Chamber
Meeting of the Parliament 08 December 2010
08 Dec 2010 · S3 · Meeting of the Parliament
Item of business
Property Factors (Scotland) Bill: Stage 1
The enforceable order would be the responsibility of other authorities and not necessarily the panel or ombudsman. My point is that there are a great deal of detailed issues to be addressed in part 2. I agree with Mary Mulligan that Robert Brown makes a valid point that we need to consider enforcement, including who does the enforcement, what it costs, and whether that cost is passed on to an errant factor. All those matters need to be addressed in the bill but, in its current form, it does not do so. I am highlighting that those issues need to be rectified. Whichever model members prefer, we are all agreed that those matters need to be addressed and resolved at stages 2 and 3.
Sandra White made relevant points about the composition of the panel and other matters. Another relevant point is the expertise that is required, either for an ombudsman or a panel. A lot of careful consideration is required, given the importance of dispute resolution to the effective functioning of the bill.
Another general point relates to switching. Although that matter is not covered by the bill, our plans for the future on switching are important. The issue of switching, whether in relation to traditional property factors or land maintenance companies, has featured heavily in the debate and in the evidence to the committee. The committee said that the ability of consumers to switch their factors or land maintenance companies is a major issue, and I agree with that. An ability to switch providers more easily would help to improve many of the issues that consumers face when dealing with the industry.
The Title Conditions (Scotland) Act 2003 contains provisions that enable managers of property to be dismissed and replaced. However, as members have said, it can be difficult to dismiss and replace property factors, in part because a high level of agreement among the residents is required, as Robert Brown pointed out. There is nothing in the bill on switching by residents, but the committee suggested that the Government should carry out research on that. We recognise the need to do that research and we will do it. We are considering whether it would be useful to issue a consultation paper on potential changes to the 2003 act to lay down clear procedures on the switching of land maintenance companies by residents.
The fundamental aim would be to ensure that switching can take place when two thirds of residents wish to dismiss and replace a land maintenance company. We must also consider the more traditional factors and how they can be more easily switched. I stress that the Government agrees entirely with the committee when it describes the matter as a “very complex issue”. My colleague Fergus Ewing and I will keep the Local Government and Communities Committee and the Justice Committee informed of the Government’s thinking on the matter.
Many issues remain to be resolved at stage 2. I again offer the Government’s services to assist the member in charge of the bill to ensure that we get it right at stages 2 and 3 so that the bill achieves everything we all wish it to.
17:20
Sandra White made relevant points about the composition of the panel and other matters. Another relevant point is the expertise that is required, either for an ombudsman or a panel. A lot of careful consideration is required, given the importance of dispute resolution to the effective functioning of the bill.
Another general point relates to switching. Although that matter is not covered by the bill, our plans for the future on switching are important. The issue of switching, whether in relation to traditional property factors or land maintenance companies, has featured heavily in the debate and in the evidence to the committee. The committee said that the ability of consumers to switch their factors or land maintenance companies is a major issue, and I agree with that. An ability to switch providers more easily would help to improve many of the issues that consumers face when dealing with the industry.
The Title Conditions (Scotland) Act 2003 contains provisions that enable managers of property to be dismissed and replaced. However, as members have said, it can be difficult to dismiss and replace property factors, in part because a high level of agreement among the residents is required, as Robert Brown pointed out. There is nothing in the bill on switching by residents, but the committee suggested that the Government should carry out research on that. We recognise the need to do that research and we will do it. We are considering whether it would be useful to issue a consultation paper on potential changes to the 2003 act to lay down clear procedures on the switching of land maintenance companies by residents.
The fundamental aim would be to ensure that switching can take place when two thirds of residents wish to dismiss and replace a land maintenance company. We must also consider the more traditional factors and how they can be more easily switched. I stress that the Government agrees entirely with the committee when it describes the matter as a “very complex issue”. My colleague Fergus Ewing and I will keep the Local Government and Communities Committee and the Justice Committee informed of the Government’s thinking on the matter.
Many issues remain to be resolved at stage 2. I again offer the Government’s services to assist the member in charge of the bill to ensure that we get it right at stages 2 and 3 so that the bill achieves everything we all wish it to.
17:20
In the same item of business
The Deputy Presiding Officer (Alasdair Morgan)
SNP
The next item of business is a debate on motion S3M-7531, in the name of Patricia Ferguson, on the Property Factors (Scotland) Bill. Time is fairly tight for...
Patricia Ferguson (Glasgow Maryhill) (Lab)
Lab
I am pleased that we are debating the Local Government and Communities Committee’s stage 1 report on the Property Factors (Scotland) Bill, and I would like t...
Duncan McNeil (Greenock and Inverclyde) (Lab)
Lab
I am pleased to be taking part in the debate as convener of the Local Government and Communities Committee. We were the lead committee that looked at Patrici...
The Minister for Housing and Communities (Alex Neil)
SNP
I welcome the opportunity to debate the Property Factors (Scotland) Bill, which was introduced to the Parliament by Patricia Ferguson. The Government recogni...
Mary Mulligan (Linlithgow) (Lab)
Lab
I, too, am pleased to take part in the stage 1 debate on the Property Factors (Scotland) Bill. I congratulate Patricia Ferguson on getting the bill to this s...
David McLetchie (Edinburgh Pentlands) (Con)
Con
Like other members, I congratulate Patricia Ferguson, the bill’s sponsor, on her persistence and dedication in bringing this measure to Parliament and, I mig...
Jim Tolson (Dunfermline West) (LD)
LD
The Liberal Democrats welcome the member’s bill that Patricia Ferguson has introduced and offer our congratulations to her. I also congratulate the clerks, w...
Sandra White (Glasgow) (SNP)
SNP
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...
Paul Martin (Glasgow Springburn) (Lab)
Lab
Like other members, I congratulate Patricia Ferguson on introducing her bill and getting it to stage 1. She should be commended for her hard work and diligen...
Elizabeth Smith (Mid Scotland and Fife) (Con)
Con
Stage 1 is an important staging post in assessing the many issues that are the origin of the bill. I pay tribute to Patricia Ferguson for the methodical mann...
Robert Brown (Glasgow) (LD)
LD
Does Elizabeth Smith accept that clarity on the point that she has just raised might make it easier for some people to accept liability for payments, and not...
Elizabeth Smith
Con
Mr Brown makes a valid point, and I and the Conservative party in general accept it. It is a strong message in the bill.The relationship between the property...
Bob Doris (Glasgow) (SNP)
SNP
I welcome the opportunity to speak on the Property Factors (Scotland) Bill at stage 1. I thank Patricia Ferguson for introducing the bill, and I thank my fel...
Malcolm Chisholm (Edinburgh North and Leith) (Lab)
Lab
Factoring is an enormous issue in the new-build flats in my constituency, albeit not in the traditional tenements, which in Edinburgh have never had factors....
Joe FitzPatrick (Dundee West) (SNP)
SNP
I echo others in the chamber in congratulating Patricia Ferguson on the bill, which touches on a subject that is of great concern to many of our constituents...
Robert Brown (Glasgow) (LD)
LD
On behalf of the Liberal Democrats, I praise Patricia Ferguson for introducing the bill and for the manner in which she has done so. Although this debate wil...
Alex Johnstone (North East Scotland) (Con)
Con
The debate that we have had today and the process that led us to it form a good example of the Parliament at its best. I only wonder why it has taken us so l...
Mary Mulligan
Lab
This has been an excellent debate in which all members have made quite heartfelt pleas for legislation. That is not always the case in this chamber.As Jim To...
Alex Neil
SNP
This debate on the principles of the bill and the issues that are to be addressed at stage 2 has been good and consensual. I congratulate Patricia Ferguson a...
David McLetchie
Con
In relation to those figures—£2,000 a case and 220 cases a year for the private rented housing panel—is the minister convinced that the panel provides value ...
Alex Neil
SNP
The reality is that it is quasi-judicial. As Mr McLetchie will know, anything that is judicial, and particularly anything that involves lawyers, can be extre...
Robert Brown
LD
Will the minister take a further brief intervention on that?
Alex Neil
SNP
Of course, from another lawyer. Are they going to declare an interest, Presiding Officer?
Robert Brown
LD
The issue is about the need to have at the end of the process an enforceable order so that everybody knows where they stand. It is a judicial process and it ...
Alex Neil
SNP
The enforceable order would be the responsibility of other authorities and not necessarily the panel or ombudsman. My point is that there are a great deal of...
Patricia Ferguson
Lab
I very much welcome the content and tone of the debate. I will try to respond as best I can to the issues that members have raised. The debate has demonstrat...
Malcolm Chisholm
Lab
At the recent meeting that I referred to, it seemed that a large number of people were paying 35 per cent commission to factors for their insurance.
Patricia Ferguson
Lab
I would not dispute that. I have heard a variety of figures mentioned. I have also heard about what, in the trade, are loosely called gentlemen’s agreements,...