In recent years, many local authorities, when giving planning permission for new residential communities, are dictating that crucial public services, such as water supply, sewerage systems, road repairs, public lighting and care of public open spaces, are maintained by private management companies rather than the local authorities themselves.

Hear, hear.

This is becoming the standard in the Dublin local authorities, County Kildare and a number of other areas. The upshot is that mainly young working people buying their first homes are saddled with huge management company fees of up to €500 or more in the case of apartments——

It is in the thousands of euro.

——which are demanded by the companies for these services on top of their mortgages, child care and transport costs.

Tyrellstown in Fingal is a new community of 2,000 homes built in the past four years and will have a population of 5,000 or 6,000 soon, which is the size of many medium sized towns around the State. It is twice the size of Dingle town, for example, or perhaps I should say An Daingean.

Hear, hear.

However, by the underhanded means by which the local authorities effect this wholesale privatisation of services, the management companies are foisted on the householders and a new local tax is levied. This is a significant inequity because in neighbouring estates built a few years earlier that may include a "millionaires row", services from the local authorities are provided through general taxation, as should be the case.

It is also a scam because the directors of the management companies for up to the first five years are the developers who built the estates, sold the houses and made massive profits from the new young house owners who, before these management companies were foisted on them, would have had developers maintain these basic services for a period of years until the estate was taken in charge by the local authorities. They are now dragging householders to court, demanding money from them and scaring them with intimidating letters from debt collectors. If these management companies were mooted in the 1960s, the mohair suited developers who financed Fianna Fáil would have thought it a Tacateer heaven but they would not have dared implement it.

It is a major instance of a new rip-off and inequity. A revolt will begin because these scare tactics make the reality obvious. Is privatising pubic services in this way and putting a new local tax on hard-pressed taxpayers a conscious Government policy? During an adjournment debate Deputy Noel Ahern, the Minister of State at the Department of the Environment, Heritage and Local Government, and known to the Taoiseach, told Deputy Catherine Murphy that the general matters administered by management companies were never the responsibility of local authorities. In fact, all these services were the responsibility of local authorities. Will the Taoiseach ask the Minister for the Environment, Heritage and Local Government to immediately conduct an investigation? Will he also demand that local authorities desist from this practice and abolish the existing management companies that are the source of this inequity?

Hear, hear.

I am aware of the old system which, as the Deputy outlined was that the council would not take charge until the developer, builder or contractor was completely finished building the estate. That worked effectively. Many years ago it took a long time.

It still does. It takes ten years.

The Deputy mentioned areas such as Kilnamanagh, which took 20 years to be taken in charge. Many others took an extremely long time.

The Tánaiste will explain to the Taoiseach why that happened.

Throughout the city private companies increasingly operate and take charge.

They are not taking charge.

They are not taking charge. They are prevented from taking charge.

The Taoiseach without interruption.

I am trying to answer the question. Some management companies can be quite good and effective but many of them are not and are quite difficult.

This is not a Government policy. Local authorities have the powers to deal with these issues. It is not controlled or directed by central Government. If local authorities want to act in a different way or impose restrictions they can do so when issuing planning permission. A valid argument exists on whether legislation should govern management companies because many of them——

The builder's brother.

Allow the Taoiseach to speak without interruption. Deputy Higgins submitted a question. He had two minutes in which to submit it and used four minutes to do so. It was done with courtesy. The Taoiseach is entitled to answer.

The Opposition parties could usefully direct their councillors in these areas to act on this as between them they have a majority.

Hear, hear.

Fine Gael——

Councillors do not give out planning permission.

The Taoiseach without interruption.

Fine Gael and Labour are responsible for these issues by and large because they do nothing about them.

An argument can be made for introducing legislation on management companies. The fact that no legislation governs them arose as an issue in Dublin Corporation. Legislation should be in place.

Some charges fall within the management companies' service charges and that is a different issue. The point made by Deputy Joe Higgins is that some management companies operate effectively and others do not. They impose a large charge——

It is a rip-off. They do not do anything except cut the grass.

Councillors from the Opposition parties form the majority in these councils and they should try to be more proactive in dealing with the issue.

Unelected managers of local authorities impose this as a condition and the fundamental inequity is that young people now purchasing a home under great duress and at high cost are saddled with a local tax of between €500 and €1,000 per year. In the first five years it is payable to the developer to clean up his or her act and finish the estate so they can move on. Kilnamanagh was an unfortunate example for the Taoiseach to use. It was built but not handed over by Brennan and McGowan and others who are well-known to his party.

It is not appropriate to mention names of people who are outside the House.

They have been mentioned elsewhere. Under this system, in the example illustrated by the Taoiseach these particular developers would get fees for 20 years. The inequity is compounded by the fact that management companies' contracts are presented to young house buyers at the same time as they sign contracts for their new homes. That is a time of immense stress and the contracts are signed under duress because the people involved need a home.

I sound a warning to the Taoiseach. At this stage this might affect tens of thousands of homes and residents. It is becoming a serious issue. Deputy Catherine Murphy, Independent Deputies, other Deputies and I will make this a major issue in the near future and in the lead up to the next election. Thousands of young home owners tell us they cannot endure the situation and they cannot afford the current levels. Those levels will become intolerable because when the sewage and water systems will need major refurbishment in ten or 15 years time, the home owners will be saddled with these debts. We want them abolished and that is what I want to hear from the Taoiseach.

This involves a number of issues. A good and valid point on the control of management companies and how they are governed was made by Dublin city manager, Mr. John Fitzgerald, and I know that issue is being examined.

The point made with regard to local authorities allowing developments and zones is not correct because they have power and a direct influence at local level when dealing with these issues. Management companies may have legitimate charges such as refuse charges, which everyone pays and which the Deputy knows will not be abolished. However, where these companies undertake to carry out responsibilities and perform services, and charge young people and others but then do not do the work, a question is raised on introducing regulations to force them to carry out that work.

They work down the road.

The Taoiseach without interruption.

That is a different point.

They only cut the grass. That is all they do.

Developers should not be allowed to charge and then not provide services, which happens in some areas. In other areas management companies provide extremely good services. They maintain the recreational standards of the area, provide leisure facilities and do gardening.

Where?

In many areas.

Name one.

The Taoiseach without interruption.

In many areas in my constituency not to mind elsewhere. Overall, the question of legislation will be examined but local authorities should not run away from their responsibilities.

Tell the Minister to inform them of that.

They have the power to direct and control these issues in many cases.