Terence Flanagan (Dublin North East, Independent)
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434. To ask the Minister for Justice and Equality his plans to implement the introduction of a limit on the amount of management company fees charged to apartment owners; and if he will make a statement on the matter. [16326/14]

Alan Shatter (Dublin South, Fine Gael)
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The primary purpose of the Multi-Unit Developments Act 2011 is to reform the law relating to the ownership and management of common areas of multi-unit developments and to facilitate the fair, efficient and effective management of owners' management companies (OMCs). OMCs, the membership of which comprise the owners of residential units within the development, are established for the purposes of management of such common areas.

Section 18 of the 2011 Act requires OMCs to establish and maintain a scheme of annual service charges from which they may discharge expenditure incurred on the provision of common or shared services to the owners and occupiers of residential units in the development, including insurance, waste management and security services. These service charges must be calculated on a transparent basis, and be equitably apportioned between the residential unit owners. In order to ensure transparency and accountability, both the annual service charge and the services to be provided must be approved by a general meeting of the members of the OMC.

Through their membership of the OMC, residential unit owners have the right and duty to set and approve appropriate annual service charges and contributions to the sinking fund. It would not therefore be appropriate to impose restrictions or introduce limits in respect of such matters. I would however encourage all residential unit owners to attend and participate actively in the annual general meeting at which decisions in respect of these matters are reached.