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War of words over rent increase

by isleofman.com 15th December 2014

An open letter from Health and Social Care Minister Howard Quayle, defending his decision to increase council house rents by five per cent, does not answer 'genuine concerns' say members of three local authorities.


Mr Quayle wrote the open letter to Rob Callister, Eddie Power and Lawrie Hooper, commissioners for Onchan, Malew and Ramsey respectively, stating: 'The most vulnerable of our public sector housing tenants will be shielded from the increase in rent through a commensurate increase in their social security benefits.


'As you are aware, the Department funds the difference between the cost of providing social housing and the rental income it generates. The Government’s accounts for 2013/14 show this figure to be in excess of ?6 million. Whilst the difference between the two figures is inevitable to some degree, we must ensure that it is placed on a sustainable footing so as not to jeopardise future investment in existing and new housing stock.'


The three commissioners, who are not speaking for their local authorities but as individuals, say any increase should be put on hold
until means testing can be investigated, adding: 'Only through the introduction of means testing will we be able to identify the most
vulnerable in our society and those tenants who can ill afford an additional increase without further support.'


In their response to the Minister's open letter, they write: 'We fully acknowledge that Government is in a financial bind, and that there is currently a cost to the Department of providing public sector housing, however we would argue that this is an unavoidable cost of providing subsidised housing. In these difficult financial times the department and local authorities should be honest with what the deficiency payments actually represent.


'The deficiency payments are a Government policy to assist and encourage the construction of public sector housing on the Island, to replace old and ageing properties and to ensure that there are properties available to people at an affordable rent. Without the support of the taxpayer through these payments there would be no public sector housing on the Isle of Man.'


Got a story? Contact Joanne on 340000 or email newsdesk@manx.net


twitter @jonewsiom

Posted by isleofman.com
Monday 15th, December 2014 12:05pm.

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