Seanad spokesperson on Social Protection, Senator Marie Moloney, has proposed saving taxpayers millions of Euros by introducing a housing deposit protection scheme.

Addressing Minister for Housing, Jan O'Sullivan T.D., in the Seanad Senator Moloney outlined her cost saving initiative.

She said: "More than €30 million has been paid out by the Department of Social Protection in house rental deposits for social welfare recipients between 2006 and 2012. However none of these monies have been returned to the department at the end of tenancy agreements. The Department of Social Protection doesn’t know if the money has been withheld by landlords or tenants.

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"Although many tenants need the deposit money for new accommodation, it is also clear that some people move back home, get married or leave the country. It is also clear that many landlords hold onto the deposits due to arrears in rent, damage to property and contents, as well as other reasons.

"I propose that the Minister considers introducing a Deposit Protection Scheme where the State will issue a deposit insurance bond to the landlord for any new tenancy agreement instead of money. The landlord will then know that the deposit is held safely by the Department of Social Protection. No money will be paid out by the Department unless a landlord can provide evidence that their property has been mistreated or because of arrears at the end of tenancy agreement."

(CD/GK)