Peadar Tóibín (Meath West, Sinn Fein)
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Question 69: To ask the Minister for Justice and Equality the legislation under which the National Property Services Regulatory Authority, which was set up by Michael McDowell in 2005, operates; the actions taken since its formation up to November this year; if the recent legislation passed enable them to fully investigate claims as intended at their 2005 formation; if so, the number of investigations underway; the budget that was allocated to them in 2011 and if that budget includes office rental. [39254/11]

Alan Shatter (Dublin South, Fine Gael)
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I wish to inform the Deputy that the Auctioneering/Estate Agency Review Group was established in 2005, by the then Minister for Justice Equality and Law Reform, to carry out a review of all aspects of the auctioneering profession in Ireland. The Review Group recommended the establishment of a Regulatory Authority to take over responsibility from the Courts and the Revenue Commissioners for the licensing and regulation of Auctioneers, Estate Agents and Management Agents.

In December 2006 the Government approved the general scheme of the Property Services Regulatory Authority Bill, which, among other things provided for the establishment of the Property Services Regulatory Authority on a statutory basis. The Property Services (Regulation) Bill 2009 was first introduced in the Seanad in May 2009 and was finally passed by the Dáil on 22 November, 2011. The amendments made in the Dáil will be considered by the Seanad on 9 December, 2011. This Bill sets out the main functions of the new Authority which include:

· To control, supervise and regulate Property Services Providers (i.e. Auctioneers/Estate Agents, Letting Agents and Management Agents);

· To operate a comprehensive licensing system covering all Property Services Providers;

· To specify and enforce:-

standards for the grant of licences to Property Services Providers (e.g. educational/training standards; levels of professional indemnity insurance), and;

standards to be observed in the provision of property services by Property Services Providers (e.g. technical standards; appropriate ethical standards);

· To establish and administer a system of investigation and adjudication of complaints against Property Services Providers;

· To establish and administer a system of investigation of standards in the provision of Property Services;

· To impose sanctions on Property Services Providers for improper conduct (including fines up to €250,000 and the revocation of a licence);

· To promote increased consumer protection and public awareness of property services in general;

· To establish, maintain and administer a Compensation Fund to compensate parties who lose money as a direct consequence of the dishonesty of a Property Services Provider;

· To Develop Codes of Practice for Property Services Providers;

· To establish and maintain a Public Register of Property Sales Prices;

· To establish and maintain a Commercial Leases Database;

· To establish and maintain a Public Register of Licensed Property services Providers;

· To Act as State Competent Authority for Money Laundering;

· To Assist the Minister in the development of policy relating to the regulation of the Property Services Industry;

· To undertake or commission research projects.

· The interim non-Statutory Regulatory body, in line with the policy of decentralisation being operated at the time, established its new headquarters in Navan, Co. Meath.

· A Chief Executive designate (Mr. Tom Lynch) was appointed on foot of a competition run by the Civil Service Commissioners.

· A number of advisory/regulatory documents have been prepared and regulations which will fall to be made when the Bill is enacted have been drafted. These include:

- Property Services (Regulation) Act, 2011 (Licence Application) Regulations 2011. (To provide for the statutory rules governing the form of licence application);

- Property Services (Regulation) Act, 2011 (Licence Classification and Fees) Regulations 2011. (To specify the classes of licence and the licence fees appropriate for each licence class);

- Property Services (Regulation) Act, 2011 (Qualifications) Regulations 2011. (To provide for specific schemes of education and training necessary to qualify for a licence);

- Property Services (Regulation) Act, 2011 (Compensation Fund) Regulations 2011. (To provide for the establishment of the Compensation Fund, the contributions to the Fund, the rules governing the payment of compensation and the circumstances in which compensation will be paid);

- Property Services (Regulation) Act, 2011 (Client Accounts) Regulations 2011. (To provide for statutory rules for keeping and preserving client accounts and records by licensees, including, the rights, duties and responsibilities of licensees in respect of client moneys);

- Property Services (Regulation) Act, 2011 (Professional Indemnity Insurance) Regulations 2011. (To specify the terms on which indemnity against losses is to be available to licensees under any policy of indemnity insurance);

Two Codes of Practice have been drawn up; one, for Auctioneers/Estate Agents, which has already been introduced on a voluntary basis and a second, for Management Agents which is currently under discussion with industry and owners representatives. The codes have been drawn up in consultation with consumer and industry representative bodies.

· A consumer guide titled "A Guide for Users of Property Services Providers in Ireland" has been drafted and published. This guide gives an overview of the role and functions of the new Authority and outlines the consumer's right to make a complaint against a Property Services Provider in relation to the provision of a property service or the conduct of the service provider. In particular it outlines the relationships between Property Services Providers and their clients.

None of the regulatory documents so far prepared have a statutory basis and it will be open to the new Board when appointed to adjust them in any way they consider appropriate. In this context it is worth mentioning that with the introduction of the Code of Practice over 60% of property service providers have signed up to the code on a voluntary basis and are, in effect, already treating the interim body as Regulator. This has enabled many complaints against service providers to be addressed under the code.

Other developments that will facilitate early introduction of the statutory scheme are as follows:

Financial Systems: All the financial and systems and procedures necessary for the effective functioning of the Authority have been established and a financial services agreement, for the maintenance of payroll and financial accounts, has been put in place with the Department of Justice and Equality.

· Complaints System: A complaints procedure was drawn up for the processing of complaints which sets out the steps to be followed in handling of complaints. The procedure takes account of the requirements specified in the High Court decision in Davy v The Financial Ombudsman .A computerised complaints-handling system has been designed and is currently being used to handle complaints received for breaches of the Code of Practice.

· Licensing System: A new computerised licence application system has been designed for the processing of licenses. The new system will facilitate the recording of all details relating to applicants and the automatic production of licences.

· Property Services Agreements: Property Services Agreements, for the sale or letting of land and for the management of Multi-Unit Developments, as provided for under section 44 of the Bill, which will form the basic contract between service providers and their clients, have also been drafted in consultation with industry representatives and consumer bodies.

· Public Register of Licensees: A Register of licensed Auctioneers/Estate Agents has been established with the assistance of the Revenue Commissioners. This Register comprises of a list of the Auctioneers and House Agents licensed by the Revenue Commissioners under the Auctioneers and House Agents Acts, 1947 to 1973. On the introduction of the new legislation this register will be expanded to include all new licensees (i.e. Management Agents).

· Property Price Register: Discussions have already taken place with the Revenue Commissioners with a view to expediting the establishment and publication of the Property Price Register. The information which the Revenue Commissioners will be required to pass to the Authority for this purpose has been identified and discussions on designing an interface between the Revenue Commissioners and the Authority's databases to enable the electronic transfer of data have taken place. However, because of certain legal constraints in the Finance Acts, work on the development of the interface cannot be proceeded with until the Property Services (Regulation) Bill 2009 has been enacted.

The budget allocation for 2011 is €738,000. I understand that the budget does not include office rental. The work undertaken to date by the Implementation Group will ensure that the complex systems, procedures, rules, regulations and protocols, necessary for the effective operation of the Authority, can be put in place quickly following the passing of the legislation.