Seanad debates

Wednesday, 13 July 2022

Remediation of Dwellings Damaged By the Use of Defective Concrete Blocks Bill 2022: Committee Stage

 

10:00 am

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

I thank the Senators for their contributions and for the amendment. All present recognise the massive leap forward being made with this scheme. That has been acknowledged by homeowners, as well as by all parties and Independents. It is a scheme that is vastly different from the one in place from January 2020 - unrecognisably so. Fundamentally, it gives 100% redress based on independent rates that are set at up to €161 per square foot. I understand the argument on this matter but we are not penalising anyone. There is no downsizing penalty. If a person has a house of a particular size and wishes to replace that house, he or she will be able to do so at the rates that have been set, which are slightly above those in the SCSI cost report. In the case of a two-bedroom terraced house, the SCSI cost report gave a figure of €149,668. We are allowing €152,000. For a three-bedroom semi-detached house, the SCSI report gave a figure of €165,000, whereas we are allowing €169,000. In the case of a four-bedroom semi-detached house, the report indicated a figure of €193,000. We are allowing €195,000. That goes all the way up to a four-bedroom single rural two-storey house, in which case the grant recommended by the SCSI is €339,150 but we are allowing €341,150. The only exception relates to the €420,000 cap. Up to that, there is the €25,000 in other assistance. That is for a two-storey house with five or more bedrooms. Basically, that is a grant of €420,000. On top of that, as I stated earlier, we are allowing access and are changing the SEAI scheme to allow people to apply for that scheme even if they did so previously. That allows for further enhancements.

What Senator Cummins stated is true. The amendment would create a two-tier system. If a person gets a grant of €400,000 but then builds a house for €300,000, is the State supposed to step in to say on what the other €100,000 is to be spent? Should it have to go back and check what it is spent on? The amendment would create a series of complications. I understand the point but there is no penalty in the context of this aspect of the scheme. If a person wishes to build a smaller home for economic reasons, such as the future cost of managing the home, he or she will get a grant on a like-for-like basis. The rates are there and the person will get 100% redress. That is what we intend to happen. As was mentioned earlier, we are allowing the ability to track construction inflation with a review every 12 months and, three years after the passing of the Act, a full review of the scheme.

Most people to whom I have spoken wish to replace the house they have. That is the case for the vast bulk of those affected. It is one-for-one on a like-for-like basis. People who decide they want a smaller house will not be penalised but will be paid at €161 per square foot. The original rate last October or November was €145 per square foot. We are allowing that headway.

As regards Senator Blaney's point on planning for smaller homes on the same footprint, we do not intend that there will be planning for them, as long as they are on the same footprint.

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