James Breen (Clare, Independent)
Link to this: Individually | In context

Question 376: To ask the Minister for Justice, Equality and Law Reform the improvements which have taken place in the auctioneering business since his task force reported back to him; if private treaty sales are more transparent and the proof he has of same; and if he will make a statement on the matter. [11723/06]

Michael McDowell (Dublin South East, Progressive Democrats)
Link to this: Individually | In context

In July 2004, I commissioned the auctioneering and estate agency review group to examine the licensing and regulatory requirements for property practitioners. I initiated the review against a background of a considerable level of public concern about specific selling practices in the property industry, apparent deficiencies in regulatory and supervisory arrangements in respect of service providers and the need to take account of new forms of property services.

I published the resulting report in October 2005 and at the same time, I announced that the Government had approved one of its key recommendations, the establishment of the national property services regulatory authority to assume responsibility for the licensing and regulation of all trading entities providing auctioneering, estate agency, property letting and property management services. The formal establishment of the new authority will have to await the enactment of the necessary legislation, which is in preparation at present. However, an implementation group is in place and working to assist and advise on preparations for the new authority including the recruitment of a director, advertised recently in national newspapers; the establishment of a headquarters in Navan; identification of staffing and training requirements; and advance planning of operational matters.

A number of the review group's recommendations related to enhancing transparency in property transactions, such as the recording of offers made by prospective buyers, improved record keeping by auctioneers with regard to property transactions, powers of inspection of such records by the regulatory authority, and powers of sanction if appropriate. The new authority will also promote better understanding by the public of the respective roles and responsibilities of the various players in the property market — vendor, buyer, auctioneer etc. — in the interest of enhanced consumer protection.

No hard evidence will be available to measure improvements or otherwise in the auctioneering business until the new regulatory authority has been established. However, I was heartened and pleased by the willingness of the relevant representative bodies to engage with the work of the review group, and I am aware that some of its recommendations have already been adopted as best practice in advance of the enactment of the legislation.