The Minister was speaking following a debate in which Members of the Assembly approved the legislation to give effect to the scheme from 1 April 2010.
Welcoming the move, the Minister said: "This represents a new payment choice for owner occupier pensioners in Northern Ireland who may not have the means to pay high rate bills and are ineligible for rate relief or rate rebate. The scheme will be attractive to those pensioners who do not have access to other means of support, and are struggling to meet the mounting household bills they face living on in the family home in their retirement years.
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"Deferment is not a new relief or allowance and importantly does not represent free money. It will however allow pensioners to roll up their rate bills at a concessionary rate of interest, generally until their death or the sale of the property."
The Minister continued: "Deferment will not be an easy choice for pensioners. Given the long term commitment involved it is important that pensioners are made fully aware of all the facts beforehand to allow them to make informed choices. There will be a range of issues for them to consider including the level of mounting debt, the impact on property equity and, looking further into the future, the value of the estate that they may wish to pass on. Nevertheless, I believe that this presents another payment option."
In terms of the impact on local government finances the Minister explained: "Councils will be paid the district rates that are due in the normal way and will not bear the direct costs, in terms of loss of revenue through ratepayer deferment. The only impact felt by councils will be in relation to a relatively small additional amount of their share of the cost of collection and also if any the secured debt ends up having to be written off in the future – both of which are in accordance with current procedures."
(NS/CD)
