Hansard

I, too, congratulate Patricia Ferguson and thank her for introducing the bill. As one of the original signatories to the bill proposal, I am pleased to speak in this debate and to support the bill at stage 1. Like other members, I have no doubt that some—not all—factors do not give a good service. We have heard from many organisations on the issue. David McLetchie mentioned the Office of Fair Trading, which carried out a study of factoring that revealed that a substantial number of people were not satisfied with the service that they received.

Patricia Ferguson gave the example of a case that she has encountered. All of us deal with a huge number of cases that relate to factoring. As someone who stays in a factored property, I know at first hand just how difficult it is to get any service from factors, although I will not name any of the factors that were involved.

I will give some examples of issues that I have encountered. Duncan McNeil mentioned cases of light bulbs costing £30, but I will highlight one issue that is raised with me and, I think, all other members. People get really frustrated, upset and angry when they receive a bill that is not detailed; when they phone the factors to ask for details, they are told that they must pay the bill as it stands, although they do not know what they are paying for. There is a particular problem with factors using preferred contractors. Even when tenants and residents look for contractors that can do the job more cheaply, factors will not accept a quote from them; basically, they go for the highest price. In some cases—not all—a percentage of the costs goes to the factor and not to the contractor.

Another issue is competitive tendering. When people ask their factor whether it has sought tenders from three contractors, they are told that it has not, because it has its preferred contractor. However, when people look around, they may find that the contractor that they wanted could do the work for half the price that their factor’s contractor is offering. Issues of that kind really frustrate and annoy the people who are required constantly to pay such bills.

As has been said, people may be sent letters with a charge of £30 or £35 to say that they are two days behind in paying their factor’s fees. There is absolutely no understanding of how people have to live and of how angry they get when they are trying to get repairs done. When people have bought flats in properties that include residences that have been let privately, it is very difficult for them to get the factor to contact the landlord, to ensure that they pay their share of any bills.

Although I am very supportive of the bill, there are some issues that I want to raise. Patricia Ferguson will understand that my points are not intended as a criticism of the bill. However, like other members, in the limited time that I have I would like to explore some issues further.

The most important section in the bill is that which provides for a code of conduct. I am pleased that the minister and Patricia Ferguson have agreed that we must get that right and that a lot of work has been done on the issue. I look forward to seeing that, because if we get the code of conduct right we can move forward in the proper manner.

I have some concerns about the registration charge of £750 to £1,000 per factor. In the bill as drafted, it is not clear how that will apply. Will houses be banded by council tax or will the charge apply to groups of properties? Clearly, it will affect private factors, but will it also affect social factors, which have been mentioned and include councils and housing associations? Will there be checks and balances to ensure that the charges that factors pay to register are not passed on to tenants? I would like us to look at that issue at stage 2, as the current provisions in the bill on registration do not address it.

The issue of dispute resolution has been raised. The bill will establish a home owner housing panel and home owner housing committees similar to the private rented housing panel and private rented housing committees. I do not know how much that will cost, as it is not costed in the financial memorandum to the bill. I would like more information on that provision to be provided at stage 2. The fact that staff will receive specific training is mentioned, but does that mean that more staff will be employed? Will the president, chairmen and committee members come from the existing panel, or will they be appointed or elected? We need to be clear about that.

A question was raised by the Property Managers Association Scotland regarding complaints procedures relating to property managers. Will the procedures be deemed obsolete if the bill goes through?

There are further issues that I would like to raise; I hope that we can get them ironed out at stage 2 through amendments. By raising these issues I am not being critical—I am trying to be constructive—and I genuinely look forward to stage 2, when we can ensure that we get the bill right for the good of all the people who, like me, live in factored property.

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