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Chamber and committees

Meeting of the Parliament

Meeting date: Thursday, March 3, 2011


Contents


Property Factors (Scotland) Bill: Stage 3

The Deputy Presiding Officer (Trish Godman)

The next item of business is stage 3 proceedings on the Property Factors (Scotland) Bill. In dealing with amendments, members should have the bill as amended at stage 2, the marshalled list and the groupings, which the Presiding Officer has agreed.

As usual, there will be a suspension of five minutes for the first vote. There will be a voting period of one minute for the first division in a group. Other divisions will be 30 seconds.

Section 3—Application for registration

Group 1 concerns minor amendments. Amendment 1, in the name of Patricia Ferguson, is grouped with amendments 31, 3, 12, 14, 32 to 34, 16A, 16B, 18 and 19.

As you rightly identified, Presiding Officer, group 1 is about minor amendments.

Amendment 1 is a drafting amendment that ensures that section 3(2)(e) covers land maintenance companies.

I am sorry, Ms Ferguson, could you move your microphone a wee bit toward you?

Patricia Ferguson

Thank you, Presiding Officer.

Amendment 3 is a minor drafting amendment to correct a cross-reference in section 5(1), while amendment 12 corrects a grammatical error in section 9(2)(b).

Amendments 14, 18 and 19 are drafting amendments to ensure consistency with other amendments made to the bill at stage 2.

Manuscript amendments 31, 32, 33 and 16A all remove the words:

“without the Scottish ministers being required to enter the applicant in the register”,

as they are unnecessary within the individual subsections referred to in the amendments. In each subsection, the conclusion of the appeal is the relevant point, regardless of its outcome.

Amendment 34 is a manuscript amendment that amends section 12(6)(b) and provides consistency in the definition of when an appeal has been concluded at sections 12(3)(b) and 12(6)(a)(ii). Amendment 16B is a manuscript amendment that amends amendment 16, which is in group 2 and which inserts a section on property factor registered numbers. Amendment 16B provides a definition of when an appeal is concluded under subsection (5)(b) of the section that amendment 16 inserts.

I move amendment 1.

I support this group of amendments, all of which are minor tidying and drafting points.

Amendment 1 agreed to.

Section 4—Registration

Group 2 is on property factor registered numbers. Amendment 2, in the name of Patricia Ferguson, is grouped with amendments 10, 16 and 25.

Patricia Ferguson

All these amendments concern the issue of a number to identify a property factor who is registered. Amendment 2 amends section 4(4) of the bill to ensure that a factor’s previous compliance with the requirements to include the registration number in documents or communications is a relevant consideration when ministers are deciding whether a factor should be reregistered.

Amendment 10 amends section 8(2) to ensure that a factor’s failure to include their registration number in documents or communications is also a relevant consideration when ministers are deciding whether a factor should be removed from the register.

Amendment 16 inserts a new section after section 12, providing for the allocation of a register number to each registered property factor. A registered factor will be under a duty to take all reasonable steps to ensure that the number is included in documents or other communications with home owners. Non-compliance with that duty will be a criminal offence.

Amendment 25 amends section 26(2) to provide that ministers’ functions to make regulations in respect of the property factor registration numbers cannot be delegated.

I move amendment 2.

Alex Neil

I support the amendments, which relate to the use of property factor registered numbers. Registered factors will be required to use their registration number in communications with customers and others who ministers specify. That will add another element of transparency to the registration system. Failing to use the registration number in that way will be a relevant consideration for registration and deregistration decisions. I believe that that is appropriate.

Amendment 2 agreed to.

Amendment 31 moved—[Patricia Ferguson]—and agreed to.

Section 5—Section 4: considerations

Amendment 3 moved—[Patricia Ferguson]—and agreed to.

Section 7—Duty of responsible person to provide information

Group 3 is on the provision of updated information. Amendment 4, in the name of Patricia Ferguson, is grouped with amendments 5 to 9.

Patricia Ferguson

Amendment 4 amends section 7(2) to clarify the factor’s continuing duty to provide updated information as soon as practicable after a change occurs to the information provided in the application for registration under sections 3(2)(a) to (d). Examples of such details are the factor’s name, business address, company status and the name of the senior officer. That specifically excludes information about updates to the full portfolio list of managed properties as provided under section 3(2)(e), which is subject to what I hope is a more proportionate duty by virtue of amendment 5.

Amendment 5 inserts new section 7(2A), which provides for a new duty to provide information about updates to the portfolio list of managed properties under section 3(2)(e) on an annual basis and no later than three months after the end of each financial year. Moreover, in the event that there has been no change to that information, the factor will still be required to confirm that that is the case.

Amendments 6, 7 and 9 are consequential to amendment 5. Amendment 8 inserts new section 7(5)(a) so that providing false details in relation to both portfolio updates and other updates under section 7 is an offence. That provides consistency with section 3(6).

I move amendment 4.

Alex Neil

I support the amendments. In the stage 1 debate I said that a requirement for a factor to send in updates every time that there was a change in their portfolio of managed properties would be unnecessarily onerous. The amendments remove that requirement and replace it with a more proportionate requirement on property factors to provide updated portfolio information to the Scottish ministers on an annual basis. It is my view that an annual update of a factor’s portfolio list of managed properties is sufficient and not too burdensome a duty.

Amendment 4 agreed to.

Amendments 5 to 9 moved—[Patricia Ferguson]—and agreed to.

Section 8—Removal from register

Amendment 10 moved—[Patricia Ferguson]—and agreed to.

Section 9—Effect of refusal to enter in register or removal from register

Group 4 is on the consequences of refusal to enter in, or removal from, the register. Amendment 11, in the name of Patricia Ferguson, is grouped with amendment 13.

Patricia Ferguson

Amendment 11, which amends section 9(2), clarifies that a factor will not be able to recover any costs that are incurred in respect of work that is instructed after the date of their removal from the register and that they will not be able to recover any charges that relate to a period after that date.

Amendment 13 amends section 9(2)(c) and is consequential to amendment 11. It restricts notices of potential liability for costs under a tenement management scheme to those arising before the date of removal from the register.

I move amendment 11.

Alex Neil

I support the amendments. It is appropriate that charges for work that is carried out after a factor has been de-registered or refused entry to the register should not be recoverable. However, the amendments recognise that work can be instructed before that time and that factors should be able to recover the associated costs.

Amendment 11 agreed to.

Amendments 12 and 13 moved—[Patricia Ferguson]—and agreed to.

Section 10—Section 9: interpretation etc

Amendment 14 moved—[Patricia Ferguson]—and agreed to.

Section 12—Offence of operating as a property factor without registration

Amendment 32 moved—[Patricia Ferguson]—and agreed to.

Group 5 is on offences under section 12 by bodies corporate et cetera. Amendment 15, in the name of Patricia Ferguson, is the only amendment in the group.

Patricia Ferguson

Amendment 15 deals with the application of offence provisions under section 12 in relation to corporate bodies. Although the amendment is technical in nature, it is important to clarify in the bill how those offence provisions should apply to corporate bodies, which are, after all, likely to account for most—if not all—property factors.

I move amendment 15.

Alex Neil

I support amendment 15, which ensures parity of treatment between property factors that operate as sole traders and those that operate as corporate bodies. That is important, as the majority of property factors are likely to have corporate or partnership status.

Amendment 15 agreed to.

Amendments 33 and 34 moved—[Patricia Ferguson]—and agreed to.

After section 12

Amendment 16 moved—[Patricia Ferguson].

Amendments 16A and 16B moved—[Patricia Ferguson]—and agreed to.

Amendment 16, as amended, agreed to.

Section 13—Code of conduct

16:00

Group 6 is on parliamentary procedure for orders under sections 13 and 26. Amendment 17, in the name of Patricia Ferguson, is grouped with amendments 24 and 26.

Patricia Ferguson

The amendments in this group were suggested by the Subordinate Legislation Committee. Amendment 17 amends section 13(3), recognising the legal effect of the code of conduct by requiring the order-making power in section 13 to be subject to affirmative procedure.

Amendment 24 is an amendment to section 26(1) and recognises the significance of the power in section 26 to delegate functions under the bill by making the delegated power subject to affirmative procedure also.

Amendment 26 is an amendment to section 27(3) and is consequential to amendment 24.

I move amendment 17.

Alex Neil

I support the amendments. I agree with the assessment of the Subordinate Legislation Committee that any exercise of the power of the Scottish ministers to delegate their functions under the bill would be a significant matter and should, therefore, require approval by the Parliament.

Amendment 17 agreed to.

Section 16—Application to homeowner housing panel

Amendment 18 moved—[Patricia Ferguson]—and agreed to.

Section 18—Determination by homeowner housing committee

Amendment 19 moved—[Patricia Ferguson]—and agreed to.

Section 21—Appeals

Group 7 is on appeals—part 2. Amendment 20, in the name of Patricia Ferguson, is grouped with amendments 21 and 22.

Patricia Ferguson

Amendment 20 amends section 21(1) to clarify that any appeals to the sheriff under section 21 would be by summary application. The amendment will ensure consistency with appeals under section 11(8).

Amendment 21 amends section 21(1) to clarify that appeals to the sheriff under section 21 are in relation to decisions that are taken by the president of the panel rather than the panel itself.

Amendment 22 amends section 21(2) so that the periods in which appeals may be made is 21 days rather than 14 days. Again, that will provide consistency with section 11(2).

I move amendment 20.

Alex Neil

I support the amendments, which relate to the new form of dispute resolution that is established under part 2.

Amendment 20 agreed to.

Amendments 21 and 22 moved—[Patricia Ferguson]—and agreed to.

Section 25A—Amendments to Title Conditions (Scotland) Act 2003

Group 8 is on the relationship between the bill and the Title Conditions (Scotland) Act 2003. Amendment 23, in the name of Patricia Ferguson, is grouped with amendments 27 to 29.

Patricia Ferguson

Amendment 23 removes section 25A. The Government’s intention is to use the power under section 26A to make ancillary provision to cover matters such as the appointment of new factors following deregistration and to make provision generally for the interaction of the bill with the Title Conditions (Scotland) Act 2003. I support that intention.

Amendments 27 and 29 are consequential to amendment 28, and amendment 28 contains further amendments to section 28, to remove unnecessary definitions of “homeowner” and “land”. On the definition of homeowner, the amendment will result in a cross-reference to the existing definition in section 10(5), which covers all types of property factors who fall within the definition in section 2(1). The removal of the definition of land is consequential to the amended definition of homeowner.

I move amendment 23.

Alex Neil

I support the amendments, which are technical in nature. They make important drafting points to clarify the relationship of the bill to the 2003 act and correct the fact that there are two different definitions of homeowner in the bill.

Amendment 23 agreed to.

Section 26—Delegation of functions

Amendments 24 and 25 moved—[Patricia Ferguson]—and agreed to.

Section 27—Orders and regulations

Amendment 26 moved—[Patricia Ferguson]—and agreed to.

Section 28—Interpretation

Amendments 27 to 29 moved—[Patricia Ferguson]—and agreed to.

Section 29—Short title and commencement

Group 9 is on commencement. Amendment 30, in the name of Patricia Ferguson, is the only amendment in the group.

Patricia Ferguson

Amendment 30 will amend section 29(2) to provide that the bill, other than part 3, should commence generally on 1 October 2012 or such earlier date as the Scottish ministers may by order appoint. By virtue of section 29(2A), as inserted at stage 2, part 3 of the bill will commence on the day after the day on which the bill receives royal assent.

I move amendment 30.

Alex Neil

I support amendment 30, which will allow an additional 12 months until 1 October 2012 for the commencement of parts 1 and 2 of the bill. The establishment of a register of property factors and a new form of dispute resolution between home owners and factors will require careful implementation. Moving the final date for the commencement of the provisions to 1 October 2012 will give the Scottish Government and key stakeholders time to carry out the necessary implementation work.

Amendment 30 agreed to.

That ends consideration of amendments.