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Deposit Protection Scheme Establishment

Dáil Éireann Debate, Tuesday - 30 January 2018

Tuesday, 30 January 2018

Questions (647)

Róisín Shortall

Question:

647. Deputy Róisín Shortall asked the Minister for Housing, Planning and Local Government the steps he will take to prioritise the introduction of a deposit protection scheme for the private rental sector; the reason for the delay in commencing the relevant sections of the Residential Tenancies (Amendment) Act 2015; and if he will make a statement on the matter. [4495/18]

View answer

Written answers

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 (RTB).

The Government is fully committed to the principle of ensuring effective protection of deposits. I have asked my Department, in consultation with the RTB, to undertake a detailed examination of the current legislative provisions, which have not yet been commenced, to identify any improvements and further legislative provisions required to take account of the changed circumstances since the development of the 2015 scheme. My aim is to ensure that any deposit protection scheme to be introduced will operate effectively, efficiently and will respond to the needs of both tenants and landlords.

It will be essential to future-proof and make sustainable any deposit protection scheme for the RTB to operate into the future. There have been significant changes in the rental market since the 2015 scheme was first envisaged and designed. For example, the draft 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 2016, deposit retention was the third most common dispute type referred to the Board, behind invalid notice of termination, and rent arrears and over-holding of rental properties.

Financing the operation of the scheme is an important issue particularly in terms of ensuring that the likely outcomes of a new scheme are achieved efficiently and effectively and that the best value from public funds is secured. Careful consideration is required to introduce any necessary reforms and enhancements to the 2015 scheme, with a view to introducing a re-designed scheme that is fit for purpose and suitable for current and future rental and financial markets.

I expect that, on foot of the examination of the existing provisions, any necessary legislative changes can be progressed through the Oireachtas this year.

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