James Breen (Clare, Independent)

Legislation to regulate management companies of apartment complexes was long-promised under the programme for Government. Residents of such complexes have sought protection under proposed legislation for years but have been met with long delays and one postponement after another.

The Residential Tenancies (Amendment) Bill highlights the weak leadership of the Government in this matter. It took an Opposition party to comprehensively address the shortfalls in the area. The Bill seeks to give home and apartment owners a level playing field. I welcome the extension of the powers of the Private Residential Tenancies Board and the introduction of a code of practice for property management agencies. The same areas that need to be addressed arise repeatedly in apartment complexes. Chief among these is the lack of maintenance of apartment complexes while management companies charge excessive index-linked management fees with no provision for a sinking fund to cover the costs of future renovation works.

The Bill's one weakness is that it states such sinking fund provision may or may not be included. I call for the mandatory provision for such sinking funds. Young people who cannot afford to buy a house and have been failed by the inaction of the Government on the affordable housing scheme are driven to purchase apartments. Everything must be done to protect their future asset base in this regard.

Another weakness is the lack of a clause precluding management agencies from collecting full maintenance fees in the first year until all work is completed in a development. I prefer to see stronger legislation in favour of the purchaser to protect those who are often trying to take their first step on the property ladder. The Bill should not offer any protection to those whom the Government always represents: greedy developers, construction companies and umbrella companies which squeeze every last cent from those bearing more than their fair share of the financial burden.

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