Victor Boyhan (Independent)
Link to this: Individually | In context | Oireachtas source

I welcome the Minister of State. He will be aware of the detail of the matter I am raising. I thank the Cathaoirleach for selecting it for inclusion on this morning's agenda. This matter relates to the difficult and serious issue of pyrite and mica, although I will concentrate on pyrite. I acknowledge the enormous amount of work Councillor Mark Duffy from Ballina, County Mayo, has done on this issue. It was he who first contacted me about the matter and he has persistently contacted me since on behalf of the people he represents in County Mayo. Many of the Minister's party colleagues in the constituency, including the former Minister, have worked exceptionally hard on the issue but the reality is that this issue is creating havoc. Many thousands of houses will potentially be exposed to pyrite-related damage.

We know there is a pyrite remediation scheme but it is not adequate. It is a good attempt. It goes 90% of the way but ideally it should go the full way. There are concerns that, if we are to retrofit, upgrade or improve houses, particularly those affected by pyrite and mica, today's standards would apply rather than the standards of a few years ago. It makes sense. There are additional difficulties in that, if some people need to demolish houses, there may be a requirement for planning permission. There has been movement there but it is still very awkward.

A young family with children whose home has been identified as having serious problems with pyrite or mica in Donegal, where this issue is particularly prevalent, will have to leave their home, pay rent for an alternative premises and service a mortgage on a property that is completely finished and must be demolished and broken down onto the ground. Such families will have to rent new accommodation, make the planning arrangements and clear the site. Some of them are getting funding, although not all. This problem affects both private houses and local authority houses and these are being dealt with through different mechanisms. There is again a major problem in that regard.

It is clear that we need to look again at the Sustainable Energy Authority of Ireland, SEAI, grants. That is important. Everyone I have spoken to, and to whom members of the Minister of State's party have also spoken, has said that it does not make sense not to address the issue if houses are being restructured or rebuilt.

I will now turn to the issue of Mica in Buncrana in Donegal, where Councillor Nicholas Crossan is constantly campaigning to have the issue addressed. There is a problem. These properties are affected by both defective bricks and defective construction and this has the potential to render people homeless and leave them in debt. It is important that Government deal with Banking and Payments Federation Ireland to see if some kind of moratorium, suspension or freeze with regard to mortgages could be implemented when people are negotiating. The financial cost to those who own these properties is enormous, whether they are the occupiers, landlords or local authorities, as they are in many cases. We have to support people who have financial commitments and who have to find alternative accommodation in their communities because that is where their families are and where their children go to school, and for a whole range of other reasons.

This is a terrible situation for people to find themselves in. Many of those to whom I refer are having difficulties anyway as a result of issues relating to Covid, employment and income. The Minister of State knows that. I do not believe anyone in this House doubts that there is a need for supports. I ask that we take a fresh look at this issue and see if we can support local representative in these communities to help and support the people they represent in these homes, which are effectively condemned, and to stand in solidarity and empathy with them.

Colm Brophy (Dublin South West, Fine Gael)
Link to this: Individually | In context | 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.

Victor Boyhan (Independent)
Link to this: Individually | In context | Oireachtas source

I recognise that the pyrite remediation scheme is a scheme of last resort and that the Minister for Finance cannot interfere with the banks in the context of either their commercial viability or independence. However, that is very hard to swallow when one's house is in bits and falling down. It is very difficult to accept that citizens paid the price to support these banks - it made sense to do so - and the State has a major role in the banks and it made sense to do so, but the Minister and the Government say they can do nothing to help people whose houses are crumbling before their eyes. It really is a scheme of last resort. I do not wish to argue with the Minister of State. I do not doubt his credentials or support. We have to talk about supporting people. This is about homes. The former Minister for Rural and Community Development, Deputy Ring, has a strong record on this issue and has made several promises on it. It is important that there is some synergy and commonality about the approach across the House. I ask the Minister of State to keep the issue under review because it is not going away. Those affected are his constituents and those of all Oireachtas Members. They are citizens who are desperate and who need our support.

Colm Brophy (Dublin South West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Senator. He is correct that I will be conveying his remarks to the Minister later today. As outlined, there is a commitment to keep the issue under review.