Ciarán Lynch (Cork South Central, Labour)
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Question 36: To ask the Minister for the Environment, Heritage and Local Government if he will amend the Residential Tenancies Act 2004 to prevent licence agreements being used to circumvent the provisions of the Act; if he will undertake an immediate study to establish the extent of potential misuse of such agreements; and if he will make a statement on the matter. [10367/09]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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I have recently announced my intention to review aspects of the Residential Tenancies Act 2004 with a view to considering the scope for further improvements to the legislative framework within which the Private Residential Tenancies Board operates. This would support the achievement of additional operational efficiencies by the board in the delivery of its functions. My Department is currently undertaking the necessary preparatory work for this review and I hope it will yield a preliminary outcome by autumn 2009.

The PRTB has not brought specific concerns to my attention in regard to the use of licensing arrangements as a mechanism for circumventing the provisions of the Act. Nevertheless, I will arrange for the issue to be considered as part of the review. As I indicated to Deputy Ciarán Lynch at a recent meeting to discuss issues around the operation of the Act, I would welcome any evidence that indicates the Act is the subject of abuse or circumvention in the manner outlined. I will ensure that such evidence is carefully examined in the course of the review.

Ciarán Lynch (Cork South Central, Labour)
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My question for the Minister of State pertains to landlords' use of sham licences to deprive tenants of their rights and the PRTB of its jurisdiction. While certain renting arrangements fall outside the scope of the Act, some landlords use sham licences to circumvent their responsibilities. One such licensing arrangement which I have brought to the Minister of State's attention is advertised on the website of the Irish Property Owners' Association. I ask him the number of tenancies held under licence which should be with the PRTB and whether he agrees that sham licences are problematic in that they deprive tenants of their legal rights.

The PRTB faces an increasing burden of work because it must decide on cases involving contests to these licences. A number of instances have been documented whereby the board has had to decide on this issue. Does a licensed tenancy come within the board's dispute resolution remit and how often has it defeated licence agreements in the District Court? Although the Minister of State may claim the issue has not been brought to his attention, I am sure the PRTB will tell him that a significant problem has arisen. A coach and four can be driven through the legislation by landlords who want to deprive tenants of their rights.

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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In reviewing the operation of the 2004 Act, the PRTB considered the licensing arrangements but did not make a recommendation in this regard. Such issues are understood to be the subject of an insignificant proportion of the cases received by the board. It is, however, mindful of the need to ensure tenancy registration requirements are not avoided through licensing and other arrangements and will continue to adopt a robust approach to the matter.

On foot of the matter being brought to my attention, I have included the issue of licensing in the review. I will presently be in a position to sign off on the terms of reference of that review.

The notice posted on the website of the Irish Property Owners' Association has also been brought to my attention and officials of my Department have been in contact with the association. I am told that the notice was posted four years ago and will be reviewed. The association did not see a problem with the notice when it was posted.

Licences are applicable where a person stays in a hotel, hostel, guesthouse or digs, or shares a house with its owner under the rent-a-room scheme. The only exception to this is where a person stays in rented accommodation at the invitation of a tenant. If the tenant of the property is the owner's son and he invites others to live with him, some provisions of the Act will apply.

If the Deputy supplies evidence to suggest that provisions of the Act are being abused in a licensing arrangement, I will forward it to the PRTB. I have discussed at a recent meeting the issues he has raised today.

Ciarán Lynch (Cork South Central, Labour)
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I certainly will forward such evidence to the Minister of State. He said the notice was posted four years ago. I printed this off at 2.25 p.m. so it is still being advertised as we speak.

Is the Minister of State aware of the knock-on consequences of these licence agreements? In Cork city, a tenant cannot obtain a parking permit if the landlord is not registered with the PRTB. Tenants cannot avail of many facilities as a result of arrangements under these licences.

We have just been debating the Electoral (Amendment) Bill. The issues of registration and accommodation also arise. The groups most affected by this are the most vulnerable in society, those moving from homelessness into accommodation, students with no experience as tenants and non-Irish citizens living in the State who are not familiar with Irish law. Clear abuse is taking place with tenants' rights being undermined.

Also, a number of landlords are undermining the Residential Tenancies Act 2004. I know of landlords doing so around the University College Cork area in Cork city. This is not a new issue, it has arisen since the Act was put in place in 2004.

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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The Deputy mentioned this at our meeting. A tenant has the authority to bring a case to the Private Residential Tenancy Board even if that person is not registered and the PRTB has the authority to act and has acted in such situations. There are two options open to anyone in this situation. He can direct evidence to me or to the Department and it will be dealt with and he is also entitled to go to the PRTB and it will act on the matter.

The Deputy has mentioned properties near University College Cork. We have no direct evidence but we have passed on the information, as we do with any evidence we get.

Ciarán Lynch (Cork South Central, Labour)
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I take on board the Minister of State's commitment to resolve the issue but is he saying to me he is aware the PRTB has taken action on this? That would contradict the statement he made a couple of minutes ago that the issue has not been brought to his attention. Has it been brought to his attention or not?

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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I did not say it had not been brought to my attention.

Ciarán Lynch (Cork South Central, Labour)
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By the PRTB, not by me.

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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The Deputy brought it to my attention himself in my office, so there is no question that the issue was not brought to my attention.

Ciarán Lynch (Cork South Central, Labour)
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Was the Minister of State made aware of the situation by the PRTB?

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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I am aware that the PRTB acts on any issue brought to its attention. It does not consider this to be an issue but, having said that, I have decided to include a review of licences in the overall review of the legislation.