Oireachtas Joint and Select Committees

Tuesday, 1 December 2020

Joint Oireachtas Committee on Housing, Planning and Local Government

Construction Defects: Discussion with Construction Defects Alliance

Ms Kath Cottier:

We advocate a redress scheme similar to the scheme for homes affected by pyrite and mica. We call not only on the State for a response but on people involved in the sector to be able to do that. Regarding tax breaks, everything can be vouched. Everything can be properly calculated in terms of the costs involved and also service charges and levies that are applied. There are ways in which tax breaks can be done effectively.

On soft loans, we know there are Government agencies which can give very low interest loans. That is not our preferred option because it does not give financial release or remove the financial burden. However, it could quickly give the owners' management companies, OMCs, the ability to make people's homes safe. That is where the soft loans would be of benefit. However, there are very few mechanisms for OMCs to borrow money. They have no assets. The way that would be worked would be quite complex and the other options would be far more preferable for many reasons.

In terms of quantifying the issue, that is the reason we need the working group. If there are, on average, 100,000 homes affected and the average cost per home was €15,000, that would give a guesstimate. I do not have the figures with me and I do not know if any members of our group have them. It is one of the key outcomes from the working group.

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