Darragh O'Brien (Dublin Fingal, Fianna Fail) | Oireachtas source

Cuirim fíor fháilte roimh na haíonna. Section 11 provides for an increase or a decrease in the overall caps by way of a Government order. The reason for doing this is because it means we can change the amount by up to 10% for the first three years by regulation, thereby allowing the Minister flexibility which means he or she does not have to come before the Dáil or Seanad to make amendments. I am not sure whether the Senators who proposed the amendment were at the hearings held with homeowners and experts from the Society of Chartered Surveyors Ireland, SCSI, who set the remediation cost per square foot. They did a superb piece of work. I thank them for the work they did independently of me and the Department. That was a big ask of the homeowners which I was happy to accede to. It was done independently of me and my Department and I accepted it in full. That work was produced four months ago in February 2022.

The SCSI was asked this question about varying the rates. Let us remember that we are operating within an overall cap of €420,000 and not €247,500, and providing 100% redress and not 90%. We are allowing for additional costs for rent and storage. What must also be mentioned is the access to the Sustainable Energy Authority of Ireland, SEAI, grants in addition to the caps, which is very significant and had not been provided for. The experts who gave testimony during the hearing were asked about this specific issue. The SCSI advised that it would not be prudent to view inflation over a short-term period such as three or four months, which I agree with, and that a 12-month period, which most people would agree with, is a far more appropriate period to consider such cost inflation. I am very satisfied that the Bill provides for that very measure.

I refer to Section 11. I will not go through the whole section as I am sure the proposing Senators have read it. It clearly states that the Government shall not:

increase the amount referred to in paragraph (a),(b)or (c)of section 10(4)by more than 10 per cent of the amount referred to in that paragraph, or where the amount in that paragraph has been increased or decreased, to an amount specified by a previous order made under subsection (1)(b), by more than 10 per cent of the amount specified.

We are allowing that variation simply by way of Government order and it is right to provide that flexibility. It is also prudent that a longer-term view is taken on that. Generally, inflation should be looked at over a 12-month period. Interestingly, we have seen the cost of certain materials decrease and flatten in recent months. We do not want the situation in which we have to come before the Houses to chase either inflation or deflation in construction product costs. Let us not forget the overall cap, which is at such a significant level that it will cover 99% of households with full 100% redress. Variation in costs is provided for within that.

The Bill rightly provides a mechanism for me, the Minister, to vary those rates by plus or minus 10% some 12 months after the passing of the Act. It provides for a decrease in costs, although I do not expect that to happen. It is better to do it by way of regulation rather than tying it into the Bill that will become an Act, which would mean if there were any future changes, we would have to come before the Houses to amend the Act. I understand the Senator's point. I respect his contribution but we are providing for that in a better way.