Mr. Des McCabe:

Yes. There is no provision in legislation pertaining to service charges, sinking fund contributions or a levy like the one in question for tax relief for owner-occupiers. Owner-occupiers have their mortgage repayments, day-to-day expenses and service charges. Many are seeking credit union loans or a term loan from the bank. Some face bills of between €10,000 and €15,000. That is significant for an owner-occupier paying a mortgage. The properties will often have been bought during the Celtic tiger era, at the height of the market. Therefore, there might be big mortgages with repayments of perhaps €1,000 plus per month. Those affected might have another loan, with repayments of perhaps €200 or €300, to fund a levy for fire safety work. Therefore, some relief for owner-occupiers is essential. Even if there were some tax relief on the levy portion of the service charge, it would be useful.

My view, based on experience, is that along with the other issues facing the sector, and bearing in mind long-term sinking fund provisions for owners' management companies, existing sinking funds are probably not adequate in the long term as they are being cleared out to do the work in question. Therefore, the fund is returning to zero for a building that probably has been constructed for 20 or 30 years. Starting again from a sinking fund of zero means it will probably take 20 or 30 years to build it up to a decent level, unless significant contributions are made. In another ten years, all the lifts might have to be replaced or a roof might need to be done, and then there would be no money in the sinking fund. One would be back to a constant round of levies. Frustration arises because residents believe it is never-ending. If someone's management fee is €1,500 or €2,000 per year, he or she feels it should stay at that level for an extended period, accounting for inflation. Now, however, the fees are jumping significantly and staying at elevated levels, potentially for the long term in some cases.

That is probably one of the biggest fears, people do not know where it is going to end.