Michael Kennedy (Dublin North, Fianna Fail)

I wish to share time with Deputy Cyprian Brady.

I welcome the opportunity to speak on Second Stage of the Bill. This legislation will be welcome in many parts of the country, particularly in the urban areas represented by Deputy Brady and myself. Much confusion has arisen about the role of managing agents and management companies. This Bill is particularly important and I look forward to its progression to Committee Stage during the summer recess and to being voted upon in the autumn session.

It is also imperative that the Property Services (Regulation) Bill is enacted at the earliest opportunity. The regulation of managing agents is particularly important. No more than management companies and developers who have not been either honest or forthright in their dealings with apartment owners, the same could apply with regard to some inefficient managing agents.

Confusion arises from people not understanding the terms of purchase of an apartment in a complex. This confusion is also fuelled by politicians, most of whom are outside this House and who are doing it for politically motivated reasons. They are exhorting apartment owners not to pay management fees and people do not understand when services are not provided.

This Bill has been debated in the Seanad and many useful suggestions have been made in the other House. In all parts of my constituency there are thousands of apartment complexes. The issue has to be addressed. With regard to public roads, footpaths, lighting and the landscaping of open areas in housing estates, the local county council should take control of those roads, lighting and open spaces. I ask the Minister to bring forward proposals on Committee Stage. Nothing causes more confusion than when a common charge is applied to both house owner and apartment owner. Many householders see no justification for paying the same charges as apartment owners.

I have noted in my constituency there can be a problem in mixed developments of houses and apartments with regard to the landscaped areas which are owned by the management company. In many cases, the landscape maintenance is not carried out by the people engaged by the managing agents to do this work. People are paying for a service from which they do not benefit. We must address this through some legal mechanism so that the ownership of that small strip of land passes back to the houseowner rather than being retained by the management company.

I also have experience of strike-offs. The Bill refers to reinstating management companies that have been struck off within a six-year period. In essence, this will be allowed once all annual returns are completed. This is a reasonable but the issue of money arises. Where the management company has gone into liquidation or has been struck off because of non-payment of fees, the residents must pay fees they do not have in order to reconstruct the company. Can the Minister examine the situation so the residents are not forced to pay fees to reinstate a struck-off company? We should come up with a flexible manner of dealing with this.

I am glad the measures included in the Bill provide for each owner having a vote. We all have experience of a developer owning a substantial portion of the apartments and retaining control. We need equity so that each owner feels part of the arrangement. It is important the membership transfers to the new owner in a totally transparent way when selling apartments. Developers should not be able to get away from completing their obligations and completing developments. This Bill must put the onus on developers in bringing forward the management company speedily, as provided for in the Bill. Equally, they must deal with unsold apartments or incomplete apartments. The Bill goes a long way to deal with this issue, which causes confusion to those who have made representations to me.

Service charges are important and it is vital we make sure management companies provide a budget upfront for all apartment owners. People should clearly understand, in a transparent way, what they are paying for. People are confused when they are sent out a bill for €1,000 or €1,500 and they have no idea what they are paying for. In many cases, they are not provided with a breakdown of the bill when they request it. That must change and this Bill will ensure all service charges are transparent. An annual meeting is paramount, with the budget being agreed in advance by members. The Bill endeavours to deal with this aspect of the problem.

Sinking funds have caused problems for all of us who have dealings with apartment blocks. In many cases, there are no sinking funds for older developments, a matter to which Deputy Cyprian Brady will refer. Maintenance has been ignored and buildings are deteriorating. It is vital we ensure a proper sinking fund. The Bill suggests a minimum of €200. This may be enough in some cases but may not be for larger developments. This is particularly true when one considers roof repairs, painting, decorating and replacement of carpets.

I am glad to see the question of disputes and house rules addressed in the Bill. This particularly applies to apartments rented out to undesirable people who carry on in an antisocial manner with loud music and parties. I am glad this Bill addresses aspects of the problem. In my experience, it irritates people when their neighbours ignore them and the owner of the apartments makes no effort to control the tenants.

In many cases, annual general meetings are held without proper notice to the members. New committees may be elected in this situation. It is vital to ensure new regulations make it mandatory that everyone participating in a block of apartments receives a registered letter to ensure they are given notice of the annual general meetings so they have the opportunity of discussing the accounts, agreeing the budget and being clear about the services provided. I welcome this Bill and I hope we bring forward the Property Services (Regulation) Bill in the autumn so that these Bills can be enacted very soon.

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