Property magazine 2006 spring by 4pm.ie 4p

property

THE MAGAZINE OF THE INSTITUTE OF PROFESSIONAL AUCTIONEERS & VALUERS

The

SPRING 2006

PROFESSIONAL

JUSTICE MINISTER TO ADDRESS ANNUAL CONFERENCE 2006 IPAV CEO RETIRES

CERTIFICATE AWARDS

contents W E L C O M E

T O

T H E

P R O P E R T Y

P R O F E S S I O N A L

Welcome to the Spring edition of the Property Professional.

All the recent indications are that the property market has kicked off to a flying start again this year and we can look forward to another busy year in the property industry. You will have read in the property press that I have decided to retire from my position as Chief Executive of the Institute from June 1 next. I had informed the National Council some time ago that I was considering retirement and I have now decided, in consultation with them, to step down after the Annual Convention. During the last 20 odd years, I have seen the Institute grow and develop into the highly respected voice of the auctioneering and estate agency profession it is today. I would like to pay tribute to you the members and to thank you for your continuing support. In particular, I would like to pay tribute to the members of National Council who have supported me over the years in some of our major projects including the purchase and refurbishment of our very fine Headquarters, No. 129 Lower Baggot Street, Dublin 2. I would also like to pay tribute to our very loyal staff at Headquarters who do an excellent job.

Liam O’Donnell

THE PROPERTY PROFESSIONAL IS THE MAGAZINE OF THE INSTITUTE OF PROFESSIONAL AUCTIONEERS & VALUERS 129 LOWER BAGGOT STREET, DUBLIN 2. TEL: 01 6785685 FAX: 01 6762890 E-mail: info@ipav.ie Website: www.ipav.ie CEI Website: www.web-cei.com

I have enjoyed my time with the Institute immensely. The daily challenges in helping members to sort out problems and in answering queries from the public have been a very stimulating and worthwhile experience. As I prepare to leave my desk, I am particularly proud of the education courses which I was pleased to play a part in establishing. Uniquely in this country, IPAV made the career of auctioneering and estate agency accessible to all by running courses at various centres around the country. The growth and development of these will be one of the major challenges facing my successor. Elsewhere in this magazine, you will read some information on this year's Convention where I hope to say a personal farewell to one and all.

Liam O’Donnell

Chief Executive Officer

Chief Executive

Liam O’Donnell F.I.P.A.V.

Editor

Tim Ryan Foley Ryan Communications Tel: 01 6624649

CONTENTS

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THE LONG ROAD TO SEANAD ÉIREANN

Publisher

Designroom Tel: 01 497 9022

property The

SPRING2006

PROFESSIONAL

Views expressed by contributors or correspondents are not necessarily those of IPAV or the publisher and neither IPAV nor the publisher accept any responsibility for them.

PICTURE SPECIAL: PRESENTATION OF CERTIFICATES

PG7 PG13-16

FANCY YOUR VERY OWN VINEYARD

PG18

MEET AN IPAV GRADUATE

PG20

SSIAs’ LET THE GOOD TIMES ROLL

PG23

IN THE DÁIL

PG25

EDUCATION BLUES!

PG28 the property professional

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MESSAGE FROM

THE PRESIDENT A Chara Mar a deir Raftaire an file: "Anois teacht an Earraigh ta'n lá ag dul chun sineadh". Cé go bhfuil an tEarrach linn anois, gúim dea-ghui na bliana nua oraibh sa chéad Iris na bliana 2006. De réir na saineolaithe, tá na dea-chomharthái ann a léiríonn go mbeidh eacnamaíocht na tíre ag gluaiseacht go sochar, sláintiúil fós i mbliana. Recent surveys in the press have shown that the property market will continue to grow this year albeit at a modest pace. Over the past decade, the property market has been the most vibrant part of the Irish economy. Despite the perennial doom and gloom forecast by a hardy few, the outlook continues to be bright and vibrant.

Willie Farrell President

The first of the SSIA accounts will mature shortly and some of this money will, undoubtedly, find its way into deposits on new or second-hand houses. In many cases, it will allow firsttime buyers to be able to afford a deposit and this is a very welcome development. IPAV had hoped that in the Budget the Minister for Finance would widen the Stamp Duty bands which bring buyers into the two highest rates at relatively low thresholds. The Institute has long argued that carefully engineered changes to Stamp Duty thresholds would have a neutral effect on Revenue intake. Preparations are well underway for our 2006 AGM and Annual Convention which takes place on May 12 and 13 in the Dunraven Arms Hotel, Co. Limerick. I hope as many as possible of you will make every effort to attend. As you will have read in the property press and elsewhere recently, our hard-working Chief Executive Liam O’Donnell is retiring on June 1. More than any other person, Liam helped to build this Institute and transform it into the wonderful organisation it is today. Without his efforts we would not have today’s thriving and vibrant institute. This year’s Convention will be an ideal opportunity for members to thank Liam for his hard work and to wish him well. In that regard, we are planning to dedicate Saturday evening’s social get-together, May 13, as an occasion to say a big ‘Thank You’ to Liam and I would seek your support for the greatest turnout possible. Further details about the weekend are contained elsewhere in this issue. When I was elected last May, I said one of my main aims was to encourage all members to display the IPAV logo at every opportunity. This I have done at all the various seminars I have attended and the numerous functions at which I represented the Institute. The IPAV logo is the public’s guarantee of a professional service and the more members display it, the more powerful its impact. In addition through our membership of the Confederation of European Estate Agents (CEI), we are part of a European-wide network of estate agents and by working in close co-operation with them, we can all benefit. For my part, I will continue to represent IPAV’s interests to the best of my ability for the remainder of my term of office and I look forward to meeting as many of you as possible in Adare in May. Le meas

Willie Farrell President

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GUIDE TO HOUSE REBUILDING INSURANCE THE FOLLOWING IS THE 2005 SOCIETY OF CHARTERED SURVEYORS’ GUIDE TO HOUSE REBUILDING INSURANCE

CORK AREA

GALWAY AREA

Typical Size

RebuildingCost

DUBLIN AREA

Rebuilding Cost

RebuildingCost

70 sq.m (750 sq.ft.)

€1992 sq.m (€185 sq.ft.)

€1480 sq.m. (€137 sq.ft.)

€1482 sq.m (€138 sq.ft.)

€1436 sq.m (€133 sq.ft.)

€1543 sq.m. (€143 sq. ft.)

95 sq.m. (1023 sq.ft.)

€1897 sq.m. (€177 sq.ft.)

€1393 sq.m (€129 sq.ft.)

€1391 sq.m (129 sq. ft.)

€1367 sq.m. (€127 sq.ft.)

€1429 sq.m. (€133 sq.ft.)

95 sq.m (1023 sq.ft.)

€1960 sq.m. (€182 sq.ft.)

€1468 sq.m. (€137 sq.ft)

€1417 sq.m (€132 sq.ft.)

€1448 sq.m. (€134 sq.ft.)

€1520sq.m. (€141 sq.ft.)

4118 sq.m (1270 sq.ft.)

€1799 sq (€167 sq.ft)

€1318 sq.m. (€123 sq.ft.)

€1289 sq.m. (€120 sq.ft.)

€1300 sq.m (€123 sq.ft.)

€1317 sq.m. (€123 sq.ft.)

Detached

118 sq.m. (1270 sq.ft.)

€1861 sq.m (€173 sq.ft.)

€1343 sq.m. (€125 sq.ft.)

€1328 sq.m. (€124 sq.ft.)

€1342 sq.m. (€125 sq.ft.)

€1410 sq.m. (€131 sq.ft)

Detached Bungalow

146 sq.m

€1751 sq.m.

€1315 sq.m

€1268 sq.m.

€1254 sq.m.

€1423 sq.m.

House Type

No of Bedrooms

Terraced

Semi-Detached

WATERFORD AREA

LIMERICK AREA

Rebuilding Cost Rebuilding Cost

Garage: Total rebuilding costs range from €14,432 for a single attached garage to €25,949 for a double attached garage. This table is a guideline based on a typical speculative built, estate type house in the Dublin, Cork, Galway, Waterford and Limerick areas. These figures are July 2005 figures. See important notes below. 1 The figures shown in the table are a MINIMUM base cost guide for your house insurance. 2. The figures are based on estate type houses built in the Dublin, Cork, Galway, Waterford and Limerick areas since the 1960’s. They exclude: (a)properties with more than 2 storeys or with basements or habitable attics. (b)‘one-off” houses with special design features or period houses. (c) apartments/residential flats because of split responsibilities for shared areas. The insurance of apartments is covered in the block service charge. Owners should confirm with their management companies/agents that their apartment block has been valued for insurance purposes, and that the insured value is current. 3. The figures assume a basic quality specification with

normal foundations, brick/block walls, concrete ground floor and timber first floor, softwood flush doors and hardwood double glazed windows, painted plaster to walls, plastered ceilings, standard electrics and central heating. The sum insured should be increased to allow for better than average kitchen fittings, built-in wardrobes, finishes and any other items not normally included in an estate type house (e.g. fire alarm). 4. House contents such as carpets, curtains, furniture, etc. are not covered by the figures. 5. No allowance has been made for the cost of outbuildings, patios or boundary walls. The figures do however allow for a concrete path around the house, for driveway repairs and regrassing.

fees incurred in reinstatement and VAT at 13.5% on building costs and 21% on professional fees. 7. The amounts included for professional fees have been calculated to cover the following services: Building Surveyor / Architect: Prepare working drawings and specification and administering the building contract. Quantity Surveyor: Invite and examine tenders, process payments and agree final account. provision has not been included to cover the cost of a Structural Engineer who may be required in some cases. Fees associated with the preparation of insurance claims are not included. 8. The costs are based on building rates in July 2005 and do not include for inflation during the duration of the policy and the period between any loss occurring and reinststement.

6. The figures allow for demolition costs, professional

OUR HOUSE ROADSHOW This year’s Roadstone ‘Our House’ Roadshow takes place at the Punchestown NEC from April 7th – 9th. Among the exhibitors this year will be IKEA, which plans to formally introduce a taste of its latest home ware range. The show promises a utopia for avid home and garden enthusiasts ranging from DIY, hand-made kitchens and the latest home leisure and entertainment systems. In excess of 150 exhibitors will be present showcasing their offerings and imparting their knowledge on contemporary lifestyle living for home and gardening needs.

For stand bookings call Emily Ryan (Event Co-ordinator) on +353 45 883 831 or for further information and ticket give-away offer visit www.ourhouse.ie the property professional

Admission Times: Friday 7th April 2pm – 10pm Saturday 8th April 11am – 7pm Sunday 9th April 11am – 7pm Prices:

Adults €12/Students & OAP’s €6 / Children Free

Parking:

Free

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MINISTER McDOWELL TO ADDRESS ANNUAL CONVENTION The Minister for Justice, Equality and Law Reform, Michael McDowell TD, will be the Guest Speaker at IPAV’s Annual Convention which takes place in the magnificent Dunraven Arms Hotel on the weekend of May 12 and 13. The Minister will address the Convention Dinner which takes place on the night of Friday, May 12. Established in 1792, the Dunraven Arms Hotel is one of the South West’s premier 4 star hotels. Surrounded by the mellow thatched cottages of Adare, it offers the old world ambience of a country house along with friendly efficient staff and first class service. A relaxing weekend is assured. The AGM & Convention is the principal event in the annual IPAV calendar and this year’s is promising to live up to the major success of last year. The AGM will see outgoing President Willie Farrell hand over the mantle of office to his successor, Limerick-based auctioneer John Shaw. The weekend begins on the morning of Friday, May 12 with the AGM. This will be followed by the Convention in the afternoon where the Guest Speakers will be President of the University of Limerick, Professor Roger G. H. Downer and Trinity College Economist Dr Seán Barrett.

The gala evening Dinner is the highlight of the weekend when over 200 guests are expected to attend. On Saturday there is a special treat in store for golfing members when there will be an opportunity to take part in a competition on the famous championship course in nearby Adare Manor. Early booking for those wishing to take part in this event is advisable. Also on Friday morning there will be the traditional bus tour of local sites of interest for partners and spouses. On Saturday night members and guests will gather to pay a special Farewell Tribute to retiring Chief Executive Liam O’Donnell. This will provide an opportunity to say their own personal ‘Thank You’ to Liam for his many years of service in building and progressing the Institute.

The Championship Golf Course at Adare Manor

IPAV President Willie Farrell said: “This year’s AGM & Convention will be a special one as it will be Liam O’Donnell’s last. Liam has been the public face of IPAV for over 25 years and we all owe him a great debt of gratitude. I am looking forward to as many members as possible turning out for his farewell function.” Full details and booking forms will be posted to all members in the coming weeks.

One of the beautiful suites in the Dunraven Arms Hotel

IPAV CHIEF EXECUTIVE TO LAY DOWN HIS GAVEL! IPAV Chief Executive Liam O’Donnell is to retire on June 1 next. Liam, who has been the public face of IPAV for over 20 years will step down after this year’s Annual Convention which takes place in the Dunraven Arms Hotel, Adare, Co. Limerick on May 12 and 13. Announcing his retirement, Mr O’Donnell said he had immensely enjoyed his time with IPAV and in helping to build it up to the thriving organisation it is today. “Today, the Institute boasts 800 members and its own impressive Headquarters on Baggot St.,” he said. “I would like to thank all the members and, in particular, the National Council for their support over the years.”

During his time with IPAV, Mr O’Donnell served as President from 1984 to 1988. He is also a Board member of the Confederation of European Estate Agents (CEI) and served as its President in 1999 and 2000. He was a member of the Auctioneering/Estate Agency Review Group established by the Minister for Justice, Equality and Law Reform which reported last autumn and is a member of the Private Residential Tenancies Board. Advertisements seeking his replacement have appeared in the national press and his successor will be appointed in due course.

IPAV Chief Executive Liam O’Donnell being congratulated on his election as President of the Confederation of European Estate Agents (CEI) in 1999 by National Council member Pat Davitt. the property professional

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THE LONG ROAD TO SEANAD ÉIREANN AND THE IPAV PRESIDENCY! SENATOR WILLIE FARRELL, IPAV PRESIDENT, TALKS TO TIM RYAN AS HE TRAVELS DOWN BÓTHARIN NA SMAOINTE ON THE LONG ROAD TO THE SEANAD AND THE PRESIDENCY OF IPAV

in Ireland changed dramatically and continuously.” At the age of just four, he went to the local Carney National School to help keep up the numbers so that an elderly teacher, a Miss McCormack, could be kept on to receive a full pension. It was a four teacher school but with just two classrooms, one for girls and one for boys. Typical of the time, two teachers taught in each room with half the students facing in opposite directions. “One day an old man asked me what a little lad like me ‘not the size of a sod of turf’ was doing going to school and I proudly replied: ‘To keep up the numbers’!” The plan worked and Miss McCormack got her pension.

“

If you think you are beaten, you are, If you think you dare not, you don’t, If you would like to win but think you can’t, it is almost certain you won’t. Life’s battles don’t always go to the stronger or faster man. But sooner or later the man who wins is the man who says ‘I can’

”

These two short verses IPAV President Willie Farrell says sum up his philosophy on life, a life that has seen him take on many challenges and roles despite the fact that for two thirds of his life he has had only one hand due to an accident when he was a young man. The verses are just one example of a large collection of poems and sayings he has collected throughout his life. Willie Farrell was born on the18th of April, 1928 on a small 10 acre farm in Cashelgarron, Co. Sligo. Like many small rural Irish farms of the time, there were just two cows, a horse and a cart. His father, who farmed the small holding, was an old IRA man and a founder member of Fianna Fáil in North Sligo.

And because of the teacher’s anxiety to keep up the numbers, Willie Farrell and his fellow young students benefitted from free school transport even though it was the early 1930s! “She used to organise what we called ‘ a midwife’s jaunt’! A taxi collected all the four year olds each morning during the winter months and brought us to the school. But we had to walk home!” (A midwife’s jaunt referred to the practice whereby a midwife would regularly be collected in a hurry to attend to a mother giving birth at home but would later have to make her own way home on foot).

A TREAT OF BREAD AND JAM! In school, Willie got on well with his teacher and, in particular, loved Irish. During summer her farming husband and son went off to the bog some miles away to cut

and save turf. So, during that time, after the roll call, Willie was sent to her farm to collect an ass and cart and bring the milk to the local creamery. When he got back to the house around lunchtime, tea, bread and jam and a treat of the time – currant cake – awaited him in abundance. In 1940, a new school was built in Carney and the local parish priest, Fr O’Byrne decided to turn the old school into a dance hall. He needed sand and gravel delivered for his new project and asked the boys’ class who owned an ass and cart. The young Willie Farrell did not own one but knew he could borrow from a neighbour. He duly delivered the sand and gravel and was rewarded by being allowed to attend a special concert. He even managed to stay on for a dance later but had to be quickly hidden in the prompter’s box underneath the stage when the parish priest put in a late night appearance. The compulsory teaching of Irish had just been introduced to national schools and Willie’s teacher was the first to teach Irish in Carney N.S.. At the age of 14, Willie Farrell left Carney and went to Grange Vocational School. The Second World War had now started and rationing was in place. Each family had a weekly allowance of a 1/2lb of sugar and 2 ozs of tea. However, Willie learned that if you made jam at home you could apply for a special allocation of sugar. He went to the police barracks and filled out the necessary forms, returning home with the two stone of sugar. Now he was faced with the problem of having to produce jam in case the

“My mother, a local from the area was also a strong Republican so I grew up steeped in the tradition,” he says. Life was not easy and most farmers survived by trading produce such as eggs, potatoes and hay at the many markets around the county. “The last generation marked the end of an era that had not changed much for 300 years. But after World War II, the way of life

‘Under bare Ben Bulben’s head’. Willie Farrell was born on a small farm under Benbulben in Co. Sligo.

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farm. He also secured a job driving a hearse with a local Sligo businessman and for a few years enjoyed driving the powerful 2 litre engine on journeys which sometimes took him to Dublin where he had an opportunity to experience real engine power and high speed! Frequently Willie managed to make the last journey of many souls departing this world the fastest and most thrilling of their entire lifetime! The job paid 50s (€3.17) per week to boot. Willie Farrell was the envy of his peers in Sligo. By now the ESB had come on the scene and rural electrification had reached Sligo. Securing a job digging holes for the tall timber poles doubled Willie’s salary to an incredible £5 (€6.35) per week. Through saving some money, he managed to buy his first car, a 1935 Morris 8, for the princely sum of £50 (€63.50).

Willie Farrell in the horse and trap which he drove from Bundoran to Dublin in a fund-raising expedition in 1983.

inspector called! Here he got the idea of enlisting the support of the domestic science teacher and her class in school and she duly obliged. However, she only received one stone of sugar and he kept the rest for domestic use at home! Times were often very difficult and one year as Christmas approached he realised he had no money at all for the festive season. Desperate to make a few shillings, he borrowed an ass and cart, filled it with hay and drove to the market in Sligo leaving at 4 am. Twelve hours later and frozen cold in the market square, he finally found a buyer for the hay for 12s - 6d (80c). But he had money to spend for Christmas and that was of enormous importance to a young man with lots of plans for the future. He spent many happy times in the local forge where he learned to fashion iron and to shoe horses. Soon the young Willie Farrell managed to secure a job with a local cattle dealer and earned the princely sum of £1 (€1.27) per week, very good wages at the time. Next stop was a job as a temporary postman. When this ended, he managed to secure work for a brief period before Christmas on a Council Relief Scheme with Sligo County Council. For the four weeks while the scheme lasted he broke stones on the side of the road with a small hammer.

A LOVE OF MECHANICS Born with a love of all things mechanical he had, by now, acquired an expertise in cars and tractors and had managed to learn to drive even though vehicles were extremely scarce in Sligo. He got a job with a local man drawing turf from the bog in an old truck. At the age of 18, he inherited a small farm from an aunt and began to work the small

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Always restless to move on and better his status, Willie Farrell decided that the real way forward was in climbing poles and so one Sunday afternoon he got a set of climbers from the ESB and practised climbing up and down poles. “By Sunday evening I was able to run up and down the pole like a squirrel.” Soon after a foreman came by the men digging holes, enquiring if anybody had experience of climbing poles. Willie was the sole man to raise his hand. A startled foreman questioned this newly acquired skill and how he had acquired it but Willie got the job climbing poles and securing the electric cable to the poles. He now moved outside Sligo and spent much time in Donegal working on the poles. He had also learned how to wire a house and combined this ‘nixer’ with his day job. “I well remember the going rate at the time was £1 (€1.27) for a light switch and 30 bob (€1.90) for a plug. In most houses the requirement was for three light bulbs, one plug and a sacred heart lamp.” His new found wealth allowed Willie to build a house on his farm. With the aid of a grant of £275 (€350) from the Department of Local Government and a similar grant from Sligo County Council he set about the task. He drew all the sand and gravel in a truck himself and made the concrete blocks in the evenings with the aid of a special frame. He employed local men to build and roof the house but did the wiring and plumbing himself. Unusual for the time, he installed both hot and cold running water in the house, the first home to have such an amenity for miles around. And he was planning to get married! Now aged just 25, things were really looking up.

A BLOW OF FATE But as life seemed to open up limitless opportunities to the young Sligo man, fate was about to strike Willie Farrell a major blow that would radically alter, but not inhibit, his future zest for life.

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One afternoon he and a friend went shooting pheasant in the locality. As they closed in on a known good reserved area, the duo had to cross a very awkward fence. Willie was carrying a double-barrelled shot gun and they had brought along two gun dogs. As they crossed the fence, the gun got caught in a branch. Before Willie had time to free it, the branch snapped against the trigger and the gun fired. The gunshot hit Willie’s right hand, shattering his palm and fingers.

By now he had married a local girl, Mary McSharry. He has two sons and one daughter.

“I remember looking down and seeing my fingers hanging from my hand. Ironically, the man who came to rescue me and brought me to hospital had experienced a similar accident some years before.”

About this time milking machines began to arrive on dairy farms and Willie was quick to spot the opening. He managed to secure the franchise for the well-known Alpha-Laval brand for counties Sligo, Leitrim and Galway. He gave up the job of rate collector and went full-time into selling milking machines.

Willie was taken to Sligo General Hospital where a portion of his hand was amputated. Soon he was visited by his manager in the ESB who promised to do his best to save his job. A second visit brought the bad news that he would lose his well-paid job. But a modest sum of money was collected and given to him. From now on life would be different. But the accident did not deter the young Sligo man. Soon he was back doing his driving test which he passed in flying colours. He then asked the driving inspector could he apply to do a truck driving test. The startled inspector replied that if he could fill a large truck with sand and drive it through the narrow streets and crowded market square of Sligo he would get it. Willie duly filled the truck with sand and passed the test. He approached CIE for a bus driving job but was given a stern refusal despite his Certificate of Fitness and of Competency, something that was unknown at that time. Soon he bought a van and milk round which he maintained for 10 years. A job as a rate collector came up and Willie had his first experience of politics.

‘ALPHA-LAVAL, THE FARMER’S PAL’ The job of rate collecting was not easy in the 1950s as people often had great difficulty in saving the money. Frequently, Willie exercised discretion and allowed people extra time to gather the money at his own expense.

“I had two fitters employed and often I sold four machines in one day. I formed a company and was making serious money.” But never one to be happy with the status quo, Willie’s next venture was into a filling station. He bought a piece of land in Grange and built a brand new station. Later he added a restaurant. Around this time, he took out an auctioneer’s licence and started running auctions. In 1973, along with four other men he set up a cattle market in Grange. He was enjoying yet another new career. “IPAV was then a new institute and I applied and got membership,” he recalls. “It was going through a very difficult phase and the man who introduced me to it told me it would not survive. It is due to the tremendous work of the Chief Executive Liam O’Donnell and a few others that it survived and grew to the fine organisation it is today.”

The weekly cattle mart led to a monthly auction of furniture, cars tractors and farm machinery of all kinds. Willie moved into real estate and began selling property in the North Sligo area. In the 1970s and ’80s, the Land Commission was breaking up large estates and trying to make small farms viable by giving them additional land. Willie developed a reputation as a valuation expert and made many appearances on behalf of farmers who were selling land to the Commission but who felt the price being offered was inadequate. “I was very lucky in that I had one hundred per cent success in securing some increase for all my clients at the time. I developed a great expertise in the area,” he recalls. Selling land to the Land Commission had a peculiar ritual, he says. Before the sale was agreed, he and a Commission official would visit the farm. In a field Willie would dig a small piece of clay and hand it over to the official. This ritual hand-over of earth sealed the deal! Ever interested in helping his local area, he joined Fr McDyer in his ‘Save the West’ campaign. He immersed himself in helping communities to organise Group Water schemes. Unsuccessful in convincing the powers that be to build an advance factory in Grange, he built a large shed himself on his own land. He leased part of it to an entrepreneur in the furniture business and another part later to a glass cutter. Today, his son Seamus runs a very successful factory there, S. F. Engineering, which exports automated production lines for food processing plants to Sweden, France, the US, Iceland and the UK.

“Fianna Fáil had only 10 councillors out of 25 on the Council and I needed a majority to get the job. In one case I was promised a vote if I could find a good jockey at very short notice and bring him to Sligo to win a race!” Willie set about the odd request with gusto and through a contact in Donegal obtained the services of a professional jockey whose career had ended prematurely due to his record of ‘fixing’ races. “I brought jockey and pony together. The jockey rode the pony down through the fields and out of sight. I don’t know what he did to the animal but when he returned it was a changed pony raring to go! He was first out from the starting post and won the race easily. I got the job as rate collector and combined it with my milk round for a number of years.”

Willie Farrell’s canvas card in the 1981 Seanad Election

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“Grange was, I believe, the first rural village in Ireland to have an industrial estate. From that small beginning five further factories started and all had one thing in common – their founders graduates of Grange Vocational School, myself included. Here I pay tribute to a man from Ennis, Co. Clare, Eamon P. Forde, the Principal of Grange Vocational School and whose slogan was: ‘Small things make perfection but perfection is no small thing!’ Eamon, a chara, go raibh maith agat agus go maire tú céad!” Willie’s hand disability did not deter him from taking up golf and in the 1980s he joined the fledgling ‘One Arm Golfing Society’. Later he went on to win the All Ireland One Arm Championship and the World One Arm Putting Championship. He continues to be a regular golfer on many courses around the country and served as captain of his own club, Bundoran, Co Donegal and was also Captain of the Oireachtas Golf Society..

for auctioneers and estate agents in the Upper House during his time there. While in Leinster House, he served as a member of a number of Oireachtas Committees including the Joint Committee on Enterprise and Small Business. He also served as Chairman of the North Western Health Board on two occasions and was Chairman of the Association of Health Boards of Ireland from 1986 – 1992. Willie Farrell’s accident made him keenly aware of the poor treatment of people with disabilities and he made a commitment to help them in any way he could. This later showed itself in his pioneering work to establish a Centre for People with Disabilities in Bundoran. In 1983, as part of a fund-raising drive, he drove a pony and trap from Bundoran to the Spring Show in Ballsbridge when he raised £20,000 (€25,400), a huge sum of money at the time. The Centre continues to thrive today.

“In fact I regard life as a game of golf,” he says. “Your ball can be on the green, in the bunker or anywhere in between but you have to play it wherever it lies!”

In 2003, International Year of People with Disabilities, he raised €6,500 to sponsor a competitor in the Special Olympics when he played a round of golf in each of the four Provinces on the same day.

SEANAD ÉIREANN

In 2002, Willie Farell retired from public life but continued to be active. Now an Honorary life member of IPAV, he was elected President at the AGM in his native Sligo in May 2005. It’s an honour of which he is deeply appreciative and one of his proudest moments was when he welcomed the Taoiseach Bertie Ahern TD to his President’s Dinner.

Willie’s community activity led him into politics and he was elected to Sligo County Council where he served for many years and was elected Chairman in 1990/91 In 1982, he was elected to Seanad Eireann where he served for 18 years. In his election to Seanad Eireann, he was particularly proud to receive IPAV’s nomination and was a voice

Clodine Begley, Dundalk, eceiving her Certificate in Auctioneering & Estate Agency from Dr Tim Creedon, Director of the Institute of Technology, Tallaght and Willie Farrell, IPAV President.

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Life has been an interesting and enjoyable experience for Willie Farrell. He is particularly proud of IPAV which he says has a great future ahead. “There is a great future ahead for the bright IPAV student,” he says. “Property will always be bought and sold and auctioneers will have a key role to play in all its aspects including valuations, negotiations, sale transactions and so on. “We are the only Institute that offers courses not only in Dublin and Cork but also in Waterford, Galway, Athlone, Cavan and Derry. IPAV also saw the opportunities in Europe and became affiliated to the Confederation of European Estate Agents which represents agents across Europe. No longer is the auctioneer confined to one particular town or county, these days he or she has an increasing role to play on the European and international stage.” He strongly encourages all IPAV members to display the IPAV logo in their offices, on the public windows of their offices, on all advertisements and wherever possible. “The IPAV logo is the brand name of our Institute. Its ultimate strength is that it is the sign of quality and professionalism to the general members of the public. Only by acting together, can we enhance the institute in all its aspects.” Looking back on a long and eventful life Willie Farrell sums up his efforts and successes by quoting another of his favourite sayings: ‘We shall aspire to inspire before we expire!’

William Kinane, Main St., Tipperary receiving his Certificate in Auctioneering & Estate Agency from IPAV President Willie Farrell and CEO Liam O’Donnell at the Radisson SAS in Galway.

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PICTURE SPECIAL

Cathal Blake, Whitehall, Santry, Dublin 9 receiving his Certificate in Auctioneering & Estate Agency from Dr Tim Creedon, Director of the Institute of Technology, Tallaght and Willie Farrell, IPAV President.

Pictured at the IPAV Graduation & Award Ceremony in the Radisson SAS Hotel, Galway were Willie Farrell, IPAV President, Aidan McGrath, Spiddal and Liam O’Donnell, IPAV Chief Executive.

Dr Tim Creedon, Director of the Institute of Technology, Tallaght speaking at the Graduation & Award Ceremony in the College.

Pictured at the IPAV Graduation & Award Ceremony in Cork Institute of Technology were (l – r): Damien Courtney, Head of Business & Humanities Faculty, CIT; Liam O’Donnell, CEO, IPAV, Con O’Sullivan, Tralee (recipient) and Willie Farrell, IPAV President

Fiona Hourihan, Skibereen, Co Cork, who received her Certificate in Auctioneering & Estate Agency recently with (l – r): Damien Courtney, CIT, Liam O’Donnell and Willie Farrell

Audrey Codyre, Barna, Co. Galway who received her Certificate in Auctioneering & Estate Agency from IPAV President Willie Farrell and CEO Liam O’Donnell the property professional

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PICTURE SPECIAL

Imelda Sheeran, Clonbrusk, Athlone, receiving the Student of the Year award from Laura Raleigh, IPAV Education Advisory Committee and Michael Tobin, Head of Adult Education, Athlone Institute of Technology.

Ciara Byrne, Ballyfermot, Dublin 10 receiving her Certificate in Auctioneering & Estate Agency from Dr Tim Creedon, Director of the Institute of Technology, Tallaght and Willie Farrell, IPAV President.

Stephanie Davy, Caastleknock Road, Dublin 15 receiving her Certificate in Auctioneering & Estate Agency from Dr Tim Creedon, Director of the Institute of Technology, Tallaght and Willie Farrell, IPAV President.

Barbara O’Sullivan, Bishopstown, Co. Cork receiving her Student of the Year award in Cork CIT from Liam O’Donnell, CEO IPAV and Willie Farrell, IPAV President

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Assumpta O’Gorman, Turloughmore, Co. Galway who received her Certificate in Auctioneering & Estate Agency from IPAV President Willie Farrell and CEO Liam O’Donnell at the Radisson SAS in Galway.

Conor Dobson, Rathmullen Road, Drogheda receiving his Certificate in Auctioneering & Estate Agency from Dr Tim Creedon, Director of the Institute of Technology, Tallaght and Willie Farrell, IPAV President.

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PICTURE SPECIAL

Louise Faherty, Kilbarrack Road, Dublin 5 receiving her Certificate in Auctioneering & Estate Agency from Dr Tim Creedon, Director of the Institute of Technology, Tallaght and Willie Farrell, IPAV President.

Dermot Dunne, Drombane, Thurles who received his Certificate in Auctioneering & Estate Agency from IPAV President Willie Farrell and CEO Liam O’Donnell at the Radisson SAS in Galway.

David Canavan, Arklow, receiving his Student of the Year award at the College of Commerce, Dún Laoghaire from Síle De Valera TD, Minister of State at the Department of Education & Science.

Michael Kennedy, St. Mary’s Road, Arklow receiving his Certificate in Auctioneering & Estate Agency from Dr Tim Creedon, Director of the Institute of Technology, Tallaght and Willie Farrell, IPAV President.

Enda De Brun, Ardrahan, Co. Galway who received his Certificate in Auctioneering & Estate Agency from IPAV President Willie Farrell and CEO Liam O’Donnell at the Radisson SAS in Galway. the property professional

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PICTURE SPECIAL

2005 graduates from the Senior College, Dún Laoghaire at their presentation function recently with IPAV President Willie Farrell and Councillor Aine Elliot, Member of Dún Laoghaire VEC.

Receipients of the Certificates in Auctioneering and Estate Agency in the Institute of Technology, Tallaght with the President, Dr. Tim Creedon, Damian Roche, Head of Business Studies, IPAV President Willie Farrell and CEO Liam O’Donnell. the property professional

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FANCY YOUR VERY OWN VINEYARD? A FORMER WINE JOURNALIST, FRANÇOISE PAULY BEGAN SELLING VINEYARDS IN FRANCE AND NOW HAS PROPERTIES ON HER BOOKS IN ALL THE MAJOR WINE-PRODUCING COUNTRIES AROUND THE WORLD, SHE TELLS PETER CLUSKEY IN FRANCE.

PETER CLUSKEY

FRANÇOISE PAULY

IT’S the new status symbol for the super-rich Irish. It’s solid, sophisticated, potentially a good investment, even a worthwhile business opportunity. Not only that, but it guarantees its new owners long hours of enjoyment. And by today’s Irish prices it’s probably going to be darned good value as well. So if you’ve got clients looking for something really special, how about this: A magnificent 350 square-metre château built in the 18th century, surrounded by 16 acres of Beaujolais Villages AOC vines, complete with fully-equipped winery and staff houses. It’s yours - or rather theirs - for just €1.4 million, the price of a modest four-bedroom family home in one of the leafier South County Dublin suburbs. That’s right: When it comes to a good investment it’s no longer enough these days to tuck away a few cases of good quality wine. Why not buy the vineyard instead? “In our experience at least half the people

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who buy vineyard properties buy them for the grand estate house, for the lifestyle … especially foreign people coming from other business backgrounds”, says Françoise Pauly, Managing Director of Vinea Transactions, a French estate agency which sells vineyards and only vineyards. “Certainly they like the idea of owning a vineyard. They know it’s something that will impress. But often it’s not particularly important to them whether or not it’s a successful business. Its main function is simply decorative.”

A CAREER IN JOURNALISM Pauly herself came upon the business by accident. After completing an MA in English Literature in the Sorbonne in the mid ’Eighties she fancied a career in journalism and landed a job on one of France’s bestknown wine journals, La Journée Vinicole. With a nose for a gap in the market she set up a communications agency a few years later working with clients from the wine industry.

“As I got to know the wine business better, I realized that while selling vineyards was very specialized and time-consuming, nobody was doing it exclusively,” she told Property Professional. “It was always regarded as an add-on to an ordinary estate agency business and in my opinion that just wasn’t adequate. I suppose … yes, I suppose I felt I could do it better.” Pauly’s company, based near the Mediterranean city of Montpellier, now has more than 220 vineyards on its books, all over France but also in Italy, Portugal, Spain, South Africa, Australia, New Zealand and Romania. So for a taste of the exotic, how about 300 acres of vines and a winery that can process 8,000 tonnes of grapes a season, in the Kakheti region of Georgia? Or closer to home, an award-winning estate in Suffolk, less than two hours from London, with a 19acre vineyard and a renovated 16th century five-bedroom house overlooking the sea? Prices start from under €1 million, and run to €20 million or so - if you fancy a little something in Chile, complete with golf course and trout fishing river. Properties are categorized using a five star system: a one-star vineyard costs anything up to €800,000 and there aren’t too many of those around; two-star is €800,000 to €1.5 million; three-star, €1.5 to €2.5 million; four-star, €2.5 to €5 million and five-star, €5 million-plus. It makes choosing your vineyard so much easier. So who’s buying? “There are a lot of British buying at the moment, and there have been for the past four or five years,” says Pauly, who advertises regularly in the weekend edition of The Financial Times, targeting the high-end business market. “We have Scandinavians, Dutch, Belgians, some Americans, and increasingly we’re seeing Russians … though you have to be very careful because some of the Russians are trying to launder money, and it’s difficult to know who’s legitimate and who’s not. We’re also acting as advisers to some Chinese clients, because nowadays they’re becoming interested in everything outside their own country.”

IRISH ENQUIRIES And the Irish? “Yes, there have been some Irish inquiries, enough to convince us to take a stand at the overseas property exhibition at the RDS last September but so far none of them has turned into a purchase. We realize Ireland is a market we need to develop.” And to match the growing international interest in vineyard properties, there’s been a generational change in France, in particular, she says. “Vineyards used to be handed down through generations but in recent years many younger people have been deciding they want to do other things and those properties are being sold.” In the Languedoc Roussilon region, for example, there are some 3,000 private winegrowers - with roughly 50 sales a year. That means 1-in-60 vineyards here changes hands every year, she estimates. And now, of course, the French wine industry is in a major decline. Sales abroad are falling. Competition is growing. And the French themselves are drinking less - 50 litres of wine a year each, compared to an extraordinary 126 litres per person in the ‘Sixties. Some French producers have fought back - even marketing abroad under labels such as “Fat Bastard” and “Red Bicycle” but it’s the Australians, the Chileans and the South Africans who are winning the international wine war. “It’s true”, says Pauly. “The problems with the French wine industry started to feed through into the transactions market last year and quite a few owners are trying to sell now for simple economic reasons. The problem is that these vineyards are not necessarily the ones that get snapped up. Buyers don’t want economic trouble. They

want healthy properties and they can find those as well. Buying a vineyard is not something that should be done in a hurry.” But - in one of life’s little ironies - despite the fact that the value of vineyard businesses has been flat-lining in France, the value of property has continued to increase, particularly the type of property that appeals to the foreign market. “And so, given the fact that the primary interest is often in the estate house, the overall price of a vineyard estate may stay the same. It’s the ups and downs of the market.”

SALES DIFFICULTIES So does this vineyard idyll usually work out for her clients? “The main problem for new owners is not making the wine, it’s selling the wine. Even if you don’t know how to make wine, you’ll always find someone who does. There’s plenty of expertise available for hire. But when you try to sell, you immediately face huge competition. You’ve got to persuade one of the big UK supermarket chains to take your wine, for example. But if you don’t have very big production or you don’t know anything about marketing, then … it can be a very a tough business.” But in most cases, it’s not so much a commercial undertaking as a change of lifestyle that new owners are looking for. “The one thing most of my foreign buyers have in common”, smiles Françoise Pauly, “is a passion for wine … and then, yes, of course … money.” Vinea Transactions is at www.vineatransaction.com Peter Cluskey is at petercluskey@yahoo.fr

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MEET AN IPAV GRADUATE WHO SPECIALISES IN THE GROWING PROFESSIONAL AREA OF SITE ACQUISITION THE ARRIVAL OF MOBILE TELEPHONE COMPANIES IN IRELAND HAS CREATED A NEED FOR MANY HUNDREDS OF MAST SITES. HERE IPAV GRADUATE IVAN LAWLOR, WHO WORKS FOR METEOR, SPEAKS TO TIM RYAN ABOUT HIS CAREER.

Where did you grow up and receive your early education?

I grew up in Naas, County Kildare and did my Intermediate Certificate in Newbridge College and from there, went to Cross and Passion College, Kilcullen where I completed my leaving certificate.

for the course as it was the first year but all in all it was of benefit as it gave us the foundation and basic knowledge to be an auctioneer/valuer. 4.

How useful did you find it?

If I were to look back at it now and think of what is valuable in my job today, it would have to be property Law, Marketing and Building Studies. Having a basic understanding of law and contracts will always help in our industry as it is one of the critical factors in closing sales or leasing premises/land. 5.

What further studies/qualifications did you seek after leaving the Senior College?

I am lucky that within the company I work for, they are always providing courses that will help in professional development. I have undertaken courses particularly around project management as this is close to what my job is based on. 2.

How did you come to study the auctioneering course in Dun Laoghaire?

I wanted to be an auctioneer for a number of years and found that there was an auctioneering and estate agency course available in Cork. I applied for this course and, on visiting the college, I found out that this was also available in Dún Laoghaire. I believe that this was the first year the course was run in Dublin through IPAV. Being from Naas, the course was accessible for me, or so I thought, as I had to commute on the bus and dart every day. I don’t think that this would be possible with the traffic on the roads today! 3.

What did you enjoy/dislike about the course?

What I disliked was the commute to and from Dún Laoghaire, but that was my own choice. We were probably the guinea pigs

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What were your first and subsequent jobs?

For the first 5 years of my career I worked for three auctioneering and estate agency firms. They were based in Kildare, Limerick and Dublin. 7.

Tell us a little about Meteor?

I have been working with Meteor almost from the beginning. (7 years). For the few who don’t know, Meteor is a mobile telephony operator based in Citywest, Dublin. There are approximately 400 people working for them and they have regional offices in Limerick, Cork and Galway. There is a wide range of expertise in the mobile phone industry ranging from the most well known, sales and marketing to the less well known like construction, radio frequency engineering, transmission, planning and site acquisition. 8.

What is your job exactly?

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My role in Meteor is Rollout Project Manager for Munster and Connaught. I look after all the site acquisitions and the construction of mobile phone base stations in the two provinces. I have to manage sites from the early stages of site identification to site leasing/purchasing and then the construction stage until we hand the sites over to our Operationâ&#x20AC;&#x2122;s Department. The sites that we build can be anything from monopole structures (like lighting standards) to large lattice masts. We also carry out a lot of work on rooftops and buildings around the country. As we carry out a lot of construction work our teams have to be very aware of planning law and we spend a lot of time with our sites going through the planning process. As we have to meet deadlines for coverage requirements, systems for contract negotiation and forecasting take a lot of time and are a huge part of the role.

Is there keen competition in the mobile phone market?

Iâ&#x20AC;&#x2122;d say if you asked the people in our sales department they would all say yes. Fortunately, we are kept out of that loop and are very much focused on the rollout. We would rarely get an opportunity to be involved in direct competition issues. With regard to competition for sites, there is a lot of co-operation between mobile phone companies with mast sharing so this has helped all of us deliver coverage throughout the country. 10. Are there openings for other IPAV graduates with meteor and similar phone companies? I have been in contact with the IPAV offices for the last number of years looking for staff for our site acquisition department. Most of the site acquisition staff in this industry all have their training and knowledge from auctioneering / estate agency. When

advertising for staff, we always require a property or similar qualification or training. We are currently looking for site acquisition staff for our Dublin office and we are also recruiting at graduate level. 11. What are the qualities required for these jobs? A candidate would need to have some level of property experience and would have to be self-motivated. Knowledge of property and planning law is very helpful and good negotiating skills are a definite advantage for progression. This industry is very much target driven and requires a lot of initiative for people to go out and find sites. The benefit to our job is that we are offering to purchase rather than to sell. When purchasing you always have a stronger advantage. 12. What are your future ambitions? To retire early!!!

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SAFETY, HEALTH AND WELFARE AT WORK ACT, 2005

On July 1st last, the Minister of State at the Department of Enterprise, Trade and Employment, Tony Killeen, T.D., announced the Commencement of the Safety, Health and Welfare at Work Act, 2005. The Act is a major piece of new legislation in the area of safety and health in the workplace. It replaces the 1989 Act, which established the Health and Safety Authority (HSA). The primary focus of this Act is on the prevention of deaths and injuries in the workplace. Safety is paramount. Minister Killeen added: “This Act is a serious wake-up call to employers who don‘t do enough to prevent accidents at their places of employment. Workers also have a duty not to endanger themselves or others and to be alert to dangerous situations." On the matter of Safety Statements, it will continue to be a requirement on every employer to have a written Safety Statement, which identifies the risks and hazards in the place of work. Safety Statements of course will be informed by risk assessments which will be based on identification and assessment of all hazards in a workplace. Both risk assessments and safety statements will have to be kept up to date. It will continue to be the duty of every employer to do everything he or she can, as far as reasonably practicable, to ensure the safety, health and welfare of his or her employees. The list of specific duties and responsibilities on employers will include responsibility for ensuring adequate instruction and training, without loss of earnings to employees. Employers must also ensure, as far as reasonably practicable, that others at the place of work, not being employees, are not exposed to risks to their safety, health or welfare . In the new Act, the Minister has moved to reduce the onus on small business and the

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farming sector by providing that an employer with three or less employees can meet the Safety Statement requirement by adhering to a special Code of Practice to be developed by the Health and Safety Authority for a particular industry or sector.

GENERAL DUTIES OF EMPLOYEES In general employees must: ◆

comply with relevant safety and health laws,

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not be under the influence of an intoxicant at the place of work; and in that regard submit to an appropriate test, if reasonably required by their employer,

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not engage in improper conduct or behaviour,

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wear personal protective clothing where necessary,

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cooperate with their employer and look out for one another, and

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not do anything which would place themselves or others at risk.

Testing for intoxicants will be regulated by the Minister and must be carried out by a registered medical practitioner. There are two situations in which testing will apply under the Bill: Firstly, if an employee appears to be under the influence of an intoxicant and in such a state as to endanger his/her own safety or the safety of others, (this particular provision is one of the many which will be subject to regulations before it comes into operation) Secondly, where an employee is working in a safety critical situation, he or she may be required to undergo a periodic medical assessment of fitness to work.

CONSTRUCTION OF PLACES OF WORK A new provision in the Act provides that persons who commission, procure or

construct a place of work must appoint a competent person to ensure that construction is carried out safely and properly and without risk to health or safety.

PROTECTION AGAINST DISMISSAL AND PENALISATION Another new provision in the Act will ensure that employees have an avenue of appeal against any form of penalisation in their employment which results from carrying out their duty in regard to safety matters. They may appeal to a Rights Commissioner for a determination. In the event of a further appeal, this can be heard by the Labour Court. It is expected that the use of the existing employment appeals machinery will ensure order and fairness in dealing with matters which give rise to dispute at the place of employment.

CODES OF PRACTICE Codes of Practice exist for the purpose of regulating safety and other procedures and activities. A failure to observe a Code of Practice which leads to an accident and subsequent prosecution, will be admissible as evidence in a Court.

IMPROVEMENT PLAN Where an inspector comes across work activities which involve risk to safety, health or welfare he or she can give written direction requiring the submission of an improvement plan. Further details on the Safety, Health and Welfare at Work Act, 2005 can be got by logging onto www.has.ie

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SSIAs – LET THE GOOD TIMES ROLL? AN ANALYSIS OF THE IMPACT OF THE SSIA EXPERIMENT. Nigel Donnelly

By Nigel Donnelly B. Comm., M. Econ. Sc., Institute of Technology Tallaght, Dublin and Gerard Phelan M.A., M. Sc., Institute of Technology Tallaght, Dublin.

ECONOMIC IMPACT OF SSIAs

Gerard Phelan

When asked about the consequences of the French revolution, Chairman Mao is reputed to have answered that it is much too early to say! When considering the economic impact of the SSIA experiment it is easy to agree with Mr Brian Cowen, the Minister for Finance, in answers to parliamentary questions, “…the impact of such maturing funds on consumer demand in 2006 and 2007 is difficult to estimate and will depend on how the accumulated SSIA savings are spent or saved, how that portion of an individual’s income that was previously saved in SSIAs is used, and the extent to which savings are rolled over into other investment products”, (23rd November 2004). He also said “…it is not possible to give a definitive answer as to the eventual cost of the scheme as it subject to a number of variables such as participants dying, withdrawing from the scheme or varying their monthly contributions”, (12th April 2005) While no one can really know what will happen, the effects of the SSIAs are already beginning to show. New products are being developed. Some people have borrowed and spent on the strength of them. Some have begun planning what to do. But surveys suggest that a large number are still undecided. People are seeking advice. What we can say is that, including the State’s contribution of close to €3bn, approximately €15 - €17 billion will be released between 31 May 2006 and 30 April 2007. Of the almost 1.1mn accounts, approximately fifty per cent will mature in April 2007 alone! There is no historical precedent and the consequences may take many years to unfold. Aside from the uncertainties outlined above, no final agreement on the sum in the accounts is possible until the end of the scheme. Variable rates on deposits could change and the

improved performance in equity markets and exceptional returns from property investments have acted as a stimulus for investment based SSIA products. However the value of these investments can fall as well as rise. The average SSIA is expected to have around €14,000 on maturity. However a couple who have both always paid the maximum €254 into their SSIAs, can expect a deposit-sized €40,000 to €50,000 at maturity. Based on this record of regular saving, they could borrow over €125,000 over 30 years at current interest rates. Approximately a quarter of the SSIA holders, (a significant age group for first time buyers), are aged between 25 and 35.

IMPLICATIONS FOR THE PROPERTY MARKET The February 2006 OECD report on the Irish economy says the maturing SSIAs pose only an outside risk of stoking inflation. The report states that there is no threat of a housing market crash over the next two years. Significantly, it suggests that house price inflation could grow by up to eight per cent in both 2006 and 2007, without raising the risk that prices will collapse. Yet not all agree with such a benign view of the Irish economy. “At the end of 2002, total private-sector credit was about €140 billion. By last December it had reached €260 billion. … Existing private-sector credit is now just fractionally short of twice the level of gross national product (GNP) in this country, and growing at a rate of close to 30% year on year. If this process continues private- sector credit will hit €340 billion by the end of this year and €450 billion by the end of 2007 … borrowers, not savers, are driving consumer demand … anybody who tells you that we are not witnessing a credit bubble – and an associated asset price bubble – is simply wrong”. However he does go on to say that, “None of this necessarily means the apocalypse is imminent for Irish consumers. The repayment of SSIA cash, the easy budget situation (which will be made even easier as indirect taxes reflect burgeoning consumption) and the appetite for fresh borrowings will shore up demand this year and well into 2007”. (Damien Kiberd, Sunday Times, 5th February 2006).

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As John Moran, capital markets director with Jones Lang LaSalle in Dublin says, “… interest rates are not the only factor to affect the property market. Of equal importance is the availability of debt - if you can't find someone willing to lend you the money to buy property, it doesn't matter what the rate is”.

ADVICE TO SSIA HOLDERS: What will you get? When the account matures, you will receive back your own contribution plus 25% (the government bonus) tax-free. Any bank interest or dividends earned will attract 23% tax. What should you do?

Goodbody Stockbrokers estimate that approximately two thirds of SSIAs will be invested with the remainder being spent. The largest single investment category is expected to be property. Of the one third used for expenditure, they expect €1.3 billion to be spent on home improvements. This corresponds with the January 2006 Irish Mortgage Corporation (IMC) survey. They found that 28 per cent of SSIA savers will invest some or all of their savings in property, while 21 per cent will use the money for home improvements. A Millward Brown IMS poll in 2005 indicated that the Dublin region was likely to see the biggest spending boom. The longer the term left on a mortgage and the higher the rate of interest, the larger the benefit of using the SSIA lump sum payment to reduce the overall cost of a mortgage. With more mortgage rates rises expected, it is no surprise to see that the number planning to use SSIAs to reduce their mortgage has seen a dramatic increase in the January 2006 IMC survey compared to their December 2004 survey.

EFFECT ON FINANCIAL INSTITUTIONS What has not been widely appreciated is the effect on banks and other financial institutions’ balance sheets of the end of the SSIA scheme. It is as if people expect that money taken out of SSIAs will be redeposited in the Irish banking system. This may not happen as SSIA holders have expressed a preference to use their “windfall” to purchase (foreign) holidays of a lifetime, (foreign) property, (imported) cars and other (imported) luxury goods. These funds will leave the Irish financial system.

THE BIG QUESTIONS FOR FINANCIAL INSTITUTIONS ◆

How much of the SSIA windfall will remain in a small open economy such as Ireland?

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What will be the effect of a massive contraction in deposits on the Irish Banking system?

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What arrangements have banks made for the expected considerable loss of deposits, (particularly in early 2007)?

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Given the already massive increase in private-sector credit by Irish financial institutions, what will be the effect on their balance sheets of this reduction in their deposit base?

EFFECT ON GOVERNMENT FINANCES Outgoings decrease for the Government as their SSIA contributions stop. But revenues rise, both directly due to the 23% exit tax and indirectly from expenditure taxes, (e.g. VAT, VRT etc.), and from post SSIA investments, (e.g. stamp duty / CGT etc.). This leaves considerable scope to reduce taxes and / or increase government expenditure in the run up to the expected May 2007 General Election.

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As Irish financial institutions must maintain their liquidity ratios, will this force a credit squeeze?

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If they do restrict credit, will non-Irish financial institutions be willing to fill the void?

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By how much will all this reduce the positive effects of the SSIA expenditure?

At this late stage, with the accounts so close to fruition, it would be best to avoid closing an SSIA before the five year term is up. Early closure will incur a tax of 23% on the aggregate value of all the assets held in the account at that time, effectively wiping out the Government’s contribution. You should maximise your SSIA contribution during these final months. Given that more than 50% of the accounts mature in April 2007 alone, this could lead to an increase in residential property prices. For those already intending to buy, the sooner, the better! Those already intending to dispose of property should perhaps consider waiting, (unless you believe we are witnessing an asset price bubble). The opposite is the case for those buying a new car (or at least a “new-ish” second hand car). There could be a glut of “old” second hand cars and a drop in their trade in value. As VRT cannot be refunded, their export is unlikely. Trade in sooner rather than later! First time buyers of second hand cars should wait! Given the expected spike in both demand for - and the price of - building contractors’ services, sound financial advice would be to delay these types of expenditure (or undertake prior to May 2006!), and instead take advantage of the many financial products that are already becoming available for SSIA investors. If you are earning €50,000 or less and pay tax at anything up to 20 percent, (includes those who pay no income tax) and are already at or near retirement age then the new measures for SSIA account holders announced in the Finance Bill should be considered. In this situation, converting your SSIA windfall into a pension scheme is a very good deal, (so long as the fund charges are reasonable).

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IN THE DÁIL…. THE FOLLOWING ARE A SELECTION OF WRITTEN REPLIES FROM MINISTERS TO DÁIL DEPUTIES ON ISSUES RELEVANT TO AUCTIONEERING/ESTATE AGENCY

PROPOSED LEGISLATION. Deputy Eamon Gilmore (Dún Laoghaire) asked the Minister for Justice, Equality and Law Reform what consideration he has given to the recommendations of the auctioneering and estate agency review group; if he intends to introduce legislation based on the recommendations; and if he will make a statement on the matter.

Minister for Justice, Equality and Law Reform (Mr. McDowell): I commissioned the auctioneering-estate agency review group in July 2004 to examine the licensing and regulatory requirements for property practitioners against a background of serious public concern regarding certain selling practices in the property industry. The review group reported in July 2005 and made a number of recommendations aimed at protecting consumers from such practices as gazumping. It noted that it is sellers who gazump, and that, barring any changes to the law of contract, it will always be the right of the individual sellers to raise or lower their price demands or to withdraw their property from sale, and the right of buyers to reduce purchase offers or to back away from a purchase, up to the point where contracts have been signed by both parties and exchanged. In its report on gazumping - LRC59-99 - the Law Reform Commission, after extensive examination of the issue, concluded that “the only practicable reforms are to take steps to inform buyers, and in that way, to protect them”.

An implementation group is in place to assist and advise on preparations for the new authority, including such matters as the recruitment of a chief executive and the establishment of a headquarters in Navan. Preparations for necessary changes in legislation are also ongoing in my Department and that legislation is included in the Government’s legislation programme, announced recently.

Following Government approval, I am proceeding to establish a new regulatory authority which will assume responsibility for the licensing and regulation of all auctioneering, estate agency, property letting and property management service providers. The new regulatory authority will have a consumer information function aimed at ensuring that consumers entering into contracts to purchase a property will do so fully understanding what rights and entitlements or otherwise are conferred on each party by the payment of a deposit. It will not have a function in relation to builders and property developers who are selling their own property. However, in the case of any auctioneer acting as agent in such transactions, it is intended that the regulatory authority will have an oversight function regarding the services they provide. It will also have a complaints mechanism for the public who have not achieved satisfaction through any existing mechanisms.

PROPOSED LEGISLATION.

COMPULSORY PURCHASE ORDERS.

Deputy Dan Boyle (Cork South Central) asked the Minister for Justice, Equality and Law Reform the measures he intends to take to outlaw the practice of gazumping in regard to property sales.

Deputy Denis Naughten (Longford – Roscommon) asked the Minister for the Environment, Heritage and Local Government his plans to establish a special court to settle compensation claims on compulsory

Minister for Justice, Equality and Law Reform (Mr. McDowell): In October 2005, I sought and obtained Government approval for the publication of the report of the auctioneering and estate agency review group, for the establishment of a new regulatory authority to assume responsibility for the licensing and regulation of auctioneers, estate agents, property letting and property management agents and for the preparation of legislation to give effect to the central recommendations made by the review group.

purchase order land for infrastructure; and if he will make a statement on the matter. Minister for the Environment, Heritage and Local Government (Mr. Roche): The legislation governing compulsory land acquisition by local authorities provides for the payment of compensation for lands acquired by them on the authorisation of a duly confirmed CPO. The amount of compensation payable by local authorities for land acquired by them is solely a matter for negotiation between the landowner and the local authority concerned. In the event of dispute, either party may refer the case to the property arbitrator appointed by the land values reference committee. I have no proposals to amend the legislation in the manner outlined in the question.

TAX CODE. Deputy Jackie Healy-Rae (Kerry South) asked the Minister for Finance if he will make a provision in the Finance Act 2006 to make farmers and other land owners exempt from the 20% capital gains tax that they have to pay on land they have been forced to sell due to compulsory purchase orders to make way for road development; and if he will make a statement on the matter. Minister for Finance (Mr. Cowen): Capital gains tax, CGT, is a tax on a capital gain arising from the disposal of assets. A 20% rate of CGT applies on the gains arising on the disposal of assets, including land which is the subject of a compulsory purchase order, CPO. This is the lowest rate of CGT in recent history. In budget 1998, the rate was halved from 40% to 20%. Where compensation is received for land that is compulsorily acquired, any gains arising from the amount paid for the acquisition of the land are chargeable to tax. In other words, if there is a sum paid by a public authority for the compulsory acquisition of land, then irrespective of its components, for example, disturbance, injurious affection etc., that total sum will be the amount to be assessed for tax. The CGT due on a disposal of land under a CPO is calculated in the same way as any other disposal of land. The consideration for the disposal will be the sum received for the land. There are no plans to make any changes to the legislation in this regard.

the property professional

HOUSE PRICES INCREASED BY 9.3% DURING 2005 signs of slowing as the year closed out. At a regional level the rate of growth in some counties was particularly striking with Kerry, Cavan, Kilkenny and Monaghan each experiencing growth of 14% or more.”

House prices nationally grew by 9.3% during 2005 according to the year end Price index published by permanent tsb/ESRI. This compares to annual growth of 8.6% in 2004. Significantly the index reveals that the rate of house price growth accelerated during the year – unlike previous years when price growth tended to moderate as the year progressed. Dividing the year into two reveals that the rate of house price growth rose at more than twice the rate in the second half of 2005 (6.7%) than in the first half of the year (2.5%). The equivalent rates in 2004 were 3.7% and 4.7%, respectively. The index also reveals that the cost of houses for First Time Buyers grew significantly faster than for second-time buyers or indeed any other market sector. According to the index, the price of houses for First Time Buyers rose by 12.7% in 2005 compared to an increase of 8.3% for second time buyers. The average price paid for a house by a First Time Buyer is now just below a quarter of a million euro, at €249,499.

CO.KERRY On a county by county analysis, the index revealed that County Kerry set the pace for price growth during the year – with a rise in average prices of 15%. This compares to an average rise of 10% for houses in Dublin City and County and an average rise of just 2% for houses in Co. Leitrim. Commenting on the results, Niall O’Grady, Head of Marketing, permanent tsb bank said: "The first half of 2005 bore no resemblance to the second half of the year with price growth gaining strength and showing no

the property professional

“At this time last year we had projected annual growth of 5%-7% for 2005, based on the moderate price growth experienced in the final months of 2004. Indeed this modest rate of growth continued into 2005 until a significant pick up in prices took hold in the second half of last year. Looking ahead at price growth this year strong demand looks set to remain a major factor, though the likelihood of further interest rate increases may act to dampen its impact somewhat especially so in the second half of 2006. At this stage we’re anticipating an average rate of price increase of approximately 10% - with some significant variations regionally and within different market sectors.”

DUBLIN V. REST OF COUNTRY: House prices grew by 10.1% and 9.2% in the twelve months to December 2005 in Dublin and Outside Dublin respectively. The equivalent rates in 2004 were 8.9% and 8.0% respectively. The average price paid for a house in Dublin and outside Dublin in December 2005 was €368,576 and €240,201 respectively. The equivalent prices in December 2004 were €334,822 and €219,978.

COMMUTER COUNTIES: - LOUTH, MEATH, KILDARE & WICKLOW Annual growth in 2005 in the Commuter counties at 10.2% was just above Dublin levels (10.1%). The equivalent growth rate in 2004 was 6.0% for Commuter counties. The price of a house in the commuter counties in December 2005 was €298,866, up from €271,184 in December 2004.

3 BEDROOM SEMI-DETACHED HOUSES House prices in this category grew by 10.4% in 2005 compared with 6.6% in 2004. The price of a 3 bedroom semi in December 2005

was €274,870 - up from €248,857 recorded in December 2004. First time buyers v. Second time buyers: House prices grew by 12.7% and 8.3% in 2005 for first-time (FTB) and second-time buyers (STB) respectively. The equivalent rates in 2004 were 7.9% and 9.0% respectively. Part of the explanation for the rate of growth in prices for FTBs over the year to date may be the increasing percentage of FTBs buying existing as opposed to new houses (54% up from 47% in 2004). The average price paid by a first-time buyer and a second-time buyer in December 2005 was €249,499 and €311,168 respectively. The equivalent prices in December 2004 were €221,381 and €287,232.

NEW V. EXISTING HOUSES New and second hand house prices grew by 9.9% and 8.2% respectively in 2005. The equivalent rates of growth in 2004 were 12.4% and 8.7% respectively. The average price paid for a new house in December 2005 was €276,215, while that paid for a second hand house was €283,708. The equivalent levels in December 2004 were €251,301 and €262,127.

AVERAGE HOUSE PRICE BY COUNTY On the upper end of the price range not surprisingly Dublin, Cork City and Dublin’s surrounding commuter counties of Wicklow, Kildare and Meath top the list. The price of a Dublin house registered at just under €370,000, while Cork City has an average price of just over €305,000. Wicklow ranked as the most expensive of the "commuter" counties at around €350,000, and Kildare and Meath followed at €310,000 and €300,000, respectively. Cork County and Galway each registered at around €285,000 as the next most expensive places to buy a house. Analysis of average house prices on a county-by-county basis reveals Leitrim as the least expensive place to purchase a house, with prices

the property professional

IT’S NATIONAL SPRING CLEAN CAMPAIGN! NATIONAL SPRING CLEAN IS IRELAND'S MOST POPULAR AND MOST RECOGNISED ANTI-LITTER INITIATIVE. A yearly event National Spring Clean is traditionally run throughout the Spring month of April during which hundreds of thousands of volunteers get out and clean up our countryside and cities. Volunteers are equipped with free materials donated by our sponsors and the collected litter is disposed of with the partnership of the Local Authorities. NATIONAL SPRING CLEAN 2005 was a resounding success and we are very grateful to everyone who got involved and made it so successful. In summary in NSC 2005, ◆ Over 295,000 volunteers participated in 3487 events nationwide ◆ An estimated 2,353 tonnes of litter was collected ◆ 35% of the total amount of waste collected was recycled A nationwide campaign, National Spring Clean encourages and welcomes members from every sector of society to organise and actively participate in a clean up event. Run

throughout the entire month of April, the campaign attracts volunteers from Residents Associations, Tidy Towns Groups, Schools, Community Groups, Youth Groups, Environmental and Voluntary Organisations and indeed individuals who simply want to clean up their own area.

THE KEY OBJECTIVES OF THE NATIONAL SPRING CLEAN CAMPAIGN ARE TO: ◆

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Heighten awareness of litter and waste issues Encourage clean-ups throughout the whole month of April Increase active participation among Youth, Business and other under-represented groups Promote the notion of personal responsibility for litter

Everyone who registers gets a free pack with materials and information to help them carry out their clean up. The Clean-Up Kit and Youth Pack contain all the information needed to organise a successful clean-up such as health and safety instructions, tips on gaining media coverage and writing press releases, how to make your

event more interesting and also posters, competitions and games. Practical materials such as refuse sacks, tabards and gloves are also provided. An activity pack for uniform groups is also available. The outstanding success of the campaign hinges on the unwavering support of our sponsors, the Department of the Environment, Heritage and Local Government, Coca-Cola Bottlers Ireland and The Wrigley Company Ltd. In addition, An Taisce is indebted to the efforts and enthusiasm displayed by the Local Authorities and those who organise and volunteer to participate in clean ups in their local community. If you would like to get involved in National Spring Clean 2006 please email nsc@antaisce.org For more information about National Spring Clean, please contact: National Spring Clean Manager An Taisce, Unit 5a, Swifts Alley, Dublin 8 Tel: 01 4002220 Fax: 01 454 1802 E-mail:nsc@antaisce.org

IPAV COUNCIL MEMBER SELLS BUILDING POWERS AHEAD! FORMER POTEEN-MAKING ISLAND! However, Mr Collins as required by good IPAV ethics, refused to divulge the name of the buyer when contacted by journalists.

Construction activity grew at its fastest pace in five months in January, according to figures from Ulster Bank. Its Construction Purchasing Managers' Index recorded 60.2, from 59.1 in December. Any figure above 50 signals growth. 'Strong growth in new orders, employment and costs were the hallmarks of the first month of 2006,' said Ulster Bank economist Pat McArdle. The economist said the costs rise was surprising as it was blamed on energy costs, which he said had eased back in recent months. Mr McArdle said the housing component remained strong, suggesting the house building would be little changed this year from 2005's record 81,000. The commercial sector was also strong, while the civil sector continued to improve, recording 61.6. Employment in construction expanded for the 29th consecutive month.

“I am sworn to secrecy in the matter,” he said.

Castlebar-based IPAV National Council member and former President, Thomas Collins, has sold a large portion of an island, used in the past by poteen makers, to a mystery buyer! The mystery man, who wishes to remain anonymous, paid in excess of €250,000 for one of the largest portions of uninhabited Glass Island in Lough Conn, Co. Mayo. The total island, which comprises approximately 100 acres was abandoned by its last residents in the 1950s and attracted significant national and international interest when it was put on the market on behalf of the former owner by Mr Collins.

So established was the manufacture of poteen, or moonshine, on the island in the 18th and 19th centuries that crocks or bottles of the illicit spirit can, it is rumoured, be still unearthed there! “It is idyllic, probably one of the most peaceful and beautiful spots on earth,” Mr Collins added. Glass island, which was known as ‘Illaunglashy’ in ancient times, was described in Samuel Lewis’ A Topographical Dictionary of Mayo in 1837 as comprising “good arable land with a portion of rocky pasture.” Apart from a number of decaying houses, there is still the remains of a church on the island and the burial place of Bishop Balefadda, who took refuge there during a period of religious persecution.

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MAINLY FOR STUDENTS

THE PRIVATE TREATY SALE – SOME THOUGHTS. BY PETER BRADY, CHAIRMAN IPAV EDUCATION ADVISORY COMMITTEE In Ireland the majority of residential sales are conducted using the Private Treaty Method. There are many reasons why this is the case. Two factors influence the choice:

1. The property 2. The vendor’s requirements. In a private treaty sale the vendor instructs the agent to market and promote the property and negotiate with interested parties to secure a contract for sale. This is conducted around a clearly agreed procedure with the vendor. Sales by private treaty are generally cheaper than other methods. This is because there is no pressing need to mount a sustained advertising campaign or hire venues as one would be expected to do in a public auction situation. In such a case, these costs can be significant and will have to be paid even if the property does not sell. The confidentiality afforded by private treaty is another attractive feature for vendors. No one need know the details of the sale price except the vendor, agent and purchaser.

possible, from the best possible purchaser, in the best interest of his client. In the event of deadlock, he may decide to hold a private auction or ask for the highest offer– whatever he decides, quite often the agent will invite a lot of ill will all round.

However, the agent must at all times realise that his loyalty is to the vendor and in this case he is charged with getting the best possible price for the property.

PROTRACTED

It can often lead to confusion in the minds of purchasers who might think that the agent is there to serve him alone. The reality is that the agent does not own the property he is selling, but is acting under instruction from the vendor.

In a private treaty situation, the sales process can be protracted. It usually takes twelve to fourteen weeks to complete the process from instruction to sale. This can be very advantageous as it affords all parties time to put their affairs in order. Time to organise the moving out/in, sell property, arrange loan etc., - and indeed time to consider the decision to purchase or sell. If things go wrong, both parties can withdraw from the agreement without loss, provided no contracts have been signed. The time afforded by the process also allows for greater market penetration. There is the prospect of reaching a wider audience and attracting interest in the property. As with other aspects of private treaty, this too has its drawbacks. With such a timescale, there is always the possibility that the sale will fall through. The moments of waiting for contracts to be signed can be anxious ones!

On the other hand, the confidentiality of the process also raises problems. How can interested parties know that offers have been made?

Gazumping is always a possibility, of course. This is used to describe a situation where an offer is accepted on behalf of A but before contracts can be signed, B submits a higher offer that is accepted by V the vendor.

In a private treaty sale, the agent must be confident of his knowledge of the market and be able to use his education, training and experience to successfully negotiate with bidders. After all, the purpose of the process is to bring parties together to complete (sign) a contract for sale.

The agent will take all precautions to avoid this situation, but in spite of his best efforts, the situation can arise and he is left with no option but to convey the offer to the vendor – often at a severe personal cost to himself.

Negotiation requires that the agent will be able to analyse offers, measure them in the context of their strength and weakness and be able to recommend a course of action to the vendor. Sometimes the interest might be so great as to explode into a race to purchase. In this case the agent will endeavour to secure the highest price

The private treaty sale places the agent in a very unique selling situation where he is in fact trying to satisfy two opposing expectations. The vendor will expect to maximise his investment while the applicant or potential purchaser wants to secure the best deal possible. In these cases there is always the risk of grey areas developing.

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INSTRUCTION FROM THE VENDOR

Nevertheless, private treaty does hold out the prospect of negotiation and in these circumstances, room for manoeuvre can be found. Very often sales are subject to deadlines, sale of other property, mortgage and planning approval etc., and these can provide some space to negotiate on price. Security can be an issue too. Is it in the best interest of the vendor to leave a property unoccupied for a long time? Is there benefit to accrue from a sale? Fixtures and fittings also provide an opportunity for discussion and consideration when agreeing price. Often this can be a minefield, and the agent must take great care in the construction of the sales details paying particular attention to what is and what is not included in the sale. Private treaty sales are of course subject to contract, survey, finance and other considerations. No deal is a deal until all issues are resolved and contracts are signed by both parties and the deposit is paid in full. Confusion can exist if this is not carefully explained to interested parties. Often agents can be careless in this respect; especially when it comes to deposits. It is understandable but inexcusable if the details of the sale and the status of the deposit are not fully explained to the party involved. The agent owes a duty of care to the purchaser and should advise on the nature of a deposit in a private treaty sale. Yet, private treaty remains the most popular method of sale for residential property Perhaps it is because it is a very human way of conducting business, one to one, face to face, intimate. Almost romantic? Now ….where did that notion come from?