Michael Finneran (Roscommon-South Leitrim, Fianna Fail)

I cannot accept this amendment. Section 33(5) sets out the arrangements for the operation of a hardship clause in the application of this section where moneys are owing to a housing authority. It provides that where a housing authority is satisfied that a household would suffer undue hardship, it can enter into an agreement with the said household for the repayment of the moneys due in reasonable instalments, in addition to any rents or charges the household is already paying to the authority. This provision is fair and provides a reasonable safety net for households. It is also sufficiently flexible to allow housing authorities to operate it in a sensible manner. In that context, I ask Senator Hannigan to withdraw the amendment.

While I appreciate the Senator's concerns, it is worth putting in context issues surrounding rent arrears. The differential rent scheme operated by housing authorities is based on the fundamental principle of ability to pay, in that rent is related to the household's income. This is a very affordable form of housing provision. Research in 2001 on Dublin City Council's tenant population suggested that the differential rent scheme plays an important role in combating poverty. It is important, in this context, that people are encouraged to sustain their tenancy by paying their rent and that there is a fair and balanced arrangement for dealing with rent arrears which discourages non-payment of rent on the one hand while also providing for an instalment basis for paying any interest charges that ultimately arise. This section must be read in conjunction with the general powers in section 31 relating to rents. Subsection (6) of that section gives the power to the Minister relating to matters to be included in rent schemes, including the waiving of rent, in whole or in part, or on a temporary basis, in the case of hardship.

Taken together, the provisions in the Bill will prove to be a fair and balanced approach to the issue of rents for local authority dwellings. I cannot accept the Senator's proposed amendment which would alter that balance.