Broken Promise on Management Company Legislation

There is now only one sitting week remaining before the Dáil recess (the Labour Party had sought a significant increase in the number of sitting days ). With that time being dedicated to debating the worsening economic situation, it appears that the Government is not now going to bring forward legislation on property management companies before the recess. Deputy Joan Burton had previously been given a series of public assurances by members of the Government that this legislation would be brought before the Dáil before the recess.

Deputy Burton has this week received a most unsatisfactory reply to a series of questions (questions and reply below) on the management company issue. With the Law Reform Commission having now published its final report and recommendations for legislation in the area, there is now no excuse for further Government prevarication. It is particularly disappointing that the Minister has not agreed to introduce interim measures to give some relief to the many homeowners suffering under the un-regulated management company regime where they often pay huge, unjustified fees for a very poor service in return.

QUESTION NOS: 523 to 525

DÁIL QUESTIONS addressed to the Minister for Justice, Equality and Law Reform (Mr. Ahern)
by Deputy Joan Burton
for WRITTEN on Tuesday, 1st July, 2008.

* 523. To ask the Minister for Justice, Equality and Law Reform his views as an interim measure, pending the report of the High Level Inter-Departmental Committee on Multi Unit Developments, on imposing a requirement on management companies and management agents to provide clear and immediate information on their operations to the occupants, both collectively and individually, of multi unit developments for which they have undertaken management responsibilities; and if he will make a statement on the matter.

– Joan Burton

* 524. To ask the Minister for Justice, Equality and Law Reform the number of occasions on which the Inter-Departmental Committee on Multi Unit Developments, which is chaired by his Department, has met to date; the date it last met; and when he expects the Committee to issue its final report.

– Joan Burton

* 525. To ask the Minister for Justice, Equality and Law Reform if his attention has been drawn to the fact that the Law Reform Commission has recently published its final report on multi-unit developments; if he will make a statement on the recommendations contained therein; if he will fulfill previous commitments that legislation on multi-unit developments would be brought before Dáil Éireann before the summer 2008 recess; and the timeframe for the publication, debate and enactment of this legislative package.

– Joan Burton

REPLY.
I have already indicated in response to Parliamentary Questions that the high level interdepartmental committee on multi-unit developments has been established to identify the legislative and administrative actions that should be taken in response to recommendations made by the Law Reform Commission on the matter. The interdepartmental committee met on 7 occasions to consider the preliminary proposals which were set out in the Commission’s Consultation Paper. Since then the Committee has had its first meeting to consider the Commission’s recommendations – 70 in total – that are contained in its Final Report that was published on 24 June last. The Committee is in the process of establishing a programme of work in response to the recommendations as a matter of priority. The Commission’s Report is a wide ranging document involving reforms across a broad range of policy areas including planning and development law, tax law, company law, the law relating to registration of ownership of land, the jurisdiction of the courts and other related areas.

My Department is already engaging with the Property Registration Authority/Land Registry to examine the recommendations made, for example, in relation to the registration of title for multi-unit developments. The Department of Enterprise, Trade and Employment is examining the recommendations for the strengthening of company law. In so far as issues relating to consumer information and general awareness in the area of multi-unit developments are concerned the Minister for the Environment, Heritage and Local Government has already welcomed the new publication launched by the National Consumer Agency to address the need for consumers to understand the issues around multi-unit developments. This followed on from the work at the stakeholder forum on which his Department and other key organisations were represented.

I should also mention that the National Consumer Agency has agreed a Code of Practice for developers of multi-unit developments with the Irish Home Builders Association. This Code outlines the responsibilities of developers regarding ownership, management and maintenance of common areas and the provision of common services within such developments. It also addresses areas such as the establishment and operation of the management company, the use of property managment agents, the calculation of service charges and establishment of a sinking fund.