Seanad debates

Tuesday, 15 December 2020

An tOrd Gnó - Order of Business

 

10:30 am

Photo of Sharon KeoganSharon Keogan (Independent) | Oireachtas source

I raise the issue of local authority rental sector arrears, which are becoming chronic. The 31 local authorities are the main providers of housing for people who cannot afford housing from their own means. As of December 2019, local authority rental sector arrears stood at almost €86 million, more than €20 million higher than the figure at the end of 2014. This is a further €20 million in unpaid rent in the space of five years. I cannot help but wonder whether the rent arrears figure has mushroomed dramatically during the past year of rolling lockdowns. I suspect it has. Has the Minister figures indicating the expected level of rent arrears by year end? For how long will we allow rent arrears to snowball? It seems nothing has been done to reduce the growing mountain of rent arrears.

The local government efficiency review group has recommended that social housing rents be deducted directly from social welfare payments. It states this would reduce overheads associated with revenue collection in this area and substantially reduce arrears, as well as streamline processes for local authority tenants and avoid accumulation of arrears. The group also recommended this should be a condition of new tenancies. The group recommended these measures more than a decade ago.

There is an existing statutory mechanism to implement the recommendations of the group. Section 53 of the Housing (Miscellaneous Provision) Act 2014 provides for the deduction of local authority rents and rent arrears from social welfare payments. It is a moderate provision. The amount deducted from payments is capped at a maximum of 15%. However, six years on this section of the Act has not been commenced. I ask that the Minister explain to the taxpayers of Ireland struggling to pay their taxes in addition to huge mortgages or crippling rents why everyone is not being asked to make some contribution in accordance with his or her means, even if those means are a social protection payment.

I am aware that anybody can fall on hard times, especially over the past year. I work with families and homeless people to try to put a roof over their heads. At the same time, it is only fair to the taxpayer that those failing to pay anything at all for their house should make some contribution. We also need to look at easier ways to pay rent to local authorities. This is a pressing matter to be addressed by the Minister for Social Protection and the Minister for Housing, Local Government and Heritage. I hope the Deputy Leader can get this commenced very soon.

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