Jan O'Sullivan (Limerick East, Labour)
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Question 498: To ask the Minister for the Environment, Heritage and Local Government the guidelines and-or limits given to local authorities on the upper limits paid to landlords under the rental accommodation scheme; if these limits are monitored and reviewed regularly; and if he will make a statement on the matter. [39107/10]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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The amount of rent paid to private landlords through the Rental Accommodation Scheme is a matter for individual local authorities, having regard to the need to obtain value for money. Guidance from my Department in relation to this matter emphasises the need for authorities to obtain competitive prices for property, having regard to the level of risk transferred to the authority (i.e. risk of vacancies, tenant arrears etc). In most circumstances authorities obtain discounts on the prevailing market rates. As a general guide, the Department have advised that the agreed rent should be circa one to one and a half months less than the market rent over a given twelve-month period dependent on the contract type entered into. This equates to an annualised saving of between 8 and 12% on the market rent.

The Department monitor and audit value for money at recoupment stage and authorities are required to advise the Department on the level of discount that has been obtained for each unit. In addition to this, my Department is currently carrying out a Value for Money and Policy Review of the Rental Accommodation Scheme which is due for completion in 2011. A specific aim of the review is to evaluate the operation of RAS in the light of the objectives set for it, including the financial arrangements under which the scheme operates.