Ahern concedes difficulties with management firms

The Department of the Environment is still considering the costs imposed on householders by management company fees, Taoiseach Bertie Ahern has said.

Acknowledging "a number of difficulties in this area", Mr Ahern said management contracts were a good idea in some apartment blocks. "When they began, it was never envisaged that they would be used in large housing estates and I do not know why local authorities allowed such a scenario to occur. I am aware that this is a major problem in Kildare and parts of Dublin."

He had asked the department to examine whether the situation could be rectified through legislation. "At the moment, there is no legislation governing the way in which management companies control their business and the services for which they are entitled to charge. It is only set out very loosely that they are responsible for services and environmental matters. This allows them to venture into many areas in which their role was never envisaged."

Mr Ahern was replying to Labour leader Pat Rabbitte who said the system had introduced rates by the back door.

"Most management companies are not responsive. These young people are already in hock up to their eyes after purchasing apartments or duplexes and now find themselves faced with fees which were once €200 or €300 but is now over €2,000 in some cases."

Mr Ahern said management companies were never regarded as desirable or essential for residential housing estates.

"[ They] represent an unnecessary cost unless residents wish that they are established, and that is a decision to be made when people are living in their houses rather than beforehand. The matter is being examined and if legislation is required, it will be considered."

Mr Rabbitte said he had come across the phenomenon in several areas of Dublin, Kildare and Galway and he was sure it existed elsewhere.

In a debate in the House in November, when Labour TD Éamon Gilmore had introduced a Private Member's Bill, the only offer made by Minister for the Environment Dick Roche was to examine the proposals coming from the Law Reform Commission. Mr Rabbitte said the commission was unlikely to make any report, not to mention implement such a report, this side of an election.