Management Companies' Fees in Suburban Housing Estates

national | housing | press release Tuesday February 28, 2006 19:20 by Cian - Socialist Party ComradeCian at eircom dot net Limerick 085-7077919

A scam to enrich developers and a privatisation of public services - SP Statement

Developers masquerading as Management Companies drag Tyrrelstown householders to Court this Friday, March 3rd. This will be a potent political issue in the run up to the next General Election if the political parties do not deal with it forthwith. - Joe Higgins, TD

At a press conference in Dublin today, jointly hosted by Socialist Party T.D. Joe Higgins and Independent T.D. Catherine Murphy, Joe Higgins presented the following statement:

A Scam for Developers
The Management Company structure that is being foisted on thousands of householders in Dublin and around the country is a lucrative scam for housing estate developers. Having made a fortune from the sale of the homes they built, they then foist management charges on the new householders for the upkeep of open spaces, public lighting, and public liability insurance among other services.

Hitherto the developers would bear the costs from the profits they made until the local authority took over.

Privatisation
It is clear local authorities have introduced the Management Company structure into housing estates in order to sneakily privatise public services for which they are traditionally responsible. It is wholly unjust and unsustainable that young working people saddled with heavy mortgages now have a new local tax foisted on them for services that householders in neighbouring estates have provided by the local authorities from general taxation.

Court Cases, This Friday, March 3rd 10.30am - Dolphin House Essex Street
Outrageously, the developers of Tyrrelstown estate (Dublin 15) who have made massive profits from householders are now dragging the very people who made these profits for them to court to try and force them to pay management fees.

Eugene and Richard Larkin are the directors of many of the Tyrrelstown Management Companies. They are also developers of Twinlite Developments Ltd., which built most of the Tyrrelstown estate. They are now trying to squeeze more money from householders by dragging them into court. I commend the Tyrrelstown Action Group's Campaign to Abolish Management Fees for providing legal defence for the householders.

A Political Issue
The Government and the main political parties that must resolve this new burden foisted on hard-pressed taxpayers.

Legislation is needed which prevents householders being caught in this trap. We also need urgent action to void the contracts which young householders were compelled to sign in order to be allowed to purchase their new homes.

This will be a potent political issue in the run up to the next General Election if the political parties do not deal with it forthwith.