Brendan Ryan (Dublin North, Labour)

I thank the Ceann Comhairle for allowing me to raise this important matter on the Adjournment and the Minister of State, Deputy Willie Penrose, for taking the time to respond.

The full extent of the pyrite problem is not yet known, with new instances being discovered in housing estates throughout Ireland on a weekly basis. Regrettably, it is a problem in several estates in my constituency of Dublin North where I am working with residents to address this difficult issue. As there are other instances in counties Offaly and Meath, I am not simply raising a parochial matter. This is a national issue

For those unaware of the details, pyrite is a common mineral, traces of which may be found in the rock used to make crushed stone for under-floor filling in the construction of homes and other buildings. In the presence of humidity and oxygen, pyrite can form a chemical reaction which leads to swelling within the backfill, resulting in structural damage to the home. There are serious implications for homeowners coping with pyrite. Many feel unsafe in their homes, with huge cracks appearing in walls, above doorframes and in floors. Doors may jam against deformed floors.

There is a growing stigma attached to this issue, with affected home owners worried that, even if all structural problems are remedied, it will be difficult ever to sell their homes. The phenomenon has raised anxiety, bordering on understandable panic, among home owners in affected areas. Not only must they deal with negative equity caused by the reckless property policies of previous Governments, there is also the additional worry of further depreciation in the value of their homes due to the poor building practices of developers. It is a double whammy of anxiety and pain for many.

Ultimately, the developers of these housing estates are responsible for finding a solution to the problem. Where are these developers? Some are still operating but many are under the control of the National Asset Management Agency, while others have gone into receivership. The onus then falls on bodies such as HomeBond to meet the costs of rectifying the problem, although this can bring its own disappointment for home owners. Prior to 2004 HomeBond contracts offered a guarantee allowing for a maximum payout of €38,000 per house. However, there was a cap of €508,000 per developerand a particular developer may have more than one development affected. This €508,000 cap must be spread across the number of houses affected, diluting the maximum figure of €38,000 per household. The effect of this dilution in an estate in my constituency resulted in each household receiving an offer of only €1,300. With the average cost of reinstatement after pyrite damage anywhere between €40,000 and €70,000, it is clear the pre-2004 guarantees will not solve the problem for homeowners. Increases in the amounts payable under HomeBond contracts were introduced in 2004, with ceilings set at €200,000 per house and €2 million per developer. Despite this, householders are finding it a long, anxious and difficult process to secure redress.

The Department of the Environment, Heritage and Local Government must provide leadership on this matter. This is not the first country to experience this problem. For example, Canada faced a similar problem in the 1990s which it tackled through state leadership. I urge the Minister of State to establish a task force, to report within a short timeframe, with a brief to examine fully all aspects of the pyrite problem which has affected so many homes throughout the country. The task force should comprise the various stakeholders, led by the Department and including developers, HomeBond, local authorities and affected homeowners. We must get ahead of this issue and provide leadership for those affected. Most importantly, we must find solutions.

One avenue to explore is the talent pool of redundant construction workers crying out for work. We have tools at our disposal which we need to utilise. Individual households are attempting to tackle the issue independently or through ad hoc residents groups. We cannot continue to let people suffer in this way on their own. The campaigns being fought individually by many households and through residents action committees must be acknowledged. The people concerned need the Government to show leadership in resolving the issue. As a first step, there must be a full understanding of the extent of the problem. The proposal I have made will contribute to this and can be done at zero or minuscule cost. I urge the Minister of State to take it on board.

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