M J Nolan (Carlow-Kilkenny, Fianna Fail)

I join previous speakers in welcoming the Property Services (Regulation) Bill 2009. Several years ago, I raised the issue of property services in the context of the debate on a Finance Bill. One of the difficulties in dealing with compelling Bills such as this is the slow and cumbersome procedures that must be followed to enact them. With advances in information technology, we should be able to find quicker ways of progressing urgent legislation through the Houses.

The Auctioneers and House Agents Act 1947, which is the principal legislation regulating the operations of auctioneers, was amended on only two occasions since it was enacted. The Bill before us has the support of the representative bodies for auctioneers and estate agents and it is only right that the public can expect improved policing and legislative support in the area of property and commercial sales.

During the boom, there was a significant increase in the number of individuals and companies managing housing and commercial developments but the laws on regulating them were sketchy. On a number of occasions, I became aware of cases in which individuals felt malpractice was taking place. They did not think their interests were being adequately addressed by these companies or individuals. They complained that no redress system was in place. I am pleased that this legislation covers that shortcoming by putting in place a redress system for those who have been at the wrong end of a deal in one way or another. The people I mentioned were also worried that no disciplinary procedure was in place for companies or individuals who were found guilty of wrongdoing.

Given that the Auctioneers and House Agents Act 1947 is outdated, as I have said, I am pleased that the Minister has taken on board most of the recommendations in the report on the regulation of the auctioneering profession, which was submitted to him by the auctioneering bodies some time ago. It is important that the bodies have welcomed this legislation. As the residential and commercial property sector is a vital part of our economy, it is important we have confidence in it.

There are over 1.5 million residential properties in the State. While the property market is flat, young people and first-time buyers, in particular, continue to have an opportunity to get into the market. They need to be protected by this legislation, which I hope will get a speedy passage through this House. It has already been passed by the Seanad. It is important that young people should have confidence in the legislation.

I was pleased to note that the Minister confirmed on Second Stage that he is prepared to take amendments. Some shortcomings in the Bill have been identified since its publication, for example, during the debate in the Seanad. The Minister has said he is prepared to accept amendments to the Bill.

The protection of clients' money in our existing legislation is inadequate. This area was crying out for reform change, but it is now covered in the Bill before the House. The regulatory authority will licence and control all entities providing auctioneering and estate agency services. The State should have had a more hands-on approach to this matter in the past. Thankfully, it now recognises the shortcomings in this regard and is taking action to remedy them.

Auctioneers and estate agents also need some protection. They will all have to be licensed now. The new regulatory authority will have significant control over the regulation of estate agents and auctioneers. The Bill before the House quite rightly also makes provision for an appeals structure. It provides for the establishment of a property services appeals board. Companies and individuals that have been refused licences under this legislation will have the right to appeal to the board. This will also apply to companies that previously held licences which were not renewed.

Other Deputies have spoken during this debate about ghost estates, which are causing problems throughout the country at present. Many auctioneering companies have been mandated to look after such estates. The accounts of many of the developers involved in ghost estates have been sent to the National Asset Management Agency, which therefore also has an interest in the matter. Those who propose to buy unfinished or completed houses in ghost estates need to be protected. The Property Services (Regulation) Bill 2009 will give them some form of protection.

Many individuals, particularly in the commercial area, are concerned about agreements in leases which provide that in many cases, rents may only be amended upwards after between five and ten years. This is wrong. It is causing hardship for companies and commercial operators, particularly in shopping centres. The problem seems to relate primarily to developers who built shopping centres, agreed leases with upward-only rent reviews and then developed other shopping centres which were not as successful. As a result, individual tenants and leaseholders in many of the existing shopping centres are having to pay for the mistakes of developers who over-stretched themselves in other areas. This is wrong. If this economy is to recover - I am confident that it will - we need to seriously examine our cost base. We have spoken about the need to reduce unit costs and become more competitive. This area needs to be considered in that context.

Over the last two years, perhaps because of the economic downturn, we have succeeded in ensuring our cost base has stabilised and fallen. We are becoming more competitive and starting to attract renewed interest from overseas direct investors. They are once more starting to see Ireland as a good country in which to invest. They know we have a competitive cost base. They can export competitively from here. However, the Government still needs to deal with the whole question of upward-only rent reviews. I am unsure whether legislation can be enacted to outlaw that arrangement. It is something we will have to look at. I ask the Minister to examine what can be done in the context of other legislation, if not this legislation.

The basis of this legislation - the Property Services (Regulation) Bill 2009 - is the control and supervision of the property services market. It is important that the definition of a "property service" is identified in section 2 of the legislation as:

(a) the auction of property other than land,

(b) the purchase or sale, by whatever means, of land,

(c) the letting of land .... or

(d) property management services

Anybody who is involved in such business will need a licence issued by the new National Property Services Regulatory Authority. The main functions of the authority will be to operate a comprehensive licensing system, covering auctioneers, letting agents and property management agents; and to set and enforce standards for the granting of licences. In other words, those working in this sector will need to have certain education and training standards in order to operate professionally. The authority will ensure licensees have cover for professional indemnity and, importantly, observe certain standards in the provision of services. It will ensure such people have experience in the areas of auctioneering and estate agency. The authority will have to promote increased consumer protection and public awareness of property services in general. It will make sure that details of the cost to the consumer are available. It should be possible for customers to tell whether service providers are licensed.

During the good times of the past, there was a close relationship between bankers, auctioneers, solicitors and developers. While this was fine when the market was growing strongly, many individuals are suffering badly today as a result of the unprofessional advice on the property market they received from a number of sectors. I am aware many individuals who were comfortable financially and who were advised wrongly that they should borrow more than was good for them and get into the property market, something about which they knew little, and they are now suffering as a result.

I welcome the Bill and I hope it has a speedy passage through the House because we need this legislation on the Statute Book quickly.

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