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Seanad Éireann debate -
Wednesday, 1 Dec 1971

Vol. 71 No. 15

Landlord and Tenant (Amendment) Bill, 1971 (Seanad Bill amended by Dáil): Report and Final Stages.

Pursuant to Standing Order 75, a Bill which has been initiated in the Seanad and amended by the Dáil is, after its receipt back from the Dáil, deemed to have passed its First, Second and Third Stages in the Seanad and is placed on the Order Paper for Report Stage.

On Report Stage, the Minister, on the Question "That the Bill be received for final consideration", explains the purport of the amendments made by the Dáil and this is looked upon as the report of the Dáil amendments to the Seanad. The only matters that may be discussed are the Dáil amendments.

Question proposed: "That the Bill be received for final consideration."

The first amendment was moved by Deputy Cosgrave on Committee Stage of the debate in the Dáil. I accepted it and the House agreed to it. Section 9 of the Bill, as passed by the Seanad, proposed to extend rights to lessees whose leases expired within five years before the passing of this legislation. The section was designed to implement a recommendation of the Landlord and Tenant Commission which is contained in Paragraph 63 (2) of their Second Report and which speaks of a lease which expired "by the effluxion of time within five years before the enactment of any amending legislation". Paragraph 61 of their report states: "In the 1931 Act and again in the 1958 Act where new rights were granted to lessees, provision was made to cover cases where a lease had expired a short time"—five years in the case of both Acts—"before the statute was enacted."

It is to be presumed that the commission, when they recommended a period of five years' retrospection, intended that certain persons, chiefly on the Proby Estate in Sandycove, should benefit. The Dáil in making this amendment, that is, increasing the period of retrospection from five to eight years, wished to ensure that section 9 would benefit all the persons that the commission intended should benefit. It is to be noted that the commission's Second Report is dated 4th April, 1968. The point was made during the Committee Stage debate in the Dáil that if a period of only five years' retrospection were provided, some persons who felt that their rights were secure in 1968 would find that they had no rights under the Bill.

This is possibly in case of some leases that have expired. It would implement the intention of the report in ensuring that everyone in mind was captured within the terms of the section. Certainly, we would welcome the increase of the period to eight years from five years.

Did the Minister explain both amendments? We do not agree to each amendment separately.

The second amendment is a much more important one. On Committee Stage in the Dáil I moved an instruction to the Committee empowering them to make this amendment. The revival of section 8 (1A) of the 1960 Rent Act was suggested to me by many people, including a number of Deputies in the Dáil, and quite a number of people outside. I indicated on Second Stage debate that I would consider the position between that and Committee Stage and I then put down an amendment the purpose of which is to revive for a period of one year, the spent provisions contained in section 8 (1A) of the Rent Restrictions Act, 1960. Subsection (1A) was inserted in section 8 of the 1960 Act by section 4 (1) of the Rent Restrictions (Amendment) Act, 1967, and in accordance with section 4 (3) of the 1967 Act it had a life of only two years, which expired on 8th May, 1969. The amendment will enable what may be described as "small" landlords to have certain basic rents revised during the period of one year from the date of enactment of this Bill into law.

Under the provisions of section 8 (1A) of the 1960 Rent Act, which the amendment proposes to revive, the District Court will be authorised to review the basic rent on an application by a landlord who owns not more than six controlled houses or self-contained flats with a combined valuation not exceeding £60, in case one at least of them is situate in the Dublin area, or £40 in any other case.

The landlord will be liable for the tenant's costs in the District Court, unless that court considers it proper, having regard in particular to the means of the landlord and the tenant, to order otherwise. The rent, if adjusted by the court, is to be of such amount as the court considers reasonable having regard to all the circumstances of the case, but, in particular, to the necessity of avoiding financial hardship to the tenant and the landlord. It is not to exceed the maximum rent which would be fixed on the renewal of a tenancy under Part III of the Landlord and Tenant Act, 1931. Only a landlord who owned the premises on 8th June, 1966, that is, the date of introduction of the Bill that was subsequently enacted into law as the 1967 Rent Act will benefit from the re-activation of section 8 (1A). This is not an innovation, it is the position that obtained during the original two year life of section 8 (1A).

The court will be enabled to deal privately with the whole or any part of an application under the revived provision. The parties may also agree among themselves on a new basic rent. The court may, however, alter a rent so agreed, on the application of either party within three months after the service of notice of the agreed rent, where it is established that he has become aware since the agreement that the financial circumstances of the other party at the time of the agreement were substantially better than those by reference to which the agreement was reached.

The re-activation for a period of one year of the spent provisions contained in section 8 (1A) of the Rent Restrictions Act, 1960, will give those small landlords who satisfy the necessary conditions and who are in poor financial circumstances another opportunity to have basic rents revised. Representations have been made to me and to my Department to the effect that many small landlords, who would have benefited under the provisions of section 8 (1A) during the two-year period when it was in operation, failed to do so because they were unaware of its existence.

In conclusion, I should like to say that this amendment is very important to a lot of people who are in bad financial circumstances. Unfortunately, so far as I know it did not receive publicity in the Dáil because it is not dramatic or anything like that. It just helps people. I would hope that it might be possible to report it sufficiently widely to make people aware of their rights. The main reason why I am bringing it back now and asking the Seanad to approve of it is that, although it was in existence for two years before —from May, 1967, to May, 1969—it was scarcely availed of at all. It was only at the time it expired in 1969 that people became aware of it. I am proposing to reactivate it now for a period of one year to enable those who were not in a position to avail of it or who did not know about it the last time to avail of it now. For that reason it would be of great help to many people in poor circumstances if the fact that this amendment is being made could be given as much publicity as possible.

It is true to say that the justification for this amendment is the complexity and obscurity of certain of the provisions of the Rent Restrictions code. It is also true to say that this amendment was urged on the Minister by the Opposition in the other House. It is justified for the reasons that the Minister has mentioned.

While there was enabling power to have basic rents in the class of cases to which the Minister has referred to— which he described, I think, as the small landlord—the enabling power to have the basic rents adjusted was there, as the Minister has mentioned, for a period of two years, I think it is true to say that largely that was not known. It was not availed of because the particular small landlord class to which the Minister refers simply did not know of their rights under the previous Act. For that reason I think the Minister is only giving them a fair crack of the whip by allowing another period of a year within which applications for review or adjustment of the basic rent in these cases— and it is a limited number of cases—can be made.

I do not know what the Minister can do to ensure that knowledge, even of this extent, will come to the people concerned. It might be of some assistance if the Minister suggested to the Incorporated Law Society that they should call specifically the attention of their members to the extension that is being made now. I am quite sure that the Incorporated Law Society will be happy to do that. In that way at least a certain number of clients who would be in this class would probably have the benefit of being alerted that this extension has been granted by their solicitors. Other than that, I suppose the Minister can only rely on the news media to carry his appeal.

While I am not overly anxious to see Ministers getting publicity, on this occasion I would support the Minister's efforts. I think it would be worthwhile for his Department to issue a statement through the Government Information Bureau calling specific attention to the amendment which has been made. I agree with the Minister that it is important. It could be important for a number of the small landlords who, particularly nowadays with the spiralling cost of living and with the continual erosion in money values, are probably very hard put to keep body and soul together.

Question put and agreed to.
Question "That the Bill do now pass" put and agreed to.
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