Colm Brophy (Dublin South West, Fine Gael) | Oireachtas source

I thank the Senator for raising this case and for the opportunity to provide an update on behalf of the Department of Housing, Local Government and Heritage on this matter. I appreciate that the issue of defective concrete blocks is particularly emotive for households and I sympathise with all those affected by this distressing situation.

The Department of Housing, Local Government and Heritage met members of the Donegal Mica Action Group earlier this year and one of the issues raised was that of finance and the potential role banks could play in assisting affected homeowners.As oversight of the financial institutions is outside the scope and remit of the Department, the Minister, Deputy Darragh O'Brien, wrote to the Minister for Finance, Deputy Donohoe, in respect of this matter. The latter replied on 9 March and expressed firm support for the existing provisions of the defective concrete blocks grant scheme, but clarified that neither he nor his Department have any role in respect of the commercial discussions of individual regulated entities, such as the decisions they may make on an application for credit or in respect of any individual actions they may take to assist households with a mortgage that is secured on a residence affected by mica or pyrite.

The Minister for Finance also pointed out that the commercial independence of the banks in which the State has a shareholding interest is specifically provided for in a legally binding relationship framework document which states that each bank continues to be a separate economic unit with independent powers of decision and that it is the respective boards and management of each bank that determines its commercial policies and conducts its day-to-day operations. The Minister for Finance further stated that he is precluded from any involvement in the commercial decisions of such banks and it would not be possible or appropriate for him to intervene with individual banks on this matter.

The defective concrete blocks grant scheme is not a compensation scheme. It is very much a scheme of last resort for homeowners who have no other practical options to obtain some form of redress. In formulating the scheme, the Department of Housing, Local Government and Heritage concluded that a contribution of 10% from affected homeowners was appropriate to control costs, incentivise the use of appropriate remediation options and promote the reuse of materials where this is feasible. The aim of this scheme is to help insofar as possible to reinstate the applicant's home to the condition it would have been in had the original block work not been affected by pyrite or mica. There is no impediment to applicants seeking to upgrade or improve their homes but the excess costs will be borne by the homeowner. However, the Department is engaging with the SEAI to explore synergies between its existing grant schemes and the defective concrete blocks grant scheme. The scheme is fair and equitable and will work for the vast majority of homeowners. As the application process only opened in June 2020, it would be premature to consider or make any changes to the scheme at this time but, of course, the Department is monitoring its roll-out and effectiveness.