Seanad debates

Thursday, 7 April 2022

Nithe i dtosach suíonna - Commencement Matters

Rental Sector

10:30 am

Photo of Micheál CarrigyMicheál Carrigy (Fine Gael)
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The Minister of State is welcome. Based on statistics from the Central Statistics Office, CSO, in 2016, some 143,178 people were renting in Ireland. There will most likely be an increase in this number after the current census figures come out some time next year. The number of people renting is rising, with more apartment complex developments and build-to-rent schemes. These people, however, need to be protected during any disputes that may arise. Landlords also need support if they have any difficulties with tenants.

The Residential Tenancies Board, RTB, was established through the Residential Tenancies Act 2004 to act as a service to mediate and provide dispute resolution between landlords and tenants. If someone is living beside a rented property and has an issue, the RTB can also assist him or her through mediation and appeals. The role of the RTB is to be an independent body, providing both support and knowledge for tenants and landlords and ensuring both parties know their rights and responsibilities. Unfortunately, the RTB has been poorly promoted with many tenants and landlords not being aware of the board or its function. Moreover, many landlords and tenants are contacting their local county councils regarding disputes. County councillors are not trained in mediation and can unfortunately only do so much to help with issues raised by those renting or letting.

The RTB has also experienced a shortfall in resources in recent years, with many cases taking a significant amount of time to be solved. I can personally attest to such a case. We had an issue when someone moved into a rental property beside my house and we were asked to go that route with the RTB. To be honest, I would not go that route again. I had to go the legal route because it was the only way to solve the issue we had, which ended up in court. Renters and landlords need to be made aware of the board, particularly those not from Ireland who may not know who they can contact if they are experiencing an issue. The RTB needs more power and adequate resources to deal with any disputes that may come before it. The number of people renting is increasing dramatically every year and both landlords and tenants need to be aware of the role of the RTB in the rental sector.

Along with my colleague, Councillor Deirdre Forde from Cork, I am working on drafting a Bill that will provide an adequate mediation service for homeowners experiencing neighbourhood nuisance. This Bill will require that the Legal Aid Board provide mediation services to resolve neighbours’ disputes as many people are unable to afford the high costs of the court system if they have to go down that route. Mediation is extremely important as both parties can co-operate and avoid unnecessary conflict or even court proceedings. However, there still need to be more resources allocated to the RTB. Many people do not want to use the RTB, including me in my case were it to happen again in the future, due to the backlog of disputes which is leading to more court cases and creating another backlog in the legal system. We have established a board to prevent disputes going to court but we need to allocate more resources to it and ensure it has adequate power to deal with those disputes.

Photo of Eugene MurphyEugene Murphy (Fianna Fail)
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Before the Minister of State makes his reply, I welcome our guests from St. Joseph's College, Lucan. They are very welcome and I assure them the Seanad is not always this empty. There are few Senators present. The first debate will take place when the students leave. We are dealing with Commencement Matters, which are the first business the Seanad deals with every day. They are specific issues and there are only a limited number of them. That is the reason there are a few Senators in the Chamber. I hope our guests have a lovely day.

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party)
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I join the Acting Chairman in welcoming our guests from St. Joseph's College, Lucan. It is important that young people get to see our democracy in action. I thank them for being with us.

The RTB was established as an independent statutory body under the Residential Tenancies Acts 2004 to 2021 to operate a national tenancy registration system and facilitate the resolution of disputes between landlords and tenants. The RTB is quasi-judicial and its mediators, adjudicators and tribunal members have independent decision-making powers in the same way as a judge. The RTB replaces the courts for the vast majority of landlord and tenant disputes. It can award damages for breaches of obligations under the Residential Tenancies Acts of up to €20,000. Since July 2019, Part 7A of the Acts, on complaints, investigations and sanctions, provides the RTB with enhanced powers of investigation and sanction in respect of improper conduct by a landlord. Where it is found that a landlord has committed improper conduct the sanction imposed can be a written caution and a fine of up to €15,000 and up to €15,000 in costs, or both. The operation of the rental market and the Residential Tenancies Acts 2004 to 2021 are kept under constant review and any necessary legislation will be introduced to enhance their efficiency and effectiveness.

The RTB was allocated €11 million in Exchequer funding for 2021, an increase of €2 million on the previous year to reflect the expansion of the RTB's core functions as a result of new powers and functions conferred on it in 2019. In order to ensure that the RTB continues to be fully resourced to deliver on its mandate, €11 million was secured to fund the RTB's operational costs in 2022. Following recommendations in the RTB workforce plan for 2018 to 2021 and engagement with Department of Public Expenditure and Reform, the RTB has received sanction for an additional 41 staff since 2019 to ensure that its enhanced powers and the new legislative provisions are fully implemented and enforced. This includes the sanctions granted in 2021 by the Department of Public Expenditure and Reform for two new full-time permanent senior posts at principal officer level and also for the remuneration of the director or CEO, to be set at assistant secretary level. The director was previously remunerated at the salary equivalent of principal officer. The authorised staff complement for the RTB is now 106.4 whole-time equivalents. The Department continues to engage with the RTB to guarantee that it has the funds and staffing it requires to effectively discharge its functions in the residential rental sector.

Photo of Micheál CarrigyMicheál Carrigy (Fine Gael)
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It is easy to say these positions have been sanctioned but the reality on the ground is different. It is frustrating for landlords, tenants and neighbours that when they engage they are looking at a two-year process, which is not acceptable. Is it possible to get a review of the figures that have been sanctioned and to find out what the current position is? Have these principal officer and staff level positions been filled? Can we get a report on where we are with regard to the number of disputes that have been logged and settled and the length of time it takes for them to go through the process? If it is going to take two to three years to settle a dispute, that is not acceptable. I would be grateful if those figures could be provided and if the report on that could be forwarded to me. I am also hopeful that when I come with the Bill I mentioned, which we have been working on with the Bills Office and drafters, it will be supported. I forgot to say hello to the students who have joined us. I will say goodbye to them and I hope they enjoy their day here.

Photo of Eugene MurphyEugene Murphy (Fianna Fail)
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Slán abhaile.

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party)
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The figures the Senator is seeking would be useful. I can go back to the Department and look for them. I am sure all those data and figures are available and that they would be useful to Members. I will ask the Department to provide them via the RTB, which might be useful. The additional resources that have been provided, given the enhanced functions of the RTB, are substantial. It may take considerable time to see the impact of those resources, given the complexity of the issues between tenants and landlords and the additional supports the Minister, Deputy Darragh O'Brien, has put in place to protect tenants' rights.We are keen to ensure that both tenant and landlord are protected in the system and the RTB is there to perform that function. We can certainly look for that data and send it on to the Senator.