Seanad debates

Tuesday, 29 November 2016

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report and Final Stages

 

11:30 am

Photo of Damien EnglishDamien English (Meath West, Fine Gael) | Oireachtas source

I cannot accept amendments Nos. 15, 18 and 24, which propose to delete sections 28 to 30, inclusive, of the Bill. Section 30, together with sections 28 and 29, provides for what is known as the Tyrrelstown amendment. This provision gives effect to action 4.2 of the Rebuilding Ireland Action Plan for Housing and Homelessness to legislate to deal with circumstances where there are large sales of property with tenantsin situ.

I am aware that this provision does not deal with security of tenure for all tenants, and that the Bill does not resolve all the problems in the rented sector; it was not intended that it would do so. To legislate for the problems in the rented sector in advance of having a strategic plan for the sector risks exacerbating the very problems that the Government is trying to solve. I will not go back over this again. I made the same point last week. This was not meant to be a rental strategy Bill and this is why we are not bringing forward legislation regarding the policy. This Bill is to deal with many other matters. We decided the Tyrrelstown issue was an important one to try to deal with. That is why Rebuilding Ireland commits to the publication, by the end of the year, of the strategy, which will set out measures to address immediate issues affecting the supply, cost and accessibility of rental accommodation.

Regarding security of tenure, including the termination of tenancies for the purpose of sale, the strategy will examine all options to improve security of tenure for tenants. Therefore, I cannot accept amendment Nos. 14, 16 and 17, which pre-empt the proposals in the strategy relating to security of tenure.

Amendments Nos. 19 to 23, inclusive, 27, 31 and 32 all relate to the exemptions provided for landlords from section 30. We have carefully considered the arguments made in respect of these amendments on Committee Stage in this House, and we have taken legal advice in respect of them. Some good points have been made and we are minded to redraft the exemption provision to ensure it is effective. However, while I accept some of the amendments in principle, specifically amendments Nos. 19, 22, 23, 31 and 32, we will require time to redraft the provisions in line with the legal advice we have received and I ask that the amendments be withdrawn. We will deal with the matter on Committee Stage in the Dáil, if that is acceptable.

Amendments Nos. 25 and 26 propose to reduce the number of dwellings referred to in the Tyrrelstown amendment from 20 to five, or, alternatively, from 20 to ten. I cannot accept amendment No. 25 although I understand the intention behind it. The purpose of the Tyrrelstown amendment, which is limited in its scope, was to take early action before the rental strategy was complete, to indicate to institutional investors buying large-scale developments that when these properties were being sold, the existing tenancies in those properties would be protected. The figure of 20 units was chosen because anything above it represented a medium-sized development. However, I have listened to the submissions made on this issue on Committee Stage and a case has been made to reduce the number of dwellings to ten. Therefore, I will accept amendment No. 26.

Amendments Nos. 29 and 30 propose to increase the figure of 20% to either 30% or 40%. I do not propose to accept these amendments. The figure of 20% is reasonable and represents a significant difference between the value of the property sold with vacant possession or with an existing tenancy.

Amendment No. 28 deals with the role of the Residential Tenancies Board, RTB, where a tenant challenges a notice of termination served by a landlord pursuant to the exemptions provided for under the new section 35A. Where a tenant is served with a notice of termination under the section, and does not believe the exemptions apply, the tenant may refer a dispute to the RTB. The RTB is an independent statutory body, with quasi-judicial powers. The dispute is heard, in the first instance, by an adjudicator who has a statutory obligation under section 97 of the 2004 Act to inquire fully into each relevant aspect of the dispute concerned and provide to, and receive from, each party such information as is appropriate. Any order made by an adjudicator may be appealed to a tribunal, which holds an oral hearing for that purpose. The tenancy may not be terminated during the dispute process. Section 97, and the 2004 Act generally, provide for a robust and independent assessment of the validity of any notice of termination in these circumstances and, as such, I am not accepting this amendment.

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