Denis O'Donovan (Fianna Fail)
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Ar aghaidh leis an Seanadóir, tá ceithre nóiméad aige.

Trevor Ó Clochartaigh (Sinn Fein)
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Cuirim céad fáilte roimh an Aire Stáit. Táim buíoch go bhfuil sé anseo, ach tá díomá orm nach féidir leis an Aire sinsearach teacht isteach don cheist seo, mar is ceist í seo atá ag déanamh tinnis do go leor daoine faoi láthair. Tá an-chuid cainte ar na táirsigh freisin maidir leis na hathruith a bhaineann le liúntais cíosa. Tuigeann muide go gcaithfidh an Rialtas iarrracht a dhéanamh an chíos atá á íoc le tiarnaí talún agus mar sin de a ísliú agus tuigeann muid go bhfuil cíosanna an-ard á íoc i gcásanna áirithe agus nach cóir go mbeadh siadsan le n-íoc ag an Stát. Ach, tá fadhb againn leis an meicníocht atá tógtha ag an Stát le sin a chur i bhfeidhm, is é sin na tionóntaí atá sna tithe a chur ag margántaíocht.

I raise the issue of the change to the rates for the rent allowance supplement. Although we agree in principle with the idea that landlords certainly need to be tackled on the issue of the rents under this scheme, there are serious issues with the way the scheme is administered currently. The tenants are being forced to renegotiate their leases with landlords. This is a disastrous situation for many people. Sinn Féin has been contacted by many people in Galway and we held a meeting on Friday evening. The tenants are finding it impossible to renegotiate and the landlords are playing hard ball and they are not willing to move on the rates. The Government should have used another mechanism.

This is current Government policy and Sinn Féin disagrees with the method of its implementation. I know of one family in Knocknacarra in Galway city which was informed two weeks ago by letter from a representative of the Department of Social Protection that the new level of rental support was being introduced. As a result of this new rate, the family's supplement was being lowered from €800 a month to €700. This will not cover the rent for their house and there is no accommodation available in the area at a suitable rent. The Department has stated the review of this case was based on figures from daft.ie, and the CS0. However, neither of those websites show properties in that area for that level of rent. The children attend a local school and both parents are unemployed. Before the end of last month, 31 May, they were forced to write to their landlord to say they would have to break the lease agreement and leave the house. They do not have any alternative accommodation and they will be homeless for all practical reasons.

I ask if an appeals system is available for such cases where the rent is more than the relevant limit. The Department's website states that in some cases rent supplement can be paid at the discretion of the Department's representative, formerly known as the CWO, where the rent is over the relevant limit. There are three circumstances. For example, if a member of the household has special housing needs, for example, a disabled person in specially adapted accommodation; if a tenant can pay the rent by taking up employment in this case the rent supplement at a higher rate can be paid for a short period of six to eight weeks; if there are other exceptional circumstances. I ask for clarification as regards circumstances.

The decrease in the rate for rent supplement will cause some tenants to default on the lease agreement and they will be in a very precarious legal situation. It will also mean they will have to leave their home and force them back on the local authority homeless list to be accommodated in some other manner at a cost to the State. The system needs to be reviewed because tenants are being forced into a very akward and unfair position. I ask for clarification about the appeals process because these people need a remedy for an immediate problem. Cuirim fáilte roimh an fheagra.

John Perry (Sligo-North Leitrim, Fine Gael)
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I will do my best, Senator.

I am taking this Adjournment matter on behalf of the Minister for Social Protection, Deputy Joan Burton, who sends her apologies for not being in a position to reply to the Senator. The purpose of the rent supplement scheme is to provide short-term income support to assist with reasonable accommodation costs of eligible people living in private rented accommodation who are unable to provide for their accommodation costs from their own resources and who do not have accommodation available to them from another source. The overall aim is to provide short term assistance and not to act as an alternative to the other social housing schemes operated by the Exchequer.

New maximum rent limits came into force on 1 January 2012 and are in place until June 2013. These new limits are in line with the most up to date market data available. The emphasis of the rent limit review was to ensure that maximum value for money for tenants and the taxpayer was achieved while at the same time ensuring that people on rent supplement are not priced out of the market for private rented accommodation.

Rent supplement is subject to a limit on the amount of rent that an applicant may incur. The general practice is that rent supplement is not paid where the rent is above the relevant limit. However, regulations provide that a supplement may be paid in cases where the circumstances so warrant. Guidelines are issued to determining officers to provide guidance as to the circumstances in which a rent supplement may be paid where the relevant limits are exceeded. The guidelines are as follows.

Where there are special housing needs related to exceptional circumstances, in particular, for example, a person with a disability in specially-adapted accommodation or homeless persons whose housing needs cannot be met within the standard terms of the rent supplement scheme etc; where the person concerned is entitled to an income disregard and has sufficient income to meet his or her basic needs after paying rent, taking into account the appropriate rate of rent supplement that is otherwise payable in the case. Sufficient income in this context means the relevant basic supplementary welfare allowance rate less the prescribed minimum contribution to rent; where the tenant will be in a position to re-assume responsibility for his or her rent within a short period. For this purpose, a guideline period of no longer than six to eight weeks is suggested but where there are exceptional circumstances, an extension up to a total of 12 weeks may be allowed; where an existing claim is under review, the rent paid to the landlord is in excess of the prescribed limit and the lease agreement is not for immediate renewal, staff may use their discretionary powers and pay rent supplement based on the rate quoted within the lease agreement for up to 13 weeks. They may further use their discretion, and extend the 13 week period in circumstances where the lease agreement will expire within a reasonable timeframe, or; the termination of the lease agreement may give rise to onerous penalties payable by the applicant, or; the minimum notice within the lease agreement, that a tenant must provide a landlord to vacate the property, is in excess of the 13 week period. Appeals officers examine each case to determine the most appropriate response having regard to the particular circumstances of the case.

I suggest the Senator advise the family to go to the local appeals officer who has discretion and their very clear circumstances may be facilitated.

Trevor Ó Clochartaigh (Sinn Fein)
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I welcome the clarification provided by the Minister of State. It is important to note that this is a scheme which provides a short-term response but it will not be suitable because the local authority housing is not available for people who are in the scheme. Directors of services in the local authorities I deal with are saying they are being forced by the Government policy towards private rental accommodation because houses will not be built to deal with the demand. This gives a short-term reprieve and I welcome the clarification but it will not be a solution to the issue and I call on the Minister of State to talk to the Minister for Social Protection to ask her to review this policy as it is a very flawed policy which is putting undue pressure on tenants and it will not solve the problem. It will force people out of their homes and children out of their schools. It will create ghettos in areas where only people of a certain class or those on social welfare are corralled into certain areas of cities. I call on the Minister for Social Protection to completely review this policy.

John Perry (Sligo-North Leitrim, Fine Gael)
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I assure the Senator that I will speak to the Minister for Social Protection and I will bring the file to her attention.

The point was made clearly. The rent supplement scheme is reviewed constantly and I have no doubt the Minister will take on board the Senator's recommendations.

The Senator questioned the availability of local authority housing. Galway may be the exception, but in many counties private landlords are happy to facilitate persons in receipt of the rent supplement as they would prefer to have a tenant in their vacant property. However, I hear the point the Senator is making and will bring it to the Minister's attention.

I hope the short-term measures will accommodate the Senator's concerns.