Dáil debates

Thursday, 10 December 2015

Other Questions

Private Residential Tenancies Board

10:20 am

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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8. To ask the Minister for Environment, Community and Local Government when the new deposit retention scheme will come into operation after the residential tenancies Bill has been enacted; if this will be a custodial model fully operated by the Private Residential Tenancies Board or if it will be an agency that outsources some of the operation of the scheme; and what level of increase in staff, expertise and resources the board will require to manage this scheme and to undertake its enhanced adjudication role in disputes between landlords and tenants. [44122/15]

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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One element of the recent Residential Tenancies (Amendment)(No. 2) Bill 2012 was the new deposit retention scheme. I welcome that element of the Bill because it is long overdue. I was surprised to learn since its passage that it could be up to 18 months before that element of the Bill comes into force. I would like the Minister of State to comment on that and explain the reasons for what appears to be an undue delay.

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael)
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I acknowledge that the Deputy welcomes the deposit protection scheme because it is a scheme that has been long called for. I am glad we were able to legislate to allow for that recently in both Houses of the Oireachtas. The Residential Tenancies (Amendment) (No. 2) Act 2015 was enacted on 4 December 2015 and provides for the establishment of a tenancy deposit protection scheme. Under the scheme, landlords will lodge tenancy deposits with the PRTB at the same time that they register the tenancy. The PRTB will hold these deposits for the duration of the tenancy and will retain the interest generated on the deposit funds to fund the cost of operating the scheme. At the end of the tenancy, where there is agreement, the deposit will be repaid to the tenant. Where there is disagreement, the parties may apply to the PRTB for dispute resolution. The scheme will be a custodial scheme, operated by the PRTB. It is likely that the PRTB will outsource aspects of scheme administration in much the same way as it outsources its registration functions.

The deposit protection scheme provisions of the Act will be commenced as soon as the necessary conditions are in place to support its roll-out. These will include changes to the supporting information technology and contracts with outsourced project partners, where appropriate. The establishment of the scheme will be a major project and the priority for 2016 will be the necessary planning and procurement activities associated with its set-up. It is expected that the scheme will be operational later in 2016 or early in 2017. Until the scheme is operational and ready to go live, there will be no change in the administration of tenancy deposits under the Act.

My Department is working closely with the PRTB in the planning process and is preparing for the scheme, including the necessary resources for its effective implementation. Exchequer funding of €1.2 million was provided in budget 2016 to cover the costs of scheme set-up and development, including IT development costs, system analysis and design and build costs. Additional staff resources for the PRTB were approved in the context of the Government’s recent announcement on a package of measures for rent stability and housing supply. My Department continues to keep the resources available to the PRTB under close review and engages regularly with the board on this matter.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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I thank the Minister of State for his response and the great detail he went into to describe the various aspects of the scheme which he acknowledged that I welcome. It has been a long time in the offing and a long time being called for from this side of the House. That being the case, I had hoped and presumed that the preparatory work for its enactment would have allowed for it to be put into practice much sooner than is anticipated. I am quite surprised and disappointed by the Minister of State's answer, which clarifies what I have been told elsewhere, that it could be 2017 before that section of the legislation comes into force. I had feared it was because of the lack of resources and available staff in the PRTB. The Minister of State alluded to the fact that funding has been provided in the budget for preparatory work and that staffing is not an issue. I am at pains to understand why, despite us and others calling for this for the past two or three years and despite the legislation being in place, it could be two years before the section is in force.

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael)
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I acknowledge the Deputy's concerns but we should acknowledge the practicality of the situation. The PRTB has substantially improved its efficiency in latter years and has introduced new IT systems to deal with its database and tenancy registration. This new deposit protection scheme is a substantial body of work. If one considers the number of deposits of each registered tenant, there is a system behind that to ensure full compliance and proper management of the registration system. It will require additional resources to set it up and procure the necessary support and staffing systems that support all that. In the context of the Government's publication in November of Stabilising Rents, Boosting Supply, as I said to the Deputy previously, sanction for a further five staff to establish the deposit protection scheme and three staff to administer the new rent stability arrangements were secured. Those staff were only recruited recently to deal specifically with the establishment of this new scheme. I assure the Deputy that we will roll it out as soon as is practically possible.

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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I again acknowledge the commitment and effort of the Minister to advance this but unfortunately the consequences of the 50% reduction in staff numbers within the PRTB since the Government came into office are plain to see across a wide range of issues.

Perhaps, more specifically, it appears obvious the staff were not in place to do the preparatory work necessary for this element of the legislation to come into force much sooner. It is very disappointing that it could be up to two years before the scheme is in place.

10:30 am

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael)
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The reduction in staff to which the Deputy refers was entirely attributable to the introduction of new IT systems to deal with tenancy registration and the database within the PRTB. The Deputy will know that registration was dealt with initially using hard copies, which was inefficient, cumbersome and labour intensive. With the new IT systems, it was found the process did not need to be as labour intensive. It was far more efficient and streamlined. The introduction of the deposit protection scheme, which I am glad the Deputy has welcomed, will send a signal to the rental market and landlords that tenancies will be secure. There will be more certainty as tenants transfer from one tenancy to another. That is all very important. I assure the Deputy that the additional staff have been appointed. A practical process must now be commenced to establish the new scheme. This requires a substantial body of work, and we will deliver on it as soon as practicable.