Govt’s response to auditor’s report on rent arrears ‘beggar’s belief’, says GSD

The GSD has said that the Gibraltar Government's response to findings on rent arrears within the Principal Auditor's Report 2018/2019 "beggars belief."

This comes after the Government reiterated its commitment to recovering rent arrears and preventing the accumulation of further debt, with a strategy in place that has been implemented over the past six months.

According to the Principal Auditor’s report, approximately 7% of tenants in arrears account for about 52% of the total debt.

The Minister for Housing, Pat Orfila, had said that the Government remains committed to recovering rental arrears from the very small minority who have historically refused to pay.”

“As acknowledged by the Principal Auditor, we have so far been very successful at preventing further arrears from accruing, for example through removal of parking spaces and by making sure that rent is deducted directly from salaries, and we are also working on policies to strengthen our ability to do so,” Ms Orfila said.

“It must also be said that the vast majority of Government tenants do pay their rents in full and on time.”

In response, the GSD said the Minister for Housing “has the gall to remarkably pat herself on her back”.

The GSD said the Government had previously “embarked on a vicious and unjustified personal campaign against the Principal Auditor” but now they have “no compunction to selectively, even if inaccurately, refer to sections of the report which they consider complimentary of them if they have to”.

The party said the Minister referred to the Auditor’s comments regarding her arrears strategy by stating that he reports that she has been “very successful at preventing further arrears from accruing”.

“This is not, however, what he reports and she should be quoting him in full,” the GSD said.

The GSD added that that the Auditor warns of a “gradual rise in the level of House Rent arrears” and that this rise is a “cause for concern”.

The GSD said he further states that any “perceived decrease in House Rent arrears during... 2021- 22” was as a result of write-offs amounting to £531,445.

“It is astonishing but not surprising that this Government should so aggressively embark on a wholly unprecedented attack against the Principal Auditor by questioning the independent discharge of his functions simply because he has been severely critical of it, yet choose to twist what he says in support of its actions,” GSD MP Damon Bossino said.

“You cannot make this up.”

Recent measures implemented by the Government include a revised Care of Address policy and a requirement for rent payments to be up to date in order to renew ID documents or request a home exchange.

Additional planned measures for tenants in arrears include the removal of sheds and parking permits, as well as checks on business licences, beach sheds, fishing licences, applications for permanent residence in Gibraltar, and applications for exemption from immigration control.

Non-emergency works by the Housing Works Agency will also not be carried out for those in arrears.

The Government said that the vast majority of tenants pay their rent in full and on time, and that in extreme cases involving vulnerable individuals, leniency has been exercised on humanitarian grounds.