Mark Daly (Fianna Fail)

My query relates to the payment of rent allowance directly to persons in receipt of social welfare benefits. This system was changed a number of years ago in order that landlords would no longer receive the rent allowance and that it would be paid directly to social welfare recipients. I have received information from a number of agents that recipients of rent allowance are telling their landlords that their rent allowance has been cut. Of course, landlords are hearing on radio that all manner of cuts have been imposed. The landlord and the agent will often reduce the rent for the social welfare recipient but the social welfare recipient has overstated the amount of the reduction in his social welfare allowance and he is pocketing an extra few bob from social welfare. This is the reason I have raised this matter and I ask if it would be possible to revert to the old system whereby the landlord is paid directly by the Department and in this way the amount of the allowance would be known. The landlord would be paid the rent payable in that particular social welfare area. I know the Minister's office has conducted research on rent payments. An agent contacted the Department of Social Protection office in Tralee and pointed out what is happening in reality, that people in receipt of social welfare payments were receiving the allowance and were telling the landlord that the allowance had been cut so that they could obtain a reduction in the rent of €20 to €40 while the allowance might have been cut by a mere €15. In such a case, the landlord will have reduced the rent substantially but the guy has a profit of €15 a week or a month. This is happening in many towns and I know it is happening in the Kenmare area where landlords are being told that allowances have been cut and that they should cut the rent by €50 in some cases. The recipient is then profiting. In my view, the form should be signed by the landlord detailing the rent amount and this should be sent directly to the social welfare agent in charge of the case file. There are a number of anomalies in the system. The rent is now not paid directly to the landlord but there is a lot of money being wasted which could be used elsewhere by the Department rather than landlords and their agents reducing the rent to social welfare recipients and people making money out of the difference. I suggest the Minister should revert to the previous system whereby the money would be paid directly to the landlord.