Seanad debates

Thursday, 23 November 2017

Commencement Matters

Defective Building Materials

10:30 am

Photo of Michael D'ArcyMichael D'Arcy (Wexford, Fine Gael) | Oireachtas source

I have heard the Senator discuss the issue relating to mica in homes in Mayo and Donegal on numerous occasions. I know she is determined to have something done about it. I acknowledge the stressful situation individuals can face when building defects manifest themselves after completion of construction and the significant impact this can have on those affected.

There is an LPT exemption which is intended to apply to those properties that have a significant level of pyrite damage. The qualifying criteria for this LPT exemption were modified by the Finance Act 2015. The changes made were significant. Where a property has been included in the pyrite remediation scheme by the Pyrite Resolution Board, PRB, without testing, or a property has been remedied by a guarantee company or by a builder or developer or where a party is compensated in lieu of remediation, without testing, Revenue will now accept confirmation of remediation or compensation from either the PRB or the relevant party for the purposes of LPT exemption without testing or National Standards Authority of Ireland, NSAI, certification.

The mica issue has been examined by the Department of Housing, Planning and Local Government. I am informed that an expert panel on concrete blocks was established by that Department in 2016 to investigate problems that have emerged in the concrete blockwork of some dwellings in counties Donegal and Mayo. I will not read the terms of reference because I am sure the Senator is aware of them. I understand that the report of the expert panel, which includes eight recommendations, was published in June. The Department of Housing, Planning and Local Government has already taken action to implement recommendations 1 and 2 as a matter of priority. On recommendation 1, the NSAI technical committee, established to scope and fast track the development of a standardised protocol, held its inaugural meeting on 11 September 2017 and has held several further meetings in recent weeks. The standardised protocol will inform the course of action regarding remedial works for all affected properties. In the context of recommendation 2, the Department of Housing, Planning and Local Government has been in contact with Engineers Ireland about the establishment of a register of competent engineers for home owners' and affected parties' reference. Engineers Ireland has provided assurance that it will collaborate with the Department and the NSAI on measures to establish such a register.

I understand that the Minister of State at the Department of Housing, Planning and Local Government, Deputy English, visited Donegal and Mayo during the summer and met with key stakeholders, including affected home owners, elected members and officials of the local authorities and other interested parties. In light of the information contained in the report, the Minister of State, Deputy English, is considering what further actions may be required to assist the parties directly involved in reaching a satisfactory resolution to the problems that have emerged in Donegal and Mayo. The legislation governing the administration of LPT provides for a limited number of exemptions from LPT. There is no specific exemption for properties affected by mica and there are no plans to do so at the moment.LPT operates on a self-assessment basis and it is a matter for the property owner in the first instance to calculate the tax due based on his or her assessment of the market value of the property. When making an assessment, issues such as the presence of pyrite or mica would be one of the factors that a property owner should take into account in valuing their property. On that basis, where a property was affected with pyrite on the LPT valuation date of 1 May 2013, it can be reflected in the selected valuation band. This can be done retrospectively if the presence of pyrite was not taken into account in the 1 May 2013 valuation.

On the specific question the Senator put to me, the Finance Bill 2017 is at a very advanced stage. As the Senator is aware, Report Stage is due to be concluded today. I doubt anything can be done in this year's Finance Bill as we are coming to the end of the process of passing it. We expect Report Stage to be concluded today and I assume the Bill will come to the Seanad next week. It is a matter for Members of this House to present amendments or considerations as they see fit. I will discuss the matter with the Minister, Deputy Paschal Donohoe. I know he is aware of it. As the Senator knows, I am certainly not someone to ignore the impact this issue would have on people. I will discuss it with the Minister. I do not have knowledge of the interactions with the Department of Housing, Planning and Local Government but, again, I will speak with the Minister, Deputy Eoghan Murphy, and the Minister of State, Deputy Damien English, and I will try to get back to the Senator with an updated position.

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