Some tenants whose rents are being subsidised by Government are able to afford private sector housing while they are preventing less fortunate people from using Government housing.

Works, Engineering, Parks and Housing Minister the Hon. Leonard Gibbons said rents had increased by up to 12.5 percent this month and added that they would continue to rise in future years to bring them in line with market values.

However subsidies would still be available to tenants who had genuine problems after assessment by the Department of Financial Assistance. These tenants would "be responsible for paying the difference between the rent charged and the subsidy''.

Mr. Gibbons was responding to Opposition MP Mr. Stanley Morton who criticised Government in Tuesday's The Royal Gazette for raising public housing rents up to market value.

"Bermuda Housing Corporation rents are being increased in order to eliminate unfair `hidden subsidies' so that everyone who receives a Government subsidy is treated equally,'' said Mr. Gibbons.

He explained that when Government implemented the Housing Allowance Programme for rent subsidy in 1988, BHC rents were substantially below the market rate.

All tenants received these `hidden subsidies' without being assessed financially to determine their eligibility and level of subsidy.

These `hidden subsidies' were provided in order to address the BHC's tenants "affordability problems''.

"Government believes its homes should be used by those with the most need, and, with the exception of tenants who are physically and mentally challenged, there should be a constant turnover of tenants.''