Tommy Broughan (Dublin North East, Labour)

I read with interest the Minister's speech in response to this valuable legislation produced by our Fine Gael colleagues. The Minister often appears inside and outside this House as somebody who trained his entire life to be a Minister in the Cabinet. It is obviously a job he would like to continue doing after this time next year. It is regrettable that he told us that the Minister for Justice, Equality and Law Reform is developing a proposal for a national property services regulatory authority. The Minister has had a long innings in which to address this issue.

The current situation developed during the massive construction boom we had during the past nine years, culminating in 250,000 apartment and other housing units during the past three years. The entire system of planning, construction and selling homes is riddled with sharp practice from start to finish. Examples of this are the rezoning scandals we discussed in the House last week, the failure to involve in the planning system ordinary people living in areas and districts changed beyond belief by massive high-density plans, such as in the north side of Dublin, and the auctioneering profession. The Building Control Bill is a valuable initiative but it comes too late for a large tranche of development in the greater Dublin area and throughout the country.

The man sitting behind the Minister, who identifies a great deal with Tallaght, made points on how houses are sold and how young people are treated throughout the process. Finally, they get their keys and find out the incredible situation regarding management companies. It is riddled with sharp practice and the Government had the opportunity to address it during the past nine years and nothing has been forthcoming.

The modest Bill before us might address these issues. I welcome the establishment of the private residential tenancies board and the information it has given us about the residential and rented markets. It is the first sign of a regulator in this territory in our history and the first sign of any attempt to give tenants and young householders a fair crack of the whip. It might be easier to extend the powers of an existing regulator as described in the Fine Gael Bill.

The type of sharp practice taking place in many major new developments is astonishing and appalling. As my colleague, Deputy Gilmore, stated builders and developers hold a tranche of apartments or houses for themselves. Young people in one of the famous early morning queues find out an entire block of houses or apartments has been held for the developer and his or her colleagues who will then establish a management company and acquire additional revenue after the massive profits they will make from the sale of most of the development and additional rents.

I do not know whether colleagues mentioned the particularly poignant email many of us received from a Dublin West constituent in recent weeks. He outlined the outrageous impact of the management company. He did not know anything about it when he reached his estate. He states his concerns are numerous, the main ones being the way in which he found out about the existence of the management company; the unbelievable pressure which existed at the point of signing the contract, even through his solicitor; the lack of information and time to assess it; the natural injustice of backdating increases of management charges on those who paid two years upfront, amounting to €400 or €500 per annum, and receiving early bills for the third and fourth years; the exponential rate at which the fees increased and failure to deliver key services.

That last point is the most blatant. This involves an estate of houses where there was an absolute failure to deliver key services on cleaning, street lighting and other basic services which we all assumed would be delivered by local authorities. Other concerns listed in the email were the extent of the liability company, which includes public liability and the extent to which householders themselves are liable in that regard; and confusion about house insurance and the basic injustice that those who benefit from this mechanism are the instigators of the system.

The author of the e-mail indicts Fingal County Council most of all for allowing this system through the planning process. There is also the injustice of older households having a full range of services from city and county councils while new householders do not receive any service. He details the great anguish he has suffered for the past three or four years living on this estate in Dublin West, and the way he and his family have been "gouged" for these charges by the management company. He knew nothing about this company when he went to view the estate and bought the house. It is sharp practice, as I said recently to the head of one of the leading auctioneering firms. It is the Minister's responsibility to take some action and he could start by adopting this Bill.

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