Defence house rent increases delayed

Press, 14 October 1989, Page 4

Defence house rent increases delayed

By

DAVE WILSON

Proposed increases in- Defence housing rentals, to be implemented on Friday, have been delayed until next year and cut to a maximum increase of $25 a week.

The decision, announced yesterday by the Secretary of Defence, Dr Basil Walker, officially acknowledges the prospect of hardship on tenants, most of whom will not receive a pay increase under the Armed Forces Pay Review. In addition military commanders will have the power to rectify localised anomalies in rents. The Army has already identified houses at Tekapo, Fairlie, Glentunnel and West Melton as justifying substantial rental reductions. A number of houses at Burnham Military Camp are also likely to have their proposed rents cut back.

Dr Walker denied that the decision to delay the rent increase and cut the rental figures was connected to an appeal against rents levied on a Waiouru house, recently considered by the Tenancy Tribunal. Dr Walker said the appeal, the decision on which has not yet been given, was a separate issue.

Junior ranks living in barracks accommodation will also benefit from the delay order. Rations and quarters charges, also due to rise next week, have been delayed until next year, and will be phased in between January and July. Under the original Defence housing rental proposal, market-related rents were to be charged, in some cases representing increases of more than $lOO a week.

The caretaker at Balmoral Military Camp at Tekapo, Sergeant Major Alan Willis, was facing a 393 per cent rent

rise on his home, from $56.72 a fortnight to $222.63.

Yesterday he expressed delight and relief at the news of the rent delay and modification. Like many other soldiers, he is on a “standstill” pay rate after the pay review, and said the news would be especially welecomed by young married servicemen faced with rent rises they could not afford.

The implementation of the married quarters housing rents has now been delayed from October 20 until January 11.

The Army, in particular, has lobbied at senior officer level for cuts in the rental figures. Dr Walker said it was now accepted that there would be a greater degree of hardship in the forces under the previous rental formula than was desirable. Dr Walker said the delay was to ensure that all military personnel were aware of their pay rates under the pay review structure before the rent rises were implemented. The Ministry of Defence has undertaken to ensure all pesonnel are officially told their pay rates by December 1, but it is understood some individuals will be told later than this, but before January.

Dr Walker said the effect of the rents decision was that instead of a two-step rental increase, there might now be a three-stage process. “The first will be a very much rebated rental from January until July, 1990, and then the full interim rental from then, meaning effectively a seven months delay. “The third stage is a possible application of full market-related rentals at another time,”