Oireachtas Joint and Select Committees
Wednesday, 10 June 2015
Joint Oireachtas Committee on Education and Social Protection
Rent Supplement: Discussion
1:00 pm
Mr. Ashley Balbirnie:
I am chief executive of Focus Ireland. Two issues were raised about Focus Ireland, one was the points of difference between us and the Department of Social Protection and one was about the financial differential. There are several areas where we are very much in agreement with what is happening. I am very conscious that organisations such as ours are sometimes seen as hurlers on the ditch, throwing abuse and nothing positive into the pot. We agree with many of the things that have been said here. Fundamentally, supply is the big issue, as Deputy Ryan pointed out. This is at the root of everything. There will be a massive problem over the next couple of years about supply. There is no question whatsoever about that. In the meantime we are doing everything we can, starting with Housing First, in partnership with the Peter McVerry Trust. We are beating every bush to try to bring additional property into the situation. Likewise, with the family HAT.
We are also very much in favour of what is being done about rent certainty and there are some very positive moves there. We are absolutely behind that. We are positive about what is happening with the rental accommodation scheme, RAS, and HAP, and particularly the Department’s willingness to engage on a case by case basis and the work it does with our sister organisation, Threshold. We are also all for the multi-faceted approach, which was mentioned.
The big point of differentiation, and the main point we want to make today, is in respect of rent supplement. Rent supplement rates were last altered in June 2013 but according to the property website, DAFT, rent rates have gone up 22% nationally since then. In Dublin, they have risen by between 22% and 40%. Crucially, we believe that rent supplement is part of the answer. Nobody argues with that. For it to work, however, it must relate economically to the market rent. In a situation where the market rent has increased between 20% and 40% there has to be adjustment to take account of that because, otherwise, rent supplement ceases to fulfil its purpose. That is the main point we want to make today.
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