Parliament recently debated the Residential Tenancies Bill, which would establish a new system for the relationship between property owners and tenants.
This was a Labour Bill from the last Parliament but we did not agree to the changes made by the National Government.
Speaking during the First Reading, I said I was looking forward to a balance between the interests of property owners (as investors) and tenants, since about 30% of New Zealanders live in rented accommodation and many of them earn less than $50,000 per year.
The Bill has a number of good new provisions.
Labour supported this Bill but we were disappointed that the Government did not consider some amendments suggested by us.
We wanted to see “key money” eliminated because it is one of the major barriers to renting. When we sell a house, the vendor pays the agent’s fees. But with tenancies, the renter pays this fee, which is a huge burden for those on limited incomes.
The Government was unwilling to look at this option.
We wanted greater emphasis placed on tenants to be represented at disputes hearings.
The Government went the other way and increased the value of the disputed amount before tenants were allowed to be represented in tribunal hearings.
Even though Labour supported this Bill, which was passed, we can see, just in these two provisions, the difference between Labour philosophy and National philosophy.
While Labour looks for a system that is fair to all and for consistency with other similar provisions elsewhere, National is skewing the system against those on limited incomes.
This is not necessary but it certainly is very telling of the focus on this Government.
Dr Rajen Prasad is Member of Parliament on Labour List.
