What does the Government propose to do about the plight of thousands of people, most of them young, who find themselves burdened with management companies in housing estates located for the most part around Dublin? These are young people who in many cases did not know when they purchased their homes that they would end up contractually wedded to a management company for an excessive fee to deliver often illusory services.

Local authorities have for some time made it a condition of planning approval that these management companies be set up. Such companies are customarily a front for the developer. They start out with this condition in the purchase so the unsuspecting young person does not know until a year later when he or she receives an invoice that he or she is required to pay what is usually a grossly excessive fee for services that do not materialise. In some cases, fees have more than doubled from one year to the next.

There are several examples of major estates around Dublin where the householder is helpless to establish who is responsible for which service. He or she contacts the management company, which refers him or her to the developer. The developer then refers him or her to the local authority. He or she returns to the management company, which refers him or her to the management agent who collects the money. The householder finds out that he or she is contractually bound.

Deputy Rabbitte's time has concluded.

The local authority will not assume responsibility for these estates until they are finished to a satisfactory standard. The estates are left unfinished or some units are retained by the developer so that residents do not have the facility to assert themselves in the direction and control of the management company.

There may be a case for setting up a management company in an apartment block to look after a specified and narrow set of services which are regulated and whose fees are regulated. However, a scenario can arise where an estate consisting of one block of apartments surrounded by a few hundred houses is subject to this arrangement. Rates have been abolished but the present situation is more penal than rates ever were.

Deputy Rabbitte's time has concluded.

The system introduces 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 are now over €2,000 in some cases. What will the Government do about this? It represents an abuse of power which management companies are being allowed to get away with.

This issue was raised in the House approximately three months ago. On that occasion, I asked the Minister for the Environment, Heritage and Local Government to carry out a full examination and produce a report on how this situation can be legislatively addressed, if this is the only way it can be dealt with, which Members argued is the case. This process is being examined in the Department.

I acknowledge that there are a number of difficulties in this area but there are issues surrounding planning permissions in local authorities and why local authorities in many instances permit the formation of management companies. I acknowledge that management contracts are a good idea in some apartment blocks. A management company can probably best look after the combined needs of all residents in developments with open complexes and land and recreational space. Some of these residents are renting, while others are owner occupiers.

That was the purpose of management companies. 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. I have seen cases put forward by a number of Deputies when we debated the issue about three months ago. I have asked the Department of the Environment, Heritage and Local Government to examine whether the situation can 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.

I do not know if there is a way because I have not read the latest report from the Department. As I understood it, the only way in which Government can control this situation and set guidelines is to examine the legislative process if local authorities cannot take control of the situation. I do not understand why local authorities give planning permission that permits management companies in residential housing areas. Why should it be a condition of planning permission that a management company looks after 30 or 40 houses? I do not see why that should be a condition of planning permission.

The Minister stated last night that it should be a condition of planning permission.

Deputy Burton is not the leader of the Labour Party. Deputy Rabbitte is perfectly capable of looking after himself. The Taoiseach, without interruption.

I will confine myself to Deputy Rabbitte's question. Management companies were never regarded as desirable or essential for residential housing estates. Management companies in housing estates 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.

I have encountered this phenomenon in several areas of Dublin, Kildare and Galway and I am sure it exists elsewhere. In the debate which took place in this House last November during which Deputy Gilmore introduced a Private Members' Bill, the only offer made by the Minister for the Environment, Heritage and Local Government was that he would examine the proposals that would come from the Law Reform Commission. The commission is unlikely to make any report, not to mention implement such a report, this side of the general election. Meanwhile, all types of practices are occurring. It seems the Taoiseach agrees with me in this respect, but the difference between him and me is that he is in office.

For the moment.

That should mean he is in power and is able to do something about this matter. I agree with the Taoiseach when he says legislative changes can be made, but will they be made? The answer given last night to my colleague, Deputy Burton, by the Minister, Deputy Roche, did not provide much hope.

There is a practice of local authorities making it a condition of planning approval. The backlog of taking developments in charge can be as much as eight or nine years in parts of this county, whatever about the city. There is no way the local authorities want to hear anything about taking those areas in charge. Meanwhile, young people find that if they do not deliver on any arbitrary increase in the fee charged, they are likely to find themselves——

The Deputy's microphone has been turned off.

His time is up.

It is a new innovation. Whatever chance I have with the Ceann Comhairle, if the House takes me on as well——

The Deputy's time has concluded.

The Ceann Comhairle has a remote control.

He controls it tightly.

Whatever the Law Reform Commission might recommend down the road, can the Minister not take action now, legislatively if necessary or directly with council managers, to end this practice and permit management companies for specified services only in traditional apartment blocks?

Deputy Rabbitte asked what the Government is doing about this matter. I have discussed it with the Minister and his advisers. If it cannot be done by his giving directions or instructions to local authorities, the legislative route should be examined. I am not sure how far that has gone, but I will check. It has been a number of months since I answered a question on the issue and I asked the Minister to address it.

However, I do not accept that local authorities, at a time when they have far more resources and are getting more in subventions from the Department of the Environment, Heritage and Local Government, are putting management contracts into their planning permissions so that they can avoid taking over sites. I do not consider there is an argument for that. At a time when authorities were severely strapped for resources, a time we all remember, they were able to take over sites, even if two or three years had passed. The arrangements they are using in their planning permissions are highly unfair. I agree with the Deputy on that point, but I have asked the Minister whether he can instruct the local authorities on that issue. If he cannot, I have asked him to examine the legislative route.

There is a problem and I accept the argument in respect of apartment blocks. Where there are no management contracts for them, what tends to happen is some people look after them very well, some sporadically and some do not care at all. Very quickly, difficulties arise. Unfortunately, there are too many examples of that in this city and elsewhere. Management contracts were designed in this respect. Making a management contract for 35 houses or duplexes——

They are capable of including contracts for 14 bungalows in Kildare.

——where people have their own front and back gardens and an open space is wrong. I agree with that point.

If the practice cannot be stopped in the planning and development stage, it should be examined. It is an unnecessary increase in the cost. Most residents say they could live with the contracts if they got the services, but the management companies, even though there are regulations, do not manage the services. It is difficult to find who is behind the companies. For these reasons, the legislative route is probably the only way in which the issue can be controlled.