Skip to main content
Normal View

Select Committee on Legislation and Security debate -
Tuesday, 11 Jan 1994

SECTION 1.

I move amendment No. 1:

In page 2, between lines 17 and 18, to insert the following subsection:

"(3) This Act shall come into operation on the day that is one month after the date of passing.".

The purpose of this amendment is to allow one month to lapse between the passing of the Act and its coming into operation. The thinking behind the amendment is that it would be best, both from the point of view of people about to enter into leasing arrangements and for the various professionals who have dealings in this area, to be allowed a brief period to become acquainted with the terms of the legislation and take into account its implications before the provisions of the legislation come into force.

I have no strong views on the amendment. It does occur to me that once the legislation comes into force there may be people who wish to enter into arrangements based on the new legislation and if there is not a contracting out mechanism it may simply postpone for one month the completion of various business agreements. I am not sure the amendment is necessary but I do not have a strong view on it and it is not unreasonable that the professionals who wish to advise people be given a short time to acquaint themselves with the Bill. If the rest of the committee is agreeable to this amendment I do not oppose it.

We strongly support this amendment. We felt at Second Stage that it was an omission from the Bill and it is important for people who are negotiating tenancies to have the benefit of a definite start up time for the implementation of the Act. We strongly support the amendment.

I wish to ask the Minister or perhaps Deputy Shatter about subtenants. Will the provisions of this Bill apply also to sub-tenants? Sub-tenancies are a grey area because there are many agreements both formal and informal, legal and illegal. I want to find out from either the Minister or Deputy Shatter if the same provisions will apply to subtenants as well.

As I understand it they would, subject to the fact that the subtenant's rights are dependent on the main tenant's rights. If there is a written agreement between a sub-tenant and a principal tenant, the sub-tenant may have rights of renewal as against the main tenant, but the sub-tenant's rights are ultimately dependent on the relationship between the main tenant and the landlord. That is my understanding of the position.

What happens if there is no written agreement between the subtenant and the principal tenant?

If I can establish three or more years business use of a premises under the current Act I am entitled to look as of right for a formal written lease for 35 years, in practice normally with five year rental reviews. It may be difficult to establish my entitlement to use the premises and the fact that I did use it for a business purpose without some formal written arrangement, but there certainly have been cases over the years — Deputy McDowell and others will be familiar with them — where people have established in court as a result of a business use of a premises for three years or more without a written lease that they are entitled to assert their rights under the 1980 Act. That is my understanding of the position.

I accept what Deputy Shatter is saying as being custom and practice up to now, but this is not spelled out in the Bill. Much of it has to do with an understanding of how the laws functioned in the past in regard to these agreements between tenants and sub-tenants. The Bill is too serious a piece of legislation to allow it to go through without having this aspect of the law copperfastened. It would cause ambiguity and difficulty. I am not making this point to disrupt the committee. It is a flaw in the Bill that this is not made very clear from the start, even though I accept what Deputy Shatter has said as being the custom and practice. That is not enough and we have an obligation to tease this out in full to avoid ambiguities.

I understand Deputy Kemmy's concerns. Perhaps he misunderstood what I said. In effect the person he is referring to as a sub-tenant would be a tenant of the tenant, who for those purposes is a landlord. In that context their relationship is covered by the Bill in its present form.

The Deputy is certain of that?

I would not be quite as certain as the Deputy but perhaps he has more knowledge and experience in that area than I have.

The question here relates to occupation, how long a person has to be in occupation to acquire certain statutory rights. A sub-tenant is by definition in occupation. If he has a sublease from the original tenant, the original tenant is the landlord for the purposes of that lease. It is clear from the 1980 legislation, which we are amending to some extent, that people who are in occupation for a period of at least three years for business purposes have certain rights. There is nothing in this legislation to change that. As Deputy Shatter said, there have been cases where people who have been in occupation as sub-tenants for the requisite period have had their statutory rights to a 35-year lease upheld. That comes from the interpretation of the 1980 Act which is the main provision in this area. We are not changing that aspect of the Act.

I compliment Deputy Shatter on the timely introduction of this Bill. For a number of years there has been a reluctance on the part of landlords to give a lease of more than two years and nine months on a commercial premises unless there is a substantial payment of key money. I am worried that extending the time limit from two years and nine months would, perhaps, result in prospective tenants being obliged by prospective landlords to pay substantial key money even for a lease of five years or four years and nine months or whatever.

The area of landlord and tenant relations must be cleared up. There are many ambiguities. The 35-year lease has served us well since it was introduced in 1980. However, substantial money changes hands for such a lease and I would be worried that this would become the norm where shorter lettings are involved.

Perhaps the Minister would consider a complete codification of the law in relation to landlord and tenant, which I believe is necessary. While the commercial sector is one aspect of that area, there are many impediments in the residential sector, particularly in urban areas where tenants are unable to do anything to houses because they cannot locate the landlords or, if they can locate them, the landlords are unwilling to sell the freehold to the tenants. It is a disincentive. We regularly talk about urban renewal, which the Minister has introduced various schemes to encourage. However, an amendment of the landlord and tenant legislation in relation to residential property could be considered in order to give an incentive to residents to refurbish their premises. That is not happening at present because the tenants do not know where they stand vis-�-vistheir relationship with the landlord.

An amendment to deal with residential tenancies has been put down to this Bill. I will explain the Government's position when that amendment is discussed. With regard to codification, I will take the Deputy's suggestion on board. I take it that the Deputy is referring to codification of the entire body of law covering both residential and commercial tenancies. Before we do that we must have something in place because it is widely recognised that changes are necessary in the residential tenancy area.

With regard to key money, it is my understanding that the court fixes the terms of the 35-year lease. It need not necessarily be for 35 years — it can be for such less period as the tenant wishes. That applies when somebody has acquired statutory rights to a new commercial tenancy.

If there is no agreement they go to court.

Yes. If the tenant is not happy with the conditions being imposed by the landlord in relation to a new lease the tenant has the right to go to court and the court will fix the terms of the new tenancy.

Amendment agreed to.
Section 1, as amended, agreed to.
Section 2 agreed to.
NEW SECTION.

I move amendment No. 2:

In page 2, before section 3, to insert the following new section:

"3. —Section 13 of this Act of 1980 is hereby amended:

(1) by the substitution in subsection (1) paragraph (a) of "five years" for "three years",

(2) by the substitution in subsection (1) paragraph (b) of "fifteen years" for "twenty years",

(3) by the insertion after subsection (2) of the following subsection:

"(3) (a) Where the Court is satisfied that any tenancy has been determined wholly or substantially for the purpose of avoiding the entitlement of any tenant to relief under the provisions of this Act by virtue of the provisions of paragraph (b) of subsection (1) of this section, the Court shall treat the tenement as a tenement to which this Part applies notwithstanding that it was not in the occupation of the tenant thereof during the whole of the period of fifteen years provided for in that paragraph.

(b) It shall be presumed unless the contrary is shown, that a tenancy has been determined for the purpose mentioned in paragraph (a) of this subsection where the relevant tenement was during the whole period of seven years ending at the time in question continuously in the occupation of the person who was the tenant immediately before the determination of the tenancy.".

Section 3 is the main section of this Bill. It amends section section 13 (1) of the 1980 Act and provides that the right to a new tenancy under the Act only arises upon the business tenant being in continuous occupation as a tenant of a business premises for a period of five years instead of the current period of three years. That is also proposed in our amendment.

For the reasons given on Second Stage by speakers from all parties, a change in the law to provide for a longer start up period in business tenancies is desirable. Nobody would argue with an increase in the period before which a renewable lease is available by right. As Deputy Shatter has outlined, it will mean that one will be offered a lease of four years and nine months instead of the present two years and nine months which is too short and suits neither landlord nor tenant. At present the Minister is promoting a period of seven years and that will be debated later. I will be interested to hear how the Minister will promote seven years. Some increase is desirable and that is a welcome feature in the Bill.

The second part of my amendment proposes to reduce the statutory period of protection from 20 to 15 years in relation to both business and residential tenancies. As we are amending the 1980 Act we should not miss the opportunity to look at a feature of landlord and tenant law which has been found to be defective, as was evident in the Mespil Road flats case. On Second Stage the Minister pointed this out and said she was surprised that Deputy Shatter's Bill had not dealt with such cases of residential tenancy. I understand that Deputy Shatter has an achievable aim and that he wishes to focus on the business tenancy area. He said that his Bill was technical and uncontroversial legislation and I understand his reason for keeping it that way. However, it would be a missed opportunity. As the Minister raised this matter on Second Stage I am surprised she did not put down an amendment to include residential tenancies.

In our amendment we wish to include and change the protection for long term tenants in residential tenancies. The case of the Mespil Road flats was a rather sad example where elderly and retired people were threatened with eviction because of a mad dash by landlords to prevent the tenants becoming entitled to long leases at the end of the 20-year period. Many of those old people were not even interested in their statutory entitlements to long leases. They wanted to be left alone to live out their lives in the houses and flats to which they had become accustomed. We are proposing in this amendment that if there is an attempt by a landlord to determine a residential tenancy and if it appears that the only purpose is to prevent the right of the tenants to a renewable lease there should be a rebuttable presumption that the renewable leases should come into effect. The amendment is an attempt to address the manifest injustice in the Mespil Road case.

The Minister said on Second Stage that she was conscious of the need to give more protection from unscrupulous landlords to elderly people and people in long tenancies. She said that she had set up a working group in the Department, that its work was at an advanced stage and that the group would be ready to report in the new year, although she did not say which new year. There is no sign of that report and that is a pity. I would be interested to hear the Government's response to the plight of those people. Many around the country were horrified and shocked by the events surrounding the Mespil case. The amendment is simple and I would be interested to hear the Minister's response.

Before proceeding, I wish to bring to the notice of the committee that amendments Nos. 2 and 3 are related and may be taken together by agreement. Is that agreed?

I do not agree. It is important that the two issues be teased out separately. We will not waste time but it will confuse the debate massively if we have a row about seven years rather than five years or three years.

Is that agreed?

I am a little confused by Deputy Michael McDowell's assertion. He deals with both issues in the amendment in substituting five years for three ——

I want us to look at the seven-year period as a separate issue as I think it is important.

In that case would we previously have accepted a contradictory position before we get to discuss the Minister's amendment?

I was anxious that Deputy O'Donnell and Deputy Michael McDowell make their points and not confuse the issues, but technically there is a problem. The problem is that the Minister is seeking to amend the five-year period to a seven-year period. Deputy O'Donnell, Deputy Michael McDowell and I are in agreement that it should be five years and perhaps, because of the way the matter is proposed, we have to deal with the two issues together. I do not see how else we can deal with it. Perhaps we might discipline ourselves to discuss one aspect first and then discuss the second aspect.

That is what I want, a reasonably structured discussion. I also want a division if our amendment is not accepted.

May I ask the chairman for another ruling just to complicate matters? There are really two issues here, as Deputy Michael McDowell correctly states. The first issue is whether the period should be five years or seven years, and that relates to amendment No. 3. The second issue that arises——

Could we split our amendment into two parts? The element which is subsection (3) of the proposed section could be a separate amendment.

Subsection (1) in the proposed section in Deputy M. McDowell's amendment is not necessary as it is already in the Bill. If Deputy O'Donnell and Deputy McDowell delete from their amendment the reference to section 3 (1), that would solve the problem. Then we could deal with one issue and thereafter deal with the other. I suspect we should deal with amendment No. 3 before amendment No. 2.

We will go on with amendment No. 2 subject to the committee agreeing that I can delete the first subsection in the amendment and renumber the subsections.

What are you agreeing to delete?

Subsection (1) of the proposed amendment.

The one which reads "by the substitution in subsection (1) paragraph (a) of "five years" for "three years"."

Yes. I will take that our completely and start off with the remaining two subsections, numbered 1 and 2 respectively.

Is that agreed? Agreed.

We are now discussing the residential tenancies aspect. I agree with the principle behind the amendment proposed by Deputy Michael McDowell and Deputy O'Donnell.

For clarification, are we taking the two amendments separately?

As I said, I agree with the principle set out in the amendment as it stands that we should look at residential tenancies also. I am not sure what the Minister's reaction will be. He may well say that we should deal with it in separate legislation, but it is useful if we tease it out a little here. The period of 20 years currently provided for in the Landlord and Tenant Act to provide for a renewable lease for residential tenancies is unconscionably long. It is frequently the case for residential tenants that agreements are informal, at least after a few years. Many people start off with a letting agreement or lease, but after a few years it frequently becomes informal and they end up with essentially a month by month agreement. For somebody after 19 years and nine months to be told that they no longer have any rights in a property is unacceptable. The amendment proposes a period of 15 years. I would favour reducing that further, but the principle is one which the committee should support.

The second part of the amendment allows a court to assess whether there has been a deliberate attempt on the part of a landlord to frustrate the Act. This is also a principle we should accept. I am not sure if the period of seven years is the one we should choose or whether we should not point to other factors which the court might consider in deciding what the landlord had in mind. However, the principle that the court can look behind the actions of landlords and assess whether they are looking to frustrate the tenants' rights or the tenants' right to renew a lease is entirely good. I support the thrust of the amendment.

I also agree with the principle of this amendment. We have had too many cases. As has already been pointed out by Deputy O'Donnell, the Mespil Estate case is one of the more controversial, where tenants were left in an invidious position because of landlords' actions. I support this and reducing the time even further in certain cases might also be looked at. I look forward to what the Minister has to say on this. In case anybody should get the wrong impression, this will help but will definitely not clear up the position of many tenants in the Mespil Estate. Many landlords were rushing to get people out before 20 years was up. With this measure the might rush to get people out before 15 years. It will be of help to many tenants but it will not get over the real problem they faced in that case.

I welcome the Bill, which is designed to tidy up and to make more practical legislation concerning the letting of commercial buildings such as shops, workshops, offices and factories.

It is good to make the legislation more flexible and practical. The three-year tenancy agreements were good because three years was a relatively short period of time for a firm with little capital to start a business. The average rent over the three years was lower than it would have been if that tenancy existed for five or seven years. The longer the landlord must rent his premises, the higher the average weekly or monthly rent will be. The three-year period would give a small firm with little capital greater flexibility and a lower rent at a time when they cannot afford a higher rent. This is one good factor. I am not against the Bill. It is good legislation.

The main reason commercial rents are so high, especially in city centre areas and in the Georgian part of Limerick, is not because of the length of a tenancy, although this is important, but because the first, second and third floors of many buildings are not let out. The Minister of State at the Department of Justice, Deputy O'Dea, and I have had experience of this in Limerick. The ground floor is often let out for shops and offices, but the first, second and third floors are usually empty and derelict. The Minister can testify that in Limerick, Dublin and Cork and in other towns and villages grass, shrubs and trees are growing through the floors of these premises. These buildings are disgraceful and they disfigure many of our cities and towns. The rents for these commercial premises would be lower if the upper floors were let. I hope the Minister for the Environment, Deputy Smith, will introduce similar legislation to promote the use of these premises for residents who would live there or for business which would occupy them. Commercial rents could then be cheaper and this would bring them within the range of businesses starting up.

I support Deputy O'Donnell's amendment for two reasons. I acknowledge that if one moves the goalposts from 20 to 15 years, without addressing the fact that landlords will have a motive to avoid the limit whenever a limit occurs, one is ignoring realities. If someone is entitled to relief by virtue of a long tenancy or a long occupation of a premises, it is important for the law to be practical and to recognise the reality that landlords throw tenants out in the 19th year or, if we change this to 15 years as proposed in this amendment, that people would be thrown out in the 14th year. There is no doubt this would happen.

In many cases landlords own premises which someone has occupied for 19 years. If they allow this person to stay another six months they will have a 35-year lease. The tenant and the landlord may not want a 35-year lease, but if the landlord does not throw the person out he will lose the right to get possession of his property for 35 years. As legislators we have a duty to face up to that problem.

The Minister specifically stated that the problems arising from the Mespil Estate controversy should be dealt with and that her Department would do so. She also said that the report of a working party would be made available to Dáil Éireann stating how the problem would be addresssed. Unfortunately, we have not seen that report yet and we await the Minister of State's reply about the proposals to deal with such cases.

While we debate this issue people are being thrown out of their homes in order to avoid the legislative timeframe we have established. Many landlords have no desire to throw out their tenants but they are doing so because of the law. As a solution to this, and I believe Deputy O'Donnell's amendment is the only way to deal with this issue, I suggest that if a judge or a court has ample material on which to decide that a person is being thrown out in order to avoid the entitlement to relief, such a determination should not be effected to deny someone relief.

In the unfair dismissals legislation which was recently passed in the House a new provision was inserted which stated that if the fixed term contract was being used as a device to avoid the unfair dismissals Act, it should be disregarded, although people were excused from the operation of the Unfair Dismissals Act, 1977. This is the right way to proceed. If a court is satisfied that the landlord is only throwing out the tenant in order to avoid the time limit or 15 or 20 years, it should be entitled to disregard the fact that the necessary statutory period for the tenant has not yet been clocked up.

This situtation is real. On many occasions a tenant in a flat in the Mespil Estate, for example, may write to the landlord and ask that they be allowed to remain in the building. They will pay the landlord whatever rent he wants, but they do not want to move. The landlord may write back and say that his legal advisers have stated that he must get them out or he will lose possession of the premises for 35 years, perhaps not to the person in question, but to the people to whom they will their lease if they should die. If someone can prove that the landlord is not trying to redevelop the premises or to get the premises back for his own use, but to change tenants in order to avoid the operation of the law, the court should disregard the fact that the 15 or 20 year period has not yet been clocked up and give the tenant relief.

Since the Mespil Estate controversy I have considered other ways to deal with this issue. It has been pointed out that if one keeps changing the period to 10, 15 or 20 years the landlord will always have an incentive to push the button before the minimum statutory period is provided. The court must be given the power to disregard this. The landlord should explain to the court why he is throwing out an elderly woman if he does not require the premises for redevelopment. The tenant should not have to prove what is going on in the landlord's mind. If the onus of proof is cast on the landlord, he will be willing to allow an elderly tenant to remain in the premises.

This amendment is mirrored by amendment No. 11. The committee should be aware that there are many cases where elderly people want to opt out of a tenancy. Deputy Shatter has proposed an opt out arrangement in business tenancies, but there are many cases where the tenant wants to opt out of a residential tenancy. For example, the tenant may be happy to take a life tenancy of a premises for himself or herself and to exclude the possibility that his or her estate would be entitled to the rest of a long lease for 20 or 35 years. Therefore, if one introduces this presumption against landlords who throw out longstanding tenants, it should be mirrored by a right for tenants to contract out of the Act, provided they are not being exploited. Deputy O'Donnell's proposal is balanced. On the one hand the Deputy is suggesting that tenants should be given the presumption that their tenancy is, in certain circumstances, being determined to exclude the operation of the Act, but on the other they should be given the right, subject to court supervision, to contract out of the Act so that they do not have to get a 20 year tenancy, or whatever.

At present there are people across this city, not only in the Mespil Road flats, in their seventies and eighties, who wish to spend the remainder of their lives in the house in which they live. They would be horrified at the prospect that if they stay on for another six months they will go past the 20-year period and then become entitled to a 35-year lease. This would be most unfair on the landlord also, because it means that such individuals can leave the tenancy in their will to a nephew, niece or stranger or assign it to a third party, thereby preventing the landlord from recovering possession of the premises. This is unfair. A balance has to be fairly struck and Deputy O'Donnell's proposal addresses this issue.

It would be regrettable if the landlord and tenant legislation was to be presented to the Dáil in circumstances where we do not concentrate on what is a manifest injustice taking place all around us every day of the week. There are people being cleared out of houses at present to avoid the operation of the law.

We cannot afford to wait for a long period for inter-departmental committees to present a solution. The Minister, and the Minister of State, should be able to deal with this problem in this Bill. The Minister advised that the report of the working party would be presently available. If it is not available I ask for an assurance from the Minister of State that there will be an amendment on Report Stage to deal with the findings of that working party.

An injustice of this kind cannot be allowed to continue while waiting for the report of another committee. Landlord and Tenant Bills are not two a penny and I would be surprised if there was a second Bill, or whatever, by the end of this year. I do not believe that the time of this committee will be available for another extensive outing on landlord and tenant law in the foreseeable future. Therefore, I ask the Minister to indicate that this issue will be dealt with in this legislation. Failure to do so will result in a major injustice.

Deputy O'Donnell referred to a manifest injustice, which I agree with. The new year, referred to by the Minister, is this year.

Regarding the remarks by Deputy Michael McDowell on the situation in Dublin, I wish to remind the committee that this situation is not confined to Dublin. It prevails in my city and, indeed, across the country.

I assure Deputy McDowell that if the report of the working party is available before Report Stage I will have proposals based on their recommendations.

Regarding the amendment before the committee, I fully appreciate the concern about difficulties which have arisen in relation to residential tenancies and that such concern lies behind this amendment. As I understand the amendment, the present 20-year period will be reduced to 15 years and a court would disregard the termination of a tenancy if it was satisfied that the termination arose to avoid rights which could accrue under the 1980 Act. The court would also assume, unless shown to the contrary, that a tenancy was terminated for the purpose of avoiding the provisions of the 1980 Act where the tenant had been in continuous occupation for seven years.

The Minister for Justice informed the House last year, in response to private notice questions about Mespil Estate, that she would have this area of the law examined within her Department. That examination concluded recently and I can inform the committee that options along the lines of what is proposed were considered.

As Members will be aware, following that review it was decided that the most effective way to advance this matter further was for the Minister for Justice, in consultation with the Minister for the Environment, to set up a working group to devise proposals in this complex area. Again, I assure the committee that most of the background work on that has already been completed and we are proceeding with all due speed.

I believe it would be accepted by most people who have closely examined the issues which arise in the private residential sector, that an attempt to solve one type of problem which arises can in turn give rise to wholly undesirable new problems. In particular, a substantial increase in the level of protection available in terms of security of tenure could have adverse implications for the level of accommodation available in the private rented sector. It is worthy of note that Threshold, an organisation which has vast experience in this area, has publicly suggested that simple changes to Part II of the 1980 Act will not of themselves address the real issues involved, and we can return to this.

There are also constitutional considerations relating to private property to which regard must be had, especially when, by our legislation, we seek to affect existing tenancy arrangements. I am not suggesting that because of the Constitution nothing can be done; far from it. However, it is clear we do not have unbridled discretion as to what by our laws we can do in this area. It could be argued, and for the moment I put it no more strongly than that, that the changes proposed by this amendment, especially in as much as they would apply to existing leases, raise a question about their consistency with constitutional requirements. I am not putting up unnecessary barriers, but the very least that we would have to do is to take advice on this from the Attorney General.

The amendment could also have consequences which are, no doubt, unintended. Would the reality be that if landlords felt there was a danger that after seven years a tenant would effectively have continuous tenancy rights some years down the road they might act in the same way as landlords act now in relation to people who have rights after 20 years? I realise and appreciate that there is a difference between a presumption arising and a person getting rights. Nevertheless, that danger exists. It must carry with it difficult implications for those in rented residential accommodation coming up to seven years.

I mention these points not in any way to criticise the spirit in which the amendment has been put forward, but to give some indication of the complexities involved. It was because of these complexities that it was decided to establish the working group. Before that group reports the Government would not be in a position to support changes in the law in this area but, as I said at the outset, if we have the report before Report Stage we may be in a position to have an amendment based on its findings.

I suggest to the committee that, if it is felt to be a good idea, when the report of the working party becomes available it should be introduced to the committee and discussed. If we do not proceed by way of the amendment option which I mentioned, an alternative might be to bring the report of the working party before this committee and have it discussed before the Government proceeds to introduce legislation based on its findings. If that were the case, then the views of this committee would loom large in the legislation being prepared by the Government.

I deliberately did not wish to intervene until I heard the Minister's remarks.

When drafting this Bill I wished to include within it the area which Deputy Michael McDowell is now addressing. However, it was because of political pragmatism that I did not proceed on this basis. It was my intention that we would use this Bill as an opportunity to deal with an area that is less controversial and somewhat less difficult and I anticipated that Committee Stage would become a vehicle for teasing out these problems.

I was also conscious that until the Bill was introduced to the Dáil, the Government had sadly applied a knee-jerk reaction to all Private Members' Bills emanating from Opposition parties and voted them down automatically regardless of their merits. If one attempted to cover more than one topic a Bill was dead in the water. If one covered one topic there was a remote possibility one might get this far. However, if one covered two topics one was destined to be told how grossly defective and unthought out the Bill was and how the Government was applying its mind to doing a better job. Therefore, I deliberately kept the Bill as simple and as straightforward as possible in the area of law that is applicable.

On Second Stage, the Minister for Justice graciously accepted the principle of the Bill and I am grateful to the Government that it did not vote it down on Second Stage and that we are now on Committee Stage. The only occasion during the course of that debate when the Minister was somewhat less than generous and gracious was when referring to the area Deputy McDowell is attempting to address. In the Dáil on 30 November 1993 when discussing this Bill, the Minister remarked that the Bill confines itself to amending aspects of the law relating to business tenancies. She stated:

Given the difficulties which have come to light particularly in relation to residential tenancies — for example, the controversy about Mespil Estate — there may be some concern about the fact that in bringing forward proposals in the area of our landlord and tenant law the Deputy's party has chosen to give priority to the limited area of business tenancies rather than bring forward proposals to meet the concerns expressed by members of his own party and many others about the law in relation to security of tenure for residential tenants.

The implication was to direct a jibe at the Fine Gael Party over its lack of concern for residential tenants. The suggestion was that we were so unconcerned about them that we had not addressed what needed to be done in that area. The Minister went on helpfully to tell us all the Government had done with the great panoply of civil serants and background advice available to it in two Departments. We were told a committee had been set up to look at the problem. Today the Minister says that committee has not yet reached any conclusions. That is not good enough and Deputy McDowell has reasonably used this Bill as a means to air the issue.

I agree with him that this Bill is attempting to implement recommendations of the Law Reform Commission dating back to 1989. We saw from the Minister's speech in the Dáil on this Bill that the main reason nothing had been done to implement these proposals was that there was a degree of confusion among officials in the Minister's Department as to which of a series of varied options should be pursued. There was no political view as to which of them should be followed.

I would be concerned that the same is happening in relation to residential tenants. On the Mespil Flats issue, my colleague, Deputy Frances Fitzgerald, together with Deputy McDowell and Deputy Eoin Ryan, raised the issue in the Dáil and expressed concern about what was happening. I would be extremely happy if this Bill could resolve the difficulties that arise in residential tenancies as well as addressing the problems of business premises.

The principle of what Deputy McDowell is trying to do is right but I would be concerned about its implementation in practice. Unfortunately, just as tenants have experienced problems at the end of the 18th or 19th year, it is likely that if this proposal is put in place, no residential tenancy for longer than six years will be granted here. That is a danger with the amendment; I will say no more than that.

I agree with the Deputy that if someone has been living in a residential premises for 15 years or more it is eminently reasonable that he or she should have a right of renewal; 20 years is too long. It is also a reasonable provision that anyone who has full legal advice available should be allowed to set aside at the commencement of the tenancy. However, I am concerned about the seven year provision which could result in future residential tenants having even less longevity in lettings and create more problems for them than currently arise. The Threshold report mentioned by the Minister concluded that the legislation will not solve all the problems but I have no doubt it will solve some of them.

I agree with Deputy McDowell in principle on the 15 year issue. There are problems about the presumption after seven years which would mean in practice that all residential leases would be for five years and landlords would then seek to remove their tenants. There would be few exceptions to that. I say that because Deputy McDowell is uniquely qualified to help us find the correct solution to this problem.

In reply to the Minister, we live in an imperfect world and there are no perfect legislative solutions to all circumstances. I am used to this Minister, and others, applying their ingenuity and that of their officials to finding the reasons proposals from Opposition Deputies should not be taken on board. There is much merit in the general approach Deputy McDowell is adopting. There is no perfect legislative solution but we as a committee should agree across party lines that the current position is intolerable and should be changed.

Today is the first time I have this amendment. To give us more time to consider the issue, perhaps the Minsiter would agree to introduce an amendment on Report Stage. I assume we will not be dealing with that at least until the beginning of February, because of the budget, and possibly later. That is four to six weeks away. There is agreement that the legislation in this area should be changed and better protection be put in place. If the Minister is saying this will happen this year and the groups from the Department of the Environment and the Department of Justice have almost completed their deliberations, it must be possible for us to tease this out finally on Report State, having discussed it today. Perhaps the Minister will give further consideration to that. I agree with Deputy McDowell that even if the interdepartmental committees reach a conclusion as to what should be done, if we do not address the matter in this Bill the necessary legislation will probably not be introduced until 1995 or 1996.

I agree with Deputy Shatter and would like to see a provision included in this Bill as opposed to waiting longer. As Deputy McDowell said, this is happening all the time throughout the country but Deputy McDowell and I represent the constituency of Dublin South-East which has the oldest population in Ireland. That means we often see elderly people in new and old houses whose positions are precarious to say the least. As Deputy Shatter said, it is difficult to introduce perfect legislation and the current position is unacceptable.

One hopes the committee will report before this Bill is passed so that we can enact some of its recommendations. We must ensure that when a situation like Mespil Estate arises again, it will not be nearly as attractive to buy such apartments as it was in the past. If someone wants to buy one or a number of apartments, the tenant should have rights and be seen to have those rights and no one should try to evict elderly people who have been tenants for many years. I hope the report will be available in time for us to make the necessary changes to this Bill.

It is a pity we are being asked to put off the matter again. As long ago as last May, the Minister, in response to Private Notice Questions on Mespil Estate, acknowledged the need for change and said her Department was working on the issue. This Private Members' Bill is an opportunity to make changes and it would be a shame if we missed it. The departmental officials are working on the issue and there is an acknowledged need to amend the law on residential tenancies. The Minister expressed her goodwill for the Bill on Second Stage. She even made a jibe at Deputy Shatter by saying it was a pity Fine Gael did not concentrate more on residential tenancies rather than the commercial sector. The Minister is being hoisted by her own petard here. If she really meant that, then why did she not organise her Department to put in a suitable amendment? We have drafted, as best we could with our limited resources, an amendment to change and improve the Bill, as Deputy Shatter said, to include residential tenancies. Our amendments are simply designed to prevent a landlord from evicting long standing residential tenants solely to avoid the application and the protection of the Act to such tenancies. As we know, many landlords are in the process of doing this and they will continue to do so. Perhaps not all landlords are so unscrupulous, but they may have no choice but to try to subvert the purposes of the protective legislation.

There will always be problems when attempting to rectify the law in this situation because there is no such thing as a perfect solution. We are balancing the rights of people to rent property with those of having some reasonable protection in their residential tenancies. It would be a shame if we procrastinated or accepted the invitation of the Minister to put off the matter. If the Minister does not give a commitment to table amendments on Report Stage, we will be a laughing stock. If we are a legislative committee set up to deal with present landlord and tenant law, why do we not do so? Why put it off? It would be a shame to do so.

Dealing with this problem by way of a Government amendment on Report Stage carries with it a number of responsibilities. First, it is done according to formal Report Stage procedure. An amendment is tabled, only one speech is allowed and nothing is allowed to be teased out. It is difficult to table an amendment to a Report Stage amendment. Therefore, the committee procedure on an important aspect of our landlord and tenant law would effectively be short circuited.

If the Minister has a working party in operation, we should ask him to come back to this committee within a fortnight or so with the required material. This committee should also, either in private or public session, talk to the members of the working party about their report and ask about the problems they are having and their implications. That is not a novel proposition. I was looking, in another context, at the 1933 debates on a moneylenders Act. A number of Dublin moneylenders were summoned before this committee and asked to explain their methods of calculating interest. If we want to make a success of these committees and if one has a working party that says it has problems agreeing on a formula, they should be brought before us so that the problems and the implications of going down a particular route could be worked out.

A number of Deputies asked if the problem is not going to be brought forward to a seven-year duration. The Minister of State rightly pointed out that one is not dealing with an absolute cut off point, but a presumption thereafter. It would not worry me if paragraph (b) of Deputy O'Donnell's amendment was completely removed and the onus was cast in every determination on the landlord to exclude the operation of paragraph (a), but I imagine that people might think it a little unreasonable. Whatever about the injustice of a landlord having doubts over continuing a tenancy after seven years because he may run into the problems established by this section, it is much less unjust than telling a tenant who is within sight of the promised land after 19 years, "sorry, you are gone; my lawyers tell me I would be mad to let you stay on for an extra three months". There is no trade-off between two principles in the law; it is a guillotine after 20 years. One is either on one side or the other. A person who passes the 20-year period, has a ludicrous entitlement to a 35-year lease. Most people who have lived 20 years in any one place do not want such a lease because it is of no use to them in any event. It is mostly the elderly who would be affected by this and they only want to be left alone for the rest of their natural lives and not bequeath an entitlement of a 35-year lease to their legatees. Indeed, those legatees are entitled to another 35-year lease when the first lease expires.

This amendment is trying to remedy a real injustice. We are not referring to airy fairy notions of high law but to real people who, as Deputy Eoin Ryan said, are being put out of their houses and flats with great regularity these days by landlords who, with their hands on their hearts, say "I cannot do anything else; that is the way the law is".

I wish to refer two points the Minister raised. First, the Minister said — I notice he did not push this too far — there could be a worry that this would apply to existing leases. If we are not going to protect people who have been tenants in the same property for 19 years on constitutional grounds and only consider new leases, we can throw our hats at the whole proposition. I know that one persons' view of the Constitution is as good as another's, but for a law which extends the rights of tenure to tenants, even under existing tenancies, I cannot see how any Supreme Court decision could turn down such a case if it has a five-year rent review included and can be determined for all the reasons given in the Act. It would affect existing tenancies because otherwise one would have to wait 15 years for any new reform to have any effect. That would be completely impractical.

May I help Deputy McDowell by reminding him that Part II of the 1980 Act also applied to all existing tenancies.

I presume it did because it would be daft to wait 20 years or 35 years for this law to have any effect.

The Minister of State should indicate that this working party will be asked to expedite its work and report to this committee within 21 days from this date as to how it proposes to deal with this issue. A mechanism based on excluding the determinations to avoid the Act is the only way forward. Moving the goalposts from 15 years to 20 years or vice versa does not achieve any substantial improvement in the tenant’s position. If the Minister of State indicated that he would bring the report before this committee, I would be happy not to take a rigid stance on this matter.

It would be foolish to go to Report Stage and then have to recommit the Bill to Committee Stage to discuss this issue. Therefore, I ask the Minister to indicate that he proposes to deal with this matter in this committee before the Bill goes to the Dáil for Report Stage. It would be stupid to be on Report Stage and have a Member say this was such a far reaching amendment that it should be recommitted in order to have a proper evaluation of it.

I wish to inform Members that only the Dáil can refer such reports according to our terms of reference, to the committee.

We can summon witnesses, presumably, to tell us what the problems are.

I understand that we are not permitted to summon witnesses.

We would then have to rely on the Minister of State to act as spokesman for his working committee.

First, I want to refer to Deputy Shatter's comments concerning an alleged jibe which the Minister supposedly made about the Fine Gael Party on Second Stage. I did not read her comments that way. My understanding of what the Minister said on Second Stage — according to the Official Report and Deputy McDowell made a similar statement — was that we would want to be careful that the public was not watching us, as legislators, simply worrying about business tenancies while leaving residential tenancies to one side. We should be worried about that because the public might look askance at it. The only reference to Fine Gael arose from the fact that Fine Gael brought in this legislation. We accepted their Bill, which dealt only with business tenancies. The Minister referred to that in passing.

Deputy Shatter also said that all the Minister had done in the wake of the Mespil Road controversy was to set up a committee to look at the problem. That is at variance with what I read in the Official Report. The Minister said she had the matter examined carefully by the Department of Justice and so complex were the issues involved that it had to be handed over to a specialised working party to come up with a definitive solution. That is very different from saying that a committee was simply set up to look at the problem. It is entirely different in substance.

It all depends on how it is said.

Deputy McDowell referred to the Constitution. He is right and I did not push that point too strongly. All I am saying is that before I accept an amendment of this sort, the very least we could do is seek the advice of the Attorney General. We are obliged to take advice from the person who is constitutionally set up to advise on these matters.

This Bill was accepted by the Government on the basis that it dealt with business tenancies. Before I accept an amendment which trespasses into the residential area, the very least I would have to do is refer back to Government. I would be going beyond my brief in accepting something that did not refer to business tenancies. That is not to say that I am not sympathetic. I hope people will accept my bona fides in the matter. I am very sympathetic to residential tenants because I am aware of the problems which they continue to encounter. Deputy Shatter accepted on Second Stage that the question of business tenancies was somewhat less complex than the question of residential tenancies. I agree with him and that is why it is causing such difficulty. The choices in many ways are more difficult, although there are employment implications in relation to business tenancies.

Deputy McDowell said he would be happy if I agreed to ask the working party to expedite their work and report back within 21 days. Reluctant though I might be to interfere in anyway with Deputy McDowell's happiness, I can go only part of the way with him. I have already asked the committee to expedite its proceedings and I will do so again. However, I cannot undertake that we will have a report within 21 days. I cannot tell that to the members to fob them off or to prevent Deputy McDowell from putting his amendment to a vote. If he wants to put it to do so, that is his choice, but I cannot in all honesty give the committee that commitment today. I wish I was in a position to do so, but the stark reality is that I cannot. All I can tell the committee is that I will be in touch with the working party and I will ensure that this matter, which is of great concern to us and which affects a large number of people, particularly elderly and vulnerable people, will be dealt with with all possible speed.

Deputies have mentioned that if this matter is not dealt with in this particular legislation, they do not see other legislation being introduced within a reasonable time. If the Government does not keep to its commitment, which I am repeating today, to deal with this matter as quickly as possible, the option is always there to introduce another Private Members' Bill. I am not suggesting that the Government will abdicate its responsibilities and force the Opposition to introduce further Private Members' legislation. We would be embarrassed by that and I assure the committee that I do not want the Government embarrassed. There will be no necessity for that.

I am sorry that the Minister cannot give the committee, and particularly myself and Deputy McDowell, any worthwhile assurance. We have taken the trouble to put forward this amendment and the Minister is unable to give an assurance with which I am happy, whatever about Deputy McDowell's happiness. I will have to press the amendment to a vote.

In principle, I am anxious that this issue is addressed. I have serious reservations about subsection (3) (b) of the amendment which deals with the seven year presumption, but if it is put to a vote, the Fine Gael group will support Deputy McDowell and Deputy O'Donnell's proposal. I presume it will be defeated based on the numbers here. However, we will support it on the basis that if matters get to Report Stage, we will table certain amendments to this proposal so as to ensure its workability and that it does not create difficulties in the area of residential tenancies. I put down that marker so that our approach is not misunderstood in anyway.

Before the vote I wish to raise a matter with the Minister. It is easy for a group such as this committee, which is composed of a mixture of lawyers and other legislators, to get lost in the technicality of legislation. Ultimately this is about ensuring that elderly people, who have lived for lengthy periods of time in their homes, can continue to live in there, with a degree of security and without feeling under threat, for as long as they wish to do so in circumstances where not only are their interests protected but where a reasonable rental income is received by the landlord who owns the premises. There was widespread public concern at what happened with regard to the Mespil Road flats. I appreciate that the Minister cannot give an assurance that some report will be published within 21 days. I fully understand that, given the way the world works. Even if one is relatively certain that things will happen within three weeks, something could intervene to prevent it. In the context of this issue and on the assumption that Report Stage of this Bill will not be taken until mid-February, will the Minister indicate whether he will seek to have the deliberations of the committee completed by then so that perhaps any necessary amendments could be taken on Report Stage?

In the context of the issue that Deputy McDowell raised about matters leaving here and having to go back into committee, it has been my experience in the past with some legislation that Government has been agreeable to amending it and has introduced a section that perhaps has not been fully teased out previously on Committee Stage. One can, during Report Stage, put a motion to the House to the effect that for the purpose of dealing with a particular amendment, it would be taken as if the House were sitting in committee. Thereafter one goes into Report Stage for the rest of the Bill. It does not unduly lengthen Report Stage and given that this Bill is relatively brief, it should not need a lengthy Report Stage anyway. It would get over Deputy McDowell's concern, which is that if we do not address this issue fully until Report Stage, one will simply have one bite at the cherry, with a brief comment in the House and no opportunity to tease it out. That mechanism is available. Perhaps the Minister could come back to us along those lines.

The point Deputy Shatter made at the outset about his reservations concerning part of the Progressive Democrats' amendment illustrates the difficulties and complexities of this issue. That is why the Department of Justice in all its wisdom could not come to a definitive option one way or the other. We had to hand it over to our specialised working party. I am not saying that is an excuse to prevaricate indefinitely but it illustrates the type of difficulties we have. Deputy Shatter asked if I could give an assurance that I would do everything possible to ensure that the committee would have completed its deliberations by Report Stage. I will do my very best and Deputy Shatter is welcome to contact me around the time of the budget, which will be before Report Stage. We will see what the up to date position is then.

Before I put the question, the committee will recall that we amended this amendment by deleting subsection (1).

Amendment put.
The Select Committee divided: Tá, 11; Níl, 17.

Barrett, Seán.

Harte, Paddy.

Browne, John (Carlow-Kilkenny).

McDowell, Michael.

Carey, Donal.

Mitchell, Gay.

Deasy, Austin.

O'Donnell, Liz.

Gregory, Tony.

Shatter, Alan.

Timmins, Godfrey.

Níl.

Ahern, Dermot.

de Valera, Síle.

Briscoe, Ben.

Fitzgerald, Liam.

Callely, Ivor.

Foley, Denis.

Collins, Gerard.

Kemmy, Jim.

McDowell, Derek.

Power, Sean.

O'Dea, Willie.

Ryan, Eoin.

O'Donoghue, John.

Shortall, Róisín.

O'Keeffe, Ned.

Smith, Brendan.

Walsh, Eamon.

Amendment declared lost.
Top
Share