Róisín Shortall (Dublin North West, Labour)

State expenditure of approximately €500 million per annum on rent supplement highlights the complete failure of the Government's housing strategy. An additional 1,000 places in the rental accommodation scheme is a drop in the ocean because the vast majority of people at the lower end of the private rented sector should be in the scheme. The Minister has failed to move quickly to address this issue.

Will the Minister explain precisely how the arbitrary cut of 8% in rent payments will work? Rents at the lower end of the market have not reduced by 8%. I refer to the grotty bedsits located all over Dublin and in other cities. Demand for cheap accommodation is increasing and there is no evidence to show rents have declined at the lower end of the market. I ask the Minister to explain what will happen in the case of a person in receipt of rent supplement living in a bedsit who approaches his or her landlord - provided the landlord can be found - and asks for an 8% rent reduction on the basis that rent supplement is being reduced. Such persons are in a contractual arrangement with their landlord and have signed a lease which could have ten months or more to run. If the landlord responds by telling the tenant to get lost, what should the tenant do?

Will the Minister confirm that no one will be made homeless as a result of this measure? Will she guarantee that a person whose landlord refuses to reduce the rent will continue to have rent supplement paid until alternative adequate accommodation is found? Will she also confirm that the measure will not increase costs on the State? Given that persons who manage to exit a contract will not have their deposit returned, will these moneys not be lost to the State?

Has the Minister taken legal advice on this issue because there is a legal view that the State, through the Department, is contractually obliged to honour leases already entered into with landlords? While I am aware the leases are agreed between tenants and landlords, the Department is involved in the contract through the operation of the rent supplement scheme, for instance, landlords must fill out a form and meet tax compliance requirements. It appears the Department is proposing to break contract law.

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