During the Order of Business in the Dáil this week, Joan again raised the issue with Taoiseach Brian Cownen about the lack of any urgency been shown by the Government in bringing legislation on the regulation of Management Companies before the House.

Video link to Joan’s question

Deputy Joan Burton: This is the Taoiseach’s third last day doing the Order of Business before the summer recess.

Deputy Joan Burton: I think this is the Taoiseach’s third last day on the Order of Business before the summer recess. I want to raise the issue of the tens of thousands people in estates, whether in apartment blocks or individual houses, who are subject to management companies. The Bill that came before the House has never been completed. In many cases—–

An Ceann Comhairle: Have you spoken with your party Whip?

Deputy Joan Burton: Yes, just bear with me for a moment. The builders and developers who control the management companies are gone bust. In many cases, they are living in the south of Spain or some other sunny spot away from their creditors, and people are stuck in situations and they cannot get out of them.

An Ceann Comhairle: You can have a debate on the Bill when it commences.

Deputy Joan Burton: This is a serious human problem. We had long debates yesterday about other issues. This affects tens of thousands of young families.

An Ceann Comhairle: You are completely out of order on the Order of Business.
Deputy Joan Burton: They cannot sell their properties and move on.

An Ceann Comhairle: There are other ways to make this point. We will have a debate on the legislation at some stage.

Deputy Joan Burton: Where is the Multi-Unit Development Bill 2009?

An Ceann Comhairle: You cannot seek information like this on the Order of Business.

Deputy Joan Burton: I want to ask the Taoiseach about a second related issue. There were widespread reports in the media that the Government was giving consideration to a package or a system that would enable somebody to move their negative equity from their first mortgage to a subsequent mortgage. How could they conceivably do that when most of those people are in managed estates?

An Ceann Comhairle: You are completely out of order. Have we promised legislation in this area, Taoiseach?

Deputy Joan Burton: It is not technically possible. Does the Government have legislation for people who are stuck in a first property and who for a variety of reasons—–

An Ceann Comhairle: Deputy, please.

Deputy Joan Burton: This was in the media at the weekend and was reported as Government policy.

An Ceann Comhairle: Some co-operation with the Chair would be appreciated.

Deputy Joan Burton: I am co-operating with you, but this is the third last occasion before the recess I can raise this really important issue for tens of thousands of young home owners.

An Ceann Comhairle: Will you submit an item for consideration the Adjournment? Will you submit a parliamentary question next week?

Deputy Joan Burton: I have had it on the Adjournment five times. I want an update. When will the multi-unit development legislation actually go through this House?

The Taoiseach: It is on Second Stage (Resumed) at the moment.

Deputy Bernard J. Durkan: When will it be finished?

Deputy Pat Rabbitte: I want to raise the same issue. This Bill did not get beyond the Minister’s speech on Second Stage. The Taoiseach has promised on a number of occasions that we would deal with this. If we could finish Second Stage, we could take Committee Stage of the Bill in July. The matter is extremely urgent for all the reasons the Taoiseach knows. That would require the Taoiseach to provide time next Friday or the following Friday in order to allow Deputies on this side of the House to speak on the Bill and to let the Bill reach Committee Stage in July and early September.

The Taoiseach: These are matters for the Whip. The Whip has set out what he is seeking to achieve for the remainder of this session. I am not sure whether that can accommodate what Deputy Rabbitte is seeking, but these are matters for the Whips to discuss.

Deputy Pat Rabbitte: This has been going on for about six years in the House. The Taoiseach has committed on a number of occasions to seeing it through this term. There is no provision in the schedule as it stands. In advance of the final week’s business, there is no reason we cannot sit on the Friday to dispose of what is a very urgent issue.

Joan questions Brian Cowen on the Multi Unit Development Bill (Link).

Following much pressure from Joan, the Government will now bring the The Multi Unit Development Bill, before the Dáil next week. It is hoped that the Bill will legislation for home owners who live in managed housing estates and apartment buidings to have a more direct say in how their Mangement Companies are run.

Video Link of Joan Burton TD questioning an Taoiseach

Transcript of Joan’s question.
Deputy Joan Burton: What is the current situation in regard to the long-promised legislation dealing with management companies? The Minister for Justice, Equality and Law Reform circulated a two page letter which highlighted all the difficulties he has identified and all the different parties he has consulted, including builders and developers. It looks as if the prospect of getting this legislation in the lifetime of this Dáil is fading away.

In my constituency and in many others, tens of thousands of people, in particular young people, in negative equity are—–

An Ceann Comhairle: We are anticipating the legislation.

Deputy Joan Burton: —–living in managed developments where, typically, they are being charged large fees from €600 to €2,500 per year.

An Ceann Comhairle: I am advised the Bill is in the Seanad.

Deputy Joan Burton: Their apartments can get flooded and their roofs can get destroyed and they have no recourse. Has the Government a revised timeframe for introducing this legislation before this Dáil runs its course because very many people are very badly affected by its absence?

An Ceann Comhairle: The Bill is in the Seanad.

Deputy Joan Burton: It is really difficult. The Minister for Justice, Equality and Law Reform circulated a two page letter but it is a letter of despair because it seems to indicate that no resolution of this really pressing issue will be forthcoming while he is Minister.

The Taoiseach: Given the amount of interest articulated in the House on a constant basis in regard to this matter, the purpose of the correspondence was to bring people up to date as to what issues are being addressed. The purpose of the correspondence was to update Deputies in far greater detail than I would be able to give on the Order of Business on what exactly are the issues being addressed and considered.
I would like to see the legislation published and enacted as quickly as possible but it is being dealt with by the Department of Justice, Equality and Law Reform and it is a matter of priority. Unfortunately, because there are so many issues involved in terms of getting a coherent legislative outcome, it is complex and difficult to finalise. It is not a question of the Government being indifferent on the matter. We are proceeding with this issue as quickly as is possible.

Deputy Joan Burton: I thank the Taoiseach for the reply.

An Ceann Comhairle: The Deputy has had a very good innings on the matter. We must move on.

Deputy Joan Burton: Does the Taoiseach have a timeframe for the legislation? We regularly deal with hundreds of thousands of people affected by the absence of legislation in this area, young homeowners in negative equity who are finding it extremely tough.

“Despite promises both before the last general election, and even more intense promises in the run up to the recent local elections, people living in managed developments, whether apartments or traditional houses, are going to have to wait an awful lot longer for legislation to control their management companies.

“New legislation is needed to give owners and residents real influence in the management Company.

“It is absolutely essential that the new legislation, when it does finally see the light of day, is not limited only to new developments. This would be a real sucker-punch for the many families and individuals currently paying sky-high management fees for often sub-standard services.

“Despite Fianna Fail’s proposed legislation have passed through the Seanad, it appears from correspondence received by the Labour Party that the Minister for Justice, Dermot Ahern, has initiated a fresh consultation process. In particular, he is consulting the Irish Homebuilders Association, and the Irish Property Facilities Management Association, but does not appear to be consulting with any of the people who actually live in managed developments.

“It seems extraordinary that Fianna Fail appears to have caved in yet again to the interests of developers over those of the residents who have bought in to managed estates.

“These developers made hay on the backs of a lot of ordinary people when the property boom was at its height. Now that the property boom is over, many developers are unwilling to deal with legacy issues in relation to managed estates.

“Fianna Fáil clearly has no will to address this important area of reform.

As part of their deal with Fianna Fáil, the Green Party promised to act to ensure that this much needed reform took place with Minister for the Environment, John Gormley, being particularly vocal on the issue. None the less they seem powerless to influence their Fianna Fáil colleagues in Government.”

Speaking in the Dáil yesterday, Deputy Joan Burton welcomed the Government’s promise to legislate to protect homeowners from rogue management companies before the Dáil rises for the summer. Joan has been campaigning for over two years for legislation and regulation for this sector.

Speaking on the Order of Business in the Dáil yesterday, Deputy Joan Burton once again called on the Government to finally honour its often repeated promises to legislate for property management companies.

“The position with regard to management companies continues to give rise to major difficulties for tens of thousands of home owners, particularly in Dublin and Leinster where responsibility for many new developments lies with such companies.

“As a result of the financial difficulties affecting the construction sector, young people are living in estates and apartment blocks which were constructed by builders or developers who have effectively gone into liquidation and in respect of which there is no actual legal structure in place to govern the activities of management companies.

“Legislation has continually been promised in this area. The position regarding management companies is creating major problems in the housing market because people wishing to sell on their houses or apartments – in the limited market that exists – are being impeded from doing so if such companies have responsibility for the upkeep of the estates or blocks in which those houses or apartments are located.

An Taoiseach replied, with no apparent sense of irony, that “the matter relating to management companies is one which must be dealt with as a matter of urgency. This is a complex area and we are moving towards having the relevant legislation introduced in the House as soon as possible. A Cabinet sub-committee is currently working on the matter.”

Deputy Burton later commented that “this is typical of our do-nothing government – they always seem to be one more report or committee meeting away from taking action.”

The Office of Director of Corporate Enforcement (ODCE) has published a booklet to help members and directors of Property Owners Management Companies understand the company law aspects and the role and functions of Management Companies.

Speaking in the Dáil today, Deputy Burton asked “what progress, if any, has been made to bring forward legislation on management companies? The situation is deteriorating rapidly. There are apartment blocks where only three or four apartments have been sold. The management company situation is in complete chaos. These tenants are young people and the situation is also stopping people buying apartments. Does the Taoiseach have any idea when this legislation is coming in?”

The Taoiseach replied that the relevant ‘Bill is currently being drafted and will probably be brought forward in the next session.’

Speaking after the debate, Deputy Burton said “This is yet more prevarication from our do-nothing Government – they always seem to be one more report away from a decision, one more committee meeting away from action. I have been calling on them to legislate for management companies to relieve the misery from those at the mercy of cowboy operators in this unregulated sector. Even still, the only answer we get is that it will ‘probably happen in the next Dáil session’. This is simply unacceptable.”

“The ongoing saga now gives rise to a situation where appartment owners are, in effect, subsidising developers – as reported in yesterday’s Irish Times.