Nicky McFadden (Fine Gael)

I thank the Minister for a very comprehensive speech. This Bill, when published on 19 November, was said to include a number of important elements. Last night, the Bill passed through the Dáil and it included monumental and seismic changes, as the Minister said. Many of the changes are very important. We have had very little time to consider them and have had no briefing on some of them. On this basis, we will be opposing the Bill while at the same time welcoming some of the changes outlined.

I am focusing on two issues in my speech, namely, FÁS and rent allowance. Rent and mortgage aid has increased dramatically since September 2009. The Sunday Independent noted a rise of 50% in just 18 months. In all, 91,000 people now receive State aid to pay their rent and mortgages. There are 150,000 people, a massive number, claiming rent supplement. From 1 January 2011, there will be new conditions for rent supplement. For it to be awarded to the new claimants, the landlord's tax reference number must be given to the Health Service Executive Landlords with existing claimants will be required to provide their tax reference numbers upon the claimants' next rent supplement review. Non-resident landlords will need to provide rent confirmation. It will become an offence if a landlord fails to provide this required information. This is to ensure all landlords are tax compliant. If they are, they should have no issues in providing the required information. Rent allowance was intended to provide short-term support for those living in private rented accommodation. However, in the constituency in which I live, it is the only failsafe mechanism people have in providing accommodation for themselves.

The Minister has referred to new plans he is discussing with the Minister of State with responsibility for housing, Deputy Finneran. I am interested in hearing what these plans are.

In 2009 €500 million was paid in rent supplement, from which there are 96,500 tenants benefiting. I welcome and support the requirement that landlords provide their tax reference number in respect of each tenancy for which rent supplement is payable. I also support the continuance of payment from 1 January 2011 until a review date for the supplement is made. That is fair. The HSE will request a landlord to supply the tax reference number for review.

There remain certain ambiguities that need to be addressed in the Bill. The first is that the scheme is said to provide short-term support. My primary concern is with the issue of short-term support and the long-term implications, in particular for those in private rented accommodation who depend on rent supplement to provide basic shelter. These individuals have insufficient means to meet their accommodation costs without the payment of rent supplement. Rent supplement for the needy could be jeopardised in the future if further revisions are made. They will begin to suffer when changes are made and the short-terms benefits have been exhausted. The rent allowance scheme must be reformed.

Furthermore, the Bill states it will allow for the continuation of rent supplement beyond 1 January 2011 to allow a reasonable amount of time for a landlord to provide the HSE with the tax registration number, yet it is not clearly stated how long this time allotment will be. However, in no case will rent supplement be paid beyond 31 March 2012 if the landlord fails to provide a tax reference number. This issue concerns me because it makes vulnerable tenants almost responsible for ensuring their landlord complies with the legislation. How can those moving into privately rented accommodation after 31 March 2012 be sure that what they are told or what they see is valid? Will tax clearance certificates be given to allow those who depend on rent supplement to ensure they are not under the roof of a dubious land lord? The tenant will be the one left without a home and in a vulnerable position. As Deputy Ring has commented in the other House, steps must be taken to ensure those in need will not become collateral damage in this plan to ensure tax compliance by landlords. The issue is with the time allocated for landlords to provide their reference number and there should be no problem if a tax number is supplied. What will happen to those who are living under the roof of a landlord who has not or does not provide the necessary information? The Irish Times recently noted: "A payment of rent supplement would only be made to tenants renting a dwelling properly registered by a landlord". I have serious concerns about the responsibility being placed on the tenant.

Poverty and exclusion have always been a top priority for Threshold which is concerned about some parts of the Bill. I agree that all landlords should be tax compliant; however, there are concerns about a minority of landlords who rent poor accommodation. Threshold points out that a landlord who is non-compliant in one area such as cleanliness or safety standards is most likely also to be non-compliant in other areas such as the failure to provide a tax registration number. We all know these landlords. Threshold has called on the Department to apply a withholding tax to rent supplement where a landlord has not established he or she is fully tax compliant. I am interested in the Minister's thoughts on this suggestion. This would be a very effective way of ensuring tax compliance by landlords who receive rent supplement.

Threshold also calls for a more rigorous inspection of the accommodations of those who receive rent supplement. I have seen deplorable apartments in which people must live. I agree with Threshold that the Department should be solely responsible and liaise with the Department of Environment, Heritage and Local Government to ensure those who are in receipt of rent supplement are provided with good accommodation and obtain value for money. Every individual is entitled to basic shelter that is safe and well maintained. Individuals who depend on rent supplement are the most likely to be living in vulnerable conditions that require improvement by the landlord.

Like Threshold, I am concerned about the impact of the €60 million cut in rent supplement. It is beyond the 10% figure outlined and may have a detrimental effect on vulnerable persons in the private rental sector. Threshold has outlined its concerns about the myth that rents have reduced. That is not true in my experience. They have not reduced in the Athlone area.