Ciarán Lynch (Cork South Central, Labour)

I congratulate the Minister, Deputy Dermot Ahern, on his appointment as Minister for Justice, Equality and Law Reform. I thank Deputy Hogan and his Fine Gael colleagues for bringing this motion before the House.

I would like to remind the House of what the former Taoiseach, Deputy Bertie Ahern, said in response to the then Labour Party leader, Deputy Rabbitte, on 14 June 2006:

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. Management companies were never regarded as desirable or essential for residential housing estates. Management companies in housing estates represent an unnecessary cost unless residents wish that they are established, and that is a decision to be made when people are living in their houses rather than beforehand.

That was almost two years ago. There is a management company crisis in this country. As the Fine Gael motion clearly states, with almost half a million people living in over 300,000 apartments, there has been a long-standing issue of neglect of this matter by the Government. What is the purpose of management companies and who should be their chief beneficiaries? Management companies are clearly not needed for housing estates and while they do serve a function for apartment owners, the absence of legislation has led to the creation of a rogue's charter with residents being ripped off and finding themselves subject to management company charges indefinitely.

At present, we have a service industry that is totally unregulated and charging almost €1,000 per year for a house and up to €2,000 per year for an apartment. We should have an end to management companies in private housing estates and a strictly regulated situation for apartments. To date, there has been a total dereliction of duty by Government on this matter and a clear absence of legislation.

The current cosy arrangement allows both the Government and local authorities to wash their hands of their responsibilities while at the same time placing wads of cash in the hands of management companies from households that are already overstretched by mortgage and child care payments. Such costs are set to continue indefinitely into the future.

We hear much about local government reform. If one thing needs to be reformed in this area, however, it is the notion that county and city managers can wash their hands of responsibility for the people who live in their local authority areas by using this clause to introduce rates by the back door. Local authorities should not be allowed to renege on such responsibilities.

For some time, Labour has been proposing a policy directive under section 9 of the Planning and Development Act 2000 requiring planning authorities to insist that all new housing developments are designed, constructed and completed to taking-in-charge standards. Such a policy directive would also require local authorities to issue new planning guidelines for management companies specifying the limited circumstances where such companies may be permitted in the case of apartments. In respect of such permission, services should be set down, including, where possible, all roads, public open spaces, public lighting and water and sewerage services, which should be completed prior to the taking-in-charge standards.

The Minister indicated earlier that he may support such a move, which is welcome. Up to now, however, the Government has been inactive on the issue. It has an appalling record in this regard. As other speakers have said, the Labour Party introduced a Private Members' motion on this matter in November 2005. The previous Taoiseach referred to it in 2006.

We have an issue of governance whereby people are paying fees without getting a service. The Minister may make worthy statements but there is a lack of action. We need to hear something by which we can measure the action the Government proposes to take.

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