Dermot Ahern (Louth, Fianna Fail)

We are ad idem with regard to what we want to be achieved, namely, that all developments will be completed - either on a phased basis or in toto - in a proper way. We considered what the Law Reform Commission had to say about this matter and a question arises as to how it arrived at a figure of 5%. Senator Coffey stated people would be willing to pay money into these trust funds if they could rest assured that the common areas on their estates would be completed. I understand that, in the context of the Law Reform Commission's proposal and from a taxation point of view, it would be necessary for developers to retain the 5% and that, as long as this money was in their possession, they would be entitled to keep the interest that would accrue on it.

If a 100-unit development was being built on a phased basis and if the developer went bust before it was completed, what would be the position on the trust fund? Would it be sufficient to carry out the necessary completion works? It is difficult to say. Myriad issues arise in this regard. The local authorities have not, particularly in the context of planning permission, really used the bond system to ensure the interests of home owners are protected. That system was put in place, via legislation, in order to protect the interests of local authorities which would ultimately be required to take unfinished estates, etc., in charge. The primary purpose of the bonds is to ensure local authorities would have some funding available to them to carry out completion works where they were obliged to take unfinished estates or developments in charge.

I qualified as a solicitor in 1976 and have been a politician for 31 years.