Nicky McFadden (Fine Gael)

This section applies to rent allowance. It is another one of the slash-and-burn cuts being made by the Government, which proposes to save €2 million in this area. It has not indicated how it is proposed to save the money. The personal contribution has been increased by 85% in the past two budgets. Some 91,000 tenants benefit from rent supplement, which is an increase of 52% since the end of 2007.

It was always intended to be a short-term allowance but because local authorities are not building as many houses as before, it has become the only way for some people around the country to afford to live independently and comfortably. It was also intended for the rental accommodation scheme, RAS, to be extended but the take-up of the scheme has been dismally slow. The idea that somebody has to be 18 months on rent allowance before becoming eligible for RAS is a disincentive. How does the Minister propose to achieve this saving?

What is a bona fide tenant with regard to the language in the Bill? That is an objectionable term. The explanatory memorandum states "In order to qualify for rent supplement, a person must have been a tenant or living in homeless accommodation for a period of at least six months". There is also the stipulation that a person must be able "to demonstrate that s/he could reasonably have afforded the rent at the commencement of the tenancy". If the person was able to afford the rent at the commencement of the tenancy, he or she would not need rent allowance. It is a bit disingenuous and misleading so will the Minister clarify the matter?