Charlie O'Connor (Dublin South West, Fianna Fail)
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Question 243: To ask the Minister for Social and Family Affairs the cost of increasing the cap on rent allowance by 50%; and if he will make a statement on the matter. [43033/06]

Charlie O'Connor (Dublin South West, Fianna Fail)
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Question 244: To ask the Minister for Social and Family Affairs the cost of increasing rent allowance thresholds by €100 weekly in 2007; and if he will make a statement on the matter. [43034/06]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 243 and 244 together.

It is not possible to provide an accurate cost of an increase of €100 per week in the level of rent limits or of a 50% increase in the rent limits due to the unquantifiable impact of such increases on general market rent levels. However, as an indicative guide by reference to the number of rent supplement claims currently in payment, a €100 increase in weekly rent supplement could add some €312 million to scheme costs in a full year, while a general 50% increase in rent supplement limits could cost some €198 million.

My Department is currently reviewing levels of rent limits in order to develop proposals regarding what limits should apply from January 2007 onwards. The review is taking account of prevailing rent levels in the private rental sector generally, together with detailed input from the Health Service Executive on the market situation within each of its operational areas.

The review will also include consultation with the Department of Environment, Heritage and Local Government and the Private Residential Tenancies Board. In addition, a number of the voluntary agencies working in this area have made detailed submissions. This process will ensure that the new rent limits reflect realistic market conditions throughout the country, and that they will continue to enable the different categories of eligible tenant households to secure and retain suitable rented accommodation to meet their respective needs.

Increases of €100 per week in the level of rent limits or 50% increases of the rent limits would be both unrealistic and unjustified in terms of the current rental market. Given the significant share of the private rented accommodation that is occupied by households receiving rent supplement, any such increases would have a major distorting effect on rent levels charged, not just for rent supplement recipients but for all tenants. There would be a very significant increase in rent supplement expenditure, with no net financial gain accruing to the people who rely on the scheme for their accommodation needs.

John Deasy (Waterford, Fine Gael)
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Question 245: To ask the Minister for Social and Family Affairs his plans to accommodate those entitled to free travel but who do not live near a bus or train route; his views on issuing travel vouchers which could be used in taxis to people in this situation; and if he will make a statement on the matter. [43048/06]

Séamus Brennan (Dublin South, Fianna Fail)
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The free travel scheme is available to all people living in the State aged 66 years or over. All carers in receipt of carer's allowance and carers of people in receipt of constant attendance or prescribed relative's allowance, regardless of their age, receive a free travel pass. It is also available to people under age 66 who are in receipt of certain disability type welfare payments, such as disability allowance, invalidity pension and blind person's pension.

The scheme provides free travel on the main public and private transport services for those eligible under the scheme. These include road, rail and ferry services provided by companies such as Bus Átha Cliath, Bus Éireann and Iarnród Éireann, as well as Luas and services provided by over 80 private transport operators. The vast majority of private contractors providing services under the scheme operate in rural areas, including those in the Rural Transport Initiative. I am always willing to consider applications from licensed private transport operators who may wish to participate in the free travel scheme.

Various alternatives to the existing system, including the use of vouchers, have been examined. A study, "A Review of the Free Schemes," published in 2000 under the Department's programme of expenditure reviews concluded that a voucher type system, which would be open to a wide range of transport providers including taxis and hackneys, would be extremely difficult to administer, open to abuse and unlikely to be sufficient to afford an acceptable amount of travel. This position remains unchanged.

The issue of access to public transport in rural areas is being addressed at present through the Rural Transport Initiative, which is being managed by Pobal, formerly Area Development Management (ADM) on behalf of my colleague, the Minister for Transport. My Department contributed €500,000 to the initiative in 2004, €750,000 in 2005 and is contributing €850,000 for the initiative in 2006, to ensure that free travel passholders continue to have access to community based transport services.

I will continue to review the operation of the free travel scheme with a view to identifying the scope for further improvements as resources permit.