asked the Minister for Local Government if he is prepared to allow a percentage of overtime earnings to be discounted when rents of local authority houses are being fixed and, if so, how much.
Ceisteanna—Questions. Oral Answers. - Local Authority House Rents.
106.
I accept that overtime working would involve a tenant in some extra expenses and, for that reason, I am prepared to approve a proposal by a local authority to disregard up to one-fifth of such earnings in computing rent under a differential rent scheme in which the maximum rent represents the full economic cost of the house.
Is the Minister aware that when a tenant of a local authority house works overtime, 7s in the £ is deducted for income tax and 2s 6d in the £ for additional rent and the tenant has only 10s 6d out of the £ he earns? Would the Minister not agree that a more generous gesture on the part of his Department is called for?
We have gone some way in allowing one-fifth to be deducted from overtime.
The Minister said one-fifth for overtime when the maximum rent is being paid?
No, not when the maximum rent is applicable to the tenant but when he is paying rent under a scheme to which the economic rent applies. In other words, when the maximum economic rent applies under the differential rent scheme the deduction of one-fifth overtime can be applied.
Is the Minister aware that under the graded scheme there is a similar provision? If a man works a lot of overtime one year he pays for it the next year even though he is only working on a basic wage for that year. Would the Minister not consider that he should apply the proposal regarding one-fifth of overtime to all local authority tenants?
I have gone into this matter thoroughly and I have given this concession in cases where the maximum rent represents the economic cost of the house.
Would the Minister let me have a letter stating what exactly is the system in force?
Yes.