Paudie Coffey (Fine Gael)

This is similar to Senator O'Toole's amendment and Fine Gael's amendment No. 21, which I will not elaborate on further. The thrust of this and the related amendments is to secure an element of the purchase price to ensure the development or units being built are completed to a satisfactory standard. We are all at one on that issue.

These amendments come highly recommended by the Royal Institute of Architects in Ireland and also by the Association of Consulting Engineers of Ireland. Both of these professional bodies have operated in this arena for many years and have seen at first hand the devastation caused by estates not being finished. As politicians we have also seen this at first hand when our constituents come to us with concerns about unfinished estates and incomplete developments which make their daily lives a misery. The Minister acknowledges the issue.

The amendments look to take issue with an area that has already been addressed in the public sector. If an estate is currently being built, local authorities ensure bonds are collected from a developer that will act as a guarantee to finish the work. In the recent debates on the Planning and Development (Amendment) Bill 2009, contributions in this House highlighted how those bonds do not go far enough as we see the devastation of unfinished estates around the country.

The idea behind introducing bonds was to ensure estates would be finished. Works in this regard could include installing a proper surface on someone's driveway, ensuring all manhole covers are in place and erecting public lighting. However, the amounts collected under such bonds would not come anywhere near covering the cost of completing certain estates on which major items of water and sewerage infrastructure have been left unfinished.

There is a precedent in this regard in the public sector, whereby local authorities collect bonds. The amendments suggest a levy or trust fund amounting to 5% of the purchase price be collected. The Minister indicated his concern to the effect that the cost would be passed on to the purchaser. Any purchaser would rather pay the full cost and ensure his or her estate was completed rather than purchasing a house or apartment at a lower cost and discovering years later that there was no mechanism in place to ensure said estate was properly completed. This is happening to a major extent in the public sector.

There is an argument in favour of collecting 5% of the purchase price and investing the money in trust funds in order to ensure estates will be finished. As stated, many people have already been let down. I accept that the Minister does not wish to become involved in the property market, particularly in the context of increasing the costs faced by prospective buyers. However, the planning legislation introduced in 2009 has already given rise to additional costs for developers. It is obvious that these costs will be passed on to purchasers. The Minister for the Environment, Heritage and Local Government has taken action in this regard but the Minister for Justice, Equality and Law Reform is hesitant to follow his lead. As Senator O'Toole rightly pointed out, the issue that arises in the context of the Bill relates to consumer protection There is an argument that the matter would be better dealt with in this legislation because existing residents or prospective buyers could rest assured that trust funds which would facilitate the completion of housing developments, apartment blocks, etc., would be put in place. A protection of this nature is not provided. In addition, there is a lack of regulation of this matter.

The Minister has indicated that he will consider what Senators are saying about the creation of 5% trust funds prior to the Bill being dealt with in the Dáil. As a result, I will not be pressing my party's amendment. Serious consideration should be given to creating these trust funds, particularly as the planning legislation enacted last year will give rise to added burdens and costs for prospective buyers. These additional costs will arise for good reason, namely, to facilitate the putting in place of items of social infrastructure such as schools, etc. The 5% trust funds are as important a development in this regard. If I was to buy a house tomorrow, I would like know that a trust fund would be in place in order that the estate or development in which I was going to live would not remain half finished. I hope the Minister will take cognisance of the arguments we have put to him.