Seanad debates

Thursday, 21 May 2009

Property Services (Regulation) Bill 2009: Second Stage

 

Photo of John CurranJohn Curran (Dublin Mid West, Fianna Fail)

I thank Senators for their contributions to the debate. It is clear the Government's objective of high standards in the provision and delivery of property services, which the proposals in the Bill are designed to achieve, are broadly shared on all sides of the House. I have listened for the last hour and a half to the contributions of Senators and they broadly support the Bill's objectives. Some detailed points were made that will be clarified on Committee Stage. It was encouraging, however, to hear the general welcome for the thrust of the Bill.

Senator Regan was critical of the delay in the Bill getting here. It is important to note that in parallel with this, an implementation group has been established so when the Bill is enacted, the process will move swiftly instead of things happening in isolation and on a step by step basis.

Part 2, Schedule 7 seeks to give effect to our obligations under the EC treaty and the services directive while ensuring that users of property services are adequately protected. Concerns have been raised that these provisions may be open to abuse. It is important to emphasise that a person from another member state will not be allowed to provide a property service here unless he has an appropriate licence or authorisation from another member state.

Among the most important provisions in the Bill are those in Part 5 on the protection of client moneys. A person who has a licence or authorisation from another EU member state will not be permitted to provide a property service on the basis of that licence or authorisation unless he is subject to the requirements for client accounts similar to those set out in Part 5 of the Bill. This provides an important protection for clients and users of property services provided by persons from other member states. All providers of property services, whether licensed by the authority or by a similar authority in another member state, will be subject to the complaints and investigations provisions set out in the Bill, as well as the provisions for letters of engagement and the sale and letting of land.

While the provisions for the property services compensation fund and professional indemnity insurance will not apply to such persons, they will be required to include information on those issues in the letter of engagement which they will be required to give to all clients. Clients will therefore be able to make an informed decision as to whether or not to engage such a person.

Senator Walsh asked about the chief executive designate. He was appointed following an open competition run by the Public Appointments Service. The salary scale attaching to the post is that of a principal officer, higher scale.

Senators have raised concerns about provisions in the Bill for the advised market value of land. These provisions give effect to a key recommendation of the auctioneering estate agency review group. The purpose of these provisions is to avoid a situation where unrealistically low prices are quoted for land, particularly houses and apartments, to attract potential purchasers for the property concerned in the hope of increasing the eventual price for the property. The Bill applies to auctioneers, not to surveyors.

Standards will mainly be set out in statutory regulations with sanctions and penalties applicable to breaches rather than to the codes of practice. Codes will be used for ethical standards, where prosecution would be more difficult. As far as possible, standards will be in accordance with regulations rather than codes.

The Minister is aware there have been repeated calls for legislative intervention in upward rent reviews. He has not ruled out such intervention but he cautions scope in this area may be limited having regard to constitutional and legal considerations. The Minister would welcome submissions that interested parties would care to make about the issue of upward only rent reviews so they can be taken into account in the Department's consideration of policy issues surrounding this matter.

Senators O'Toole and Feeney made some interesting points about the membership of the authority and I will convey those to the Minister. The involvement of local authority members has arisen before but the views expressed today will also be relayed.

I thank all those who contributed to the debate. The Minister will consider the points raised in the context of possible amendments on Committee Stage.

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