Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Amendments Nos. 12 and 165 have been grouped. Addressing amendment No. 12 first, the Deputy’s amendment proposes the introduction of a new tax credit for those who have paid construction defect levies to their owners’ management company up to 15 years ago. The remediation of defects in housing is a complex problem which has caused great anxiety for ordinary homeowners across the country. It is the Government’s firm intention to find solutions.

Non-tax-based supports for homeowners and policy in respect of defects in housing generally are matters primarily for the Minister for Housing, Local Government and Heritage rather than the Minister for Finance. As the Deputy will be aware, the Minister for Housing, Local Government and Heritage has established an independent working group to examine the issue of defective housing. Officials from my Department participate in this group. The objectives of the group are to identify the scope of relevant significant defects in housing; to evaluate the scale of housing affected; to propose a means of prioritising defects; to evaluate the cost of remediation; to recommend appropriate mechanisms for resolving defects; and to consider financing options in line with the programme for Government commitment to identify options for those impacted by defects to access low-cost, long-term finance.

I understand that this working group has agreed in its terms of reference to establish the nature of significant, widespread fire safety, structural safety and water ingress defects in purpose-built apartment buildings, including duplexes, constructed between 1991 and 2013. It will consider the wide-ranging and complex issues arising, the nature of the issues, a methodology for the categorisation of defects and the prioritisation of remedial action. In these circumstances, the intervention proposed in this amendment seem to be premature and, for that reason, I am not in a position to agree with it.

Turning to amendment No. 165, on the introduction of levies against certain financial institutions, construction companies and insurance undertakings to partially fund redress schemes with respect to properties affected by defective blocks, fire safety and other such defects, I will confine my comments to the defective blocks issue as I have already touched on the other issue above. First, the Government is fully aware of seriousness of the matter and the great distress it is causing to those whose homes are blighted by it, as well as the need to come up with a satisfactory solution. As the Deputy will be aware, the Department of Housing, Local Government and Heritage has reviewed the matter in great detail through the working group it established which reported at the end of September. Second, the Government is currently working at a very high level to develop an effective solution to this matter. It would not be appropriate for me to give any indication of the proposals in advance of a Government decision. Third, the Government is also very conscious of the urgency of the matter and the need to deliver a proposal as soon as possible. In conclusion, while noting the Deputy’s idea of a levy to part fund the costs involved in these proposals, I believe at this stage that a report would be premature. For that reason, I am not supporting the amendment.