Joe Costello (Dublin Central, Labour)
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Question 91: To ask the Minister for the Environment, Heritage and Local Government his plans to regulate the operation of management companies and to control management fees in housing developments and in multi-unit dwellings; and if he will make a statement on the matter. [7451/07]

Noel Ahern (Dublin North West, Fianna Fail)
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Management companies, consisting of the owners of dwellings, are generally constituted under the Companies Acts and are required to operate in compliance with company law, which comes within the area of responsibility of the Minister for Enterprise, Trade and Employment. Determination of management fees is primarily a matter for the management company. My Department does not have a role in this or other aspects of company governance.

The Director of Corporate Enforcement published a report on the operation of management companies in December 2006, which includes guidance for company directors and members on company governance. I understand that changes to simplify company law applying to management companies are also proposed. A consultation paper dealing with a range of issues relating to property management in multi-unit developments was published by the Law Reform Commission in December 2006. Both of these papers are currently subject to a public consultation process.

The Government have already decided that property managing agents will be regulated by the Property Services Regulatory Authority being established by the Tánaiste and Minister for Justice, Equality and Law Reform. This Authority will regulate property service providers, including property managing agents, which are commercial firms engaged by management companies to provide management and maintenance services for which management fees are paid. I understand that legislation to establish the Authority is being prepared and that the Department of Justice, Equality and Law Reform is also convening an inter-Departmental committee to assist in the development of a legislative response to issues generally relating to property management companies. My Department will be represented on this committee and will make every possible contribution to its work.