Michael Finneran (Roscommon-South Leitrim, Fianna Fail)

I move amendment No. 124:

In page 77, lines 6 and 7, to delete all words from and including "being" in line 6 down to and including "subsection" in line 7 and substitute the following:

"being less than €200 or such other amount as may be prescribed for the purposes of this subsection".

These amendments are being made to section 68, which requires the management company to establish a sinking fund for the purpose of spending on refurbishment, improvement or maintenance of a non-recurring nature, and to levy a sinking fund contribution on apartments each year. As currently drafted, the section provides that the management company shall not operate an estimate of a sinking fund contribution that, when apportioned over apartments in the complex, results in a charge on any apartment that is less than the amount prescribed by the Minister.

Amendment No. 124 introduces a threshold of €200 as the amount that may be prescribed by the Minister for this purpose. Amendments Nos. 125, 126 and 128 set the same thresholds to allow the management company, without reference to members, to adopt a sinking fund contribution that on apportionment across apartments results in the lowest charge on any apartment that is equal to €200, or an amount as may be prescribed by the Minister. However, where the company estimates sinking fund contribution results on apportionment in a charge on any apartment that exceeds €200 or an amount that may be prescribed by the Minister, the contribution must be adopted by a general meeting of members convened for that purpose. The company members are precluded from adopting a contribution that, on apportionment, results in a charge on any apartment that is less than €200 or an amount that may be prescribed by the Minister.

Section 68(6) empowers the Minister to make a regulation in respect of classes of expenditure for items that may be financed from the sinking fund in respect of thresholds of expenditure that must be approved by members. Amendments Nos. 130 and 131 are drafting amendments to improve the clarity of subsection (6). Amendment No. 132 extends the matter the Minister may prescribe in regulations to include any other amount for the purpose of subsection (3), having regard to the average level of service charge in the designated apartment complexes.

See this speech in context