Dáil Éireann Debate, Wednesday - 18 December 2013
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Banking Sector
59. Deputy Michael McGrath asked the Minister for Finance his plans to put a protocol in place for the operation of rent receivers appointed to residential properties; and if he will make a statement on the matter. [54546/13]
Amharc ar fhreagraAs the Deputy is aware, the covered institutions have appointed a number of rent receivers and fixed rent receivers. I have informed the Deputy recently that under the Relationship Frameworks that govern the relationship between the Minister for Finance and the State supported banks’, the bank’s Board and Management team retain responsibility and authority for determining the banks’ strategies and commercial policies and conducting their day-to-day operations. The appointment of rent receivers to properties is a day-to-day operational decision for the Boards and Management teams of the covered institutions. I have been advised by the Central Bank of Ireland that it has no plans to put a protocol in place for the operation of rent receivers at this time.
The Deputy may wish to note that the Residential Tenancies Act 2004, which falls within the responsibility of the Department of the Environment, Community and Local Government, provides the main regulatory framework for the private rented residential sector and for the operation of the Private Residential Tenancies Board. The Act provides for security of tenure and specifies minimum obligations for landlords and tenants under a tenancy. In addition, the Act contains provisions relating to the setting of rent and rent reviews and sets out the procedures and notice periods that must be complied with when terminating a tenancy.
In circumstances where a receiver is appointed in respect of a rented dwelling, it is important that the rights of tenants under both tenancy agreements and the Residential Tenancies Act are protected. While the circumstances of each case may vary depending on how a receiver is appointed, the statutory or contractual rights of tenants should not be compromised.
My colleague, the Minister of State for Housing and Planning, Minister Jan O'Sullivan T.D., has informed me that arising out of her concerns on this issue, she met with the Irish Banking Federation in relation to the provision of guidance in regard to receivers and their responsibilities towards tenants. As a result of that meeting the IBF has published a guide to receivership for residential tenants.
I am also informed by Minister O'Sullivan that she is also examining whether amendments to the Residential Tenancies Act, in the context of the Residential Tenancies (Amendment) (No. 2) Bill 2012, could help to bring greater clarity in this area that would be of benefit to tenants and indeed to receivers in how they fulfil their functions. The Bill was passed by the Dáil and is currently before the Seanad.
