Darragh O'Brien (Dublin Fingal, Fianna Fail) | Oireachtas source

Amendment No. 1 technically amends section 1 on the definitions of the Bill, to remove the definition of: "Minister". My full title, the Minister for Housing, Local Government and Heritage, is now used in section 5 of the Bill, which is the only provision in the Bill that refers to me as Minister. It is just a technical change.

The next Government amendment is No. 6. This amendment inserts a new section 4 into the Bill to provide for a technical amendment to section 12 of the 2004 Act, which relates to the obligations of landlords. The amendment will require that a landlord is obliged to furnish a tenant with a statement in writing on how the rent set under the tenancy of the dwelling has been calculated, having regard to section 19, rather than having regard to just section 19(4). The effect of this amendment is that a landlord's statement will also cover the calculation of rent in accordance with the new section 19(4A), which provides that any rent increase in a rent pressure zone, RPZ, cannot exceed any inflation recorded in the harmonised index of consumer prices, HICP.

Amendment No. 7 is the substantive change which I flagged to Senators on Second Stage. I said I would be coming back with a specific change we were working on around the RPZs and the calculation of the rent increases. Amendment No. 7 is significant. It inserts a new section 5 into the Bill, which amends section 19 of the 2004 Act. Section 19 of the 2004 Act provides for rent setting and from the passing of this Bill, the formula provided in section 19(4) shall no longer apply in capping the maximum allowable rent in RPZs, that is, the 4% per annum issue. The formula will be replaced by a requirement that any rent increase in an RPZ will not and shall not exceed any rent increase determined by the Residential Tenancies Board, RTB, rent pressure zone calculator, with specific reference to the HICP values, in accordance with the new section 19(4A). In real terms, if one looked back over the last three years, the average increase in the HICP was about 0.7%. Year-on-year, it is short of 1.9%. It is a significant change from the 4% per annum that was previously the benchmark. We are effectively freezing the rent value and just allowing that to increase by inflation, should there be an increase in same.

The RPZ calculator will calculate any permissible rent increase that may apply. That will be managed by the RTB itself. The user of the calculator shall input the following variables into the RPZ calculator: the date the rent was last set; and the amount of the rent last set. The calculator shall produce the amount of the maximum permissible rent increase, if any. The calculator may also indicate that no rent increase can apply. In this situation, a landlord may reduce the rent or keep it at the same level. Ultimately, the rent is agreed between the tenant and the landlord. The calculator will operate as follows. It will compare the HICP value in the HICP table published by the RTB on or most recently before the date that this rent was last set, with the HICP value contained in the table published by the RTB on or most recently before the date that any new rent increase is being determined. Any difference between the two aforementioned values shall be calculated as a percentage by the RPZ calculator. If that percentage is a positive value, that is, where there has been an increase in the HICP values over the period in question, it is applied by the calculator to the amount of the rent last set to produce an amount of permissible rent increase.

Senators fully understand what we are doing here. Amendment No. 7 effectively brings this change in. I wanted to do that on this Stage because if these changes pass the Seanad today then they will be brought to the Dáil and we will ensure there is an earlier signature motion to affect these changes, which are the most significant rental changes for tenants in at least five years. These changes deal with an issue of the cumulative potential rent increases. I will not talk about amendment No. 7 any further.

There are Opposition amendments in the grouping as well but they have not been moved yet so I will address them momentarily. Amendment No. 14 is another of my amendments. This amendment inserts a new section 7 into the Bill, to amend section 22 of the 2004 Act, which provides for notices of rent. Section 7 of the Bill inserts a new paragraph (g) into subsection 2A of section 22 to require that where section 19(4A) applies to a dwelling in a RPZ, that is, the new rent increase restriction linked to inflation, a notice of new rent served on a tenant shall, "state how any increase in the rent last set under the tenancy of the dwelling was calculated or, where section 19(4A) does not apply, state why it does not apply".

Amendment No. 16 is also a Government amendment. It inserts a new section 11 into the Bill, to amend section 115 of the 2004 Act, which provides for the redress that may be granted by an RTB determination order.Section 11 of the Bill amends section 115 to ensure that a RTB dispute adjudicator or tribunal may make: "A declaration [under section 2B] as to whether or not an amount of rent set under a tenancy of a dwelling complies with section 19(1) (and if the declaration is that that amount does not so comply, the declaration shall be accompanied by an indication by the adjudicator or the Tribunal as to what amount, in his or her ... opinion, would comply with section 19(1))." The technical change in section 11 of the Bill is to provide a general reference to section 19 in section 115(2)(b) of the 2004 Act, and by doing so to cover the new section 19(4A) being inserted into the Bill. These are, therefore, further technical amendments that ensure the change we made with regard to the harmonised index of consumer prices is reflected right the way through the legislation.

Amendment No. 17 is also mine and inserts a new section 12 into the Bill to amend Schedule 2 to the 2004 Act by extending the list of improper conduct by a landlord that is subject to Part 7A - Complaints, Investigations and Sanctions. The RTB will be given power to investigate, with or without a complaint, and sanction any landlord in contravention of the new 19(4A) HICP linked rent increase restriction. The Bill already contains an amendment to Schedule 2 to provide that improper conduct shall include the seeking of unlawful payments in respect of any deposit or advance rent. An RTB sanction can cost a landlord up to €30,000 so there is a serious deterrent in place to combat improper conduct.

Amendment No. 20 empowers the Minister to commence the new section 5 of the Bill, which requires that any rent increase in a rent pressure zone shall not exceed any rent increase determined by the RTB's rent pressure zone calculator, with reference to HICP values, in accordance with section 19(4A). I intend to commence section 5 as soon as possible following the passing of the Bill. All other provisions will commence automatically upon the passing of the Bill.

There are two final amendments in this grouping from the Government. Amendment No. 21 provides for a technical amendment to identify the provisions of the Bill that will take account of the recycles. Amendment No. 22 proposes to consequently amend the Long Title of the Bill to reflect that a new section 5 is to be introduced into the Bill to require that any rent increase in a RPZ shall not exceed inflation, as calculated under the HICP. My colleague, Senator Fitzpatrick, has tabled an amendment that effectively does the same thing. As other amendments are moved, I am quite happy to address those specifically. I have confined my remarks to my own amendments.