Paschal Mooney (Fianna Fail) | Oireachtas source

This morning's newspapers report on the cost of rebuilding houses. The Society of Chartered Surveyors Ireland pointed out that as building costs have reduced considerably in recent years, consumers should now shop around to ensure they get the best value for insurance. I ask the Leader for a debate with the Minister, Deputy Bruton, who, I believe, has responsibility for the insurance industry. This has been a long-running sore particularly since the downturn. I did some investigations into the area of rebuilding costs. I live in County Leitrim, which has suffered more than most as a result of reckless building by developers and pseudo-developers in recent years. At 25% we have the highest proportion of both unfinished and unused housing stock, and the housing market in County Leitrim will never recover because of the surplus stock.

However, what the insurance industry is charging for rebuilding has not reduced. In fact it operates a system - I believe it is the architects in association with the insurance industry - with four benchmarks across the country. Leitrim along with Sligo in the north west and Roscommon in the midlands come under Galway. In other words the cost to rebuild a house in Galway applies to County Leitrim. The industry claims it costs €122 per sq. ft. to rebuild. Builders in County Leitrim and the midlands generally would rebuild for as little as €90 per sq. ft. I am sure the same would even be true in Waterford and the south east. It is a scandal and consumers are being ripped off. The industry has not changed those benchmarks in spite of the economic downturn. I call for an investigation into the insurance industry, which is ripping off consumers by charging higher premiums based on exorbitant rebuilding costs. At the end of the day if the house has to be rebuilt, it will not be €122 per sq. ft. but whatever the current market conditions are in the area. This is a consumer issue and I believe the Minister, Deputy Bruton, has responsibility - I would be grateful for guidance on that. The matter should be debated in the House and should be exposed for the sham and scam it is.