Seanad debates

Tuesday, 17 November 2015

Residential Tenancies (Amendment) (No. 2) Bill 2012: Committee Stage

 

2:30 pm

Photo of Paudie CoffeyPaudie Coffey (Waterford, Fine Gael) | Oireachtas source

The list of amendments referred to by the Acting Chairman shows the complexity of the Bill. Essentially, the section and the amendments deal with deposit protection, which has been called for by many Senators from all sides of the House for a long time. My amendments in the group concern putting in place the structural changes necessary to support the introduction of the deposit protection scheme. Amendment No. 87, which will be discussed later, will deal with the mechanics of how the scheme will operate. The amendments I am now introducing are some of the most significant measures to be introduced in the Bill.

The issue of the illegal retention of deposits is one that has negatively affected the private rental sector for many years. Senators, councillors, Deputies and all other public representatives have often raised concerns about this. Almost every Senator who spoke on the Bill during Second Stage supported the programme for Government commitment to establishing a tenancy deposit protection scheme. I acknowledge Senator Hayden, in particular, as she has worked tirelessly in support deposit protection for some considerable time. Her contribution on deposit protection measures has been of significant value and one to which I have listened carefully.

The unjustified withholding of tenants' deposits by a small number of rogue landlords is a matter we simply cannot tolerate. The establishment of the scheme will eliminate this practice and contribute to the ongoing regulation and development of rented housing as an attractive and long-term housing option. As such, I am pleased to introduce the following amendments. Amendment No. 51 amends section 12 of the principal Act to place an obligation on the landlord to transmit the deposit to the PRTB.An obligation is also placed on the landlord to respond to notifications of the board regarding the return of the deposit and to provide the board with an up-to-date contact details.

Amendment No. 84 provides that this is done at the time of registration and provides for a statement to be provided to the board where the tenant does not pay any deposit. The enforcement of this obligation is provided for by a new section 135B in the principal Act.

Amendment No. 85 provides that the amount of the deposit must be included in the registration application form. Amendment No. 52 places an obligation on tenants to provide the board with up-to-date contact details and to respond to notifications sent by the board. Amendment No. 65 is a transitional provision, consequential to the amendment to section 12, to provide for deposit-related disputes that have not been fully determined as the time of the commencement. Amendment No. 82 provides for the cancellation of the return of the deposit in circumstances where it is incorrectly returned by the PRTB.

With regard to accounting provisions, amendment No. 88 amends section 151 of the principal Act to provide that the retention of deposit is now a function of the board. Amendments Nos. 89 and 90 provide for the financial control of the deposit funds which must be kept in separate accounts and from which funds may only be withdrawn to return deposits or withdraw the interest.

Amendment No. 91 provides that the board must include information on the operation of the scheme in its annual report. There is a small error regarding the type of information that must be included in the annual report and I intend to deal with this matter on Report Stage.

Amendment No. 33 clarifies that approved housing bodies, where they take deposits, must also send them to the board at the time of registration.

With regard to the Opposition amendments tabled by Sinn Féin, namely, amendments Nos. 93, 94 and 96, I appreciate the intention behind the amendments and I fully appreciate and share the concerns that lie behind them. However, the amendments I have introduced have adequately provided for in the deposit protection scheme envisaged in these amendments and in view of this I would respectfully ask the Senator to withdraw the amendments.

With regard to amendment No. 43 tabled by Senator Mary White, the Government amendments provide for the establishment of a custodial deposit protection scheme. Where a deposit is involved the landlord must remit the deposit to the PRTB at the time of registration. There is no fee for a landlord or tenant and while I understand the motivation behind the Senator's amendment, it could and would promote the idea that it is permissible for a landlord to retain a tenant's deposit, something from which we are now moving away. It would also result in compliant landlords having to pay extra to effectively pay for the illegal activities of a very small number of non-compliant landlords. For these reasons, I cannot accept the amendment.

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