Trevor Sargent (Dublin North, Green Party)

Is olc liom a rá nach bhfuil mo chomhghleacaí, an tAire Gnóthaí Sóisialacha agus Teaghlaigh, an Teachta Mary Hanafin, i láthair. Táim cinnte go mbeidh sí ag léamh an Tuairisc Oifigiúil. I thank Deputy Durkan for raising a clear example of a difficulty of which I know the Minister, Deputy Mary Hanafin, will be very much aware.

The supplementary welfare allowance scheme provides for a supplement to be paid in respect of mortgage interest to any person in the State whose means are insufficient to meet their needs. The scheme is administered by the community welfare service of the Health Service Executive on behalf of the Department. The purpose of mortgage interest supplement is to provide short-term income support to eligible people who are unable to meet their mortgage interest repayments in respect of a house that is their sole place of residence. The supplement assists with the interest portion of the mortgage repayments only.

In general, a person may be entitled to a mortgage interest supplement provided she or he is habitually resident in the State; the loan agreement was entered into at a time when, in the opinion of the Health Service Executive, the person was in a position to meet the repayments; the residence in respect of which the loan is payable is not offered for sale; the mortgage interest payable does not exceed such amount as the Health Service Executive considers reasonable to meet his or her residential needs — in exceptional circumstances, a supplement may be awarded where the mortgage interest exceeds such amount as the executive considers reasonable, but such a supplement is payable for a maximum of 12 months only; and she or he satisfies a means test.

Mortgage interest supplement is normally calculated to ensure that a person, after the payment of mortgage interest, has an income equal to the rate of supplementary welfare allowance, appropriate to family circumstances, less a minimum contribution, currently €13, which recipients are required to pay from their own resources. The minimum contribution will be increased to €18 per week from January 2009. Many recipients pay more than the minimum contribution because they are also required, subject to income disregards, to contribute any additional assessable means that they have over and above the appropriate basic SWA rate towards their accommodation costs.

Where two people enter into a joint mortgage agreement there is an obligation on both parties to meet repayments as agreed with the financial institution. The fact that one of the joint mortgage holders is not resident in the property does not remove the obligation on that person to meet that part of the loan repayment which is reasonably attributable to him or her. It is not considered appropriate that the Exchequer should provide assistance towards the accumulation of a capital asset on the part of the absent party to a mortgage agreement.

Where a person residing in the property becomes the sole mortgage holder, a mortgage interest supplement can be considered in respect of such amount as a community welfare officer considers reasonable to meet the person's accommodation needs up to the full amount of interest payable. Where the person resident in the property continues as a joint mortgage holder, a mortgage interest supplement payment will be considered in respect of half of the interest on the mortgage. However, the community welfare officer will take into account the circumstances of each case and in particular where a person resident in a property is seeking to become the sole mortgage holder.

It is a matter for the community welfare officer to a make a decision on entitlement to mortgage interest supplement and the amount of that supplement, based on all of the facts of the case and the relevant legislative provisions. There is a right of appeal against the decision of a community welfare officer to a Health Service Executive appeals officer and thereafter to the chief appeals officer of the Department.

The Health Service Executive has advised that the person concerned is not entitled to mortgage interest supplement as her combined income from employment, the one-parent family payment and family income supplement is sufficient to meet the total mortgage interest due on the loan.

See this speech in context