Dáil debates

Tuesday, 2 October 2012

Topical Issue Debate

Pyrite Remediation Programme Issues

6:05 pm

Photo of Clare DalyClare Daly (Dublin North, Socialist Party)
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The Minister released the pyrite panel report before the summer recess with a great fanfare. The scale of the problem was identified and at least 10,000 home owners are in ownership of what essentially are valueless properties. At the time, the Minister assured Members the stakeholders involved, namely, the insurance industry, the construction industry, banking, HomeBond and so on were being given until the end of September to come up with solutions to fund the remediation works and to this problem and that if they did not do so voluntarily, he would impose a solution on them. It is now 2 October and I note that last week, the Construction Industry Federation's spokesperson, Tom Parlon, was highly voluble in stating that he, as a spokesperson allegedly for the stakeholders, has no solution to this problem. Consequently, the ball is firmly in the Minister's court with regard to telling Members the status of the fund to implement plan B, as he assured them at the start of the summer. Moreover, I might add this is required now both because of the failure of the stakeholders and because the State cannot shirk its responsibility for its role in this scenario. I refer to the fact that evidence existed for decades about the problem of pyrite in other countries such as Britain and Canada, as well as in the geological formations of the land around us. In addition, the fact the building regulations were changed in December 2007 and the HomeBond structural guarantee was changed in 2008 is indicative that both these schemes were defective and deficient in the first place. The State stood over a lack of regulation, a lack of testing and an inadequate guarantee system through HomeBond. Therefore, the State must take responsibility now. These home owners cannot wait any longer and a long-overdue requirement now exists for the Minister to tell Members from where the fund will come and what is the plan B to finally solve this problem.

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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The report and series of recommendations from the panel set up to examine the crisis regarding pyrite has been published. Slightly more than 10,000 homes were identified, 850 of which needed immediate attention and repairs. I note this does not include paths, streets or even some of the boundaries. There may be many thousands more, as problems with pyrite may not become manifest until later. This is not to mention the local authority housing projects, schools and community buildings in which pyrite has been discovered but which are not mentioned in this report. It is very disappointing that the agencies, including HomeBond for the insurance industry, the Construction Industry Federation, the Irish Concrete Federation and even the Law Society of Ireland did not engage with the Minister or his Department. I note HomeBond would not even engage with the committee as set up and some of the aforementioned bodies would not even engage with the pyrite action groups set up to pursue this matter. It is not good enough to state it is not the responsibility of the Department of the Environment, Community and Local Government and that it is a private matter. While this happened to private houses, there is an onus on Members to deal with this matter. There is an onus on the State, on the Minister and his Department to deal with this problem because people's homes are falling apart. Some of those affected are in negative equity and some have huge mortgages. The living standards of people have gone downhill and many are suffering from depression and other side-effects.

I also wish to flag the plight of five families in my constituency who are living in caravans at a site in Finglas. They are waiting for the Department of the Environment, Community and Local Government to provide funding to repair their houses, which contain pyrite. While they await that funding, I appeal to the Minister to look into this matter because these people have spent two years in these caravans in the most appalling conditions and this cannot be allowed to continue.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Deputy, I am afraid your time is up.

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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I will revert to the matter later.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I thank Deputies Clare Daly and Ellis for raising this matter. As they aware, I have stated on many occasions that the State is not responsible for the pyrite problem or liable for the costs associated with the remediation of pyrite-damaged dwellings. However, I believe the State has a role and a duty to assist home owners to find a resolution to the problem. This was one of my key objectives in setting up the independent pyrite panel, on which Deputies Clare Daly and Ellis have been briefed on a regular basis by those involved with the panel. Indeed, the panel follows the same theme in its report, identifying the State as having an important role in ensuring that responsible parties engage constructively in processes to deliver solutions for home owners. I note there are not 10,000 homes which are ready to fall down but that 850 require urgent remediation. The panel's report identified 10,000 home owners with a potential liability for pyrites. The cost for the remediation of pyrite-damaged dwellings must fall on those responsible and I welcome the report of the panel, which has a clear view on this matter. It was unambiguous in its view that the parties with direct or indirect responsibility for the pyrite problem should face up to their responsibilities and provide solutions for home owners and that the State is not responsible for the pyrite problem and consequently, not liable for the cost of remediation.

On receiving the pyrite report in June and reflecting on the panel's recommendations for stakeholders to provide solutions to home owners, I immediately began a series of discussions with the stakeholders with a view to securing a voluntary industry-led solution for home owners. I asked the stakeholders to give urgent consideration to the relevant recommendations in the report and revert to me with their proposals by the end of September. I have received responses from all the stakeholders in the last couple of days and am now in a position to give urgent and careful consideration to the content of these responses. I am not in a position at present to give a considered view but seek a few more days in which I will be in a position to read those responses in great detail to ascertain whether any meaningful input into the resolution of this problem has been given to me by the stakeholders.

I previously made it clear that in the absence of workable solutions from the stakeholders, I will consider an imposed solution along the lines recommended in the pyrite report. Recommendation No. 14 in the report recommends the establishment of a resolution board, which could be funded by the construction, quarrying and related insurance sectors. I do not believe it is a sustainable viewpoint that the taxpayer should be made liable for the costs associated with the remediation of pyrite-damaged dwellings and the panel noted its report the potential for those responsible readily to pass responsibility to the State. It would not be appropriate to allow this to happen.

Photo of Clare DalyClare Daly (Dublin North, Socialist Party)
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It certainly is not sustainable for the home owners to continue the way they have been. Moreover, the figure probably is far in excess of 10,000 and many more than 850 require immediate works. In the same way as the Government and the Housing Finance Agency took over bad loans from county councils, there is a precedent for the State providing money upfront and then going after those responsible.

The people at home certainly cannot wait because home has become a nightmare for people whose homes have pyrite. It just not good enough for the Minister to ask to be given a chance to look at what they are saying. He has said it will take a few days, but what does he mean? The end of September was last week and he knew what was coming.

6:15 pm

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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It was two days ago.

Photo of Clare DalyClare Daly (Dublin North, Socialist Party)
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That was for a resolution. If he has been in discussion with them he must have an idea what they are saying and presumably anticipated the response of people such as Mr. Parlon that his organisation would do nothing and he should have had a plan B. If he is trying to tell us that the CIF has come in with something different from what Mr. Tom Parlon has said, then we would be very grateful to hear that. If the response is as outlined by him on the airwaves, then the Minister has a serious problem because the State is responsible for standing over poor building regulations, inadequate insurance and bad standards. There is no way those home owners will pay the bill for that.

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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I believe that is the first time I heard the stakeholders had responded and I am glad to hear that. I hope they came back with something positive but my suspicions are that they have not. I believe the State will need to put money up front. If we need to consider levies to get the money from the different industries and agencies, it will take a long time to accumulate through that method. Therefore we definitely need to put the money up front. I am concerned that we might need legislation in dealing with some of this.

We have seen something similar with the IMF and EU when it comes to interpretation. Will this be backdated? We do not want to get into an argument that this only applies from now and not retrospectively and I hope that does not happen. I also hope measures will be introduced to deal with this in the future with proper monitoring and proper accountability by all the industries concerned. We need to have a way of keeping an eye on this. We have not had accountability, which is something we need to address.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I am surprised Deputy Ellis would talk about building standards considering that some of his pals were involved in Priory Hall.

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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No pal of mine was involved in Priory Hall.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I will certainly not accept responsibility for him anyway.

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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I will not either.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The conduct of some of the professions and builders involved in such projects leaves much to be desired.

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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The Minister is right about that.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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It had nothing to do with the Building Control Act of the day. Unfortunate people find themselves in their present position because the building standards of the time were not observed. I agree with Deputy Clare Daly that the home owners have waited a long time. I am the first Minister to do something about it in order to identify the problem and a potential solution. I will - after two days - now sit down and read these reports. I have only received them in the past couple of hours - 30 September was just two days ago. I will read what the stakeholders have recommended and will follow through if they have not given me the necessary proposals to deal with these matters effectively on behalf of these people who through no fault of their own are in these situations.

I have not been in discussion with stakeholders. In July I asked them to make recommendations on a voluntary industry-led basis in order to deal with these matters.

Photo of Clare DalyClare Daly (Dublin North, Socialist Party)
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In his earlier contribution the Minister said: "I immediately began a series of discussions".

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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The Minister has the floor now.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I have asked them to come forward with a voluntary industry-led solution. The term "discussions" would mean that I would be meeting them on a regular basis - I met them once and asked them to report by the end of September.

Photo of Clare DalyClare Daly (Dublin North, Socialist Party)
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I was quoting from the Minister's speech.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I do not need to ask them to come forward again. I will impose a solution of my own if they have not come forward with the necessary proposals as I requested in July.

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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Can the Minister give us an indicator of what those would be?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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In due course.