Colm Burke (Fine Gael) | Oireachtas source

I welcome the Minister and thank him for bringing forward this legislation. The problem of pyrite is one of the most frightening things for any family to encounter. I have worked in the legal profession and acted for builders where subsidence has occurred. In addition, I have worked for householders. Identifying and dealing with subsidence is one problem, but pyrite is a far more complex matter. It is frightening for families to have to deal with it.

This occurred in the period 1995-2007 when we had a major increase in construction. Between 2000 and 2006, there was an 88% increase in housing construction with 93,000 houses completed in 2006. In such a period, the necessary checks and balances were not always fully in place. Since all the checks and balances were not there, we did not react quickly enough when problems began to appear.

In fairness, however, Fingal County Council did react back in 2007 and probably put a hold on further problems arising since it identified the matter and acted upon it. Over 130 million tonnes of hard core was moved per annum in providing for both commercial building sites and dwelling houses. The report states that 74 estates were examined, affecting over 12,250 houses. I am not saying that this many homes were affected but concerns were raised about that number of dwellings. While initial concerns were raised in quite a number of estates, there have been no claims.

In one local authority area, 850 social and affordable houses were directly affected. This problem arose not only in the private sector but in the public sector. While regulation in this area has been improved we must be prepared at all times to review and update regulations in respect of the building industry. The cost of resolving this issue is huge for the State. The report was published in June 2012. I know that the Minister's efforts to get Home Bond and the insurance industry to participate in the scheme have not to date worked out. As stated earlier, it is unfortunate that all of the players involved were not more proactive in trying to resolve this matter.

The Minister referred in his speech to a case being dealt with by Mr. Justice Charleton in the Supreme Court. It is disappointing that this matter has not yet been decided on. The lack of decision by the courts in relation to this matter has created a vacuum in this area. There are many people waiting on the sidelines for that decision, which emphasises the necessity for the amendment of the Constitution in order that a Court of Appeal could be established. It is disappointing that that appeal has not been fast tracked. My understanding is the case has not yet been dealt with. However, I am open to correction on that. It is disappointing if it has not because the decision is vital in terms of the long term sharing of responsibility in relation to this matter.

This Bill is only the start in terms of dealing with this matter. It is constructive legislation in that it affords priority to houses in serious condition. It is only right that they should be given priority. I accept as stated earlier that the longer the problem goes unchecked the more expensive it will be to resolve it. The sooner we remove the houses affected from the list the sooner this chapter can be closed. I accept it will be some time before that happens.

I welcome the Bill which is well thought-out. While the situation may require to be reviewed in the future, it is important this legislation is enacted to assist the many people who have been severely affected, including in respect of obtaining home insurance. Insurance cover was also an issue in respect of the properties in Cork that were flooded. Likewise, in areas where there is evidence of subsidence insurance companies are refusing to provide cover. This is unfortunate. The Motor Insurance Bureau of Ireland deals with cars involved in an accident not covered by insurance. We may now need to consider whether we need to provide a central fund in respect of houses which insurance companies have refused to insure. It is an issue we should look at long term in relation to areas affected by subsidence, flooding and other unusual problems, such as that about which we are now speaking. We need also to discuss the issue of cost sharing by the taxpayer and the insurance industry, which in fairness is making substantial profits from home insurance every year. It should, therefore, be asked to make a contribution when such issues arise. Likewise, the building industry and other industries supplying to the building industry should be asked to contribute to address of this problem.

I thank the Minister for bringing forth this legislation. I look forward to the remainder of the debate on it.