Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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2. To ask the Minister for Social Protection her views to figures published by a newspaper (details supplied) on 30 November 2014 that the average gap between the rent supplement caps and actual rent prices now stands at 44% across the State, and is as big as 54% in County Wicklow and 45% in Dublin city; and if she will take emergency action in response to these findings and the resulting rise in homelessness. [47108/14]

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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My question aims to ascertain whether the Minister appreciates fully the scale of the growing gap between the rent supplement maximum limits where they have been set and the actual price of rents. What, if any, steps will be taken by the Government to stem the rise in homelessness that is resulting from her inaction on rent supplement and that of the Cabinet as a whole?

Kevin Humphreys (Dublin South East, Labour)
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I thank the Deputy. The Deputy's question stems from a newspaper article in The Mirroron the percentages. We do not set rent allowances on the basis of what appears in The Mirror, even though it is a reputable newspaper. We have different caps across the State reflecting the market. For example, there are two different caps in County Wicklow depending on how close one is to the city. The largest differential within the question the Deputy asked was in the Wicklow area.

As I have noted to the Deputy previously, €344 million was spent on rent supplement last year. We are currently carrying out a review on the cap, which should be completed shortly. In the meantime, I want to ensure that there is a flexibility right across the market operated by community welfare officers who will look at market conditions in particular areas. However, I want cognisance to be taken also of the need to avoid allowing rents to inflate throughout the country on foot of any increase in the caps, as has happened before. There are many low-income families and students within the Dublin area who could be priced out of the market if the caps were lifted. Certainly, the caps within social welfare set the bottom of the market. All landlords look at what the Department of Social Protection caps are and build their rents on top of that. It is not surprising as the Department takes approximately one third of all rental units across the State and we must be careful not to create rent inflation.

That is why I am communicating regularly with the regions and community welfare officers to ensure that they take local circumstances into consideration. In many ways, they are the very ones who are best placed to do that and to work with people on an individual basis. Not only is there a problem in relation to rental income, but it is another element of helping people to get back into the workforce.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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I welcome the Minister of State's statement that there is a problem. As he said, 30% of the private rental market is in some way controlled by the State as it is the funder. I am not someone who wants to subsidise private landlords further. In fact, the opposite is the case. The problem is that we have a crisis, especially in Dublin and other areas where the rent cap set by the Department is out of sync with the rents being sought by landlords. In that event, people end up in homelessness or, as they have done for years, having to make an under the counter payment. The problem is that the gap between rent and the rent supplement cap has grown to such an extent that even those who have made a top-up payment in the past can no longer do so.

My specific question is on the Department's rent supplement initiative and family protocol, which I welcomed. I am not opposed to it. The problem is that some of the people who availed of it in the first place are being timed out as it was a temporary initiative. Can it be extended? If it is being extended, it is akin to a different rent supplement cap. Can the Minister of State explain that a bit more?

Kevin Humphreys (Dublin South East, Labour)
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There have been more than 300 applicants in relation to the protocol and it can be extended. To give the Deputy two direct answers to two direct questions, "Yes", and "We are very aware". There is a long-term problem, a medium-term problem and a current problem in the market. The Minister for the Environment, Community and Local Government, Deputy Alan Kelly, announced a comprehensive programme to deal with people who are homeless, which has been very much welcomed. I have been concentrating within the area of rent supplement and have been in constant communication with the Minister's Department on this. The best people to deal with this are those with front-line experience and knowledge of local markets. That is why we are encouraging our officials on the ground to use their discretion.

I agree with Deputy Ó Snodaigh that we do not want to create false rent inflation by having the Department of Social Protection set a floor from which landlords then build a greater and higher rent. We are a substantial element of the rental market in that we take more than 30% and we must be very cautious. There are numerous low-income families who could be quickly priced out of the market. Deputy Ó Snodaigh knows as well as I do that there is no simple solution to this. There is a shortage in the market which is driving prices. My Department is doing everything in its power to ensure that people can access accommodation and stay in their homes.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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The Minister for Social Protection, Deputy Joan Burton, who is sitting next to the Minister of State, will remember a conversation we had on a number of occasions on direct negotiations between the Department and landlords. That proposal was turned down and it was indicated that it was up to the tenant. As the funder of 30% of the rental market, there is a greater onus on the Department. In Ballyfermot, which is my own area, and in general across Dublin, the rent for a three-bedroom house is €1,300 to €1,400 while the maximum rent allowable under the cap is €950. The rent supplement is less than that, given the personal proportionate contribution. I am not suggesting the Department should fully bridge that gap, but there must be a way to negotiate with landlords to reduce rents to a price that is realistic.

Has there been any discussion by the Department and the Minister with responsibility for housing in relation to rent control which would solve some of these problems? The figures I read earlier were from The Mirror, but the Simon Community and others have vindicated them since they were published. There must be a whole-of-Government approach to this issue.

Kevin Humphreys (Dublin South East, Labour)
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I agree with the Deputy that local authorities should negotiate. That is what is proposed in HAP to which the Deputy objected and which he opposed when it was going through the House. HAP will provide rent certainty to tenants, allow local authorities to negotiate directly with landlords and end the poverty trap inherent in rent supplement, which often prevents people from going back to work. HAP will allow that. It has been rolled out in some areas and will be rolled out in the Dublin region. I look forward to it as it will provide rent certainty to those who are currently in receipt of rent supplement and allow people to get out of the poverty trap and back into employment. Unfortunately, Sinn Féin has objected to HAP at every hand's turn.

It is an excellent scheme that was introduced to this House by the Minister, Deputy Jan O'Sullivan. The pilot has been successful and it is now being rolled out to the remaining local authorities. I hope it will have the support of the Deputy because that will mean the local authorities will be negotiating with the landlords, which will give security of tenure to the person currently receiving rent supplement, and it will also eliminate the poverty trap of rent supplement that prevents people returning to employment.

Michael Kitt (Galway East, Fianna Fail)
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Thank you, Minister. I call-----

Kevin Humphreys (Dublin South East, Labour)
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I very much look forward to the Deputy's support on this, and I welcome his change of mind on it.

Michael Kitt (Galway East, Fianna Fail)
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We move on to Question No. 3 in the name of Deputy Thomas Pringle.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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I am sorry but I want to correct the record. We did not oppose the housing assistance payment, HAP. We opposed legislation which contained the measure. We had endorsed the HAP.

Kevin Humphreys (Dublin South East, Labour)
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The Deputy looked for excuses to oppose every item of legislation at every hand's turn.

Michael Kitt (Galway East, Fianna Fail)
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Please-----

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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If the Minister of State checks the record he will see that we did support the HAP.

Michael Kitt (Galway East, Fianna Fail)
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We have got that.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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We highlighted problems with the rental accommodation scheme, RAS, in particular in Dublin. If the Minister of State looks back on the record he will see that the RAS has not worked in Dublin similar to other areas.

Michael Kitt (Galway East, Fianna Fail)
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Sorry, Deputy. In fairness to Deputy Pringle he is waiting patiently and we are over time so I ask Members to please watch the clock.