Willie Penrose (Longford-Westmeath, Labour)
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284. To ask the Minister for Housing, Planning, Community and Local Government the reason a deposit protection scheme has not been introduced, given the fact it was promised five years ago; the level of progress being made to put in place a structure to enable such a scheme to proceed; and if he will make a statement on the matter. [8784/17]

Simon Coveney (Cork South Central, Fine Gael)
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The Residential Tenancies (Amendment) Act 2015 provides for, among other things, the establishment of a tenancy deposit protection scheme to be operated by the Residential Tenancies Board. Indecon Consultants were originally appointed to carry out the research on the development of a deposit retention scheme and they reported in November 2012. The provisions in the 2015 Act were developed subsequently, informed by their analysis. However, a lot has changed in the rental market since the scheme was first envisaged. The scheme was originally intended to be financed by the interest payable on deposits lodged; this is no longer viable given the current financial market conditions. Furthermore, disputes relating to deposits are no longer the most common dispute type referred to the RTB. In 2015, deposit retention, at 22%, was the third most common dispute type referred to the Board, behind invalid notice of termination at 23% and rent arrears and over-holding at 32%.

While the Government is fully committed to the principle of ensuring effective protection of deposits, it is now proposed that the current legislative provisions be reviewed to take account of the changed circumstances and determine what improvements should be made to ensure that the scheme, when introduced, can operate effectively.

The review of the scheme will take place this year with any necessary legislative changes to be included in the General Scheme of a new simplified and consolidated Residential Tenancies Bill which, under the Strategy for the Rental Sector, will be brought forward by end 2017.