HC Deb 10 March 1977 vol 927 cc1625-6
17. Mr. Craig

asked the Secretary of State for Northern Ireland if, in view of the fact that the Northern Ireland Housing Executive has £6.5 million owing to it in respect of rent and rate arrears and may be unable properly to discharge its obligations by reason of the Government's decision to terminate the special arrangements for the collection of these debts by deductions from certain social welfare cash benefits, he will review the matter.

Mr. Carter

No, Sir. I am satisfied that the Housing Executive is able to discharge its functions fully in respect of the recovery of rent arrears. The recent modifications in the system to recover arrears from social security benefits were specifically designed to encourage tenants to make voluntary agreements with the Executive, to alleviate certain cases of undue hardship, and to improve the efficiency of the benefit allocation procedures.

Mr. Craig

Will the Minister say what ceiling he is prepared to allow the arrears of rents and rates to rise to? As I understand it, it has been increasing at a rate of about 25 per cent. a year. This hardly seems the time to diminish the capacity to collect arrears. Does the Minister appreciate that the BAB system was an incentive for people to enter into voluntary arrangements? The sum of £6½ million is a shocking amount to allow to fall into arrears.

Mr. Carter

In spite of the fact that it may be an incentive, arrears are continuing to increase. It is hoped, as a result of the introduction of the changes that we have made, that voluntary agreements will be made that will enable the rent arrears problem to be reduced. In the course of the next few months we hope to obtain evidence showing how the new changes are working.

Mr. Fitt

Does my hon. Friend agree that the benefit allocation system did cause undue hardship to many hundreds and thousands of families in Northern Ireland? After a close scrutiny and review of that system, the Minister's noble Friend was forced to the conclusion that it would be better to arrive at a voluntary agreement other than that imposed by the Ministry. Does my hon. Friend also agree that there is so far no indication that people are throwing down the gauntlet to the Government and saying that they will not pay their rates and rents? Most people are inclined to come to a voluntary agreement with the authorities.

Mr. Carter

I must in all fairness say that at present insufficient numbers are coming forward to make voluntary agreements with the Housing Executive to pay off rent and rates arrears. As my hon. Friend says, it is our hope that the new procedures will encourage people to enter into voluntary agreements, so that this great burden of rent and rates arrears can gradually wither away.