Dáil debates

Thursday, 26 January 2023

Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Defective Building Materials

10:44 am

Photo of Eoin Ó BroinEoin Ó Broin (Dublin Mid West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

83. To ask the Minister for Housing, Planning, and Local Government if he will provide an update on the regulations for and the opening of the enhanced defective concrete block redress scheme. [3597/23]

Photo of Eoin Ó BroinEoin Ó Broin (Dublin Mid West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I ask the Minister to give us an update on the regulations underpinning the enhanced defective block remediation scheme for homeowners in Donegal, Mayo, Clare and Limerick and an estimated date for when this new scheme will be open for homeowners in Donegal and Mayo and also for those in Clare, Limerick and other counties.

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

It is a very important scheme. I am glad the Deputy referenced that it is an enhanced scheme, an improved scheme on what was there before. We all know its purpose, which is to remediate dwellings damaged by the use of defective concrete blocks. We passed the Act to implement and give legislative underpinning to a series of measures to improve and greatly enhance the current grant scheme and that was agreed by Government on 30 November 2021. The 2022 Act will be commenced once the related regulations have been finalised.

To get to the nub of the question, draft regulations have been prepared and will be the subject of consultation with key stakeholders before the regulations are finalised and adopted in early 2023. The draft regulations have been with the four local authorities to seek their feedback. It is intended that the consultation with key stakeholders, which will be conducted by the appointed homeowners liaison officer, will commence next week with the homeowners themselves through John O’Connor, and that will go through the draft regulations with the groups. The regulations will provide for detailed matters within the 2022 Act which are to be prescribed, for example, the grant rates, the damage threshold and the form and content of various reports, certificates, forms and declarations: basically, the working of the scheme.

The grant rates to be included in the final regulations will be based on the regional construction costs for 2023. That is something we debated before. The Society of Chartered Surveyors Ireland is doing that work and we said we would review it. Thankfully, we are doing this because we have seen quite sizeable construction and materials inflation in that period. That work is being done by the SCSI. Pending the opening of the enhanced scheme - it is important people know this - applications can continue to be made to the relevant local authorities. I am glad to tell Deputies we have seen a significant increase, particularly in Donegal, in applications being submitted and being processed. I am seeking that we get to a position where we will be able to provide a monthly report on the progress with this. People are engaging with this. I would like to inform Deputy Ó Broin that we will have consultation next week with the homeowners and we will receive their feedback. We aim to have the regulations published by the end of February, subject to the feedback that we get from homeowners, because we want their input into this.

10:54 am

Photo of Eoin Ó BroinEoin Ó Broin (Dublin Mid West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I thank the Minister for his reply. My understanding is that of the four local authorities which received the draft regulations at the end of last year, the one in Donegal is refusing to give the Minister’s Department a formal comment because it is not allowed to discuss the regulations with its elected members. I welcome the fact the Minister has asked the SCSI to update the unit-square metre cost but I understand that for Mayo and Donegal, it will not be completed until the end of February, and for County Clare, it will not be completed until April. That means the final regulations are unlikely to be concluded until March for the first two counties, and May for the second two counties. The local authorities will require at least two to three months to get their systems in place, which means people will not be able to either apply to the new scheme or be transferred to the new scheme until June at the earliest for Donegal and Mayo, and August for Clare and Limerick. If any of that is incorrect or different from the Minister’s own expectations, please let me know.

As the Minister knows, there is considerable anger in the counties affected by defective blocks because the scheme that we have all worked together on for a long time with regard to building defects has an element of retrospection, which is something that was denied to folks with defective blocks. There are also no caps where full 100% redress is intended to be provided for building defects. That, again, is something that is not in the legislation in regard to defective blocks. Will the Minister revisit those two key issues, namely, retrospection and full 100% redress for the families affected by the defective blocks in all counties?

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

In the first instance, I would like to inform the Deputy that we have to work through this, and I believe people will understand the regulations are important to underpin the scheme and its operation. There is no pause on applications coming through. Anyone who applies to the previous scheme will get the uplift of the new scheme and, thankfully, people are applying and we are seeing an increase in applications. The Housing Agency has boots on the ground in Donegal, with a specific team there. It is also providing advice. I have received feedback from three of the four local authorities. Just in the past week, I wrote again to Donegal County Council and we will be meeting with it. It is important we have its input into this but that is not going to delay people accessing, applying or, most importantly, getting applications approved.

On the two specific points raised by the Deputy, the enhanced defective concrete block scheme we have has a cap of €420,000. We are revising the costs within that, independently with the SCSI, which I said I would do. That will cover 99% of homeowners. The average cost in respect of the apartment defects, as the Deputy is aware, is on or around €25,000. It is a different scheme.

In the area of retrospection, however, or costs already incurred, I intend to include a provision for that in the regulations on the basis of certified work. The work has to certified.

Photo of Eoin Ó BroinEoin Ó Broin (Dublin Mid West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

Is that for defective blocks?

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Yes, it is for defective blocks and I want to be very clear on that. The Minister, Deputy McConalogue, in particular, has been in contact with me, as have other interested Deputies, on that point. I believe there will be a very small number of homeowners in the affected regions who have had work completed. It will have to be certified and invoiced appropriately, etc., for it to access the scheme but I intend that will be part of the regulations we publish.

Importantly, when these regulations are published, the joint Oireachtas committee will have full sight of them and we will work through the scheme. Nobody should stop making an application. Homes have been remediated already in Mayo and in Donegal and that continues to be the case.

Photo of Eoin Ó BroinEoin Ó Broin (Dublin Mid West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

The Minister, I suppose, is right that people can continue to apply but, as we know, there is a very significant number of people, particularly in Donegal, who are not able to get through stage 1. Part of that is because of the restrictions on IS 465. From what our committee was told, it is unlikely completion of the review or changes to the scheme, in respect of the National Standards Authority of Ireland's work, will be completed this year. That means many people who have already applied to the scheme will not be able to progress until the enhanced scheme is open and transferred to the Housing Agency.

Obviously, we do not know what the new square metre or square foot rates are but under the old rates in the legislation, many homeowners have told us, at the committee and in correspondence, that even where they had modest-sized family homes of 80 sq. m or 90 sq. m, they would be short €30,000, €40,000 and €50,000. Obviously, I will wait to see the SCSI's rates to see if that is rectified. Can the Minister confirm that more than 90% of the people who apply under the enhanced defective block scheme will get 100% like-for-like remediation? Can he also confirm what the timeline will be for the retrospection in terms of how far back he will go with the certified works for defective block homeowners?

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

With regard to certified works, works which have been done already and on the retrospective element of that, we will look at the date. We will be flexible and we will do that in consultation with representatives. It is only fair and proper that we do that and it will be a very small number of properties.

Just to let the Deputy know, we have had 150 applications in Donegal which have been processed and have gone through the stages since December. We have also provided assistance there to ensure people’s applications are actually processed. Homes are now being remediated but we want to see that stepped-up significantly.

The objective of the enhanced defective concrete block scheme passed by the Dáil is to provide 100% redress to people and to cover the costs they have incurred through no fault of their own to get their homes and lives back. I am confident we will be able to do that. We needed to set up the scheme in primary legislation, which we knew. As I said, the regulations are coming down the track shortly. I expect it will be by the end of February. There will not be any delay in accessing it because people who accessed the old scheme and applied for it will get the uplift of the enhanced scheme. There is the administrative work-----

Photo of Eoin Ó BroinEoin Ó Broin (Dublin Mid West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

That is except for those who are stalled, that is, the 500 who are stalled at stage 1.

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

There is not quite 500 of those.

Photo of Eoin Ó BroinEoin Ó Broin (Dublin Mid West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

It is just shy of 500.

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Local authorities have asked the Housing Agency to look through those cases. If we had accepted the views of some others in the Opposition to wait until IS 465 was fully interrogated, we would not have the scheme up and running now. It is important it is and that it is there. We will take on board the feedback we get and the research done on IS 465, which we will look at and share with Deputies also. It is moving now and that is a good thing.