Paul Connaughton (Galway East, Fine Gael) | Oireachtas source

I welcome the opportunity to speak on the Bill. Its provisions seek to improve the regulation of tenant-landlord relationships by improving the dispute resolution service provided by the Private Residential Tenancies Board and also, for the first time, to bring the voluntary and co-operative housing sector within the board's remit.

Recent years have seen a significant increase in the number of tenants renting from housing associations, non-profit organisations that provide housing for those in need at affordable rent levels. There is an important distinction between voluntary housing associations and housing co-operatives in that the voluntary associations are non-profit organisations while the housing co-operatives are jointly owned by members or user associations or societies.

There are 700 voluntary and co-operative bodies with approved housing body status in the State and, of these, 443 have completed at least one project to date. In total, this sector accounts for 25,363 housing units. The number of the tenants who come under the umbrella of the sector is very significant. Previously, if a dispute arose, the only avenue open to either the landlord or the tenant in the voluntary and co-operative sector was the courts, which are costly, especially when one considers that the tenants involved are mainly social housing tenants and those in receipt of social welfare benefits.

An important element of the Bill is the security of tenure provisions which ensure tenants under the Act will have a right to a four-year tenancy. The provisions of this Bill will also give them access to the PRTB dispute resolution service, which is also available to the housing bodies involved. The inclusion of this sector in the Bill will no doubt result in an increased workload for the PRTB, but this will be offset by increased income. The registration fee for a tenancy currently stands at €90 per tenancy.

I note that the Minister of State intends to deal with a number of very important issues at a future date. For example, the Bill does not deal with tenants who are in arrears, and this is a growing problem. Two years ago, almost one third of all disputes referred to the PRTB related to rent arrears, up from 23% a year earlier. It is little wonder, given the difficulties with land tenure and other such issues, that Irish legislation was framed in favour of the tenant over the landlord, but in recent times some tenants have sought to take advantage of the system. Current provisions in the Residential Tenancies Act 2004 stated a tenancy may not be terminated pending the determination of a dispute, but these disputes often take well over a year to determine, creating considerable difficulties for landlords. I understand a number of options are being considered in regard to this matter and I believe a resolution to this difficult question should be brought forward as soon as possible.

The other matter which is causing considerable difficulty to both tenants and landlords is the issue of deposits. I note that more than 70% of complaints to the PRTB in recent years relate to deposits. I believe the Minister of State is to consider the findings of a report on the subject commissioned by the PRTB and due out later this year. This report may include amendments to the current Bill and may recommend the establishment of a deposit protection scheme whereby a third party would hold the deposits and adjudicate on disputes in regard to deposits. Given the significant difficulties the return of deposits is causing, it would appear that having a third party adjudicate on deposits would be a commonsensical approach to this issue. Each year I am contacted by many students and their families caught up in the very difficult situation where deposits are withheld, and the situation can reach a stalemate very quickly.

I note that deposit protection schemes have been introduced in England and Wales, with three independent government approved schemes available. Those schemes appear to be working well with a low level of problems. The success of the schemes in those countries is borne out by the fact that Scotland and Northern Ireland now appear to be able to follow suit.

I also note the success of a scheme in New Zealand where many problems are resolved by mediation in the local tenancy services centre, while tenants and landlords have the option of taking the matter further to the tenancy tribunal for a court hearing if the matter is not resolved by mediation. In New Zealand, 82% of bonds or deposits are refunded and 72% of disputes are resolved out of court. The system adopted in New Zealand appears to be a very commonsensical approach and one that would work well if replicated in Ireland.

This Bill aims to reduce delays in the current dispute resolution service for the PRTB and also brings the voluntary and co-operative sector within the remit of the board. I believe both measures are prudent and will result in a greater protection for tenants and landlords, be they in the private, voluntary or co-operative sectors.

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