Dominic Hannigan (Labour)

I welcome the Minister to the House. His presence is an indication of the importance of the subject of unregulated management companies. I understand a high level interdepartmental group is expected to deliver recommendations on this issue in the new year. While I recognise and welcome the fact that some form of resolution is in sight, residents affected by this legislative black hole deserve and expect some form of clarification in terms of the measures that will be put in place.

In my own area estates like Glasheen andKilbreck in Stamullen, Northlands, Woodside and Grangerath in the east Meath area, and Dunboyne Castle estate are all being run by management companies. While all the companies in the estates I mentioned are well run, competent and efficient, an unregulated system and management model is in nobody's interest. Many residents who have ended up as members or directors of those companies did not envisage they would have to take on that commitment and the hard work when they bought a house in their estate. It is vital that a well-thought out, comprehensive regulatory framework is put in place in the interests of all parties.

In July 2006, the then Minister for the Environment, Heritage and Local Government, Deputy Dick Roche, issued a directive to local authorities that no more management companies be put in place for traditional housing estates. He recognised that some sort of management company might be necessary for multi-unit apartment blocks but only for the corridors that are shared and private car park areas. He indicated also that all essential public services should be taken in charge as soon as possible by the local authority upon completion of the estate. That directive was of no practical benefit to those people tied in to management estates throughout the country. Why should residents in Meath, Louth and beyond have to pay for essential services when an estate across the road from them gets those same essential services for free?

The establishment of management companies was included in the planning conditions of many of these developments. In a number of cases the necessity to sign up for that management company was hidden in the small print of the contract and many people were unaware they were signing up for it, and many of their solicitors did not tell them, until they got the bills a year later. I will not make an issue of that but it is essential something is done about it.

The problem for these residents does not end there. If a developer refuses to hand over control of the company, residents are often powerless to make decisions that affect their own estates. It is essential, therefore, that any new legislation clarifies and defines the handover process from the original management company to the residents.

Cases have arisen in Dublin where management companies have not held annual general meetings and are failing to make the relevant declarations and returns on behalf of the companies. That can give rise to significant financial and legal difficulties for residents. I emphasise that many of those management companies are extremely well run. People give up their leisure time to ensure their estates are run well. That is not the issue. The issue is that residents should not have been put in this position in the first instance. It is important we take the opportunity now to put in place proper legislative regulations to put those companies on a sound basis. I appreciate the Minister coming into the House to respond.