Alan Shatter (Dublin South, Fine Gael)
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Question 420: To ask the Minister for the Environment, Heritage and Local Government his plans to introduce a deposit protection scheme for tenants in private rented dwellings as proposed by an organisation (details supplied); the consideration he has given to such a scheme; and if he will make a statement on the matter. [26885/10]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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In April 2009 my Department commenced a review of the provisions of the Residential Tenancies Act 2004, under which the Private Residential Tenancies Board (PRTB) operates. The purpose of this review was to consider whether the Act best supported the PRTB's key functions and whether legislative amendments would support either the achievement of additional operational efficiencies by the PRTB in the delivery of those functions or the broader good working of the private rented sector.

As part of the review my Department engaged in a formal public consultation process, which took place from 29 May to 10 July 2009. Arising out of this, submissions were received from a number of organisations and individuals, including from the organisation in question, on a range of topics including the issue of deposit retention. In addition, the Board of the PRTB has examined this issue pursuant to its function under section 151(1) of the Residential Tenancies Act to provide advice concerning policy in relation to the private rented sector, and has made recommendations to me in that regard.

I announced the preliminary outcomes of the review in November 2009; they include recommendations in a number of key areas, and have an overall emphasis on streamlining and simplifying the Act and reducing delays. Among the main issues that will be addressed by amending legislation are –

statutory objective of 6 months to be set for the issuing of determination orders arising out of dispute resolution applications,

the Board of the PRTB to be reduced from 15 to 12 members,

the introduction of fixed fines where deposits are illegally retained by landlords,

measures to address non-payment of rent by tenants during a dispute process, in particular to introduce scope for the legal termination of such a tenancy,

the separation of the governance and quasi-judicial functions of the Board,

the inclusion within the remit of the Residential Tenancies Act of segments of the voluntary and co-operative housing sector that most closely parallel its current remit.

A number of issues requiring further research, including how best to address issues surrounding the retention of deposits, are being considered in detail and my Department will continue to engage in direct consultation with key stakeholders in this regard. The Government recently approved the preparation of Heads of a Bill to amend the Residential Tenancies Act 2004 and it is envisaged that the General Scheme of a Bill setting out the detailed proposals arising out of the review will be submitted for Government approval in Autumn 2010.