Arthur Morgan (Louth, Sinn Fein)

I welcome the opportunity to discuss the urgent necessity for regulation of housing management companies. Many Members of the House have been highlighting this issue for some time. If apartment living is to become a viable option for the future, people need to be assured that the management companies of apartment complexes will be accountable and that owners of such complexes will be protected against extortionate management fees. My party advocates rent control and believes that fees for the management of apartment complexes should be subject to control. Currently, such management companies can do what they like both in terms of fees and the delivery of services. Home owners are at their mercy. The issue of a sinking fund has been mentioned, which must be addressed as it is likely to become a significant problem in the years ahead as these complexes age and common areas need refurbishment.

It is necessary to regulate the management of apartment complexes in the same way as in the private rented sector. I am not convinced, however, that they should come under the remit of the same regulator. This issue is somewhat different. Perhaps a sister regulatory body, based on the PRTB model, would be more appropriate. It would require more substantive legislation than this Bill. It would need to set out in greater detail the responsibilities of management companies. As regards the proposal before us, I am concerned that extending the remit of the PRTB in this way would distract it from its primary role of protecting tenants in the private rented sector.

Another concern is that the PRTB is unable to cope with its current responsibilities. If anything on the lines of the Fine Gael proposal were to go ahead, substantial resources would have to be provided to cope with the additional responsibilities.

The Minister should fast-track legislation to regulate housing management companies. We cannot continue to wait on the Law Reform Commission working group's consideration of the law on the management of apartment complexes and other multi-unit developments before taking action. Increasing numbers of people are being affected by the absence of a regulatory regime in respect of these companies.

I also wish to address the problem of the increasing prevalence of management companies as an alternative to taking in charge housing developments by local authorities. This is causing serious difficulties for the householders affected and the Government is failing to tackle the problem. Whatever need there is for management companies in apartment complexes, there is no necessity for them in housing estates which should be taken into charge by local authorities. The householders affected pay taxes in the same way as the rest of us and deserve the same services from their local authorities.

In the past, the Minister claimed that section 180 of the Planning and Development Act is sufficient to deal with the growing problems but this is clearly not so. The problems are persisting and householders seeking to have their estates taken in charge continue to be frustrated. This matter needs to be dealt with without further delay. I hope this evening's debate will cause the Minister to think again and act immediately.

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