Paul Gavan (Sinn Fein) | Oireachtas source

I move amendment No. 17:

In page 12, between lines 39 and 40, to insert the following: "(4) The Minister shall, within seven weeks of the passing of this Act, lay a report before both Houses of the Oireachtas on the implications of construction sector inflation on subsection (3)and whether there is a need to raise the grant cap by way of amending legislation.".

I will read the amendment into the record to make it clear what we are looking for: "The Minister shall, within seven weeks of the passing of this Act, lay a report before both Houses of the Oireachtas on the implications of construction sector inflation on subsection (3) and whether there is a need to raise the grant cap by way of amending legislation".

This is an issue that was raised by a number of Senators on Second Stage. The impact of inflation in the construction sector is a real concern. Indeed, Senator Cummins expressed concerns about inflation on Second Stage as well and I look forward to the Senator supporting our amendment.

We know from speaking to people in Donegal this week that inflation there, in terms of social housing, is running at between 12% and 13%. That is what the officials are telling us. According to the Bill as it is currently constituted, a further review of the rates that were set last January cannot happen until 12 months after this scheme opens. What that means in reality is that homeowners will be impacted by, I would say, at least 20%. In terms of the 100% redress that they are looking for, it is clear that because of construction inflation they will be down anywhere between 13% and 15% or 20%.

It makes common sense for the Minister to adopt this amendment to have a report to show him the impact of inflation and then, if necessary, take sufficient amending steps when we return in September. That is a way of addressing the issue realistically. Right now, if it is not addressed, the impact of inflation is such that the homeowners who suffered so much will be impacted.

Let me be clear. This amendment is coming from the homeowners. We are here to represent them today. Any amendments that my colleagues, Senator Ruane or I will speak to are at the request of the homeowners from Clare, Mayo, Sligo, Limerick and Donegal. This is their ask.

No one will deny the fact that there is a problem in terms of inflation in the economy in general and, most certainly, in the construction industry. I quoted a figure of 13% from the Donegal officials.

The Minister has an opportunity to amend this. Here is the choice. It is not a binary choice. The Minister has the opportunity to improve this Bill today to protect those homeowners in terms of the inflation scourge that is there at present. The Minister has the opportunity to do it with this amendment. On behalf of the homeowners who are tuning in today from all of the counties that I have mentioned and more, I hope that the Minister will do what is sensible, acknowledge there is a problem with inflation, acknowledge that problem will not be addressed by the Bill as it stands and adopt this amendment so that we can tackle it on behalf of all of the homeowners.