Phil Hogan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

It was the intention of Government to provide for the imposition of levies on the quarrying and insurance sectors as a means of funding a pyrite remediation scheme . However, during the preparation of the required legislation, legal difficulties arose at which point it became clear that it would not be possible to proceed on this basis. Following receipt of the report of the independent pyrite panel in June 2012, I engaged with the key industry stakeholders with the objective of securing a voluntary agreement, including an appropriate funding arrangement, to provide a solution to the pyrite problem. However, despite protracted discussions, the industry would not commit to putting in place a voluntary scheme and in the absence of such agreement I sought and received the Government's approval to the imposition of mandatory levies. Regrettably, it is not possible to proceed with the proposed levies and in light of the exceptional nature of the pyrite problem and the circumstances in which it occurred, the only practicable and sustainable option is to provide Exchequer funding for the scheme.

The pyrite resolution board, or PRB, will continue to engage with the stakeholders to see what positive contribution they can make to the implementation of a pyrite remediation process. The PRB estimates that the typical cost of remediating an average house is approximately €50,000. This is inclusive of ancillary costs, including the costs of alternative accommodation during repair works and the removal and storage of furniture and fittings. However, this is an estimate and does not take account of cost efficiencies that may be achieved where a number of units are grouped together for remediation purposes.

The remediation scheme will only apply to dwellings which are subject to significant pyritic damage established in accordance with the relevant Irish standard published by the National Standards Authority of Ireland, and where the homeowner establishes to the satisfaction of the PRB that he or she has no other viable option to seek redress. The Government has approved initial funding of €10 million for 2014, with additional funding to be provided from the capital stimulus programme to be agreed early in 2014. This will enable homes identified as being in need of immediate repair due to significant pyritic damage to be remediated over a two year period.

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