Dáil debates

Wednesday, 10 November 2021

Finance (European Stability Mechanism and Single Resolution Fund) Bill 2021 [Seanad]: Second Stage

 

3:02 pm

Photo of Cathal CroweCathal Crowe (Clare, Fianna Fail) | Oireachtas source

I have noticed on the cameras in the last few weeks that the bald patch is visible when sitting here but if I am up at the back of the Chamber, I can pretend I am younger and still have thatch on the roof.

To make a serious point, this is a technical Bill. It is not the most exciting thing we will do over the next 48 hours in the Dáil. I support the Bill, as does my party in government, because it ratifies amending agreements to the European Stability Mechanism treaty and the Single Resolution Fund intergovernmental agreement. The reform of the ESM treaty signed in January of this year is a crucial stepping stone on the path to reinforce economic and monetary union and a significant accompaniment to our efforts to support economic recovery. It will boost confidence in the euro area's ability to quash crises before they escalate further.

All European area member states are required to ratify both amending agreements in order to implement the Eurogroup agreement of November 2020 on ESM treaty reform and the introduction of a common backstop two years ahead of schedule. The Eurogroup agreement addresses a crucial gap in the banking union by empowering the ESM to act as the common backstop from January of next year. The agreement further develops the ESM's precautionary financial assistance instruments and improves the operational effectiveness of the institution overall.

This is good legislation. It is not especially exciting but it is a necessary part of being a member state of the European bloc. It helps us to build further resilience as we negotiate our way through the Covid crisis. It helps us, leaning on our European partners, to have stability to keep the finances of the Union intact and protected.

If the Ceann Comhairle will give me a minute of forbearance, I will move to another area within the Minister of State's remit, namely, insurance. I promise I will catch up on time. Risk equalisation is a substantial factor for people whose homes are flooded. It is a principle that is applied wrongly and unfairly by the insurance industry. We have had it multiple times in County Clare, where one or two homes may have flooded but thousands pay the price in their insurance premiums. It is holding up the sales of houses in housing estates in the south of the county. It is causing sales to fall through because when banks carry out their due diligence, they often will not lend to somebody when flood insurance coverage cannot be obtained for the house. This area needs to be reformed.

The final point I will make is also on an issue within the Minister of State's remit. HomeBond is the largest insurer of building projects in the country when it comes to self-built and privately built dwellings but it is not stepping up to the plate with regard to pyrite, mica and defective blocks. I have tabled a number of parliamentary questions in this regard. The Minister of State has oversight of the insurance sector. It needs to step up to the plate. It cannot all be down to the Houses of the Oireachtas and the taxpayer. Something has to be done. HomeBond has got off scot-free so far as far as I can see, as have others in the industry, which is supposed to be a safeguard for homeowners who have put every penny they have earned into building a house, only to see that rug pulled from under them. I ask the Minister of State to step in and seek to have them back at the table to offer redress to homeowners.

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