Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

The Minister, Deputy Darragh O'Brien, is considering this matter at the moment. Deputies Carey and McHugh and others have made a similar case to that being made now by Deputy Pringle in regard to the sliding scale. The whole idea of having a cap per square foot, in terms of cost, is a sensible one so that we can contain costs and make sure the money is spent most efficiently. It is based on an independent index compiled by the Society of Chartered Surveyors Ireland. If a house is damaged or destroyed by lightening or knocked down for some reason, this is the amount the insurance company will pay out per square foot. It is an objective index. It is updated every year and we would expect it to be increased in the spring in line with construction inflation. The logic behind the sliding scale is one of economies of scale, that is, that a smaller building costs more to build per square foot than a larger building does. People who work in the building trade - I note Deputy Canney is nodding - will know that a smaller building costs more to build per square foot than a larger one because of economies of scale. That is the logic behind it.

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