our people, the local authorities need not bother sending it to the Custom House because I will have no interest in it.

I have no quarrel with the Minister on that score.

I think that is more than enough to say about these renting systems because the further we go, the more confusing it gets. That is my aim and so far as I am concerned in any part I will play in differential rents or rents of any kind in order to house the poor, anything that tends in that direction will be sympathetically considered. Anything that does not will get a very severe examination, and I would not hold out much hope that any scheme that does not will get my approval.

Will the Minister agree that his whole argument proves our argument when we accuse the Government of believing that building houses is a bad investment?

No. I do not think Fine Gael ever made the point that they believed it was a bad investment.

I did not say that.

I thought the Deputy was arguing that Fine Gael and Fianna Fáil agreed that it was a bad investment.

I have asked the Minister a question. Will he say "yes" or "no".

I want to say more than just "yes" or "no". Not only do we not believe it is a bad investment but we believe it is an essential investment. We believe we must invest even more in it. The essence of the whole exercise is to provide houses for a greater number of people at cheaper rents. That is for people who cannot afford to pay. Those who can afford to pay more can pay it, and if they do not like it, they can leave the house. They will be given an opportunity to buy the house. If they do not want to move, they can stay and pay the rent, or they can buy it. A remedy which will immediately occur to them is that they can get out and but their own house, and leave the house they are in for someone who is less fortunate, and who will then be charged a rent related to the new income. The new tenant may get the house at a lower rent than the tenant leaving was paying.

This is the whole endeavour of the officials of the Department and of myself as Minister for Local Government in a Fianna Fáil Government. This has always been our intention, and our actions have spoken louder than words over the past 34 years. Since Fianna Fáil took office, we have always been vitally concerned with house-building, particularly for those who cannot build houses for themselves. I am happy to assure Deputy Harte that we join with all those who hold the same view and we will continue to have that as our outlook. Everything that can possibly be done will be done to bring about the happy situation in which the people will have housing adequate to their needs.

Would the Minister say why he is building only about 25 per cent of the houses which were built by the inter-Party Government? We want action.

It is all very well to give high-sounding praise to people who are buying their own houses but not one single shilling more is given to them by the Minister to help them. This high-flown praise is all very well.

Deputy Larkin spoke at length on this Estimate, as did Deputy Harte for almost three hours. The Minister should be allowed to make his speech.

Deputy Larkin missed his cue. We do subsidise these people. We subsidise everyone who builds a house, up to a reasonably high standard. We subsidise them up to 1,400 square feet and, if anyone wants to build a castle or a mansion, good luck to him and more power to him if he can do it, but we will not subsidise him. We subsidise 99 per cent of the houses that go up in this country, no matter who builds them. In the case of private building, we do it by way of grant and in the case of public housing, we do it by way of subsidy on loan charges. We do help them. So far as the SDA group is concerned, the only complaint is that we are not providing them with money to help more of them. This is a very vital service, as everyone knows. It is not a question of what you pay for the money. It is a question of how you get the money. We reserve this money for people who might not be able to get it from the ordinary commercial sources. This is an invaluable service which we should like to expand and extend to more people if we could. Maybe we will if we have sufficient money to add to that which we are already spending. The Deputy should not get the idea that I am merely giving them empty praise for their endeavours.

Points were raised that the level of the grants should be increased, that reconstruction estimates were too low, that names and addresses of inspectors should be made available, that there was too much red tape, and that advice should be given to tenants intending to purchase houses. The level of the grants was considered and debated at great length during the passage of the 1966 Act, and I do not think there is any point in arguing that matter all over again here tonight. Estimates for reconstruction jobs are standard prices in the Department and those prices are constantly reviewed and brought up to date, so I would not agree with a general condemnation that these estimates are too low. In deed we have reconsidered cases where it was suggested that the estimate was too low and we have revised estimates in a number of cases. But generally, our estimates are in or about what a fair price would be.

There has been no undue delay in the payment of grants. I want to say this again. I hope it will be repeated by many people in this House: there has been no undue delay in any general way in the payment of grants in the present financial year. I do not anticipate any general undue delay for the remainder of the financial year.

Is the Minister referring to the Department of the local authorities?

We hope to give a service to the people building their own houses which will be as fast as our administration and procedure allows. This has always been the endeavour of my Department. There has been much talk about red tape which surprise me because there is not a great deal of red tape that is unavoidable very often by people outside rather than inside. We get applications in respect of houses that are already being lived in. We get applications for grants to do reconstruction that has already been done. The work is covered over and plastered. We are told they had to put in this and that but it is very hard to know at that stage. We want to be fair to the people and we do not disbelieve them in any case. We go out in the belief that we are there to help them pay for the very necessary work they have done in building a new house which they badly need long after they have done the job.

In these cases, undoubtedly, there will be delays. Inspections are necessary. Their plans may have been wrong in some respect and their standards may not be standards with which we can agree and which will cause loss to themselves later on. We see if we can get these matters remedied if it is possible but sometimes the cost is beyond the capacity of the applicant. Therefore, we have to pay him nothing and leave him in a worse condition or pay him less than he would otherwise be entitled to get for a job which is inadequate. These cases can continue to come in. Other Departments say: "If you do not apply and get approval beforehand you will not get any grant." I agree that is the neat way of doing it but in our case we take into account a job that perhaps started four of five years ago and for some reason was stopped and then they re-apply. Things have changed and they come in again. We go to any lengths to try to accommodate these people because we believe our primary purpose is to help people to build or reconstruct houses. Anything we can do, we wish to do it, if it is within the law.

If there are delays that appear to the applicant as niggling matters it may be found that if the people had a full understanding of the situation, we are delaying their cases in an effort to find a way around the law so as to help them to get grants that otherwise perhaps they would not be eligible for. These delays do happen, especially in a Department as large and wideflung as the Department of Local Government. Files are occasionally mislaid and documents that should have gone into one file inadvertently find their way to another in some cases. These things will happen and will continue to happen but, we hope, in as few cases as possible.

When criticising the administration of these grants in these cases we should realize that we are dealing with a situation where there are probably the bones of 37,000 cases of one kind or another — over 27,000 I think in the past year. All these various cases entail at least two inspections, possibly three or four or five. In some cases we are notified that the work is finished and when the inspector calls the person is not at home or he may be at home but the work is unfinished which he said had been finished. I have seen cases where the applicant says he has finished the job but he leaves some things unpainted or he has not put on door knobs or put glass into some of the windows. He intends to have this done by the time the inspector gets down to make the inspection but something else turns up and he does not do it. It may be that the inspector is on a circuit near the applicant and is with him very quickly when the file goes down but the fact is that if the job is not finished the applicant has wasted the inspector's time and his own. No grant can be made, he must still finish the job and he must still notify us. Only when everything is nearly right can we pay the grant.

I do not claim that we are infallible in the administration of these grants or in doing these inspections but we claim that we try to make as few mistakes as possible and give the benefit of the doubt to applicants in every possible way within the law. I would ask applicants, of whom there are thousands, to take a little more trouble in trying to do their part in regard to submitting applications, getting approval of plans and doing things a little more in the order that would help us in the Department to help them. If they do that we will give an even better service in the future than we have been able to give in the past. I cannot say more than that about the talk of red tape.

Section 24 of the Housing Act of 1966 has a bearing on the question of dower rooms in local authority houses because in that section provision is made in respect of local authority houses for an additional room to be added. This may not be the entire answer to what is advocated here but it is certainly a very big improvement in regard to local authority houses. It was suggested finally that we should give more advice to intending house purchasers. All I can say is that this is something we would be eager to do and we have been looking into the matter to see what we can do. An explanatory booklet is, in fact, at present being prepared.

In regard to group water supply schemes the points raised generally were in regard to the inadequate supplies of water and in some cases that has become only too evident. In this regard I should say that yield-testing at source—this is now being carried out; it was not done in the early stages which I think was a mistake as was found to the cost of all concerned, not in a great number of cases but in quite a number — will, I think, take care of 99 per cent of cases in the future. We may still have an odd one where the supply dries up or disappears without any explanation but I think we can look forward to a fairly trouble-free operation in regard to adequacy of group water schemes in the future.

The specific case of Ballinabreana, Co. Carlow, was mentioned and I agree that the delay complained of is too long but the selection of a suitable source of supply took more time than one might expect. I see that the design of the scheme has now been approved by Carlow County Council and the people who are pushing the scheme are making satisfactory progress.

Subsidies on local authority houses were mentioned by quite a number of Deputies. There were complaints also that the subsidy had been reduced in respect of the rehousing of subtenants. Another complaint was that housing authorities are reluctant to rehouse subtenants. That was from Deputy Cluskey, of course. It was said that local authorities were not allowed to rehouse subtenants. That suggestion came from Deputy Coughlan. The first man to raise the matter was my old friend from the deep south, Deputy Corry.

Under these general headings — other Deputies spoke about them — housing authorities must let their houses in accordance with the statutory priorities and not in accordance with the subsidy payments allowed. This means that they let their houses without question of the subsidy coming to the houses. That is what determines how A or B gets a house. This is probably not clearly understood but it must be understood as being the actual position. I wish to emphasise that I have told housing authorities time and again, and I wish to repeat it now, that we in the Department do not prevent the rehousing of subtenants who are overcrowded. The rehousing of subtenants at the moment qualifies for the higher rate of subsidy if, (a) the tenancy was created in a rural area before 1st July, 1964, and in an urban area before 31st January, 1952; or, (b) the family concerned qualify on compassionate grounds and are unable to pay more than the minimum or the near minimum differential rent. Compassionate grounds or inability to pay the lowest or near lowest differential rent——

What about caravan dwellers?

The subsidy payable for rehousing of subtenants is, as I have told Deputy Larkin, being reviewed at the moment and I am inclined to think, without making any definite promise, that there may be grounds for concessions in the form of higher subsidies for all subtenants now living in overcrowded conditions and possibly for all subtenants rehoused since the date of the issue of the White Paper.

I wish to make clear what Deputy Cluskey said. There has been a problem that subtenants have not got the same opportunity for re-housing as others even though they live in overcrowded conditions. An immediate review of that situation would be of tremendous assistance to them.

I should like to reiterate that overcrowded conditions, even without the review now in progress, may be looked at in all cases.

The Minister will appreciate that a very high percentage of subtenants are living in small box rooms. Hundreds of them have gone to live in houses already overcrowded by other members of their families. They are worse off than people living in single rooms.

As I have said, the review has been going on for a considerable time and I hope — I do not express more than a hope — that we shall find adequate grounds for applying the higher subsidy to people who heretofore did not qualify.

I hope the Minister will be able to do it, having regard to the fact that the Housing Bill imposes on local authorities the responsibility to review the whole question of priorities.

That is very necessary but if it never arose, I think the review would still have been necessary. Deputy Clinton and others raised the question of rehousing persons from caravans. The rehousing of persons who have been living in caravans qualifies for the higher subsidy in any cases where there are compassionate grounds and when the families are unable to pay more than the minimum or the near minimum rent fixed under a differential rents scheme. If the higher subsidy were to be conceded automatically for families rehoused from caravans there would be a danger — I do not think it is putting it very strongly to say there would be a danger — that caravans would be used to jump the queue for houses——

What if the local authority put them in caravans — urgent housing cases?

That is a different matter, a horse of a different colour.

It is a very important and reasonable one.

Where there is occupation of a caravan — I take it persons are not in occupation lightly, that they are not put in expect for very strong reasons — by and large we allow the subsidy in all cases. Just now I was referring to caravans as a whole, a situation in which somebody might sit in a caravan for a while and say: "I am first in line for a house."

I appreciate that.

(Cavan): The Parliamentary Secretary told us that in Bandon the housing authority had got the subsidy for which they applied, one-third. I understand they now want to get the two-thirds subsidy. Will the Minister have another look at it?

I like Bandon and I am glad others do too. What the Parliamentary Secretary said was true. I shall put it another way. The subsidy claimed by the local authority there was paid. Obviously they could have made a little more headway but they did not make the claim. They are now reviewing their claim and we shall consider that claim sympathetically.

(Cavan): If they asked for a hundred per cent subsidy would the Minister have told them they were asking for too little?

They have not. They are sensible people. Another point raised by Deputy Clinton was that we must get away from what he called the nonsense of the one-third and the two-thirds subsidies and give a uniform 50 per cent on all houses.

Fifty per cent of the cost of building them.

I fear that Deputies from that side would scarcely settle for that. The differential subsidy is not nonsense as the Deputy has suggested. It has been a very big force and I hope it will become an even more potent force in the future in the carrying out of the policy enunciated and applied by all Parties at various stages for the demolition and the eradication of all unfit houses. The upper subsidy is the incentive to get rid of unfit houses: the lower subsidy is the normal subsidy and the higher one is the extraordinary one. Therefore, the differential cannot be said to be all nonsense. I agree that when all the unfit houses have disappeared we can come to the idea of a uniform subsidy which, in such circumstances, would appeal to me very much. It would be far simpler to operate and easier to administer.

Progress reported; Committee to sit again.
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