Mar 20 - GSD Urges Government to Not Write Off £3 Million of Outstanding Rent Arrears
A clash in Parliament this afternoon during Questions to the Chief Minister, saw Opposition leader Daniel Feetham question Mr. Picardo on the Government’s decision to not pursue outstanding rents for Government rentals. The issue, the Chief Minister insists, is one of law and not policy; he noted that the Statute of Limitations states that rent debts from over 5 years ago are no longer recoverable.
The Opposition leader questioned the Government’s decision to ‘write off £3 million of arrears’ that are adding to the Gibraltar’s ‘culture of entitlement’, which he suggested the Government was supporting. Mr. Feetham said, ‘in the spirit of constructiveness I’m asking CM to consider and reverse his policy’.
The Chief Minister blamed the build up of rent arrears on the previous GSD administration, he claimed that the Government was seeking to deal with the matter ‘the right way’, by seeking to recover debt during the allocated time frame for it to be recoverable. He added that some mess the Opposition has made is indelible.
As the debate continued, Parliament Speaker Adolfo Canepa warned the two parties that their exchanges were becoming less constructive and would be shut down soon for the house to continue its questioning.
Mr. Feetham went on to insist that it would not be in the Government’s interest to write the debt off, and instead they should keep the information for when individuals who have not paid their rents need something from the Government, in future.
During the exchange Sir Peter asked the Chief Minister whether he would consider obliging people to pay their rent, particularly in the new estates, such as Mid Harbours. He also suggested that the Government exercised their tenancy rights to re-house people who avoid paying their rents, to less desirable estates. He urged them not to fall into the shameful avoidance of accumulating rent arrears.
In response the Chief Minister said that moving individuals out of their homes would be a difficult situation that would require bailiffs. They are instead looking to implement other options that can make it appear very unattractive for those who avoid paying their rent. Interestingly, he revealed that the outstanding rent arrears for Mid Harbour properties only accounts for £371,000.
