Rental deposit protection scheme
Brendan Howlin asks why the 2015 rental deposit protection scheme has not been commenced and whether new legislation is needed. Minister Eoghan Murphy says the RTB is being reformed and the scheme may be included in new legislation.
I join others in noting that we need to legislate in the areas of cyberbullying and online harassment, in which regard it is the intention of the Labour Party to move its own legislation during its Private Members' time next week.
Two years ago in 2015, we passed a law for a rental deposit protection scheme to be operated by the Residential Tenancies Board. In 2015, some 22% of RTB disputes were about rental deposit retentions. Instead of commencing the legislation, we are now told the Government will review the scheme and possibly change the law again. The reason given is that the interest that would accrue on the deposit scheme might not cover the cost. That is a very lame and poor excuse. What exactly will the Government do on this really important issue?
Comment on this
In September 2017, I signalled that we were embarking on a change management programme with the Residential Tenancies Board to make it a proper, independent regulator for the sector and to find balance for both tenants' rights and landlords' rights. Key to that is the issue of the deposit, as the Deputy pointed out, in terms of the security it gives to the landlord and the money that is owed to the tenant. As part of the change management programme, we are trying to progress a proper deposit protection scheme for tenants and landlords. The Deputy is right to point out that the rates that would be received for such a scheme today would not cover the administrative costs of the scheme. That is one of the reasons that it was deferred. I have put it back on the table because there are enough concerns of people on both sides to make sure there is security around this form of payment. It is important to note that any new system would need to have flexibility so a tenant could get the deposit back in time to put it down as the deposit for the next rental property. Issues like that have to be worked out but it is part of the process we are embarking upon at the moment. Those changes form part of the priority legislation that is on the A table for this session.
Comment on this
Is it new legislation or enacting the existing legislation?
Comment on this
It may be enacted as part of new legislation that we bring in to reform the Residential Tenancies Board.