Brian Lenihan Jnr (Dublin West, Fianna Fail)

It is important at the outset to distinguish between the respective roles and functions of property management companies and property management agents. Property management agents undertake property-related services under contract for the property management companies which comprise the residents in multi-unit developments. Since they provide property services, property management agents, together with auctioneers and estate agents, will be covered by the licensing system to be operated by the new regulatory authority that is to be established under the Property Services Regulatory Authority Bill. The Government's legislative programme, published on 25 September, provides for publication of this legislation early in 2008.

Pending enactment of the legislation, an implementation group has been established to assist and advise on practical matters relating to the new authority and to prepare for the new licensing system. The current licensing system in the District Court will be transferred to the new authority. A chief executive designate has been appointed and is engaged in preparatory work for the establishment of the new regulatory structure.

Property management companies, on the other hand, are legal entities incorporated under company law and are subject to its provisions. In December last, the Law Reform Commission of Ireland published a consultation paper on multi-unit developments which drew attention to a broad range of issues arising in respect of the governance and operation of such developments, including problems arising from the manner in which company law currently applies to property management companies. The paper makes it clear that action to address these problems will be required across several policy fields, including company law, consumer protection law and the development of regulatory structures for the companies. In recognition of the cross-cutting nature of the issues identified by the Law Reform Commission in its paper, a high level interdepartmental committee has been established to assist in the development of a coherent and comprehensive response to the problems arising in this area. A key task of the committee will be to identify the legislative and administrative actions that will be taken in response to the definitive recommendations for legislative reform which, following a lengthy consultation process, will be set out in the Law Reform Commission's forthcoming report on multi-unit developments. I expect that the report will be published later this year. I am anxious to make progress with the legislation that will establish an authority to regulate the auctioneers and agents and make some associated changes to regulate the multi-unit development companies.

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