Page 1882 - Week 06 - Thursday, 2 May 1991
Next page . . . . Previous page . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
The lodgment of condition reports and the mediating role of the Conflict Resolution Service are seen as two important initiatives contained in the Bill which will assist in reducing the number of bond disputes. Under the operation of the Office of Rental Bonds, all bond moneys from residential tenancy agreements will be required by law to be deposited into a rental bond trust fund. The purpose of providing for the deposit of bonds with the Director of Rental Bonds is to provide an objective third stakeholder so that neither the landlord nor the tenant holds an advantage over the other in disputes that may arise on termination of a tenancy agreement.
It will be the responsibility of the landlord or landlord's managing agent to lodge bonds. Before this can be done, both tenants and landlords must agree to sign standard lodgment forms supplied by the office. An application for a refund of rental bond moneys is likewise to be completed and signed by both tenants and landlords. All information received by the office will, of course, be strictly confidential.
It is estimated that approximately $10m is held in bond moneys in this Territory in one form or another. This is calculated on a total bond number of about 14,500 bonds. Annual revenue from interest earned on bonds would then be in the vicinity of $1.16m. Interest earnings from the rental bond trust would help recoup the initial cost of establishing the office and fund ongoing operational expenses. Any surplus funds will be used for the purpose of tenant and landlord information programs and for facilitating assistance in the provision of residential accommodation - with the long-term aim of settling the issue of the division of interest to tenants.
A non-remunerative advisory committee will be established to monitor operational efficiency, make recommendations on the allocation of surplus funds, and provide advice on strategies to facilitate the bond collection process. Membership of the proposed Rental Bond Advisory Committee would comprise one representative of the ACT Government Service, a tenant representative, a representative of landlords, and an independent chairperson.
There have been some concerns expressed in the media relating to the cost of administration and planned effectiveness of the office. I am pleased to say that we have not introduced the gargantuan model proposed by the Opposition. These concerns included the views that the office should exclude bonds held by agents; would serve as no more than a clearing house for the receipt and refund of bond moneys; would cater for a minority; would slow down settlement of disputes and return of non-disputed bond moneys; and would provide no identifiable benefit for either landlord or tenant. They were the allegations. But, as I have stated earlier, the Law Reform Committee is undertaking a review of all aspects of private and public sector tenancy law issues, including the settlement of
Next page . . . . Previous page . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .