Ms Caroline Timmons:

Good evening, Chair and members. I am acting assistant secretary in the housing affordability, inclusion and homelessness division in the Department of Housing, Local Government and Heritage. I am accompanied by my colleagues, Paul Benson and John Wickham. We are pleased to attend alongside the Housing Agency and thank members for inviting us to assist the committee in its discussions and deliberations on the general scheme of the Remediation of Dwellings Damaged by the Use of Defective Concrete Blocks Bill 2022.

The general scheme of the Bill is the culmination of six months of work and stakeholder engagement since the Government decision of 30 November 2021 on this matter. I thank all who have helped bring us to this point: the Attorney General and his office, including the Office of Parliamentary Counsel, who have put considerable time into advising and guiding on the development of the scheme; the members of the expert group on technical matters, under the chairmanship of Paul Forde; the Society of Chartered Surveyors Ireland, SCSI, for its report on construction costs related to remediation works under the scheme; homeowners and their representatives, who have continued to engage with the nominated liaison as the scheme has been developed; the Housing Agency, which is taking on a critical role on behalf of local authorities under the enhanced scheme; and my colleagues, who have worked extremely hard on the defective concrete blocks issue over the past six months.

The general scheme encompasses the key decisions made by Government last November. These include a 100% grant to an overall maximum amount payable to an applicant under the scheme of €420,000. Within that overall maximum grant, grant assistance is available for alternative accommodation costs at €15,000, storage costs at €5,000 and immediate repair works at €5,000. Increased grant rates in the scheme take account of a report on construction costs provided by the SCSI. I note the rates are set to ensure that homeowners will get a rate equal to or greater than those contained in the report of SCSI for remediation works under the scheme. The removal of the financial barrier to scheme entry which is a feature of the current scheme reduces the cost for homeowners from up to €7,000 to an estimated €500 to €700, which will be recoupable under the scheme by approved homeowners. A damage threshold for entry to the grant scheme will be set in order to ensure the worst-affected homes are first into the enhanced scheme and prioritised for approval and remediation. The expert group has made a recommendation in relation to the appropriate damage threshold which should apply. This is being considered by the Minister and will, when agreed, be provided for under regulations. A second grant application opportunity is being made available to homeowners who are approved for remediation options other than full demolition and rebuild. This second grant opportunity works as the form of guarantee which has been sought by homeowners and will remain available for 40 years. Review by Government of the maximum grant amount and rates will take place as appropriate. The extension of the scheme beyond owner-occupied principal private residences will include rented dwellings, to a maximum of one per homeowner, that were registered with the residential tenancies board on or before 1 November 2021. The scheme provides for the establishment of an independent appeals panel and gives clarity on the four key decisions which can be appealed by homeowners, namely, validation of an application, meeting the damage threshold, the remediation option and grant amount, and a refusal by a local authority to pay a grant. Clare and Limerick will be included in the enhanced scheme upon commencement, and further local authority areas can be added as the necessary evidence supports inclusion.

I bring to the committee's attention a number of other issues relevant to the scheme and the matters under consideration. First, a review of a number of technical standards called for by the Government has begun. These include the IS 465 standard for the assessment, testing and categorisation of impacted homes; consideration of the potential impact of other deleterious materials, for example, pyrrhotite, and the impact or otherwise of those deleterious materials on the foundations of homes impacted; the review of the Irish standard for concrete blocks, including aggregates; and the review of the potential impact, if any, of full cavity insulation on homes susceptible to damage or damaged by defective concrete blocks. The Housing Agency is being resourced to fulfil the crucial role it will play in the independent determination of the appropriate remediation option and grant amount for each home. There is the intended introduction of an Exchequer-funded scheme of assistance for local authority and approved housing body-owned social homes which are impacted. There is provision for a review of the operation of the legislation after three years or sooner if that becomes necessary on foot of a change to the IS 465 standard currently under review.

Our Department made a presentation available for circulation to committee members which provided a recap on the current scheme, the challenges and issues which arose, how those challenges are being responded to, how the new scheme will work and the essential next steps to enable it to commence, which, I hope, members find helpful. My colleagues and I are happy to answer any questions members may have or to provide further details as required.