Bernard Durkan (Kildare North, Fine Gael)
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Question 276: To ask the Minister for the Environment, Heritage and Local Government the basis on which estate management companies are authorised to charge exorbitant fees in local authority housing estates for work for which the local authorities have primary responsibility; and if he will make a statement on the matter. [12725/06]

Noel Ahern (Dublin North West, Fianna Fail)
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The management and maintenance of their rented dwellings is the responsibility of the housing authority concerned. While local authorities are empowered to make arrangements, including for the charging of fees relating to the management and control of their dwellings, I am not aware of authorities engaging estate management companies to provide services in local authority housing estates.

In some cases authorities may acquire properties in a private estate for letting where a management company may already be in place. In such cases, as indicated in reply to Parliamentary Question No. 682 of 15 November 2005, the intention of the Oireachtas, as set out in section 14 of the Housing (Miscellaneous Provisions) Act 2002, is that housing authorities should be permitted to take account, in the determination of rents or other payments from tenants, of costs incurred by the housing authority for insurance or any management services provided to the dwelling. However, the degree of any impact on rents would also depend on the operation of the differential rents scheme in the local authority area concerned. A Law Reform Commission working group is examining a range of legal issues relating to management of multi-unit structures. The Government will consider any recommendations the final report makes including the necessity for new legislation in this area.