Dáil debates

Tuesday, 15 January 2019

Ceisteanna (Atógáil) - Questions (Resumed) - Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Pyrite Remediation Programme

4:50 pm

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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40. To ask the Minister for Housing, Planning, and Local Government the number of homes that have accessed the pyrite remediation scheme; the number of applications refused; the number due to be completed; and if he will make a statement on the matter. [1587/19]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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I tabled this question to seek an update on the progress of the pyrite remediation scheme, which we have discussed on many occasions. I want to get a picture of the number of applications refused and the number completed, and also what plans there are within the Department to expand the scheme and to carry out a formal review of it. I am conscious it has helped some 1,000 homes to be remediated but a lot more needs to be done. I ask that the Minister of State provides an update and explains what plans there are within the Department to expand the pyrite scheme.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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The pyrite remediation scheme is a scheme of last resort for affected homeowners who have no other practical option to obtain redress and it is limited in its application and scope.

The full conditions for eligibility under the scheme are set out on the Pyrite Resolution Board's website.

The latest figures available indicate that a total of 2,243 applications relating to the pyrite remediation scheme have been received to date. Some 1,801 of the dwellings to which these relate have been included in the scheme and the applicants have been notified accordingly. A further 94 applications have been validated and referred to the Housing Agency for the assessment and verification process, while another 199 are at the initial application and validation stage. There were 149 unsuccessful applications under the scheme. Of the 1,801 dwellings included in the scheme to date, 174 are at remedial works planning stage, 27 are at tender and tender analysis stage, 268 are under remediation and 1,332 have had remediation works completed.

A sum of €32 million is available to fund the operation of the pyrite remediation scheme this year. This allocation will facilitate the remediation of some 460 additional dwellings and is a clear signal of the continuing importance attached by the Government to addressing the issue of significant pyritic damage in private dwellings.

5:00 pm

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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Sorry, I did not catch that.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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We expect 460 homes to be dealt with by means of the 2019 budget. That will probably deal with most of the applications that are on hand or coming through the system.

The Deputy asked what we are doing to reform or expand the scheme. This is the largest sum of money we have ever invested in the scheme. We want to deal with all of the applications as quickly as possible. A great deal of progress has been made and the problems with many homes have been rectified. People are very happy about that. Sufficient money has been allocated next year. This is the largest budget - €32 million - ever provided in respect of the scheme and it will fund all of the 460 houses coming through the system. There are no plans to expand the scheme per se. Naturally, we are always trying to bring more clarity. The issues that have arisen have been dealt with and the advice has been passed to the board. Hopefully, the board will progress some of them also.

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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I thank the Minister of State for his reply. There is no doubt that a number of homes have been remediated. The Minister of State has gone through the figures in that regard. We have set the bar very high, however. The homes that have been remediated are in category 2 whereby the pyrite level is above that set down in the Pyrite Resolution Act but many other homeowners have been left in limbo. The Minister of State will be familiar with these people because some of them reside in his constituency. They have no last resort in circumstances in which their insurers, Home Bond and others have walked away. I refer to those whose homes which have category 1 pyrite damage. Such damage is not sufficient to qualify for inclusion in the scheme but it nevertheless renders people's homes valueless. Those to whom I refer cannot sell their homes. Are any measures being considered in this regard? I hope we will look at expanding the scheme to deal with these people and give them some hope. At the very least, we should consider that where such individuals carry out remediation work themselves, they should get the tax back or be permitted to write off the costs against future income. There are thousands of people who have been unable to access the scheme. Respectfully, I note that the reason there were only 149 unsuccessful applications is that people with category 1 damage are not applying to the scheme because they know they will be refused.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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The Deputy highlights a difficulty. The recommendation and plan was that the scheme should be there to fund homes which had significant damage and required immediate attention. That is happening. There is also the issue of a number of houses which have signs of or which have tested positive for pyrite but where there is no significant damage. We have had this conversation and we have put this on the table in other places. It is clear that to spend up to €70,000 on a house which is not yet showing damage and which does not yet require attention is not the best use of money for which there are competing demands. As the Deputy states, however, there is a category of people who are in limbo. We have discussed the matter ourselves. I have been unable to find a way to deal with that matter but we are open to suggestions. We do not plan to reopen the scheme to do that but we have tried to work through different solutions with different people. The issue relating to the date has been addressed through legal advice and I have met the chairperson of the board and her staff in order to provide clarity. That will help some of those who have made appeals and who ought to have known the closing off date of 2013.

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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Are they being allowed in now?

Photo of Pat GallagherPat Gallagher (Donegal, Fianna Fail)
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The Deputy will have a further minute to ask questions.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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We have brought some legal clarity to that and this will help with some of the cases to which the Deputy referred.

Photo of Pat GallagherPat Gallagher (Donegal, Fianna Fail)
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We are going to adhere to the times today. Deputy Darragh O'Brien has a minute to ask a further question or questions and the Minister of State will have a further minute to reply.

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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Tá an brón orm, a Leas-Cheann Comhairle.

Photo of Pat GallagherPat Gallagher (Donegal, Fianna Fail)
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We will set a good example.

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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We will do our best; it is the first day back. I would be interested to hear more about the extension of the date to allow in applicants who purchased homes after the initial date. I have met the Minister of State to discuss that matter, as have other Deputies. Unbeknownst to those people, they bought homes with category 2 pyrite damage but they cannot get into the scheme. Our work will remain incomplete if we fail to provide some option for those with category 1 pyrite damage because they have nowhere else to go. It is a last-resort remediation scheme, which I debated prior to its implementation with the then Minister, Phil Hogan. I was involved in putting the scheme together with the Minister of State, Deputy English, and others. It was always intended to review the scheme with the potential to expand it. While category 1 damage is not deemed significant within the meaning of the scheme, the home is nevertheless worth nothing and one cannot move on. I know the Minister of State understands that those people are left in limbo. A formal review of the scheme through the joint committee would be a way to proceed. We must look at other options here because there are hundreds of households with nowhere to go. Time does not permit further questions on the fact that no appeals have been granted.

Photo of Pat GallagherPat Gallagher (Donegal, Fianna Fail)
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No. I call the Minister of State.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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There are no plans for a formal review. I am not sure that such a review would solve the problem.

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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It would.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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The issue, as we have discussed here and elsewhere, including at meetings with residents, is the difficulty in justifying that level of expenditure on houses which do not necessarily require it at present. We are conscious, however, that people are left in a situation whereby they may not be able to sell their homes. While we are open to teasing this out, I have asked many Deputies whether they could justify spending that money and they have said they could not. As such, we need to find some other solution. I am happy to engage around that but I am not convinced a formal review of the scheme will solve it. We all worked hard to set up the scheme in the first place in 2011 to 2013 and there was a hope then that a levy could be put in place in order to secure funding for this matter. That was not possible and we have had to rely on taxpayers' money to fund remediation in recent years. While some great work has been achieved, there is a category of people who do not necessarily have severe damage now but who nevertheless have a problem in that they are stuck with owning the house. I am happy to engage with the Deputy on that in the months ahead. The money has been set aside to finish dealing with the houses that have passed the testing to date.

On the legal issue, it is not that we have extended the date but that we have addressed the category of persons who ought to have known. The Department took legal advice from the Attorney General and provided it to the board which will proceed to decide cases on the basis of it.

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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Can the Minister of State circulate that?

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I cannot give the Deputy the legal advice, but I can circulate the opinion we have provided to the board.