Dáil debates

Tuesday, 11 June 2013

Topical Issue Debate

Pyrite Remediation Programme Implementation

5:35 pm

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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As this is Deputy Helen McEntee's first Topical Issue, I wish her every success.

Photo of Helen McEnteeHelen McEntee (Meath East, Fine Gael)
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Thank you, a Cheann Comhairle, for allowing me to raise this Topical Issue. I also thank the Minister for the Environment, Community and Local Government for being present in the Chamber. I know this issue was and has been raised on numerous occasions by my late father and other Deputies. It is important for us to keep the ball rolling on it. As the remediation process starts, it is important that we keep it moving. It is great that we are at the stage we are at and I thank the Minister for his help on the matter to date. I know it is a very important issue for him, as it is for me and many others. I do not think many people thought we would reach the current position, with an end in sight.

The welcome announcement before Christmas of the establishment of the Pyrite Resolution Board was a great Christmas present for many home owners. Having met the chairperson and members of the board, it is fair to say their dedication and commitment are obvious. They want to see this through as much as anybody else does. Having said that, we are not there yet. No homes have been fixed and we still have a long way to go.

The website of the Pyrite Resolution Board, which was launched just two weeks ago, is a welcome addition to the process. The read-only website summarises the scope of the scheme, the qualification criteria and the various steps involved in the remediation scheme. I understand the next step will see the website going live. The board will be able to begin accepting applications at that point. After this has happened, I hope the main priority will be to put funding in place. There is no point in going through all of this if we have no money to fix the homes affected. I am well aware that a non-profit company, Pyremco, which was established to oversee the remediation process is drawing down a loan from the banks involved. Obviously, the initial loan will only be able to go so far. We need to ensure the pyrite levy Bill is passed before the summer recess. I am concerned that delays will occur, as this tends to happen with any new scheme. I hope this will be one less delay for us to have to worry about. As we know, it took some time for this problem to come to the forefront and I firmly believe it will take a long time to go away, if it ever will. We need to ensure funding is available in the years to come in order that it will be available to those who may find pyrite in their homes in the future.

As I have mentioned, this issue has been ongoing for six or seven years. Home owners still have some problems, unanswered questions and fears after all that time. In that context, I would like to put three proposals to the Minister. I urge him to consider them and consult the Pyrite Resolution Board on them. First, I wish to make a proposal regarding the three categories - red, amber and green - in the three-tier system. We hope approximately 1,000 homes will fall into the red category initially. However, there is a great deal of confusion about those in the amber category. I ask the Minister to consider moving straight to the amber category when all the homes in the red category have been remediated and fixed. The homes in the amber category should not be allowed to deteriorate until they reach a condition that would qualify them for inclusion in the red category.

Second, I would like to make a proposal regarding those who have to organise their own accommodation initially and, therefore, face an extra level of strain and pressure. They are already paying a great deal of money for homes which are, in essence, worthless. I wonder whether the Minister will consider providing some assistance for those who might not be able to afford this.

Third, I ask the Minister to consider reimbursing those who have already fixed their homes. I am aware that the cases of the small number of people in this category have been raised previously. A number of home owners in County Meath have already fixed their homes at great cost and they have had to remortgage their homes. I ask the Minister to consider the proposals I have made.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I thank the Deputy for raising this issue which is very important for her and the other Deputies who represent Dublin North and the Meath constituencies.

Following the Government's recent approval of the general scheme of a pyrite remediation Bill, work is under way to develop the legislation as a matter of urgency. It is my intention that it will be published and enacted in the shortest possible timeframe. I look forward to the co-operation of all Members of the House in this regard. The advancement of proposals for homes in the red category mentioned by the Deputy is a priority for me. In accordance with the general scheme, the Bill will provide for the imposition of a levy on the quarrying and the non-life insurance sectors, as recommended in the report of the independent Pyrite Panel in July 2012. The report outlines a means of providing the funding necessary for the remediation of pyrite-damaged dwellings where no other forms of redress are available to the affected home owners. The Bill will also aim to establish the Pyrite Resolution Board on a statutory basis. The broad remit of its role will require a strong corporate governance structure to be in place to ensure the public interest and the particular interests of the affected home owners is best served.

The Pyrite Resolution Board has made excellent progress in developing the scope and detail of a scheme, including the terms and conditions of the scheme dealing with eligibility, assessment criteria, procedures and priorities, etc. Answers to many of the questions asked by the Deputy can be found in the conditions of the board's scheme. The Pyrite Resolution Board recently launched the initial phase of its website, www.pyriteboard.ie, on which it provides an outline of the proposed remediation scheme, including the scope of the scheme, the application process and detailed guidance and information for home owners on how to identify significant pyritic damage and the steps involved in the assessment of such damage. The information on the website will give affected home owners sufficient knowledge and direction to enable them to consider whether they qualify for the scheme and what steps they have to take to avail of it. The proposed scheme will provide for the remediation of private dwellings with significant pyritic damage, where the home owners have no other viable option to have pyrite remediation works undertaken. The next phase of the board's website will include an online application system. It is intended that this will be available in July.

Affected homeowners can now register their interest on the website and will be notified when the application system goes live.

The three construction stakeholders - the Construction Industry Federation, the Irish Concrete Federation and HomeBond - are currently in the process of establishing a not-for-profit entity to operate the pyrite remediation programme under the direction and supervision of the Pyrite Resolution Board. Discussions are also continuing with the financial institutions with a view to making a loan facility available to the not-for-profit entity being set up by the construction stakeholders to facilitate the early commencement of a remediation scheme.

5:45 pm

Photo of Helen McEnteeHelen McEntee (Meath East, Fine Gael)
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I thank the Minister for his response. With regard to the statement that discussions are continuing with a number of the financial institutions, can the Minister provide clarity as to when this might happen? As I said, one of the most important points in regard to keeping the issue moving is to ensure we have funding in place. The Minister might explain this point.

On another question, while there are obviously many charges we do not want homeowners to incur, there is a fear that people will be charged above what they should be charged with regard to prices for the initial building condition assessment. Is it possible to consider some sort of regulation of this to ensure as little cost as possible is incurred by the homeowners?

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The Pyrite Resolution Board is very conscious of the need to minimise costs to homeowners who wish to avail of this scheme. I point out to the Deputy, however, that the State is not liable in any way. Were it not for the political interest shown by Deputies in the House and by myself, as Minister, we would not have a scheme at all. This is something people often do not realise. The financial institutions are prepared to make a contribution. We have been discussing figures but this must now be referred to the credit committees of the respective financial institutions in the next short while, and I expect a positive outcome to those matters before the end of this month.