Josepha Madigan (Dublin Rathdown, Fine Gael)
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The Beacon South Quarter development was built between 2005 and 2014 and comprises approximately 600 apartments and several commercial buildings. Built by Paddy Shovlin and Landmark Enterprises, it was a celebrated development during the Celtic tiger years. Unfortunately, we are now seeing the legacy of Fianna Fáil in government in the discovery by residents that their homes contain many structural defects. An EGM notice was issued by the management company to residents on 13 January seeking payment of €1 million in regard to water ingress and €9 million to rectify fire compliance issues. They are facing this bill through no fault of their own. The EGM called by the management company and the agent, Aramark Property, last Monday seems somewhat contrived in that the Statute of Limitations that was mentioned by the chair of the management company, Simon Coyle, has expired. Given that the first issues in regard to leakages and so on were discovered in 2010, it seems very convenient that payment of €10 million is now being sought.

The situation is extremely distressing and upsetting for the residents, who are already paying significant management fees of somewhere between €800 and €1,500 per year and simply cannot pay such large amounts. It is not yet known how the bill will be divided up between the units and how much each home owner will have to pay. Moreover, there is no transparency in regard to the tendering process and residents have no way of knowing if they are getting best value for money or if they will face further costs down the line.

I am asking the Government to assist the residents in finding a fair resolution to this matter. We have seen similar issues at the Longboat Quay and Priory Hall developments. I compliment the Government on introducing new building regulations in 2014 but, as they are not retrospective, they are of no assistance to the residents in my constituency. The Beacon South Quarter owners and residents group is doing a lot of work behind the scenes to assist the residents, and another EGM is due to take place in a month's time. Will the Minister use his political capital with the Minister for Finance, Deputy Noonan, to see whether an equitable solution can be devised in collaboration with all of the parties, including Dún Laoghaire-Rathdown County Council? It should be noted that Clúid, the largest non-profit housing association in the country, owns 58 apartments in block B1 and is looking at a fire safety bill of €540,000.

The State cannot completely wash its hands of this. I am not necessarily saying the Exchequer should foot the bill, but the Government should assist these people in a context where the regulations are not retrospective. Will the Minister consider the possibility of offsetting their substantial bills against tax, similar to what is done under the first-time buyer's scheme, or perhaps offering a VAT rebate on these essential works, as we do in respect of home renovations? We must address this matter urgently and I ask the Minister to act without delay to see what he can do.

Pat Gallagher (Donegal, Fianna Fail)
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Before inviting the Minister of State to respond, I point out that Deputy Madigan mentioned a builder by name, which is not the norm.

Damien English (Meath West, Fine Gael)
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I thank the Deputy for raising this important issue which is understandably causing great distress for owners and residents at Beacon South Quarter. In general, building defects are matters for resolution between the contracting parties involved, namely, the home owner, the builder and the developer and-or its respective insurers, structural guarantee or warranty scheme. In this regard, it is incumbent on the parties responsible for poor workmanship and-or the supply of defective materials to face up to their responsibilities and take appropriate action to provide remedies for affected home owners.

It is important to clarify that my Department has no statutory role in resolving defects in privately owned buildings, including residential apartments, nor does it have a budget for such matters. I am not aware of any grants or State supports that have general application in such circumstances. Accordingly, the Department is not in a position to provide financial assistance towards the costs of remedial works that may be required where defects are identified in private developments. However, I certainly will raise the possibility of a tax rebate, as the Deputy suggested, with the Minister for Finance. It is something the residents should pursue in conjunction with the county council.

Under the Building Control Acts 1990 to 2014, primary responsibility for compliance with the requirements of the building regulations rests with the designers, builders and owners of buildings. Enforcement of the regulations is a matter for the 31 local building control authorities which have extensive powers of inspection and investigation under the Acts. Neither I nor my Department has any role in regard to enforcement matters and cannot interfere in individual cases. In response to the many building failures that have emerged over the past decade, my Department introduced the Building Control (Amendment) Regulations 2014 which provide for greater accountability in respect of compliance with building regulations in the form of statutory certification of design and construction by registered construction professionals, lodgment of compliance documentation, mandatory inspections during construction, and validation and registration of certificates.

As the Minister, Deputy Coveney, informed the House two weeks ago, a new building control Bill is a priority for this Dáil term. That legislation will place the Construction Industry Register Ireland on a statutory footing and provide in law for the registration of builders, contractors and specialist subcontractors. We hope to bring the general scheme of the Bill to Cabinet by the end of February.

However, I realise this will not resolve the problems immediately facing the owners and residents of Beacon South Quarter. The issues that have emerged are a matter for the receiver to the developer, the owners and residents and their management company to resolve collaboratively or through such other avenues they consider appropriate. I hope the problems that have emerged can be brought to a successful resolution for all concerned. I am sorry we cannot offer greater help on this matter, but it is not a role of the Department to do so. However, I will talk to the local authority to see if there is any advice that can be offered to the residents. In addition, as I said, I will discuss the possibility of a tax rebate with the Minister for Finance. However, it is important that the residents and all involved should make their own case in this regard.

Josepha Madigan (Dublin Rathdown, Fine Gael)
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I thank the Minister of State for his response and his undertaking to discuss the possibility of a tax rebate with the Minister for Finance and to communicate with the local authority on the matter. However, I do not accept the Government cannot intervene on the basis that it is a matter only for the contracting parties. Government involvement would greatly facilitate productive negotiations and a workable solution. Such an intervention would not be unheard of. In fact, it has been done before. It would greatly help the residents, many of whom have no experience in terms of how to proceed and how to find a solution.

I ask the Minister of State for further clarity in this regard. I urge him to come back to me in early course on the question of tax breaks. This is an urgent issue. The building control regulations introduced in 2014 were very welcome but are of absolutely no use to the Beacon South Quarter residents. I am pleading with the Government to facilitate a discussion with Dún Laoghaire-Rathdown County Council. There is also the fact that the National Asset Management Agency had a role in this when it sold block B1 to Clúid. The State cannot simply wash its hands of facilitating a workable solution.

The Beacon South Quarter residents would appreciate any kind of assistance at this stage.

Damien English (Meath West, Fine Gael)
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I again thank Deputy Madigan for raising the issue. It is certainly not a case of us washing our hands and if I could identify an area where we could help, it is something we would look at. I certainly will raise the issue with Clúid housing association, as we have responsibility for it. Deputy Madigan mentioned NAMA as well.

The Department does not have any statutory role in resolving defects in privately owned buildings, and these are privately owned buildings. Apart from the statutory powers, we do not even have a budget for this matter. Building defects are matters for resolution between the contracting parties involved, which is the home owner, the builder, the developer, their respective insurers, and the structural guarantee or warranty scheme in relation to Homebond, Premier Guarantee or whichever company is involved. These are issues that need to be resolved at that level.

Certainly, I will raise the issue. As the Minister for Finance, Deputy Noonan, is not here today, I will bring the matter Deputy Madigan has raised to his attention and see if there is any line of hope there as well.

I believe there are avenues open to the groups in the situation and they need to lead the residents through all the proper procedures there. The Department does not have the statutory power to intervene.

The primary responsibility for compliance with the requirements of the building regulations rests with the designers, the builders and the owners of the buildings. All of those are stakeholders and all have involvement in this. I believe the residents need to work this out through the system involving all of those stakeholders.

Enforcement of the building regulations is a matter for the 31 local authorities, one of which Deputy Madigan identified here today. The local authorities have extensive powers of inspection and investigation as well.

The issues are a matter for the receiver to the developer in this case and the owners or the residents and the management company to resolve. I would hope, maybe, through the AGM or other methods, that there can be communication to resolve this issue with all those players together. There should be scope to do that.

Where problems cannot be resolved through dialogue or through mediation, it may be necessary to explore other courses of action. No doubt the residents and all involved will look at that too. I will talk to colleagues in the Department to see if there is any other information that we can provide from other cases that might be of assistance but I want to make clear that we do not have a statutory role to be able to intervene here to help.