Marie Moloney (Labour) | Oireachtas source

I welcome the Minister of State to the House and her commitment to the deposit protection scheme. More than ¤30 million was paid by the Department of Social Protection in rent deposits for social welfare recipients between 2006 and 2012. Many of the deposits could come between ¤500 and ¤1,000 but sometimes they were even higher. Normally, deposits are refunded at the end of the tenancy but none of the moneys in the case of social welfare recipients' deposits has been returned to the Department. The Department does not know whether these moneys are withheld by the landlord or by the tenant. Obviously, a tenant may move on to new accommodation and needs a deposit for it. However, if they move back home, move in with a partner, leave the country and, accordingly, do not need a deposit, then the money should be returned to the Department. Considering that 50% of tenants bringing disputes to the Private Residential Tenancies Board, PRTB, are rent supplement tenants and almost three quarters of disputes, 72%, relate to deposits, it is clear some landlords are profiting from retaining State moneys. The State cannot continue to waste such resources as these moneys could be used to assist others.

The introduction of a deposit protection scheme would ensure that deposit moneys would be returned to the State at the end of a tenancy. It would also ensure deposit moneys would only be paid to landlords who have proved a legitimate claim to the moneys either because the tenant was in rent or utility arrears or caused damage to the property. I know the Minister is considering a range of options provided by Indecon. However, I would suggest the Department does not lodge the moneys with the deposit protection scheme but rather provide a guarantee that the moneys would be available should the landlord have a legitimate claim. This could be effectively done by a bond similar to the one for developers when they are developing an estate.

They lodge an insurance bond. The Department could do the same and this would mean it would have the use of the money during that period rather than the landlord having the use of the money. The landlord would have the security of knowing that if things go wrong with his tenants, backup would be secured in the form of the bond. I call on the Minister of State to consider this proposal for the Department of Social Protection because we need the money circulating in the country rather than sitting in a landlord's bank account.

I could speak all day on housing issues. Having been a county councillor I am aware of the issues affecting people. The affordable housing scheme was a great way to get people into their own private rented accommodation but it is now closed. The banks are approving mortgages again. Will the Minister of State consider the re-introduction of the affordable housing scheme? I know for a fact that in Killarney four houses available under the affordable housing scheme could not be allocated to people because they could not get a mortgage. The four houses have remained empty for the past two or three years. They should be transferred to social housing or the affordable housing scheme should be re-opened. Either way the houses should be given out because people are crying out for accommodation while many houses remain empty.

I know of a young man who left home and moved into a flat but he could not get rent supplement because he had to get a letter from the Garda stating that he could not live at home. I realise this is more an issue for the Department of Social Protection. It is a terrible thing to ask any young person to get a letter from the Garda stating that he could not live in the family house because of trouble at home. I could speak all day on the matter but I realise another Senator wishes to contribute. I call on the Minister of State to take on board those suggestions.