Paul Connaughton (Galway East, Fine Gael) | Oireachtas source

I am thankful for the opportunity to speak to the Bill. I welcome its provisions, the main aims of which are to streamline the way in which rents are calculated across all local authorities. I also welcome the fact that the making of a rent scheme is now a reserved function of the housing authority, as this will give elected council members a role in deciding rent policy.

This Bill seeks to give greater transparency to the process by which councils arrive at rent charges, including the way financial circumstances are treated and the allowances available for dependants. The new harmonised structure will come into effect on 1 January and pave the way for the new housing assistance payment scheme, which will see the responsibility for rent supplement switched to local authorities. This represents a sea change in the way in which housing is administered by the State, and bringing the rent supplement under the umbrella of the local authorities is long overdue, as they have the local knowledge to best implement the scheme and are best placed to ensure the State does not pay high rents to private landlords while public housing lies vacant.

Currently, there is a wide variation in the rents charged by various local authorities, and this Bill will bring some level of harmonisation to the system while still allowing for an element of discretion. The changes envisaged under the Bill will undoubtedly result in increased rent for some householders, and I recognise that these increases, where they fall due, will be implemented on a phased basis. This Bill is merely paving the way for more significant legislation in the area later this year when the rent supplement scheme is transferred to local authorities. Applicants for rent supplement must already apply to a local authority for assessment of housing needs, meaning the majority of those on rent supplement should already be on the file of the local county or city council. Therefore, local authorities should be aware of where various people wish to live, and people can be offered vacant housing as it arises.

The case of arrears which have arisen many years ago is one aspect of the transition that requires greater scrutiny. In one instance I know, a family left the county of their birth in difficult circumstances and sought to return years later when the issues that gave rise to their leaving had been resolved. However, they were told they could not get back on the housing list as they had arrears with the housing authority relating to the manner of their leaving years before. This family could get on the housing list in every county in the Republic and receive rent supplement in each county except for where they were born and where they had close family ties. Some consideration should be given to such cases before the system is fully transferred to local authorities, and cases where people are barred because of arrears which arose many years ago should have their case re-examined and perhaps be allowed a hearing on the case.

This is one of the few reservations I have about the transfer of responsibility for the rent allowance scheme as, overall, it is a common-sense approach that will yield significant financial dividends for the country's coffers. The local knowledge that the county councils possess will be vital and an increased number of offers to people of vacant housing will see the current high bill for rent supplement reduced significantly in years to come. A sustained campaign in which people on rent supplement are offered vacant local authority houses within 10 km of their current address would result in significant savings for the State and increased rent collection for local authorities.

The issue of staffing in housing departments of local authorities may have to be addressed in the months and years to come if the maximum savings are to be achieved. This may necessitate a reconfiguration of services within councils or in some cases require extra resources that will be more than offset by the savings achieved. Harmonisation of the manner in which rent is calculated is a good idea, as is the harmonisation of the rent supplement scheme, which will see the current two-tier system involving the local authorities and Department of Social Protection streamlined into a more cohesive approach that will see better use of scarce housing resources. This is one of the most important tasks facing the Government and it is using scarce resources well, identifying areas where savings can be made and achieving those savings. This Bill is a further example of us doing more with less.

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