Phil Hogan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

It would be easy to say that the regulatory system was deficient but that is not true. Builders and developers are obliged under building regulations to use proper materials. There is an obligation on suppliers to supply materials that are fit for purpose.

I agree with everyone in the House who said that the people that caused the problem should pay but we ran into legal difficulties under constitutional property rights regarding imposing a levy on the quarrying and construction sector. We got no co-operation whatsoever from the general insurance sector. We got very little co-operation from HomeBond and Premier Insurance. I can assure the House that I have explored every legal avenue that was open to me to see if we could impose a levy on the stakeholders who caused the problem.

It was not possible for us to get a scheme that was legally sound, and I did not want to establish a scheme giving hope to people who are affected only to have it struck down by the courts and another protracted legal challenge that would drag on for perhaps three or four years. It is for that reason that I appreciate the Government's decision to assist me in this process. I have the understanding of all Ministers at a time when we do not want to be imposing any more on the taxpayer. It has been the difficulties and the hardship people have gone through in their individual circumstances on a human level that has brought about a decision to have a €10 million scheme initially. The Minister for Public Expenditure and Reform, Deputy Howlin, and I are examining the capital stimulus programme in 2014 with a view to providing additional resources but we will wait to see the numbers that will come into the scheme. We are conscious the scheme will continue for two years. We are dealing with the red category initially and when we are at the stage of receiving applications, I hope we will be able to get a full picture of the extent of the problem.

To reply to Senator Healy Eames, the difference is that when the banks and the State got involved in the insurance sector years ago, they got an agreement. They agreed there would be a levy. We do not have an agreement. That is the difference.