Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank Deputy Doherty for raising this issue again.

As the Deputy will be aware, the overall Government response on the problems associated with defective concrete blocks is being led by my colleague, the Minister for housing. His Department is engaging with impacted householders and relevant stakeholders and has put in place a scheme of financial support to help affected homeowners.

On the issue of bridging finance products, I understand that some homeowners have identified a potential challenge with funding the commencement of remediation works in circumstances where it is necessary to make a payment to professionals engaged on a remediation project prior to receipt of the first grant payment. Banking and Payments Federation Ireland, BPFI, submitted an interim funding proposal to the Department of housing to address this timing mismatch. BPFI proposes that funding would be provided upfront from a BPFI member to a homeowner on the commencement of remediation works. It is proposed that this funding would subsequently be repaid to the BPFI member on the release of the approved grant payment, subject to the remediation work meeting all of the requirements of the scheme.

Last year, I asked my officials to engage with BPFI and with officials in the Department of housing to support that Department in exploring the funding mechanism proposal. There has been ongoing engagement since that time, which has also involved discussion with BPFI on the potential operation of the scheme, including the level of State guarantee required by BPFI members and whether alternative approaches may be feasible.

In order to implement the proposed funding mechanism, BPFI has advised that a State guarantee would be required. To support the Department of housing in its consideration of the BPFI funding proposal, officials from my Department examined the implications of such a guarantee from both a State balance sheet and legislative perspective confirming that, under public financial procedures, all State guarantees must have a statutory basis. My officials continue to engage with the Department of housing and with BPFI to respond to any matters relating to the funding proposal. I will respond further in a moment.

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