Ms Lisa Hone:

As a representative of homeowners impacted by the devastating effects of defective concrete, I will communicate why the proposed concrete levy is an ill-conceived tax and should not be implemented in its current form. For the thousands of families across Ireland enduring life in unstable structures that are impossible to heat and are riddled with damp, black mould and dangerous electrics, the concrete levy adds insult to injury. It is clear from the statements of representatives of the CIF that the concrete levy will be passed on directly to consumers. The cruel irony is that affected homeowners, the victims of this scandal, who are already burdened and paying in every physical and psychological way possible with onerous financial burdens and the loss of a cherished home, are now being told to take another hit.

In a letter dated 10 February 2022 to Mr. Michael Doherty of the Mica Action Group, the Minister for Housing, Local Government and Heritage, Deputy Darragh O’Brien, stated the scheme was a like for like remediation grant. Such a statement is contradictory. It conveniently glosses over that the fact that the scheme only allows for a very basic build to pre-2008 regulations and, therefore, immediately excludes all houses built after 2007 or those built to a higher specification. It does not include foundations, flooring beyond a certain amount of tiling in kitchens and bathroom, retaining walls or bison slabs. In addition, pre-2008 materials such as insulation, boiler systems and electrical wiring cannot be sourced, so modern equivalents have to be used. All of that applies even before construction inflation is mentioned.

The latest SCSI figures reported that costs to rebuild a house nationally had risen by 21%, while in the north west rebuild costs rose by 26% and between 18% and 20% in the west. Quantity surveyors report witnessing a 30% increase in the cost of concrete in the past year. The reality for most affected homeowners before they lay a single block, is that they are looking at a shortfall of tens of thousands of euros between the scheme allowance and the real costs of rebuilding their home.

Pensioners, people near retirement, those on low incomes or having undergone serious injury or illness cannot borrow. Parents trying to get children through college are now being forced into an either-or situation. Young families are being saddled with yet another layer of debt and this is all going on while we are in a cost-of-living crisis. Affected homeowners, forced to rebuild their homes through no fault of their own are caught in a storm of financial hell.

To some, an additional €2,000 on the costs of a house may not seem that onerous, but for people already trying to find €30,000, €40,000 or €50,000, an additional €2,000 which they do not have, pushes the prospect of rebuilding their homes further out of reach. Please remember that those affected are also taxpayers. They will contribute to the multi-billion cost of this crisis, as well as pay on an individual basis to restore their houses.

Let us get back to why this levy is needed in the first place. The levy is needed because, whether by design, negligence or ignorance, manufacturers were allowed to pump defective concrete products unhindered into the Irish market for years on end. The multi-billion euro cost is directly proportionate to the level of failure of the now disgraced regime of self-regulation. Even the name, the mica concrete levy, has insidious undertones. It implies to taxpayers that those who have the mica homes are somehow responsible for the extra-cost burden on those trying to buy or build a home. A more appropriate name would be "the failure of effective governance of the concrete industry levy."

The gaping omission from the blanket levy is accountability. It does not pursue or target manufacturers which are known to be culpable but instead reinforces a message of no consequences to producers which have obviously breached regulations. The concrete levy says to the industry that it can violate regulations, wreck and endanger people’s lives, be the cause of a multi-billion euro cost to the taxpayer and there are no consequences.

The same companies, known to have supplied defective concrete products, are still turning a multi-million or even multi-billion euro profit and are operating unhindered and unchallenged in the market today. The levy will not touch them. Even worse, as the Joint Committee on Housing Local Government and Heritage heard from an industry professional in June 2022, it is believed defective concrete products are still entering the market. Given where we are, how can this be possible?

The Tánaiste, Deputy Leo Varadkar, recently said he was disappointed there had not been any prosecutions in relation to the defective concrete. If the Tánaiste is disappointed, can the committee imagine how those who have had their lives shattered by this scandal are feeling? Try stressed, incensed and exasperated. Yet, we still wait on the long-promised appointment of a senior counsel to investigate how best to pursue the offenders. Until the Government grasps the nettle and overhauls the broken regime of self-regulation with an effective form of governance, taxpayers will continue to be asked to a sign a blank cheque to remedy the violations of an industry without accountability.