Sean Barrett (Independent) | Oireachtas source

I wish to propose a new section for consideration by the Minister on Report Stage. It arose out of the very interesting discussion we had with the Minister of State, Deputy Kathleen Lynch, on the last day. It is some measure of protection for those for whom a rented property is their principal private residence. I gather this market has been increasing extremely rapidly and they face the problem of receivers. I will come to what I have in mind shortly.

We will probably have to recapitalise the banks. I do not see a change in corporate culture. I wish I did, but I am afraid that is the situation. I am slightly worried to see in the briefing document we received that the repossession rate is too low, at 0.3%, when it should be 3.5%. There is some reference from the IMF to the need to strengthen the efficiency of the repossession regime. That is a totalitarian type of language. It refers to a more efficient way of getting people out of their houses. Contracts must be valid. With regard to tracker mortgages, if banks made a mistake, it is a binding contract and they should not try to inveigle people to depart from a contract which was legally entered into.

I am worried about situations in which receivers take possession of a block of houses and attempt to change the conditions under which those for whom the house is their principal private residence have been paying rent and so forth, and try to force them to leave, or increase rents. In my view, what they buy is a lot of rent books, an income flow and a set of duties and obligations to maintain the property and so forth. That is binding. It shows the indifference to the tenant that a different landlord has now bought it, regardless of whether the previous landlord went broke. I am trying to protect the tenant. In countries such as Switzerland and Germany there is a much higher proportion of rented properties. Ireland was traditionally an owner-occupancy society but the renting percentage is high in Dublin and particularly high in Galway. These people face pressures when the properties are sold.

We had a discussion about this with the Minister of State, Deputy Kathleen Lynch. If I had not been so involved in the debate about whether we should have a Seanad, I would have tabled an amendment on Committee Stage, but it does arise from the last debate. I wish to table one on Report Stage for the Minister's consideration. It would be a new section and would provide that where the property being repossessed is the subject of a residential tenancy, the protections afforded to tenants under the Residential Tenancies Act 2004 must be complied with by the financial receiver and that the receiver must comply with all legal obligations of landlords under that Act. Apparently this has become a problem where properties are sold on. It is the principal private residence for the tenant and in countries such as Germany, the tenant, under different lease arrangements, would have anticipated living there for 40 years, but they come under pressure from a different landlord to get out or to have their rents increased. Perhaps the Minister would consider some form of protection for them.

I realise what happens when there is a bank boom. The rough estimate is that in a period when incomes doubled property rose by 500%, so it was bound to catch people in the type of situation the Minister is now dealing with.

I greatly admire how the Minister transferred insolvency from the courts to an arbitration procedure. We have had several long evenings of debate and he was always willing to accept our amendments.

Unfortunately, insolvency is another part of this disastrous period in banking and I fear that the banks have not changed their corporate culture. I wish to give notice that I shall think of, file and submit an amendment for Report Stage to take account of insolvency. An insolvency programme will become more important and it already is with bodies like Threshold and New Beginnings. I hope that the Minister will consider my amendment on Report Stage.