TO THE MINISTER OF FINANCE AND PERSONNEL

(PETER ROBINSON)

Mr Weir: The Minister recently indicated that he was considering increasing the savings limit for pensioners beyond which they are not entitled to certain benefits. Can the Minister give more detail about that, and could such a proposal be in place by next April?

Mr P Robinson: The answer to the latter part of the question is yes. Those types of changes can be made within the existing legislative framework. I do not wish to indicate what I believe the outcome of the review of rating should be; I think that it is important that the Committee for Finance and Personnel have the opportunity to examine the responses that the Department has received from consultation and give its considered opinion. I want to be able to take the Committee’s opinion into account, as well as the responses from the consultation, but I can tell the Member, as I said to a rating conference last week, that the type of proposal that he has mentioned has attractions and I am sure that the Executive will want to consider that carefully.

Mr Burns: Will the Minister confirm that the ability to pay will be a factor in any new rating scheme?

Mr P Robinson: I can confirm that. There are always difficulties with what might be regarded as a property tax, and the issue that is most at stake is that of the ability to pay. In the initial phase of the Depart­ment’s consideration, we can only consider ability to pay in the context of the existing legislation. That means that we have to consider the types of reliefs that are available and also issues such as how they affect senior citizens, vacant properties and the issue of the capping of rates. The ability-to-pay issue is at the heart of the matter, but it is not easy to fashion that within a capital-based rates system.