Brian Hayes (Dublin South West, Fine Gael)

In the past five years, I have held five public meetings on this issue in my constituency. Most of the ordinary people who attended asked the most pertinent question, namely, why is it that their Government, this Dáil and the people they elected to do their bidding have not devised a legislative scheme to place a framework around this legal and political mess. I could not answer the question because the Government does not know what it is doing.

It has no plan to deal with this issue. There is no road map to a solution even though the issue first arose on the political agenda about six years ago.

Complaints are often made about the appalling situation that pertains to ground rent. People living in parts of my constituency are supposed to pay an annual rent to absentee landlords who have titles of ownership dating back several hundred years, although many refuse. Management companies are the modern equivalent of ground rent. Shame on the Government for allowing this issue to develop under our noses over the past ten years without any political or legal response.

Why do local authorities make it a condition of every application for residential developments that a management company is put in place? They are continually withdrawing essential basic services from householders. This problem particularly affects my constituency, where 10% of all households have to pay substantial sums of money to management companies in the complete absence of a legislative framework. It is a scam from start to finish. Often, the only way young couples can get a mortgage is over a 30-year term. Many are faced with negative equity and now they discover they have no control over this new tax levied on them by an unaccountable management company.

Some colleagues have suggested that a way to resolve this is by giving more power to residents to attend meetings and take responsibility. At a recent public meeting which I organised in an estate in Ballycullen in my constituency, the success of one resident in reducing charges for the year by taking control of the local management company was discussed, but everyone else at the meeting came to the conclusion that they did not want to undergo the hardships involved. These were working people, with better things to do with their lives than organise management companies or take responsibility for the maintenance of estates. Those who believe a huge body of ordinary people want to take control of these matters should be warned that a lot of work is involved in rooting out bad companies and replacing them with agents. Therefore, I caution people about suggesting that the political support exists for such a change.

Much of the responsibility lies with local authorities. Councillors should demand to know why new applications carry conditions of subservience to management companies. The issue has to be addressed through legislation. The Government's response has been pathetic and the new framework announced by the Minister for the Environment, Heritage and Local Government, Deputy Gormley, gives little confidence to the people who are left in this situation. Action was needed five years ago and even if new legislation is put in place quickly, it may not have a retrospective effect on existing housing stock.

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