Dáil debates

Thursday, 8 May 2008

Management Companies (Housing Developments): Motion

 

12:00 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)

Like my colleagues, I welcome the Fine Gael Private Members' motion, which is similar to a previous motion on this issue tabled by the Labour Party. There is a political issue at the core of the Government's refusal to legislate for management companies. Thousands of young home owners and a smaller number of older home owners who downsize to apartment complexes face frustrations by being charged — certainly in Dublin West — an average of €2,000 to €3,000 per year for very poor services.

The political issue arises from the fact that Fianna Fáil is in hock to vested interests in the building industry, including developers. Those vested interests constitute a permanent stain on the character of the Government, which was previously led by Deputy Bertie Ahern. The refreshed Government, formed by the new Taoiseach, Deputy Cowen, seems unwilling to address the matter.

I wish the Minister for Justice, Equality and Law Reform, Deputy Dermot Ahern, well in his new portfolio. As I am sure he is aware, in the Drogheda area of his own constituency, many thousands of people are caught up in this management company trap. In my own constituency — in Castleknock, Mulhuddart, Clonsilla and Blanchardstown — management companies have spread like a rash among new developments. This is the case both in apartment blocks, where management companies are essential to manage common areas, but also in ordinary housing developments where people are essentially being charged up to €600 per year to have a small lawn and three shrubs at the front of their house cut by a developer. Many people living in large developments do not object if the location is kept clean and tidy and they receive value for money from such services. The residents may be busy commuters. From the places Deputy Emmet Stagg and I represent, it is often a commute of an hour and a half to work in Dublin. For good services, therefore, people might be prepared to pay fees. However, many young couples who have just got started on the housing ladder are being fleeced by the management companies and management agents. There is no proper invoicing and no indication of what services are being paid for by the management company. In some cases, the local authority is also providing some of the services for free, such as public lighting, yet residents are paying on the double.

The Government apparently established an interdepartmental committee on this issue but nothing has emerged from it. I am glad that the Minister for the Environment, Heritage and Local Government, Deputy Gormley, has arrived in the Chamber. The Green Party has many good objectives in Government, which I share, but if that party is unwilling to address the vested interests that have Fianna Fáil tied hand in glove to developers and builders, who have made tens of millions of euro in speculation on the backs of young people buying into management companies, it is difficult to understand why it is in Government other than to enjoy the vicarious pleasure of holding office. The previous Taoiseach told me no fewer than five times in this House that he considered it scandalous that young people were being ripped off in this way by management companies. However, that was all talk. There is now a new Taoiseach and the Minister, Deputy Gormley, is restored to his old Department but there has not even been a mouse-like roar from the parties indicating that they will take action.

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