Michael McDowell (Dublin South East, Progressive Democrats)

I thank Senator Tuffy for raising the issue on which I am in a position to report progress. Since the matter was last debated in the House, I have had an interesting meeting with Ann Fitzgerald, the chair of the National Consumer Agency, at which we discussed management charges. As the Senator noted, this is a complex area because it relates to apartment blocks. In some cases, it involves what are called gated developments while in others it relates to open spaces in old suburban areas which, although shared spaces, are becoming extremely valuable and have never been vested in local authorities. Pressure is being exerted to build in these areas and all sorts of issues arise.

There is also the issue of developments, particularly in west Dublin and adjoining counties, where it could be suggested that local authorities semi-privatised their functions by requiring developers who build large estates to establish a management company to provide lighting and maintenance of public areas in their estates. This has given rise to the peculiar situation in certain areas that some estates have been taken in charge, while the residents of other estates are liable to large annual bills for the same services their near neighbours have provided free of charge by the local authority.

Having considered these issues, the Minister for the Environment, Heritage and Local Government, Deputy Roche, and I have agreed to establish an interdepartmental working group to make progress on the issue of estate management charges. To kick-start this process, on 25 January next, we will have a major conference to which we will invite all the interested parties to discuss the issues and possible solutions. This is not an easy task as one cannot cure all these problems on the back of an envelope.

Even in relation to apartment complexes, some of the conveyancing documents provide that the management company does not come into existence until the developer has sold off all the apartments and that a temporary arrangement exists in the meantime. If the developer does not sell off all the apartments, he or she effectively will be required to keep in place indefinitely the contemporary arrangement against the wishes of the tenants.

While I do not wish to be too prescriptive at this stage, it occurs to me that we should establish a body to which apartment owners and others who live in communal areas can apply when a company has not been formed to enfranchise the owners by giving them the right to found a management company or, where a management company has collapsed or is in deadlock, to which tenants in such circumstances can submit a scheme of reconstruction for the management company so things can start again for those tenants in a way that is fair to all. Legislation will be needed but I want a conference to ventilate these issues first so people will have an input instead of the Department deciding a policy in secret.