Joe Callanan (Galway East, Fianna Fail)

Although I agree with the premise of the Bill, as the Minister for the Environment, Heritage and Local Government indicated, it would not be helpful to place an additional responsibility on the Private Residential Tenancies Board because its work in securing rights for tenants has only recently commenced. Further responsibilities would distract from its main role, which is vital for tenants. I am concerned about estate service management fees because they offer a cop-out for local authorities and some of them have used this. Local authorities have used them as an excuse not to take over estates that they should have taken over some time previously.

In Ballinasloe, an estate called Hawthorn has not been taken over by the town council. One of the excuses was that the estate would have to brought under a management company despite the fact that the first phase in the estate is already in the charge of the council. When the Minister wrote to all local authorities changing this ruling, the council back-tracked. However, this estate is still not under the council and grass cutting has become a problem. Most of the delays are due to the council stating that the construction company had to fulfil certain criteria.

It is now time to push for a new penalty on both the builders and local authorities. Every estate after five years should automatically be taken into charge by a local council. Any builder who has failed to reach the criteria set down by the local council prior to the taking in charge of the estate should be put on a national register of offending builders. All builders on this offenders list should, in any future developments, have to pay a 50% levy in addition to the local authority's normal levy rate. Alternatively, builders should have to pay a bond for estate takeovers which would be reimbursed when the councils take the estates in charge and are content with their standard.

The value of property is high and to retain that value the maintenance of common areas and greens around the properties, whether they are apartments or houses, is vital. One of the biggest issues facing local authorities is the cost of maintaining estates. We must examine the financing of local authorities and what provision can be made to help councils to provide for these matters.

I disagree with housing estates being run by management companies as it negates the responsibility of the local authority and loses for politics one of its great sounding boards, the residents' association. The interaction between council members, politicians and residents' associations keeps our feet firmly on the ground and keeps politics in touch with local issues. The other area of grave concern is that if a management company is paid to look after a new estate for a new community, it could kill the volunteerism that previously bound communities together.

Although I am not a fan of apartments and apartment living, I understand they are necessary in the development of higher density urban living. Many countries in Europe and elsewhere have high quality apartment living and have good rules in place for the management of buildings. However, some countries have introduced a tax incentive for the cost of management fees. I propose the introduction of a tax break on management fees for owner-occupiers. Investors already can offset these costs against income tax. I support the amendment put forward by the Minister, Deputy Roche.

See this speech in context