Rent debits scheme

Press, 1 September 1982, Page 6

Rent debits scheme

; Superannuitants living in council houses would.be able to pay their rent through direct debiting of their bank accounts, the Christchurch City Council's public utilities committee decided yesterday. ' The council would in turn meet the cost of the 10c bank transaction charge made by the Post Office Savings Bank and the five trading banks, but not by trustee banks. "Now that the Government has introduced direct crediting of National Superannuation to bank accounts, it is an opportune time for the council to offer its tenants the

.facility of direct debiting to pay rents." said the council’s property division director, Mr Keith McNeil. The maximum cost of the bank charges to the council would' be $2OOO a year. “At present the cost of collection of rent amounts to about $BOOO a year,” Mr McNeil said. The committee’s chairman. Cr Rex Lester, said that it was by no means intended to make the direct debiting of rents compulsory. The council had no such power. “But I hope the vast majority of dur tenants will take advantage of it. since it is to our advantage as well

as theirs.” he said. Cr Noala Massey said that the council'should not rely on elderly people accepting the idea too readily. “A lot of them like having the rent collectors call. It is. for some of them, one of the few regular contacts with the outside world." she said. The council employs people to call on tenants on dates their rent is due. Brougham Village The committee decided to arrange to raise a loan of $1.2 million to pay for 24 two-bedroom housing units in the Brougham Village. Each unit would cost about $45,008.