Pádraic McCormack (Galway West, Fine Gael)

Management companies set up by developers are charging apartment owners anything from €450 to €2,000 per year in fees. The Minister for Finance stated that such owners have entered into binding legal arrangements. I am aware of instances where management fees were imposed in apartment complexes and where now, three to five years later, such fees are also being imposed in respect of car parking facilities. I do not know how it is possible to charge tenants who purchased car parking spaces €70 to €90 in management fees. These people were not told that such fees would be imposed when they originally purchased their apartments.

I am delighted the Minister is taking this matter seriously, particularly in light of the upcoming local elections. From previous experience, however, I am sceptical that the legislation necessary to deal with this matter will be introduced. I could not discover from Galway City Council, despite making four or five phone calls between 9 a.m. and 1 p.m. today, whether it is continuing to impose planning conditions which stipulate that management companies must be established in respect of conventional housing estates. I suspect, however, that the practice is continuing.

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