Ahern opposes privatisation of housing estate services

Taoiseach Bertie Ahern confirmed his opposition to the privatisation of public services by local authorities on new housing estates, but warned that legislation could not be made retrospective.

The issue of local authorities establishing private management companies to charge home owners for services normally provided free was being looked, but "legislation in any area cannot be applied retrospectively and it would be wrong to give any comfort to people knowing this to be the case".

Socialist Party TD Joe Higgins (Dublin West) called for an end immediately to this "sneaky underhand privatisation", and said existing management companies should be dissolved and public services should be provided from general taxation.

Legislation had to be introduced "to allow the voiding of the contracts into which people have been forced already so that the management companies can be dissolved and those services can then be provided by the local authorities".

Mr Ahern said contracts had been designed "to place total liability on tenants who - particularly some years ago when there was a supply and demand issue - signed these contracts.

"Tenants now find the costs are excessive, and that they are arbitrarily increased annually. This places a huge burden on people. It is a fairly new phenomenon, and it did not happen in the past."

Mr Higgins, who raised the issue, said he wanted "two or three very clear statements" from the Taoiseach.

He asked if Mr Ahern opposed the "sneaky underhand privatisation by local authorities through the management company structure of services such as care of public open spaces and public liability insurance". This was the "effective imposition of a new local tax on new, young home buyers".

Mr Higgins also asked if the Taoiseach opposed the "scam whereby house builders, having made obscene profits", control the management companies for the first four or five years and drag homeowners to court to pay for basic maintenance which the builders were obliged to carry out.

Mr Ahern said the answer to the deputy's two questions was "yes and yes".

Mr Higgins said tens of thousands of new, young home buyers saddled with large mortgages and childcare costs "are now facing this new burden".

"They want the Government to move immediately to remove this monkey off their backs."

He added that a recent Liveline programme on RTÉ radio was "chock-a-block with revelations from all over the country about the extent of this new scam".

Mr Ahern reiterated that the Minister for the Environment was examining the issue "but it cannot be dealt with retrospectively".