Joan Burton (Dublin West, Labour)

Discussions have been taking place, particularly involving the former Minister of State, Deputy Penrose, with NAMA in regard to utilising NAMA properties, where appropriate, for housing solutions and the social dividend to which the Deputy refers. Obviously, these are very difficult issues.

I have spoken with and met the local authority managers in this regard. There is a series of difficulties with rent supplement. It is probably one of the biggest barriers to taking up employment. People who get an offer of a job fear they will lose their rent supplement if they go work, whereas if somebody is on the rental accommodation scheme, RAS, or is a direct local authority tenant, they are on differential rent and can predict, broadly, their rent charge if they take a job and, most importantly, they are not disbarred from taking a job.

The other issue if that in some cases local authorities cannot find tenants to accept some properties because people may prefer an option of renting in the private sector a newer property that may be available in the locality. In addition, local authority managers have told me they have a problem with some local authority tenants, whether those on RAS or traditional tenants, who build up arrears of rent. As the Deputy knows, the Department traditionally pays the rent supplement to the individual, who pays it to the landlord. The local authorities in some instances suggest a very difficult arrears problem has been established. As part of the changes in rent supplement, we need better IT developments to perhaps facilitate the household budgeting scheme operated by An Post being used to assist local authorities.

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