Seanad debates

Wednesday, 30 March 2022

Regulation of Providers of Building Works and Building Control (Amendment) Bill 2022: Second Stage

 

10:30 am

Photo of Peter BurkePeter Burke (Longford-Westmeath, Fine Gael) | Oireachtas source

I acknowledge the Senators’ contributions on the Bill, which is very important legislation, as they rightly pointed out. In the first instance, I acknowledge that we will bring forward amendments on Committee Stage to provide that certain members of the board shall be recruited through the Public Appointments Service, a point that was raised during the Dáil Committee Stage. It is a very important point that we are happy to comply with. We shall also ensure that the following shall nominate members: the Irish Congress of Trade Unions; the Minister for Housing, Local Government and Heritage; the Minister for Further and Higher Education, Research, Innovation and Science; the Minister for Enterprise, Trade and Employment; and the registration body. As I said, we will bring forward amendments in that regard. I want to underscore that an unregistered builder may not provide building works to anyone, whether it is the State, a developer or an individual. The safe pass is the responsibility of the Health and Safety Authority and is something that we can refer to it, on foot of the comments of Senator Garvey. In response to Senator Davitt, there is a lead-in time for registration, to which I will attend shortly.

Once this legislation is enacted, all builders will be required to register with the construction industry register Ireland, CIRI. Section 33 provides that an unregistered builder may not provide building works for anyone, whether it is for a State contract, a developer or an individual, as I just referenced. This is a register of competence. It is an essential consumer protection measure giving those who engage a registered builder the assurance that they are dealing with a competent and compliant operator. It will also be a critical step forward in addressing shadow economic activity in the construction sector and ensuring fairer competition for compliant and competent operators in the industry. This obligation will apply to entities or individuals who hold themselves out for consideration as a provider of building works that are subject to the building regulations. It does not include employees of such entities but includes sole traders. Applicants from other member states will be assessed on the same basis as Irish applicants.

I would like to reassure Members that entry on the register is open to all builders, whether sole traders, partnerships or registered companies, who demonstrate competence in construction at the appropriate level of registration. Competence can be demonstrated through qualifications, experience or a combination of both. While formal qualifications are an important component of any statutory registration process, it is recognised that many excellent builders do not hold such qualifications but can demonstrate extensive experience and expertise. Continuous professional development obligations will ensure that builders will continue to upskill throughout their careers.

The construction industry will require time to adapt to these new requirements so the requirement to register will be introduced on a phased basis. The register will be divided into categories of building works. Builders can begin registering in 2023 and statutory registration will commence in early 2024 for these first categories. It is proposed that the first categories that will be required to register will be home builders and builders of non-residential buildings, followed by the various trades.

In advance of registration, committees of experts established by the board will consult with the various categories of the industry and other stakeholders. Very specific criteria will be established for each category of providers of building services and these will be set out in secondary legislation. This will ensure that the criteria required for registration will be clear and transparent. Some applicants may find that they need to gain additional experience or a qualification to achieve these criteria. It would not be fair or constitutional to remove a person’s right to earn a livelihood without giving them the opportunity to gain this additional competence.

It is preferable that a body with experience and expertise in the construction industry performs this function, similar to how the Royal Institute of the Architects of Ireland, RIAI, and the Society of Chartered Surveyors Ireland, SCSI, operate statutory registers for architects and surveyors. It is envisaged that the Construction Industry Federation, CIF, will be appointed as the registration body. There are a number of safeguards in place to ensure and maintain the independence of the registration body. The registration body will have delegated responsibility for the day-to-day maintenance of the register within the confines of the specific and limited parameters set out in the Bill. The board of the registration body will be completely independent of the body. The independence of the registration body will be maintained through the following measures: all powers of the registration body will be prescribed in legislation; all competency requirements for registration will be recommended by the board and prescribed by the Minister; the board will make decisions in relation to all sanctions, including removal from the register; removal from the register must be confirmed by the High Court; all prosecutions under the Act will be taken by the board or the Director of Public Prosecutions; all members of the appeals committee will be independent from the board and the registration body; and the Bill allows the functions of the registration body to be transferred if the body is not performing its functions satisfactorily.

It is anticipated that Exchequer funding will be required for the first two years of operation. Once statutory registration is implemented, the income from fees will cover the costs incurred. The registration fees can only be fixed at a level sufficient to fund the statutory register and will also require the consent of the Minister. My Department will ensure that the registration body becomes self-financing as soon as possible, in line with the oversight provisions as set out in the Bill.

The Bill provides for complaints against registered builders to be made on a number of grounds, in particular in regard to the competence of the builder or a builder providing services in a category in which they are not registered. The Bill provides for a range of both major and minor sanctions to be imposed after investigation, including removal from the register. This is a very serious sanction which effectively removes that person’s right to earn a living as a builder or from their particular trade. Upon conviction on indictment, a fine of up to €500,000 or imprisonment can be imposed. The Bill also provides for an appeals process in regard to registration decisions and for complainants in regard to the activities or conduct of registered members.

I want to be very clear about the purpose of this Bill. It is essentially a register of competence. Failure to comply with building regulations or fire safety regulations will continue to be dealt with by the building control authorities. This legislation is a key component of the ongoing building control reform agenda, which also includes the amendments made to the building control regulations. This proposed statutory register will complement the reforms made through the Building Control (Amendment) Regulations 2014 and contribute to the development of an enhanced culture of competence and compliance in the construction sector. The Department is committed to establishing an independent building standards regulator to strengthen the oversight role of the State, with the aim of further reducing the risk of building failures and enhancing public confidence in construction-related activity.

In regard to building defects, the Minister has established a working group to examine defects in housing. The group is engaging with a range of interested parties, including homeowners, public representatives, local authorities, product manufacturers, building professionals and industry stakeholders, among others, to examine the issue of defects in housing and report to the Minister on the matter.

This legislation is committed to in Housing for All, the Government’s national plan for housing to 2030 and it will support the delivery of quality housing. I would like to acknowledge and thank the Members for their contributions. I look forward to working closely with all Members as we continue the passage of this key legislation through the House.

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