Jerry Buttimer (Fine Gael)

Cuirim fáilte roimh an tAire Stáit. Picking up on Senator de Búrca's final comment, the legislation should apply in that respect as well as to all residential dwellings in multi-unit developments. Our conventional type of dwelling has changed. It would be a welcome addition to the Bill if that change could be made on Committee Stage.

I give the Bill a broad welcome. It is imperative and important we protect home owners, which I hope is the focus of the central thrust of the Bill. Undoubtedly, the legislation has been a long time coming. Apartment dwellings now dot the landscape not only of our two major cities but of all our cities and many of our rural towns. A fundamental issue in regard to residential developments is that the taking in charge of housing estates needs to be more aggressively pursued. I hope the Minister will ensure this is addressed. I believe, as Senator O'Toole said, that this provision should be covered in the Bill. For too long we have had a great deal of obfuscation and developers being let get away with A, B and C in the taking in charge of estates.

What is the legal standing of a management company under the legislation? It is important there is proper regulation and greater transparency in the operation of management companies. The issue of voting rights is important, as it is imperative that home owners or apartment dwellers would be allowed self-determination and self-governance under the provisions of this Bill.

My party published A Fairer Deal for Modern Living in May 2008. I compliment our environment spokesperson, Deputy Hogan, and our housing spokesperson, Deputy Terence Flanagan, in that respect. I also pay tribute to the Law Reform Commission for the immense work it did which assisted the preparation of this Bill.

Apartment living, as the Minister of State will know from Dún Laoghaire in his constituency, is a relatively new phenomenon on the Irish landscape. Many issues are faced by apartment owners in terms of the maintenance costs they incur, the upkeep of the common area and the ownership of the development. Thankfully, the rights of the apartment dweller have been recognised. The regulation and law in this area must be adhered to. The explanatory memorandum to the Bill refers to the weaknesses to which people have been exposed up to now. The Law Reform Commission addressed the issues and problems in this area. I compliment it on the work it has done. The Minister referred to the issues identified by the Law Reform Commission. I compliment the Minister on introducing this legislation.

According to the 2002 Census, 210,000 people lived in 110,000 apartments and, in the most recent census, it is estimated that approximately 500,000 people will live in multi-unit developments. That is a considerable number of people. It is imperative and important we educate people on the different roles and functions of a management company, the developers and the responsibilities of apartment owners.

I welcome the fact that under the legislation obligations will be imposed on developers and the rights of apartment owners will be strengthened. I hope that in time we will examine the planning issue and the location of apartment complexes. In my area of Bishopstown in Cork a blight of apartment complexes has spoiled neighbourhoods. They have not added to the public realm and they have not in any way addressed the real housing needs of the area. I hope universities and other third level institutions take note of the legislation because there is a need for on-site campus accommodation. In addition, there is a major issue, especially in Cork city, with apartment complexes in the areas surrounding these institutions.

My one concern in respect of apartment living is that we may be creating new communities which are becoming wastelands. While I have no wish to ghettoise anyone, some apartment complexes are lying empty while others are beset with different problems and issues. I hope we can address the latter problem, perhaps by means of the type of house rules to which Senators de Búrca and Hannigan referred.

Another issue about which I am concerned relates to the fact, as Senator Regan stated, that many mortgage holders find themselves in negative equity. People have been forced to pay exorbitant service charges or apartment management fees. There is a major need for transparency with regard to the amounts people pay in fees, who is responsible for setting such fees and what can be expected in return for paying them.

I welcome the fact that management companies will be obliged to establish sinking funds. As everyone who has visited an apartment complex is aware, there is a need to set aside money to pay for the upkeep of common areas and the upgrading or maintenance of the electricity and gas supplies, etc.

How will those who do not pay fees be dealt with? The process which the Private Residential Tenancies Board, PRTB, obliges landlords to undergo to try to obtain fees, rent, etc. from tenants who do not pay is quite lengthy. What will be the position with those who do not pay the fees required by their management companies? I agree that fees must be just and fair and that there is a need for greater transparency.

I recently dealt with an issue in Cork city in respect of which there was a lack of clarity regarding a common area. I hope the Bill will bring finality to this matter. Will developers who built apartment complexes prior to this legislation coming into effect be actively pursued in respect of the upkeep of common areas?

We must be careful with the concept of multi-unit development, particularly in view of the fact that urbanisation has changed the way in which people live. The Bill goes a long way towards attempting to bring about greater clarity and uniformity in this regard. I hope the fundamental problems apartment owners and dwellers encounter and the issue of how complexes are managed and funded will be addressed. I commend the Bill to the House.