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Dáil Éireann díospóireacht -
Tuesday, 7 Apr 1992

Vol. 418 No. 4

Adjournment Debate. - Southern Health Board Housing Subsidisation.

Thank you for giving me the opportunity of raising this very important matter on the Adjournment. The dramatic increase in subsidies by health boards to repay mortgages and provide rent subsidies is scandalous and shows the short-sightedness of Government to the problems of the homeless, particularly in Cork. It is understandable and desirable that when a person has difficulty with repaying a mortgage for genuine reasons, ill-health, short time working or the loss of a job, the health board should step in to try to alleviate the problem until a permanent solution is found.

The figures in the Southern Health Board for rent subsidies makes startling reading. The subsidy for rent and mortgage in 1990 was £296,031 in the south Lee area; in 1991 this had jumped to £751,436. In the north Lee area the figure in 1990 was £371,548 and in 1991 this had spiralled to £780,767. The trend this year means that the figures will increase again so that a massive sum will be paid out.

A very large portion of this money goes to unscrupulous landlords who are becoming rich on the misery of thousands of people who, through no fault of their own, are desperately in need of housing. The vicious cutbacks in housing finance which local authorities are experiencing have had a serious effect on the waiting list, particularly in Cork, where for the first three months of this year 530 people applied for housing. When one considers that a mere handful of houses—approximately 25 — will be built this year, it is obvious that these people will have to go on living in appalling conditions, subsidised by the health boards.

Without private accommodation people on the housing list would be in a terrible state but the fact remains that some landlords have seen an opportunity to get rich quickly and are doing so with the help of taxpayers money. Flats, houses and apartments are now being subsidised to the tune of £20, £30, £40 and £50 per week. When landlords know that a subsidy is in the offing they raise their rents to exorbitant levels.

There is also the ridiculous situation under the present social welfare regulations whereby a young person is forced to leave home and get private accommodation because the family income prohibits him or her from receiving unemployment assistance. This is discriminatory and degrading. It is ludicrous for a young person to pay huge rents, subsidised by a health board, to a private landlord when all that is needed in many cases is a reasonable weekly amount paid by right to a person living at home. This would save the State thousands of pounds annually and would give an unemployed person independence and dignity. The present system is a ripoff of public money by greedy landlords on the misfortune of others and has condemned people to live very often in accommodation not fit for human habitation. This massive increase in subsidy is recoupable from the Department of Social Welfare but the administration of the health board is under great strain and their depleted staff cannot cope with the problem.

It is time that the present system, whereby taxpayers money is used to create wealth for these unscrupulous landlords, is immediately investigated. However, the real remedy for the scandalous social problems is for the Government to start a building programme of decent housing which takes into consideration the 1,700 applicants on the waiting list of Cork Corporation and those in many other towns throughout the country who live as sub-tenants in overcrowded conditions and the hundreds of young people forced to leave the family home——

The Deputy is straying from the subject matter.

——because social welfare payments penalise them for living there.

I understand that the Deputy wishes to raise the matter of the increase in rent and mortgage interest allowances paid by the Southern Health Board last year. Under the supplementary welfare allowance scheme, eligible persons whose income is insufficient to meet their rent or mortgage repayments may be considered for a supplement. Those in receipt of social welfare or health board payments are normally eligible. The supplement is calculated so as to leave an applicant with the appropriate rate of supplementary welfare allowance for his family size, less £3.50 which is the minimum contribution an applicant is expected to make towards his own accommodation.

The determination of applications for supplementary welfare allowance is a matter for health boards operating under the Act, regulations and guidelines issued by my Department. My Department last issued guidelines to the health boards in June 1988 which outlined the circumstances in which rent or mortgage interest supplements may be paid. In considering an application for supplementation the health boards are obliged to take various criteria into account. The application of these criteria is designed to ensure that the rent paid is reasonable for the size and type of accommodation in the applicant's area and that the accommodation is appropriate to his family size and circumstances. Similar criteria apply in relation to mortgage interest payments. These guidelines are currently under review in my Department with a view to their publication in the near future.

The Southern Health Board have been contacted with regard to the matter raised by the Deputy. There has been a significant rise in the number and cost of rent and mortgage supplement payments in the Southern Health Board area. This is in line with trends nationwide.

These increases may be attributed to a number of factors, including increases in the live register. Furthermore, there is evidence of increasing numbers of returning emigrants to the southern region who frequently require payment of basic supplementary welfare allowance and rent supplementation immediately on their return.

Another important issue affecting the increase is the availability of local authority housing. One of the qualifying conditions for entitlement to a rent supplement is that an applicant must apply for local authority housing. As a consequence of the limited availability of local authority housing, the housing needs of increasing numbers are being met by private rented accommodation through the supplementary welfare allowance scheme.

There are also indications that increased rent charges by private landlords have affected the level of housing subsidies. I will be addressing this issue in the context of the current review of the guidelines. A further factor underlying the increase is undoubtedly the increased level of publicity surrounding the scheme which has generated public awareness of the scheme generally. In recent years my Department have undertaken an increased level of publicity in relation to rent and mortgage supplements under this scheme. The health boards do not at present maintain statistics in such a way as to facilitate a detailed statistical analysis of rent and mortgage subsidies paid under the supplementary welfare allowance scheme. Such supplements are included with other elements of supplementary welfare allowance in the accounting of the scheme.

However, discussions are taking place between my Department and the health boards with a view to providing more detailed statistical information on the scheme with particular reference to rent and mortgage supplementation. A study group comprised of officials of my Department and of the Eastern Health Board have been examining the operation of the scheme in the Eastern Health Board area with a view to suggesting improvements. The group will be reporting shortly. There are plans for extensive computerisation of the supplementary welfare allowance scheme and this would allow a full analysis of the operation of rent and mortgage supplementation and increase understanding of the factors affecting the scheme.

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