Margaret Murphy O'Mahony (Cork South West, Fianna Fail) | Oireachtas source

My colleagues have highlighted the reason for this Bill and I am delighted that such a positive and proactive step being taken. I commend my colleague, Deputy Darragh O'Brien, for bringing the Bill forward.

We hear a great deal about the squeezed middle and this is a perfect example of where that squeezed middle is continuously being exploited. Management fees, by definition, are fees that property owners pay for services provided by their development's management company. Essentially these fees cover services such as maintenance, lighting, green areas, footpaths and parking. Those costs are generally also contained in the narrative associated with the property tax. In many cases the people concerned purchased an apartment as a step on the so-called property ladder but were forced to remain in the apartment due to spiralling house costs, regardless of whether they wanted to. They are now paying on the double.

One of my constituents in Cork South-West pays €1,500 in management fees and a further €300 in property tax. This constituent bought the apartment at the height of the property boom and the management fee is equivalent to two mortgage repayments. Under our proposal this constituent would make considerable savings on the property tax, which can only be deemed fair in the circumstances. Clearly, this option will only be made available to those who have paid their management fee in full. The Bill provides for this. Such situations will be more prevalent in major urban areas, but the number of apartment complexes is increasing. At this stage many of the larger towns and villages in west Cork are dotted with apartment complexes. Obviously, there are other situations where management fees are also paid. I am seeking to look after these constituents. What makes the situation more difficult in west Cork is the fact that salaries are often generally lower. While this is relative, it is, nonetheless, an additional burden and expense that could be lessened.

It is estimated that this measure could benefit approximately 200,000 households. These homeowners deserve a break, and I ask the Minister to give it to them.

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