Bertie Ahern (Dublin Central, Fianna Fail)

This issue was raised in the House approximately three months ago. On that occasion, I asked the Minister for the Environment, Heritage and Local Government to carry out a full examination and produce a report on how this situation can be legislatively addressed, if this is the only way it can be dealt with, which Members argued is the case. This process is being examined in the Department.

I acknowledge that there are a number of difficulties in this area but there are issues surrounding planning permissions in local authorities and why local authorities in many instances permit the formation of management companies. I acknowledge that management contracts are a good idea in some apartment blocks. A management company can probably best look after the combined needs of all residents in developments with open complexes and land and recreational space. Some of these residents are renting, while others are owner occupiers.

That was the purpose of management companies. When they began, it was never envisaged that they would be used in large housing estates and I do not know why local authorities allowed such a scenario to occur. I am aware that this is a major problem in Kildare and parts of Dublin. I have seen cases put forward by a number of Deputies when we debated the issue about three months ago. I have asked the Department of the Environment, Heritage and Local Government to examine whether the situation can be rectified through legislation. At the moment, there is no legislation governing the way in which management companies control their business and the services for which they are entitled to charge. It is only set out very loosely that they are responsible for services and environmental matters. This allows them to venture into many areas in which their role was never envisaged.

I do not know if there is a way because I have not read the latest report from the Department. As I understood it, the only way in which Government can control this situation and set guidelines is to examine the legislative process if local authorities cannot take control of the situation. I do not understand why local authorities give planning permission that permits management companies in residential housing areas. Why should it be a condition of planning permission that a management company looks after 30 or 40 houses? I do not see why that should be a condition of planning permission.

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