Dáil debates

Thursday, 8 May 2008

Management Companies (Housing Developments): Motion

 

1:00 pm

Photo of Chris AndrewsChris Andrews (Dublin South East, Fianna Fail)

The new Government is working hard and constructively on delivering the programme for Government.

Not far from here, around Grand Canal Dock in Dublin's docklands area, there are many apartments and the area has been transformed. This has been a good thing and it has transformed people's lives because it has brought about much needed accommodation and housing stock. There are difficulties associated with living in apartment blocks and they are particularly isolated, in many ways. They can be separate communities from the wider community, which can lead to tension. As a public representative, I believe these challenges are not healthy for either political bodies or apartment communities. This is something we will have to deal with and the Government will address it.

There is clearly a problem. I spoke to a resident in the docklands area who pays over €2,000 in management charges every year; there are 120 apartments in his block which means a significant amount of money is involved. Management agents are making big money from all of this and in the case I refer to almost a quarter of a million euro to manage a block of apartments seems excessive. Many agents have neither bonds nor security and there is clearly a problem because often the agent is appointed by the developer and acts on his or her behalf, rather than on behalf of the residents. When a developer finishes the last apartment, he or she can high tail it away, leaving the place unfinished. It can be particularly difficult to get them to come back to complete the job.

Residents are suffering, something needs to be done and the Government is addressing this issue. The legislative programme published in early April indicates that the issue of multi-dwelling buildings is being prioritised. The publication of legislation that will establish the National Property Services Regulatory Authority, NPSRA, in this Dáil session is a good thing. There is no doubt that this issue will be dealt with as it is a matter of urgency. As Deputy O'Connor suggested, people face severe financial difficulties as a result of management agents charging huge amounts of money. The NPSRA already has a website that is very informative, helpful and consumer-friendly.

It is ironic that Fine Gael is calling for a statutory footing for the NPSRA when it has already been agreed that this will happen in this Dáil session and when that party has already expressed concerns at the number of quangos. Does Fine Gael favour fewer regulatory bodies or more of them? In my view, the success of the Private Residential Tenancies Board and the need for the NPSRA shows that certain agencies can be effective in dealing with management charges. This will make a substantial difference.

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