Dáil debates

Thursday, 8 May 2008

Management Companies (Housing Developments): Motion

 

2:00 pm

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)

I acknowledge that there is a legal quagmire but we need to resolve this issue. Cross-departmental requirements that are in place are well understood but what is frustrating people, and what motivated Fine Gael to put down the motion, is that it has taken so long to try to resolve the issue. It was in the 2002 programme for Government. Things work slowly in this country at times but I hope they would not work that slowly for all things. Six years is long enough. It is the frustration at the lack of action that motivated this motion.

I acknowledge that the Government has done its best to try to come to some kind of universal view in its amendment. Nevertheless, regrettably, we feel we must divide the House on what is an important issue for many people because we want to create more urgency about the situation.

A couple of Law Reform Commission reports considered the issues. I hope the information from the commission, which the Minister made available to us, will not provide another excuse for dragging matters out and that the commission will come up with recommendations and publish them at the end of May, which was the indicative date given to us. While that date might be optimistic, we would like to see the legislation published, certainly before the summer. If the Government could tell the House the legislation will be published before the summer recess, it would be a move in the right direction but I feel it is not such a position considering what the Minister, Deputy Brian Lenihan, had to say today.

In some cases people have suffered a degree of extortion from irresponsible developments and management companies that were established on a willy-nilly basis, without being underpinned by law. This is part of the reason many of our constituents contact us about this problem. We have waited long enough. The genesis of the issue was an allowance in the Planning and Development Acts that management companies were to be established without the basis of law, including company law.

Many people are left in a legal limbo. When they engaged in such an important financial transaction, they should have been properly advised by their legal advisers and mortgage providers about the cumbersome nature of dealing with these issues. The National Consumer Agency has a booklet about their obligations which should be made available to every purchaser by the legal profession or mortgage provider. In many instances they need to have their eyes opened to some of the difficulties that may emerge in the context of organising a management company.

I thank all speakers for their contributions to this important debate. I hope it will give a sense of urgency to the Government to move more quickly than it has in the six years to date. Accordingly, I put the motion to the House.

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