Northern Territory Second Reading Speeches

[Index] [Search] [Bill] [Help]

RESIDENTIAL TENANCIES (CONSEQUENTIAL AMENDMENTS) BILL 1999

Bills presented and read a first time.

Mr BALDWIN (Industries and Business): Mr Speaker, I move that the Bills be now read a second time.

Members of this Assembly will be aware that the tenancy legislation has been under review for some time with a view to replacing the current Tenancy Act with more contemporary legislation. The current Tenancy Act was enacted in 1979 and has become inadequate in many ways in regulating residential tenancy relationships in the Northern Territory. The Residential Tenancies Bill has been prepared following a long period of extensive community consultation. This consultation began in 1991 when the then Minister for Health and Community Services and minister responsible for administration of the Tenancy Act established a working group tasked with the review of the Territory’s tenancy laws.

That working group comprised members of parliament, members of the real estate industry and government officers drawn from various departments. The chair of the working group was Mr Rick Setter, MLA. The working group prepared a discussion paper following extensive public consultation. That discussion paper was released for public comment. Later a discussion draft Residential Tenancies Bill which incorporated many of the recommendations of the working group was released for public comment. Over 800 submissions were received covering all points of view. Submissions were received from organisations representing the interests of tenants and landlords as well as from individual tenants and landlords.

In April this year, I tabled a further discussion draft Residential Tenancies Bill which took into account many of these submissions. Approximately 60 submissions relating to this discussion draft bill were received. Many of these comments were very valuable and made a practical contribution to the further refinement of the bill.

This bill strikes a fair and equitable balance between the sometimes differing interests of landlords and tenants. The regulation of residential tenancies touches on a large proportion of the Northern Territory population. The size of the local rental market in Darwin is disproportionately large at approximately 55% when compared with other capitals which range from 27% to 35%.

It is important the law regulating this area reflects current local requirements and be ready to stand the test of time.

The mainstay of the residential tenancy bills are the key principles which government has adopted from the report of the working group. Other provisions have been developed, having regard to effective legislation interstate and, importantly, in response to suggestions made by tenant and consumer representatives and the local real estate industry. The bill will regulate all residential tenancies, including public housing tenancies. One exception is caravan parks which will have separate provisions developed for inclusion in a new Caravan Parks Act.

The bill provides a framework which will enable the parties to residential tenancy agreements to interact with clear and consistent guidelines. One of the major objectives of the bill is to present, in a logical structure, a set of rules governing residential tenancies so as to reduce disputes between the parties. In the event of a dispute, the bill establishes a streamlined and easily accessible dispute resolution process. To this end, the bill sets out the minimum terms of residential tenancy agreements. It also sets out the procedures relating to bonds and the handling of security deposits, condition reports and payments of rent. It clarifies the respective rights and responsibilities of tenants and landlords in respect to repairs and the maintenance of the premises, including provisions allowing tenants to make minor repairs under some circumstances or to seek an order that the essential repairs or maintenance must be carried out. The bill also sets out the situations in which a landlord may exercise a right to enter premises during the term of a tenancy, and also sets out the rules for the termination of a tenancy by a tenant or a landlord.

The bill provides for the administration and regulation of this important area by the Commissioner of Tenancies. The commissioner is provided with wide-ranging powers in respect to reconciliation and inquiry and, if necessary, enforcement.

The working group was strongly of the opinion that the law should contain an accessible and speedy mechanism for obtaining a decision on such things as evictions, return of security deposits, and making urgent repairs.

The bill provides the commissioner with appropriate powers to deal with tenancy disputes. I note that the commissioner is required to use those powers expeditiously to ensure that proceedings relating to a dispute are concluded within 28 days.

The bill has been prepared in close consultation with the Department of Housing, the Real Estate Institute of the Northern Territory, which is the key representative group of residential landlords in the NT and has the general support of the Consumer Affairs Council. The bill has embraced a number of recommendations made by other stakeholders; naturally not all recommendations made in the many submissions received could be adopted.

Ms Martin: You missed the central bond.

Mr BALDWIN: The government decided not to accept the recommendations of the working group in relation to the centralisation of security deposits. Don’t jump the gun. Government carefully considered whether a centralised scheme of holding security deposits should be adopted, but it has decided that the additional administrative costs which would result from the administration of such a scheme would outweigh any benefits tenants would derive from its operation. Government has decided to make a more free market approach to regulation of residential tenancies in this regard. The bill contains clear and forceful obligations on landlords in respect of taking, holding and returning security deposits, and it is proposed to rely on the strength of these provisions to protect the interests of tenants.

While support for various provisions will differ according to the perspective of landlords and tenants, any fair reading will show this is a balanced and appropriate measure that will reform the regulation of this most important area.

I now turn to the Residential Tenancies (Consequential Amendments) Bill. The passage of the residential bill will repeal and replace the residential tenancy provisions of the Tenancy Act and require consequential amendments to the Agents Licensing Act, Real Property Act, Trespass Act, Unlawful Betting Act and the Valuation of Land Act.

The Residential Tenancies (Consequential Amendments) Bill attends to these matters. This bill also provides for the repeal of those provision of the Tenancy Act which regulate residential tenancies, but to retain those dealing with commercial tenancies. The name of the Tenancy Act will be changed to the Commercial Tenancies Act to better reflect the provisions which will remain afoot.

I commend the bills to honourable members.

Debate adjourned.


 

[Index] [Search] [Bill] [Help]