Dáil debates

Tuesday, 21 May 2024

Saincheisteanna Tráthúla - Topical Issue Debate

Defective Building Materials

11:05 pm

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party) | Oireachtas source

Gabhaim buíochas leis an Teachta as an cheist seo. He knows I am aware of the deep trauma that this has caused families in areas affected by defective concrete blocks. Seeing reporting as I have in the media, it has a significant impact on families.

As the Deputy is aware, the Minister, Deputy O'Brien, commenced the Remediation of Dwellings Damaged by the Use of Defective Concrete Blocks Act 2022, the DCB Act, on 22 June 2023, which provides for the enhanced grant scheme, and adopted the related regulations on 29 June 2023. The Act includes significant improvements to the previous scheme, such as increasing the previous scheme's 90% maximum grant to a 100% grant for all eligible costs under all remediation options 1 to 5. The maximum grant cap for option 1, demolition and rebuild, was increased to €420,000 from €247,500. A revised application process was introduced, which now only requires the homeowner to submit an initial building condition assessment at minimal cost, recoupable on entry to the scheme. Alternative accommodation and storage costs are included, subject to a maximum of €20,000. For works carried out under remediation options 2 to 5, a second grant option is available for such a home in the future if blockwork which was not removed as part of the initial remediation work subsequently proves defective in accordance with IS 465.

As the Deputy is aware, the defective concrete blocks Act contains a review mechanism that allows the Government to increase the overall grant scheme cap of €420,000 by up to 10%. In accordance with the conditions set down in section 11 of the Act, this review cannot take place any sooner than 12 months after the coming into the operation of this section of the Act, that is, after 29 June 2024. I am not familiar with the 50% figure quoted by the Deputy. I understand there is no robust data set yet relating to build costs, reflective of the fact the current scheme has only been in operation for less than a year.

Following a request from the Department, the Society of Chartered Surveyors Ireland, SCSI, recently provided updated cost reports for the north west and mid-west regions to the Department. These updated cost reports were received on 29 March 2024 and cover demolition and reconstruction costs; concrete path around the house; disconnection and reconnection of utilities; making good the driveway and garden; professional fees; and VAT at 13.5% on building costs and 23% on professional fees. Officials in my Department have been in touch with the chair of the expert group with regard to reconstituting the group to undertake a review of the rates prescribed in the 2023 regulations on foot of the updated cost reports received from the SCSI. Once the expert group has completed its review, it will provide advice to the Minister for his consideration as to whether both the grant rates and scheme cap should be increased, and if so by what amount. I hope this gives some assurance to the Deputy that progress has been made. That date in June is critical. I think that reconvening the group will be a positive step forward for people affected.

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