asked the Minister for Local Government if he is aware that as a result of revision of rents and increase in rates very substantial demands have been made by local authorities on tenants in council houses; if in the case of Laois-Offaly he will take steps to provide money to subsidise such increases as cannot be met by the tenants, many of whom are in casual employment, have large families and may have to leave their houses; if he will fully investigate this serious matter and review the entire rent structure so that such rents can be met by the tenants; and if he will take immediate action to see that such increases do not take place.
Ceisteanna—Questions. Oral Answers. - Laois-Offaly Rent Structure.
59.
I am not so aware. Increases in fixed rents are, by law, a matter for the local authority. Any differential rent scheme approved by me provides that no tenant is required to pay a disproportionate share of income in rent, that special allowances will be made for children and that the local authority may, in cases of hardship, accept a sum for rent and rates less than the minimum required by the scheme. A person in casual employment whose income falls, would, under such scheme, have his rent reduced.
I may add that the income of the Laois and Offaly County Councils from rents and annuities on their cottages in 1968/69 amounted to £63,418. The subsidies paid from rates and central taxes for the cottages came to £140,117 in that year.
Surely the Minister was not serious when he expressed the opinion that there is not widespread dissatisfaction following recent increases in rents which in many cases have taken place to the extent of £2 10s Od to £3 a week? Is he aware this is causing very grave dissatisfaction among tenants many of whom are in casual employment and who, because of family commitments, are not in a position to meet increases?
I am not aware such increases have taken place. Increases on fixed rents are matters for the local authority. As far as differential rent schemes are concerned, they are based on the incomes of tenants and no tenant is required to pay an amount disproportionate to his income.
Is it not a fact that the Minister insists that a condition of the payment of house subsidies is that an economic rent must be based on the price of the house? Is he aware that in the case of a person with an income of £20 per week, the full economic rent in Laois is £4 8s Od per week? Is he further aware that in accordance with the Departmental regulations no allowance is made in respect of children? I accompanied a deputation to the county manager this week and it was made clear that no allowance is made in respect of the number of children—that the rent was based on income. Surely this is something the Minister should inquire into immediately.
The maximum rent is the economic rent. The maximum rent is only payable if the income of the tenant is sufficient to justify the payment of it. As I said in my reply to the Deputy, any differential rent scheme approved by me provides that allowances will be made for children.
That is news to me I can assure you.
Would the Minister agree that it is fair that those who are on a rent of one-eighth of their income should when they get an increases of £1 a week because of increased costs otherwise, have to pay 2s 6d extra out of it for rent? Would the Minister agree that that is a fair way of doing this?
Yes, it is. It is based on a proportion of the income.
It is not.
In view of the fact that the Minister's colleague, the Minister for Finance, takes 5s 3d out of that £1 first of all what is left for the improvement of the standard of living of the working man is very little after your 2s 6d is taken out.
The 5s 3d in the £1 is for the subsidisation of rent.
There is no subsidy.
In the constituency we are concerned with in this question the subsidies amounted to £140,117 and the income from the rents amounts to £63,180.
You are dealing here with a case in which only one house was built.