Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

I thank Deputies for the report which addresses a fundamental concern that has a direct impact on the daily life of many living in the State. Stronger compliance with building standards has been to the forefront of our building control reform agenda which was initiated in 2011 when a high level working group reviewed the existing building control regulatory framework. The key deficits identified in the regulatory regime were the lack of involvement of construction professionals on site and lack of accountability in compliance with the building regulations. In response, a three pronged building control reform agenda has been developed - reform of the building control process; establishment of a national building control management project; and putting Construction Industry Register Ireland on a statutory footing.

Building control regulations set out the procedures for implementation of the building control system. They provide for commencement notices, fire safety certificates and disability access certificates, statutory fees and the keeping of a statutory register. It was through the Building Control (Amendment) Regulations 2014, known within the Industry as BCAR, that the key deficits in the system were first addressed. The amendment requires that the owner must assign competent persons to design, build, inspect and certify building works he or she has commissioned. They, in turn, must account for their contribution through the lodgement of compliance documentation, inspection plans and statutory certificates. The roles and responsibilities of owners, designers, builders, assigned certifiers, etc. during building works are set out in the code of practice for inspecting and certifying buildings and works of September 2016. It has brought clarity and accountability, a focus on compliance and a new order to bear on construction projects.

It is worth taking a moment to consider the most significant changes that have occurred on foot of BCAR. Certified design and compliance documentation is now submitted to the local building control authority before works commence by a competent registered construction professional; owners must appoint a competent builder to undertake and certify construction works; an assigned certifier has to prepare an inspection plan for the building works and carry out, or oversee, inspections in accordance with the inspection plan; the builder and the assigned certifier must sign a statutory certificate of compliance on completion which must be accompanied by plans and documentation showing how the constructed building complies with the building regulations and also the inspection plan, as implemented; and it is an offence to open, occupy or use a building unless the certificate of compliance on completion has been submitted to a building control authority and included in the register. This is also a recommendation made in the committee’s report.

I largely agree with the intention of recommendation No. 1 in the committee's report that proposes the establishment of a national office to assist building control authorities. These are some of the very areas at which in the past few years we have worked closely and productively to strengthen with the Local Government Management Agency, the County and City Managers Association and other industry stakeholders, under the umbrella of the National Building Control Management Project, NBCP. However, I disagree that there should be a new national agency or quango. The National Building Control Management Project was set up to provide oversight, direction and support for the development, standardisation and implementation of building control as an effective shared service in the 31 building control authorities. It provides all of the benefits of a centralised structure for the governance and oversight of building control but embeds it in a lead local authority. I am pleased to confirm that Dublin City Council has recently been approved as the lead building control authority. This creates the central and stable executive structure needed to oversee the local building control function to its maximum effect. The lead local authority will be governed by a board, chaired by a county manager, with a range of public and private sector stakeholders. Three building control regions have also been created. This engenders collaboration across the regions and provides an important mechanism for regular communication and feedback between the lead and local authorities. My departmental officials take an active role in these committees.

The key achievements of the NBCP are, first, the building control management IT system, BCMS, which facilitates the electronic administration of building control functions and provides a common platform for clear and consistent administration of building control matters across the local authority sector. Second, the framework for building control authorities, BCAs, was published to standardise work practices, systems, procedures and decision-making in the oversight of building control activity across the sector. The latest version was published in June 2016. Third, a compliance support mechanism has been established for dealing with queries, either from building control staff and-or private practitioners making submissions to BCAs at a centralised level that can then be applied consistently nationally. Fourth, to fully empower staff in BCAs to carry out their work effectively, training programmes have been and are being developed. Fifth, fundamentally, the inspection policy is being reviewed. The minimum national annual Inspection target, as agreed with the local authorities, is 12% to 15% of new buildings covered by vaIid commencement notices received. In reality, the majority of local authorities exceed this target. The National Oversight and Audit Commission, NOAC, collects and publishes these data annually. The new policy will position building control authorities to carry out risk based targeted inspections by making more efficient and effective use of the resources available to carry out inspections. A key component of the policy will be to ensure fire safety inspections of new building works, during construction, to check compliance with Part B of the building regulations, are carried out by competent building control personnel. This echoes the committee's recommendation for fire safety inspections. The two reforms, BCAR and the National Building Control Management Project, complement each other by ensuring all involved in the construction process and regulatory system carry out their roles effectively and are focused on ensuring compliance at every stage and level.

Owners, builders and designers are legally responsible for the design and construction of buildings in accordance with the relevant requirements of the building regulations. Design certifiers and assigned certifiers must be members of regulated construction professions. They face serious potential professional and financial consequences in respect of the statutory certificates they lodge with building control authorities. Registration bodies take seriously their obligations in dealing with professional misconduct or poor professional performance. The recommendation made in the committee’s report to have design and assigned certifiers directly employed by the local authority blurs the lines of legal responsibilities, doubles the number of professionals involved in the process and waters down the role of those at the coalface. I consider this a backward step. The current system is modelled closely on the Safety, Health and Welfare at Work (Construction) Regulations 2013 which place statutory obligations on clients and builders during the design and construction stages. The Health and Safety Authority inspectorate carries out inspections to promote, monitor and enforce compliance. It has been very successful in improving safety on sites.

The committee’s report suggests the system is one of self-certification, which I believe to be a misnomer. For the majority of projects, design and assigned certifiers are independent of the builder.

Design-build projects are the main exception to this. For public sector design-build contracts, the assigned certifier is employed directly by the client.

The Building Control Act 2007 established a statutory system of registration for architects and surveyors. Last year, the Government approved the general scheme of the Building Control (Construction Industry Register Ireland) Bill to establish a mandatory statutory register for builders and specialist subcontractors. The Construction Industry Register Ireland, CIRI, which was established on a voluntary basis in 2014, now has over 800 building entitles registered. The Government’s commitment to placing CIRI on a statutory footing is another strand of our ongoing reform agenda. The Bill was referred to the Joint Committee on Housing, Planning and Local Government for pre-legislative scrutiny and I am considering the committee’s recommendations and progressing the drafting at present. The main objective of the Building Control (Construction Industry Register Ireland) Bill is to develop and promote a culture of competence, good practice and compliance with the building regulations within the builder community of the construction sector. The establishment of a robust and mandatory statutory register of builders and specialist contractors is an essential consumer protection measure giving those who engage a registered builder the assurance that they are dealing with a competent and compliant operator. The Bill will also allow for complaints against registered builders to be made on a number of grounds and provides for a range of proportionate sanctions to be imposed after investigation. The committee’s report recommends a review of sanctions and punishments but I draw Members' attention to the section 17 of the Building Control Act, which sets out the fines and prison sentences that may be imposed. In addition, a person may be disqualified from signing and submitting certificates of compliance with building regulations for two or ten years depending on the offence. This has taken on a more significant impact with the introduction of the Building Control (Amendment) Regulations, BCAR, 2014.

The proposal in the committee's report to create new legal remedies or redress procedures or dispute resolution facilities for homeowners affected by defects would require broader consideration, including with the Department of Justice and Equality and others. While it may have benefits in some instances, it does not represent a panacea for the resolution of building compliance issues. Changes to the statute of limitations, for example, may affect constitutional rights and must be seen in the context of the civil liability code in Ireland. In this context, in February 2018, my Department wrote to the Law Reform Commission and also corresponded with those involved with the review of the administration of civil justice in Ireland requesting that it consider the issue of effective and accessible legal remedies for homeowners who discover defects in their homes. The Government’s focus has primarily been on ensuring strong and effective regulation in the building control system and the construction industry and on improving compliance in the building regulations. This reduces the risk and the incidences of detective buildings and has provided insurance underwriters with sufficient confidence to introduce new latent defect type products in Ireland despite a general retrenchment and conservatism in the wider insurance industry. These new products are first-party insurance policies that cover damage and non-damage - breaches of buildings - claims to varying degrees. This means that the purchaser does not have to make a claim through the builder but can submit a claim directly to the insurer. This would be of particular benefit to a homeowner in circumstances where the builder or developer has ceased trading. It is worth noting that while latent defects insurance is not a mandatory requirement, lending institutions and consumers are likely to demand it. As Members are aware, the Government is prohibited from interfering in the cost or terms of insurance offered on the market but as this insurance becomes more popular, it is likely that the market will become even more competitive. As such it is critical that consumers, house purchasers and the public are aware of the various Insurance products and the scope of such policies. With this in mind, my Department is currently engaging with the Departments of Finance and Business, Enterprise and Innovation, the Competition and Consumer Protection Commission and the Central Bank with a view to exploring appropriate methods of raising awareness about insurance products and other property-related consumer protections.

While the reforms I have outlined address the compliance of buildings going forward, I fully understand and acknowledge the distressing situation that some owners and residents have found themselves in through no fault of their own due to defects in buildings arising from non-compliance with building standards. The economic and personal consequences of these situations can be significant. However, building defects are matters for resolution between the contracting parties involved: the homeowner, the builder, the developer and/or their respective insurers, structural guarantee or warranty scheme. In this regard, it is incumbent on the parties responsible for poor workmanship and/or the supply of defective materials to accept their responsibilities and take appropriate action to provide remedies for affected homeowners. My predecessors and I have supported homeowners through a number of expert reports and investigations into legacy problems such as the report of the pyrite panel in June 2012 and the report of the expert panel on concrete blocks in June 2017. Also, in the interests of supporting owners and residents living in developments where concerns regarding non-compliance with fire safety requirements arise, I published the framework for enhancing fire safety in dwellings in August 2017. While the committee’s report recommends a redress scheme, it is not possible for the State to take on responsibility or liability for all legacy issues of defective building materials or workmanship nor would it send the right message to the industry regarding its responsibility for compliance.

In the aftermath of the Grenfell Tower tragedy in June of last year and in recognition of fears expressed in respect of fire safety, I tasked the national directorate for fire and emergency management with convening and co-ordinating a task force to oversee a review of fire safety in local authority provided rnulti-storey, multi-unit social housing and a separate review of medium to high-rise buildings greater than 18 m or six storeys and as well as to lead a reappraisal of our approach to fire safety in Ireland. I have just received this report, which I am considering and I expect I will bring it to Cabinet shortly.

The failures in construction of the past have arisen largely due to inadequate design, poor workmanship or the use of improper products or a combination of these factors. The significant reforms that I have described this evening are aimed squarely at addressing these issues. I thank the committee for its time and analysis of the building standards, building controls and consumer protection. While, as I indicated earlier, I can subscribe to many of the principles in the committee's report, I believe that the building control reform agenda and other initiatives underway provide a full and comprehensive road map to embedding a culture of real compliance within the construction industry. In fact, many of the findings and recommendations outlined in Dame Judith Hackett’s recent report entitled Building a Safer Future - Independent Review of Building Regulations and Fire Safety, which appeared in May 2018, are commensurate with the reforms and measures already put in place under the Government’s broader building control reform agenda. I thank and acknowledge the engagement, commitment and determination of the local authority sector and industry stakeholders who have been instrumental in shaping and implementing this reform agenda and changing the culture of the construction industry.

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