Darragh O'Brien (Dublin Fingal, Fianna Fail) | Oireachtas source

I thank Mr. Rouse for his comprehensive and detailed statement. It is excellent and summarises the issues. In Dublin Fingal we have multi-unit managed estates, with mixes of apartments and duplexes. We will have more, as people want to live is a different way and many do not want a semi-detached house with a back garden. There are certainly many challenges. Mr. Rouse has highlighted a number of options.

I will focus on a number of points. First, in regard to the non-payment of management fees, how does he envisage making the process easier? What I have seen happen is that people have not paid their management fees since they purchased the unit. As mentioned, the OMC has recourse only to the court but Mr. Rouse wants to ensure there are easier ways for collecting these fees and I would like to hear his ideas about this.

He made a very good point on the taking in charge process and that local authorities should be involved in areas in which they can, such as the road network and underground services.

What information do the delegates have through their own networks on how open local authorities are to partnering management companies in some areas? The building defects aspect of the sinking fund is probably the biggest ticking time bomb. It is a real concern. I put it to the delegates that the committee should add its voice on it very strongly. They mentioned Priory Hall, of which I am acutely aware as it is just up the road from me, Longboat Quay and others about which we do not know. I am aware of a number of estates that I will not name where there are serious building defects and where the owners simply cannot afford to carry out the remediation works required.

The pyrite remediation scheme was mentioned. Despite all its imperfections, at least it is in place. The problem with it is that the taxpayer takes the full hit and the industry is not levied at all. If we are looking at a situation where estates and units will need to be remediated, the industry needs to be levied. It cannot just be the taxpayer who takes the hit. Yes, the State has a role but not exclusively. The industry should not be allowed off the hook.

I refer to the sinking fund. The delegates mentioned that they would set a ratio or an amount for a sinking fund within management fees. Through their own network, do they have any idea of how many developments have a sufficient sinking fund? I would say very few have a sufficient fund. Will the delegates indicate a percentage to give us an idea of the scale of the problem?

I will conclude on the issue of disputes and company law and come back in again later. I refer to situations where directors and management companies are in breach of company law. I know that the delegates are talking about owners' management companies as such, but I am thinking about the many developments where the builder may have retained a number of units and retains control of the company. That is a major issue. In these situations the residents do not have a real say, AGMs are not called and there are flagrant breaches of company law. That is something we should not accept in any way, shape or form. However, I have found that there is only so much the residents can do, even if they write to the Office of the Director of Corporate Enforcement. I see it as a wholesale problem that affects many estates where the builder retains control. What would the delegates like us to do in that regard? They mentioned transferring responsibility under the Multi-Unit Developments Act 2011 to the Department of Housing, Planning and Local Government. That is an eminently sensible suggestion and something that absolutely should be done. The Housing Agency may have a role in that regard. The new chairperson of the agency will be appearing before the committee after the delegates. They have highlighted in a concise way very serious problems that are going to come down the track and present themselves. We need to get ahead of them very quickly. I apologise if I am rambling a little, but the delegates have covered a lot of ground. I know that I have jumped from one thing to another.

My final point concerns the local property tax. A couple of years ago I published a Bill to provide some relief on local property tax for those paying management fees. As matters stands, they are effectively paying on the double. In some instances, people are paying local property tax, but the council is not providing any service. My suggestion was to allow a certain reduction in local property tax as an incentive if management fees had been paid and only if that was the case. There are things we could do from a legislative perspective to help collections. I intend to reintroduce that legislation in the coming weeks. I will certainly liaise with the delegates to look for suggestions on it.