Catherine Byrne (Dublin South Central, Fine Gael)

I support this Fine Gael motion because it highlights the unacceptable situation whereby many people living in apartments and housing developments are burdened with spiralling management fees and receive little in return. The lack of accountability among property management companies and agents needs to be urgently addressed, particularly in light of the current economic climate.

In my constituency of Dublin South-Central, apartment complexes have become part of the skyline in recent years. These apartments have afforded many young people the opportunity to get their feet on the property ladder. The affordable housing scheme has also enabled young people to purchase apartments in the city which they might otherwise not have been able to afford. At present, 8,500 people are on Dublin City Council's affordable housing list. However, the council has suspended this list because demand exceeds supply and people who have managed to buy under the scheme are faced with rapidly increasing management fees. In that context, I would like to know what is affordable about this scheme.

In many cases, management companies are controlled by developers and residents have little or no say, despite the fact that the overall aim of such companies is that property owners run them. This area is filled with confusion and there is a real need for clarity, especially in regard to issues such as maintenance, upkeep and waste management. Although management fees often start at approximately €1,000, they vary widely and can increase from year to year. I recently met a young couple who bought into an affordable housing scheme but are now being billed €3,000 for this year's management fees without any justification for the increase. Residents of apartment complexes feel they are being held to ransom because they are legally obliged to pay management fees even though there is no obligation on management agents to account for the money they collect. In some cases, residents have come together to agree affordable increases with management agents and have even reduced their fees, which represents a step in the right direction.

I recently met a young man who had been awarded a service contract in an apartment complex, but unfortunately he has had to pull out of the contract after waiting three years for payment. This is another example of the lack of accountability in this area.

The absence of legislation to properly regulate management companies only makes matters worse. The Government established the National Property Services Regulatory Authority in 2005, a director was appointed in 2006 and staff of the authority occupy offices in Navan. It was allocated a budget of €700,000 for 2007 and €930,000 for 2008 but the director and staff are sitting idle because the legislation which will give it the power to operate has not yet been brought before the Dail. It is time to enact this legislation to give people an opportunity to have their say in where they live and what they do.

Sinking funds are needed to address issues as they arise. In one such issue in my area, young people who had just moved into an apartment complex had to pay €2,500 for repairs after a series of break-ins. Residents have described serious deficiencies in personal security provisions such as CCTV, poor security at entrance points and even a lack of adequate fire escapes.

Reforms are urgently needed and I call on the Government to regulate management companies without further delay. Apartment owners have been left at the mercy of management agencies for too long.

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