Dáil debates

Wednesday, 16 November 2005

 

Reform of the Competition Act 2002: Motion (Resumed).

7:00 pm

Photo of Catherine MurphyCatherine Murphy (Kildare North, Independent)

On 19 September, I complained to the Competition Authority on the issue of a specific property management company. I filled in the on-line form and supplied initial information. A week later, I received an e-mail informing me that the complaint has been reviewed by the steering committee. It continued that it would appear from the details presented within the e-mail that this issue is a contractual one between my constituents and the estate management company, rather than an issue under the Act.

I had informed the authority that the developer and the management company were one and the same person, despite each home owner paying a fee and having no hand act or part in deciding who carried out the work. There was no obligation to get value for money, which we are told is the essence of competition. I was advised by the authority I could engage a solicitor and take the matter to court under section 14 of the Competition Act. That is exactly what I wanted the authority to do.

On Monday night, I attended a well-attended public meeting organised by Deputy Joe Higgins in Tyrrelstown. One of the complaints made by those who pay management company fees was that an agent was foisted on them by the developer. In short, they get no choice. In one case the appointed agent would not take on the maintenance role until a debt running into tens of thousands of euros was paid by the home owners collectively. That debt followed works carried out by another appointee of the developer who did less than cover himself in glory. The same practice seems to be emerging in several locations judging by the e-mails and telephone calls I have received.

I have heard of instances where developers are orchestrating a majority shareholding in management companies of which they are directors, in order to have a controlling interest. In short, they can appoint their own cronies to the job and charge what they wish. When the intention was that apartment owners would be the only shareholders, I regarded that as being about as anti-competitive as one can get. However, that complaint was bounced back to me. I do not have great faith in making such complaints to the Competition Authority.

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