Noel Ahern (Dublin North West, Fianna Fail)

They will have another chance to discuss it on Committee Stage, whenever that is. I heard what Senator O'Toole stated but that conflicts with my information and understanding. I also understand further legislation to establish the new national property services regulatory authority will provide another opportunity to provide for matters recommended by the Law Reform Commission which are not included in the Land and Conveyancing Law Reform Bill. That report is the basis of two Bills, one which is before the Houses and one which is to come. Either of those Bills will provide a more proper way than a housing Bill to enshrine this in legislation.

My Department already indicated that agreement to phase out stage payments must be enshrined in a suitable formal instrument, possibly the IHBA code of practice on home purchase protection. I expect that an appropriate course would be for the CIF or IHBA and the Law Society to agree relevant aspects of standard contract documentation, since this is primarily a matter of conveyancing practice. As I already stated, I want to see the matter concluded before we return in the autumn, leading to an ending of the practice in all housing estate contracts by early 2007. This should enable a smooth transition and minimal disruption to the market while allowing builders, with the support of their representative bodies, to adapt, as necessary.

The phasing out of stage payments in all areas is one of many important recent initiatives taken by the Government which will benefit house buyers. The new national property services regulatory authority, which will be established by the Minister for Justice, Equality and Law Reform, is another major development. It will have a number of functions of importance to house buyers including regulating the auctioneering and estate agency business and related matters; licensing, regulating and dealing with complaints about property managing agents and the provision of relevant consumer information.

In my Department's area, the new social partnership agreement contains important housing elements including commitments to 27,000 new social housing commencements or acquisitions and 17,000 additional units of affordable housing over the period 2007 to 2009. The agreement also endorses the principles established in the housing policy framework Building Sustainable Communities, which sets out the objective of high quality, integrated sustainable communities that will form key principles of housing policy during the ten-year framework of the partnership agreement.

To summarise on the stage payments issue, I believe that we have now made an important breakthrough with CIF agreement to pursue voluntary phasing out of stage payments. This can be inferred from the letter of the Cork branch of the CIF, dated 23 June, which I have quoted. I have a statement in writing from that branch, which it sent to the national branch of the IHBA with a view to entering into discussions on how phasing out could be achieved. I understand the IHBA has endorsed the proposal. I hope this approach is preferable to legislation but the opportunity will arise in any event to make more appropriate provision in the context of the regulation of conveyancing practice and house purchase contracts.

I would have liked this problem to have been solved two years ago. Senator Coghlan has spoken to me about it on many occasions and I hope he and his colleagues will feel it inappropriate to push this Stage to a vote. I hope they will withdraw the Bill and lend their support to an agreed approach to the phasing out of stage payments.

I said 18 months ago that if the consultation with the stakeholders did not work, we would think about legislation. I did not necessarily say the Department of the Environment, Heritage and Local Government was the most appropriate Department in this regard. If the stakeholders and construction industry talk to us and are prepared to do business, this is the way we should go. Legislation is necessary at times but can also cause complications one might not necessarily predict.

This matter, if it is to be addressed legislatively, should be addressed in the Bills associated with the Department of Justice, Equality and Law Reform. One such Bill is before the Seanad and the other is to be published very soon — I am not sure of the date. Opportunities exist should the Senators wish to pursue them and should the discussions with the CIF not be finalised. I cannot accept the Bill as it stands and if the Senators do not withdraw it, I will have to recommend against it.

We did not have correspondence from the CIF heretofore. There were discussions and meetings, some of which might have gone very well and others of which might not, but we now have a statement in writing from the organisation. On the letter of 17 May 2006, the matter was discussed at a meeting of the Cork branch of the CIF on 15 June 2006. Members of that branch made a strong recommendation to the IHBA that it should enter into discussions immediately with the Department with a view to the voluntary phasing out of stage payments within a relatively short timeframe. The national branch of the IHBA met on the morning of Tuesday, 27 June and I understand it accepted the recommendation. I hope we can now enter into the discussions and finalise matters in the coming months. Should the progress made prove insufficient, the opportunity will arise to make amendments to the two justice Bills. With this in mind, I hope the Bill will be withdrawn.