Aengus Ó Snodaigh (Dublin South Central, Sinn Fein) | Oireachtas source

Gabhaim buíochas don Aire agus don Teachta Darragh O'Brien as an mBille seo a chur os comhair an Tí agus as an deis a thabhairt dúinn an cheist chuibheasach simplí seo a phlé. Tá mé sásta go bhfuil an méid atá le rá ag mo pháirtí ag tacú go hiomlán leis an mBille. My understanding is that the Bill seeks to establish an ombudsman for owner management companies outlined by Deputy Darragh O'Brien. It is intended to set up a body to train board members of owner management companies and to assist them in dispute resolution and in making recommendations on the future development and management of the sector.

Any of us in this city and throughout the country who have dealt with management companies and-or been affected by them have seen how disparate is people's application to their responsibilities. We have seen how simple issues escalate that could have been resolved quickly.

One of the important aspects of the Bill is that it aims to assist in dispute resolution. The owner of each residential unit is entitled to membership of the owners' management company and is generally entitled to one vote. Where alternative arrangements are already in operation, they may be continued provided that they are just and equitable. That is the key. There have been different models over the years and the sooner we get to a single, standard model that can be used for management companies generally, the better. A great deal of work has been done. Management companies were not a major issue prior to the commencement of the current century. It was not an issue of which I was aware before that. Once the Celtic tiger took off and people started to live more and more in apartment blocks, issues started to emerge and the matter came to occupy its current place of importance. It is taking up much more of our time and that of the Government than it should as we have tried to catch up with the need to legislate in this area. That is why I am enthusiastic in my support for the legislation.

Owners' management companies are involved in the conveyancing procedure for individual units. If a unit is subsequently sold or transferred to another person, membership of the management company should transfer automatically to the new owner. It should not be necessary to execute the transfer formally or to have it approved by the directors of the company. Again, that is a logical step but sometimes logic must be set down in law. Owners' management companies must comply with company law as well as with the specific obligations imposed by the Multi-Unit Developments Act 2011. All directors are limited to a term of three years. The main obligations of an owners' management company are extensive and include annual reporting, collection of service charges and dispute resolution. However, they are no more onerous than the obligations imposed in many other areas of company law and the like. As outlined by Deputy Darragh O'Brien, the Apartment Owners Network and the Society of Chartered Surveyors Ireland made a submission recently to the Joint Committee on Housing, Planning and Local Government. In that submission, they estimated that nearly 500,000 people lived in multi-unit developments in Ireland, the majority of which are run by owners' management companies. It is a substantial number of people who are dependent on such accommodation. It demonstrates the scale of the matter. I do not have the figure from 20 years ago but I can guarantee that it was a great deal smaller.

I understand that membership of the boards of owners' management companies is voluntary in nature and comes with a significant responsibility to the residents they represent. I have no doubt that there are significant complexities and challenges involved in trying to please everyone at all times. The role is similar to those of trustees in charitable companies and the members of other voluntary boards. In the past, such roles were not as onerous but now there is a greater responsibility on foot some of the issues that have emerged. Management company boards are no different. As such, education must be made available along with the necessary supports for those acting on boards in a voluntary capacity. They must not be left in the lurch and expected to accept blame when they have not had the training required to address any issues which arise. While owners' management companies are rightly governed by company law, board members are generally unfamiliar with its intricacies. The key is to ensure they have that education.

I agree with Deputy Darragh O'Brien that the Property Services Regulatory Authority has the capacity and is best placed to assist those who run these companies for the greater good of those who dwell in multi-unit developments. It is proposed in section 2 of the Bill to extend the remit of the authority by including an advisory role which is key to provide the information and training required by board members. As a result, the issue of the resourcing of this additional role arises. While the proposed role would not be hugely onerous, it is important to be aware that when one extends the remit of any body, a small cost is generally involved. Perhaps the Minister will encourage his colleague, the Minister for Finance, to put the necessary funding in place to help the authority to develop this aspect of its remit as extensively and as quickly as possible. That would be in keeping with the intention to deliver this legislation as quickly as possible and without any delay. It cannot be delivered quickly if the resources are not in place.

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