Mr. Hubert Fitzpatrick:

I will start and my two colleagues can join in, because quite a range of issues have been raised. Deputy Ó Broin asked if we have enough time to assess whether these regulations are adequate. Certainly the culture within the industry has changed significantly since the beginning of the regulations, from design of the buildings to inspection plans to appointment of competent persons. I am aware that there is a huge amount of resources employed to ensure compliance with the building regulations under the new regime. We welcome that and fully support it. We must ensure that we have buildings that are built to the proper regulations and standards and that can be stood over.

On the issue of consumer protection and what needs to be in place, we recognised four to five years ago that there were shortcomings attached to the previous certification process that was in place. By and large the only certification required was post-completion. It was based on visual inspection, in many places, of domestic buildings, and opinions on compliance were expressed at that juncture. That was not satisfactory. We fully supported the introduction of the new building control amendment regulations. There is one piece missing at the moment. We recognised that we require a register of competent builders, and that only builders with competence should be allowed to build structures in particular categories for where they had relevant experience. At the time we set about developing what was called the construction industry register Ireland in conjunction with the Department of the Environment, Community and Local Government, and that was included as one of the Government actions to be put on a statutory footing during the current Government. We would hope that that register would be put on a statutory footing, that it would be mandatory for all builders to be on that register and that it would be an offence for them to build anything for which they are not registered. The advantage of a register of that nature is that builders would have to ensure that they undergo continuous professional development to ensure that they are kept up to date with the changing regulations and standards that are introduced by the Department of Housing, Planning, Community and Local Government. We would like to see that approved.

In terms of consumer protection, it is fair to say that the insurance policies that are now in place differ greatly from the warranty schemes that would have applied in the past. The insurance policies now available includes first-party insurance cover, so that in the event of the claim the policy holder does not have to go through the builder any more but can go straight to the insurance company to remedy any defect which might be identified. The policy in these situations attaches to the house or unit, and that would subsequently transfer to subsequent purchasers of that unit, so that if someone buys a house or an apartment the policy will be in their name, and if they sell that unit two or three years down the road the policy will transfer to subsequent owners of that unit so that they will have the benefit of that policy for its term, which is generally ten years. The policy today covers defective workmanship, design and materials. The previous materials were purely structural policies. The policies offer much greater protection than before. They offer protection from fire safety, dealing appropriately with radon, mechanical equipment and drainage. Some of those policies can be for up to €200,000, plus €50,000 in respect of various plant and equipment. Any purchaser of a new residential unit will insist on having that insurance policy because they will not be able to secure funding from their bank or building society for a mortgage. Any of our members that are building new units for sale on the open market will insist on having that insurance policy in place, because if they do not they will not sell it. In effect it is mandatory in the market place because funders will not advance mortgages without that cover.

With regards the issues that Deputy O'Dowd raised, the buildings must be constructed in accordance with the permission. When one is selling a building on has to ensure that there are certificates of compliance with planning issued at that particular stage. In addition, under the new building control amendment regulations, BCAR, requirements the builder must give a certificate of compliance on completion that the building meets the building regulations. The assigned certifier must also certify that the building has been built in accordance with the building regulations. The building control authority has the ultimate power to refuse to register that building on the register, and no sale of a unit can or will take place unless that unit has been registered with the building control authority. The measures are much stronger than they have been heretofore because there was no statutory requirement for any of these certificates in the past. The insurance policy that is currently available in respect of all residential units does provide an adequate fund to ensure that various defects can be remedied and that people can gain direct access to the insurance company, which is a major change from what happened before.

With regards the role of the local authorities, certainly we would love to see the building control authorities resourced more effectively so that they have the adequate resources to carry out more inspections. The industry is not fearful of inspections. It supports more inspections. The more inspections, the better. Certainly the culture within the industry is much changed in terms of ensuring that products purchased for use in the buildings comply with the construction projects regulations and that all elements of the workmanship comply with the building regulations, and that there is an appropriate chain of responsibility established within the overall building process. We want the construction industry register Ireland, CIRI, in place on a mandatory basis. The current regime provides that a registered member should be capable of being removed from the register if he has breached the requirements of the building regulations. Those penalties would be determined by the independently appointed registration board, who have teeth and make decisions on an independent basis.

I have covered a range of issues and my colleagues Mr. O'Reilly or Mr. McKeon might like to elaborate on some of those key points.