Brian Lenihan Jnr (Dublin West, Fianna Fail)

I reply on behalf of Deputy Roche, the Minister for the Environment, Heritage and Local Government.

I thank the Deputy for raising this matter. I accept there is much concern about the management of multi-unit developments. Many of the issues in the area involve several different parties in the public and private sector. I know the Department of the Environment, Heritage and Local Government is actively engaging with those parties. The Department looks forward to the publication by the Law Reform Commission of the consultation paper on the management of multi-unit structures. It is expected shortly and will be followed by a final report that will enable the Government to consider what legal measures must be taken in the area.

In the meantime, several developments have taken place regarding this matter. Planning authorities traditionally required, as a condition of planning permission, that a management company be established for apartment developments. In response to concerns that planning conditions requiring management companies were being inappropriately applied to other residential estates, the Department of the Environment, Heritage and Local Government carried out a survey of county, city and borough councils in late 2005 and early 2006. It found that planning authorities had been attaching planning conditions requiring management companies in mixed developments of apartments and houses, but generally only to the apartment elements. Regarding estates comprising houses only, planning authorities had occasionally attached such conditions, but only in very specific circumstances, for example, holiday home or gated developments.

The Department issued a circular letter to planning authorities on the matter in July 2006. It states that a management company should not be conditioned by a planning authority for a "traditional" housing estate, that is, estates of houses with individual private gardens, except in very specific circumstances, for example, if a particular service or facility is provided for residents' use only, such as a playground. The Department has also advised planning authorities that they should attach planning conditions to the ongoing management of shared facilities only in circumstances where they judge that they are clearly required for the benefit of residents of an estate.

A previous circular issued in January 2006 had already reminded planning authorities of their responsibilities under the Planning and Development Act 2000 regarding the taking in charge of such estates.

The question of who should be responsible for the maintenance of certain shared facilities in the newer type of mixed estate, that is, whether and to what extent planning authorities should take those in charge or what responsibilities residents should have for maintenance, requires further consideration.

The Department has therefore established a working group representative of the interests involved to look further at those matters. Its first meeting is being held today.

The property services regulatory authority will have the function of licensing, regulating and dealing with complaints relating to managing agents. These are commercial firms engaged by management companies to carry out day-to-day management and maintenance. The authority will also have a public information function regarding property management. The authority and its functions will be provided for in legislation currently being prepared by the Department of Justice, Equality and Law Reform. I understand an implementation group and a director designate are already in place.

The National Consumer Agency is to publish a report on the issue of management charges very shortly and also intends to publish a consumer information document, which should help reduce the information deficit.

The Law Reform Commission, LRC, has already recommended certain changes to company law to avoid problems for management companies regarding company law requirements. Proposals for the amendment of company law are expected to be made to the Government later this year, and the Minister expects those to include certain changes relevant to management companies.

The Minister is conscious these are matters of great concern, and every effort is being made to address them in the most appropriate manner.

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