Catherine Murphy (Kildare North, Independent)
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5. To ask the Minister for Environment, Community and Local Government the reasons a contribution from industry stakeholders was not ultimately included in the final agreed remediation scheme for pyrite damaged homes; if he has asked the industry for a voluntary contribution; if he will provide an estimate of the total cost to successfully remediate a house in the most seriously affected category; if he can demonstrate that the €10 million fund set aside will cover all affected houses in every category; and if he will make a statement on the matter. [45168/13]

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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It was the intention of Government to provide for the imposition of levies on the quarrying and insurance sectors as a means of funding a pyrite remediation scheme . However, during the preparation of the required legislation, legal difficulties arose at which point it became clear that it would not be possible to proceed on this basis. Following receipt of the report of the independent pyrite panel in June 2012, I engaged with the key industry stakeholders with the objective of securing a voluntary agreement, including an appropriate funding arrangement, to provide a solution to the pyrite problem. However, despite protracted discussions, the industry would not commit to putting in place a voluntary scheme and in the absence of such agreement I sought and received the Government's approval to the imposition of mandatory levies. Regrettably, it is not possible to proceed with the proposed levies and in light of the exceptional nature of the pyrite problem and the circumstances in which it occurred, the only practicable and sustainable option is to provide Exchequer funding for the scheme.

The pyrite resolution board, or PRB, will continue to engage with the stakeholders to see what positive contribution they can make to the implementation of a pyrite remediation process. The PRB estimates that the typical cost of remediating an average house is approximately €50,000. This is inclusive of ancillary costs, including the costs of alternative accommodation during repair works and the removal and storage of furniture and fittings. However, this is an estimate and does not take account of cost efficiencies that may be achieved where a number of units are grouped together for remediation purposes.

The remediation scheme will only apply to dwellings which are subject to significant pyritic damage established in accordance with the relevant Irish standard published by the National Standards Authority of Ireland, and where the homeowner establishes to the satisfaction of the PRB that he or she has no other viable option to seek redress. The Government has approved initial funding of €10 million for 2014, with additional funding to be provided from the capital stimulus programme to be agreed early in 2014. This will enable homes identified as being in need of immediate repair due to significant pyritic damage to be remediated over a two year period.

Catherine Murphy (Kildare North, Independent)
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The Minister did not tell us the legal difficulties that prevented the issue being proceeded with. The industry caused the problem but the Exchequer is picking up the tab. Will the Minister take court action against the industry? Is there any prospect of these levies being brought in? Is there a prospect of forcing a payment on the industry? Will it be time limited, as was envisaged not just for those that were most seriously affected, but also for those that will present a greater problem in future? Will the other €40 million identified as needed for the first 1,000 all be forthcoming from the Exchequer? Is there a prospect of any of that being claimed from any of the industry sources?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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I share Deputy Murphy's sentiment that we should have been able to get some contribution from the construction industry, the quarrying sector and the insurance sector. However, when we went through the process of setting up the remediation scheme, the legal opinion from the Attorney General stated explicitly that providing for the levies led to a substantial risk of a successful challenge by the quarry owners. I could have challenged that legally but it would have meant that the homeowners - those we are trying to help - might have to wait three or four more years while that legal process was going through the courts, in order to wait for a solution. Rather than do that, I got the approval of the Government to set up the pyrite resolution board on a statutory basis - the legislation will be published shortly - and to give an Exchequer contribution to kick-start the process. Further moneys will be made available as necessary, in light of the independent panel's report, in 2014 with the capital stimulus.

While I agree with the Deputy that I would much prefer to have imposed levies on the quarrying industry and on the insurance industry, I must take legal advice. I am sure the Deputy's and my concern is that the homeowners get a speedy resolution to their problem. I assure the Deputy that we will continue to pursue, based on cases before the courts at the moment, all avenues to ensure we get a contribution from the sector.

Catherine Murphy (Kildare North, Independent)
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The Minister and I can both agree on the dire need for the work to happen as quickly as possible in the most damaged ones first. In the absence of being able to pursue the industry, is he confident there will be sufficient money coming from the Exchequer to repair in the first instance the most damaged houses? Will this be a time-limited scheme to deal with the ones that will have problems into the future?

There is a great deal of concern among people who did not have insurance and have had to repair the houses themselves because they were no longer fit to live in. There is fury over the lack of justice in not including them in some respect in the scheme. The Minister referred to the ongoing court cases involving insurance companies. Are there any other means available? Could the Government take a legal challenge?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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We are keeping all options open on potential legal challenges based on case law before the courts at the moment. The Supreme Court will hear a number of significant cases, hopefully in the near future, which will give us the necessary case law to go on. If there is a legal opening for the State to extract some moneys from the quarrying or insurance sectors, we would certainly be glad to do so in order to get more money into the scheme to remediate the people's houses. This is not a compensation scheme. This is pyrite remediation scheme for the first 1,000 identified in the independent report as being in need of urgent remediation over a two-year period. The Deputy will appreciate it is not easy to get money from the Department of Finance or the Department of Public Expenditure and Reform during a bailout programme. I thought she might be satisfied that I got money at all to start the scheme.