Michael Ring (Mayo, Fine Gael)

I am glad that Fine Gael proposed this Bill and the Government has accepted it with its own amendment, which is fine. I agree with it because there are several problems in apartment complexes, especially where builders and developers pass the management of apartments to the householders although they have made a fortune out of the development.

The Government makes 50% of the take in respect of every apartment sold and the first-time buyer is caught by the greedy builders who cannot get enough money for their buildings and control the market on the basis of the land they have for apartments and houses. Builders pay levies to local authorities which are then passed on to the unfortunate person who buys the house. Residents of apartment blocks and private estates also face management charges. I have personal experience of this. After I moved into a development consisting of five houses, residents were forced to set up a management company and pay its management charges through their solicitors. This is fine if one has minor problems, but what happens if one is faced with a major water leak or problem with sewage or roads? The unfortunate residents are then forced to pay more money to the management company after giving a considerable amount of money to builders and paying charges to the local authority, while the local authority wipes its hands of the problem.

What do local authorities do with all the money they collect? I understand that my own local authority has collected €19 million in levies. I have yet to discover where this money has gone as I have never seen as many potholes in the roads and as many footpaths left unfinished and there is no lighting in housing estates. The local authority is doing no work but is still collecting money from people. I believe it boils down to benchmarking. Money is collected to pay benchmarking pay awards to staff.

An increasing number of people live in apartments, not by choice but because they cannot afford to buy a house. They must start with apartments. It is terrible to witness young couples being forced to live in apartments for many years with no facilities for them or their children before they can attempt to buy a house which will allow them some space to raise their families. This is a sad scenario. It is sad that the Government and the Minister of State, in spite of all the revenue the Government has collected over recent years, have done nothing significant to help young couples enter the housing market.

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