News Release
Office of the Official Opposition
 

Allowance for damage deposit limited to $100

Harder for social assistance clients to get accommodations

August 10th, 2004

Roland Butler, MHA for Port de Grave district and Liberal opposition critic for Human Resources and Employment, says government cutbacks will make it harder for social assistance recipients to get rental accommodations.

"I am very concerned about this new government policy which limits damage deposits to $100 for social assistance recipients as they rent accommodations. Section 12 of the Residential Tenancies Act allows landlords to charge 75% of a months rent as an up-front damage deposit. It is common practice that landlords require a minimum 50% deposit. Given rental rates in this province that are steadily increasing, I fear many landlords will not rent to social assistance clients based on this change in policy," says Butler.

Butler says this new policy could make it particularly difficult for social assistance recipients looking for accommodations in the St. John’s area. "In St. John’s you already have a very tight rental market and I fear that, with this change in policy, social assistance clients who are already disadvantaged when looking for housing will be at an even greater disadvantage. If they can get a place at all, it will likely be somewhere that no one else wants to rent."

Butler says he is not surprised by this latest cut for social assistance recipients. "This is a right-wing government that does not care about poor people. Since taking office, this government has brought in cuts that hurt some of the most vulnerable in our society. Unfortunately, this latest move is consistent with what they have done in the past."

The Liberal MHA also wonders why PC members who represent districts in the St. John’s area, where people will be most impacted, are not speaking out on this issue. "Where are these Conservative MHAs now? Are they being silenced by the Premier? If they care about these people they should speak out publicly against the cuts the Conservative government is making. I think if they spoke out on this issue they might have some impact."

Media Contact:
Jeff Mackey
Caucus Communications
Office of the Official Opposition
709-729-6427