Jimmy Devins (Sligo-Leitrim, Fianna Fail)

However, a little reflection on current legislation and proposals by the Law Reform Commission and the Minister for Justice, Equality and Law Reform will identify issues that must be explored before legislation in this complex area should be passed. The issue of management companies has come to the fore in the recent past. While there are parts of Dublin that have had this problem for some time, it would be inappropriate to rush legislation through the House before the Law Reform Commission and the Minister have had an opportunity to present their report. Rushed legislation makes bad law. More appropriate legislation will emerge when the deliberations of the Law Reform Commission are available.

Legislation on management companies is needed. One of the great changes in Ireland in the recent past has been the great increase in the number of apartment complexes. In the past, apartments were called "flats" but we appear to have succumbed to using the American terminology.

While this development has been fairly recent here, other countries have had people living in apartment complexes for some time. There is an obvious need to have some structure in place so common areas such as gardens, roofs, exteriors of buildings or whatever are managed in a fair and equitable way. How this need is met is the challenge. Management companies can supply the answer, but many pitfalls and dangers may be present in badly run companies. Time does not permit me to discuss these perils in detail.

The bottom line is the need for vigilance on the part of apartment owners. Buying an apartment, whether on one's own or with somebody else, can be daunting. The need for a management company, with its associated costs, is often the last thing on the mind of the purchaser. However, in the following years, how the management company works will be of immense importance to him or her.

When a management company works well in an open and transparent manner, the occupants of the apartment complex are happy and content. The way to anticipate and deal with potential problems is through regular communication from the company to its members, the holding of open meetings, especially AGMs, and the involvement of all in the affairs of the company. On the other hand, secrecy, failure to communicate with members in an open way and unhealthy relationships between developers and some management companies all contribute to a breakdown in trust and subsequent difficulties for the apartment owners.

Legislation is needed, but the Minister is right to await the Law Reform Commission proposals and those of his colleague, the Minister for Justice, Equality and Law Reform, with regard to a national property services regulatory authority, before he publishes his legislation. I urge both the Minister and the Law Reform Commission to publish their proposals as soon as possible so the current vacuum can be filled. I fully support the Minister's amendment.

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