Michael Healy-Rae (Kerry South, Independent)
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Question 417: To ask the Minister for the Environment, Community and Local Government if he will introduce a statutory deposit protection scheme that provides protection to tenants in the event that the landlord becomes insolvent or experiences financial difficulties; and if he will make a statement on the matter. [34736/11]

Michael Healy-Rae (Kerry South, Independent)
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Question 418: To ask the Minister for the Environment, Community and Local Government when legislation will be brought in to introduce a deposit retention scheme for the benefit of the tenant (details supplied); and if he will make a statement on the matter. [34737/11]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I propose to take Questions Nos. 417 and 418 together.

The Residential Tenancies Act 2004 regulates the tenant-landlord relationship in the private rented residential sector. Under section 12 (1)(d) of the Act a landlord is obliged to promptly refund deposits, unless and in accordance with the provisions of the Act, there is rent or other charges or taxes owing or there is damage to the property beyond normal wear and tear.

My Department conducted a review of the Act in 2009 and the incorrect retention of deposits by landlords was identified in the review process as one of a range of issues that merited specific attention. In July 2011 the Government approved the drafting of the Residential Tenancies (Amendment) Bill 2011. The General Scheme of the Bill proposes the introduction of fines where a landlord is found to have incorrectly retained a tenant's deposit as a first step to eliminating the problem of deposit retention. My Department is currently liaising with the Office of the Parliamentary Counsel regarding the drafting of the Bill.

The Programme for Government 2011 also commits to the introduction of a deposit protection scheme and it is important that action in this regard is taken in the context of a strong evidence base. I have therefore asked the Private Residential Tenancies Board (PRTB), the independent statutory body charged with the administration of the Act, to commission cost benefit analysis-based research on such a scheme and to report back to me with recommendations.

I understand that the PRTB will be tendering for such research in the coming weeks and I expect that the Board will revert to me with detailed research and recommendations in the first half of 2012.