Helen McEntee (Meath East, Fine Gael) | Oireachtas source

I thank the Deputies for the report tabled this evening which addresses an area of fundamental concern that has a direct impact on the daily lives of many people living in the State. I reiterate the sentiments of the Minister for Housing Planning and Local Government, Deputy Eoghan Murphy. Stronger compliance with building standards has been a key priority for Government and has manifested in the building control reform agenda which was initiated in 2011.

A three-pronged building control reform agenda has been developed: first, reform of the building control process; second, the establishment of a national building control management project, NBCMP; and third, putting the Construction Industry Register Ireland, CIRI, on a statutory footing. It was through the Building Control (Amendment) Regulations 2014, Sl 9 of 2014, known within the industry as BCAR, that the key deficits of the system were first addressed. This 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 Department largely agrees with the intention of recommendation No. 1 in the committee's report that proposes a national office to assist building control authorities. It disagrees, however, that there should be a new national agency or quango. The NBCMP 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. This provides all 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. These two reforms, BCAR and NBCMP, complement each other by ensuring that 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.

The Building Control Act 2007 established a statutory system of registration for architects and surveyors and last year the Government approved the general scheme of the building control (construction industry register) Bill 2017 to establish a mandatory statutory register for builders and specialist subcontractors. The Bill was referred to the Oireachtas Joint Committee on Housing, Planning and Local Government for pre-legislative scrutiny and the Minister is considering the committee's recommendations and progressing the drafting at present. The main objective of the building control (construction industry register) Bill 2017 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, 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 creation of new legal remedies or redress processes or dispute resolution facilities for homeowners affected by defects would require broader consideration. While it may have benefits in some instances, it does not represent a cure-all 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, the 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 they 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 incidence of defective buildings and has provided insurance underwriters with sufficient confidence to introduce new latent defect type products in Ireland. These new products are first party insurance policies which cover damage and non-damage, breaches of building regulations, and 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. While latent defects insurance is not a mandatory requirement, lending institutions and consumers are likely to demand it. It is critical that consumers, house purchasers and the public are aware of the various insurance products and the scope of such policies. In this regard the Department is engaging with the relevant agencies 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 and devastating in some instances. Building defects, however, 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. 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.

I know some Deputies have raised the issue of pyrite. I have engaged many homeowners in my constituency on that in recent years and I am fully aware of the devastating effects it has. The Government and taxpayers are paying millions of euro to remediate these homes because, when these homes were built, the legislation put in place by consecutive Governments before was not strong enough to hold the relevant parties accountable. We are now looking at that and have changed it in many instances. That is important to note.

The Minister and many of his predecessors have supported homeowners through a number of expert reports and investigations into legacy problems. It is not possible, however, for the State to take on responsibility and liability for all of the legacy issues of defective building materials or, indeed, workmanship. That would also not send the right message to the industry regarding responsibility for overall compliance. The failures in construction have arisen largely because of inadequate design, poor workmanship, the use of improper products or a combination of all of these factors. The significant reforms announced tonight are aimed at addressing all of these issues.

I thank the committee members for their time and their analysis of building standards, building controls and consumer protection. As the Minister, Deputy Eoghan Murphy, indicated earlier, we can subscribe to many of the principles in the report. We believe that the building control reform agenda and other initiatives under way provide a full and comprehensive roadmap to embedding a culture of real compliance within the construction industry. I thank the committee and acknowledge the engagement, commitment and determination of the local authority sector and industry stakeholders. That has been instrumental in shaping and implementing this reform agenda and changing the culture of the construction industry.

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