Dan Boyle (Green Party)

The Property Services (Regulation) Bill follows the establishment in 2004 of the Auctioneering/Estate Agency Review Group. It is hoped the five-year gestation period means that suitable consideration has been given to the contents of the Bill which contain much detail on its intent. It is especially apt that we are considering a Bill of this nature at this stage of the economic cycle and the political history of the country. It deals with the area of property which has cast a sizeable cloud over where the country stands economically and the area of regulation which, for the past decade, has been studiously avoided in many of our systems of administration.

There should be a welcome for the idea that the area of property services needs regulation, as do many other areas of administrative activity in the country. The failures in this area have already been outlined in the contributions of other speakers. There is a difficulty in ensuring effective controls in the purchase of a property and with the practice of gazumping. I welcome the establishment of a regulatory authority and the institution of a licensing system. There has already been a reaction to the proposed measures from those who would have preferred to continue to operate in a more free, unfettered system. The abuses which occurred in the past brought the Bill into being of necessity. The proposed regulatory authority should play an effective role because the legislation has been considered in this House and the other House. Countering the practice of gazumping should be helped by the proposals for the licensing system, but the proposals could be subject to further review.

I have a preference for the system which operates in Scotland, that is, the closed bid system. Under that system once an agreement has been made to sell a property and several vendors have entered an interest in purchasing it, a third party receives sealed bids and a gazump price cannot be achieved. I am unsure whether that should be considered at this stage of the legislation, but perhaps it could be considered following an examination of the operation by the regulatory body in its first years of existence.

The Bill is part of the Government's ongoing plan to introduce safeguards in the management of multi-unit developments. I express a part interest in this regard because my time spent in Dublin on Oireachtas duty has resulted in my living in one such multi-unit development. The way in which it is managed and how the associated fees are charged for leaves me as a tenant in some confusion and the case is similar for thousands of others in the country. The Bill is especially welcome on these grounds. There is a need to itemise and cost the services provided and to justify those costs. If the Legislature passes the Bill it will have responded to a very real public need.

A side effect of the Celtic tiger boom was the production of a great amount of new property. It also saw a demographic change with people moving to apartment style accommodation from the traditional terraced and semi-detached two or three bedroom houses which had been the norm. We must introduce appropriate legislation as a result.

Senator Ross's points about the constitution and structure of the board are well made and I hold similar reservations. It is important to have such a regulatory authority, but questions arise about creating a new body when there are already questions about many existing State agencies and the role they play. For example, in establishing this new authority should we not consider the continued role or perhaps a merged role for the Private Residential Tenancies Board? Should we not ask questions about why that board is under the auspices of the Department of the Environment, Heritage and Local Government, while this is under the auspices of the Department of Justice, Equality and Law Reform? It seems to me that we are in danger again of having complementary functions in similar agencies, with different Departments having responsibility for them. This criticism has been ongoing about the lack of joined-up thinking. We must ask those questions in addressing this legislation so that we can achieve appropriate responses. If we do that, the gestation and beginning of life of this agency will be more effective.

Unlike Senator Ross, I believe that while the structure and constitution of the agency will be vital with regard to how effective it can be, the real meat as to its future success will be in the licensing system - what it is being licensed for and how it will be policed as an ongoing licensing practice. If it is an exercise in paperwork and administration, where the practices that exist now are, somehow, sanctioned by the existence of a piece of paper, that is not a valuable exercise. For people to have faith in the regulatory body and the licensing being introduced, this debate and Committee Stage debate must give succour to the idea that the body being established will deal with the real problems.

Another welcome element of the Bill is that not only does it deal with setting up a system where none has previously existed, but it acknowledges there has been widespread abuses in the area. It adds on as part of a new process the facility for an appeal system to question the conclusions reached by the new body, either in the establishment of the licences or in how they are being operated. This is a good principle and is in accord with the principles of natural justice. It allows everyone involved in the process, those involved in the management companies, property owners and those letting such properties, know there is a new means for them to tackle any grievances or deal with ongoing problems. Much of the current difficulties are a result of the fact that those letting the properties feel powerless and abused due to the lack of those systems. If this Bill allows this new system happen, this Legislature will have done a good day's work.

I welcome the introduction of the Bill and look forward to the remaining contributions on Second Stage. Given its size and complexity, I expect we will have detailed Committee and Report Stages. All Members will join in ensuring it is the best possible Bill to meet a long-standing need that has been let go for too long.