Seanad debates

Tuesday, 22 June 2021

Nithe i dtosach suíonna - Commencement Matters

Defective Building Materials

9:00 am

Photo of Lisa ChambersLisa Chambers (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I am joining my colleagues, Senators Blaney and Dooley, to represent the people of Mayo, Donegal and Clare on the ongoing issue of pyrite and mica, which has affected the homes of thousands of people in the west and north west. I am here specifically representing the people of County Mayo. This issue mainly affects north Mayo, specifically Belmullet, Killala, Ballina and areas in between. To say people are experiencing significant mental anguish is probably an understatement.

I understand the Government has committed to putting in place a task force or working group comprising stakeholders from across all the counties affected. I welcome this action.

I reiterate how important it is that we get 100% redress for the homeowners affected by this issue. I have visited homes in Mayo and seen the cracks in walls. I could put my hand through them. I cannot imagine how difficult it is for people to sit in their homes and wonder when the wall will crumble, whether it is safe, if their kids are going to be okay and what they will do to rebuild their homes and lives.

The Minister of State will be aware that there were schemes elsewhere in the country in which 100% aid was granted to homeowners. We expect parity and equality for the people of the west and north west. We want this Government to deliver 100% redress for the people affected.

Photo of Niall BlaneyNiall Blaney (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I will put on record how we can get the current scheme up to 100% redress. There are seven issues involved. The first relates to insurance companies. In the past, insurance companies have been asked by the Government to give lump sums towards redress in the area of health. We are asking the Government to contact the insurance companies and ask them to give a lump sum over the next ten to 20 years, or whatever is necessary, towards making up that 10%. Similarly, Home Bond could make that contribution over the next ten to 20 years, as could Banking and Payments Federation Ireland, with which I, Deputy Calleary and the Minister for Agriculture, Food and the Marine, Deputy McConalogue, met a few weeks ago. It is much easier to do that over a ten or 20-year period than pay a lump sum.

The fourth issue is VAT. The Minister could look at a VAT exemption for the necessary materials, which would not cost the Government anything. Fifth, the Sustainable Energy Authority of Ireland should give out grants towards insulation. Sixth, the Government should provide a ten-year bond or guarantee. I would like to talk to the Minister more about that.

Photo of Eugene MurphyEugene Murphy (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Senator Dooley will have no time left if Senator Blaney continues.

Photo of Niall BlaneyNiall Blaney (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Finally, there are issues with engineers that must be looked at.

Photo of Timmy DooleyTimmy Dooley (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I welcome the opportunity to contribute to this debate because there is a real issue with defective blocks in County Clare. It is not mica but pyrite and we too want to be included in the scheme. We will not accept anything less than 100% redress. I have visited the homes affected and to say the homeowners are devastated by what is happening is an understatement. Their walls are crumbling and their lives are decimated. The State needs to stand behind them. I understand that a working group has been established with representatives from the mica action group in the north west. I ask that the Department also appoint somebody from the Clare action group to join that committee, in order to give an insight into a similar problem that is different in nature.

I join colleagues in recognising that others need to participate in this redress scheme. There is evidence that the defective blocks used in Clare came from a Roadstone quarry. That company is part of a very large multinational organisation and it is right and fitting that an organisation like CRH would contribute to redress. That should not be for the homeowners to deal with. That is an issue for Government. The Government now needs to come forward and set out a clear plan to provide 100% redress. If others have to participate in funding that plan, such as Roadstone or CRH, that can be dealt with by the Government, not the homeowners.

Photo of Eugene MurphyEugene Murphy (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I apologise for cutting across the Senator but there are three speakers and I want to give them each equal time. I understand that this is a pressing issue but I have to stick to the time limits. I ask the Minister of State to respond.

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

I thank the Senators for raising what they are quite right to say is a very important issue. I acknowledge that they had very limited time in which to make their contributions. I know they would have liked to make more substantial contributions on this but could not do so on foot of the rules governing Commencement matters.

The issue of defective concrete blocks, DCBs, is particularly emotive for households and I sympathise fully with all those caught up in this very distressing situation. The goal of the grant scheme is to help a restricted group of homeowners who have no other practicable options to access redress. It is not a compensation scheme but a mechanism for the State to help ordinary homeowners with no other way out of a situation that is not their fault. Homeowners are engaging with the scheme and already 448 have applied for grant assistance, 296 of whom have received stage 1 confirmation of eligibility.

Rigorous analysis was carried out in respect of the circumstances that led to the DCB issue. The grant scheme was informed by the work of an expert panel and finalised in consultation with the Office of the Attorney General, the Department of Public Expenditure and Reform, the relevant local authorities and homeowners. The aim of the scheme is to remediate the issue of the DCBs and return buildings to the condition they would have been in had they not been affected by the use of such blocks. The scheme does not prevent homeowners upgrading their homes to 2021 building standards but it does require that homeowners pay for the marginal cost of those upgrades. The decision to go with a grant scheme, as opposed to the type of scheme provided by the Pyrite Remediation Board, was intended to give homeowners the flexibility to manage their own projects and allow them to deal directly with their appointed contractors. The Department is engaging with the Sustainable Energy Authority of Ireland, SEAI, to explore whether the owners of homes built using DCBs are eligible for SEAI grants. In addition Government has committed to exempting these homeowners from local property tax, LPT, liability. Currently, the grant scheme only applies to the counties of Donegal and Mayo but additional counties are seeking admittance to it. Any extension to the scheme will require the same rigorous analysis as that carried out prior its roll-out in Donegal and Mayo. It would also have to be the subject of budgetary discussions with the Department of Public Expenditure and Reform.

On the issues being raised by homeowners, the Minister for Housing, Local Government and Heritage, Deputy Darragh O'Brien, has proposed a time-bound working group, involving representatives from his Department, the local authorities and homeowner groups, to review and address any outstanding issues regarding the operation of the grant scheme, including issues such as grant caps, homeowner contributions, engineering and allowable costs, etc. It is intended that the review will be completed by 31 July and that it will inform any changes or improvements to the scheme as may be required. Following receipt of the report of the working group and the ensuing collaboration with ministerial colleagues and, in particular, the Minister for Public Expenditure and Reform and the Attorney General, proposals will be brought to Government.

The scale of this problem is shocking and the impact on people unimaginable. I want the affected homeowners to know that Government is committed to supporting them as much as possible in the remediation of their homes.

Photo of Eugene MurphyEugene Murphy (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The three Senators have approximately 30 seconds each. I ask them to desist from mentioning any companies at this stage. I cannot allow that. They can have about 40 seconds each, I will let them run over a bit. Senator Blaney is first.

Photo of Niall BlaneyNiall Blaney (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

Go raibh maith agat. I will be taking the full-time as Senator Dooley has left to attend a committee meeting. I thank the Minister of State for his reply. We really welcome the moves by the Minister regarding the SEAI. Over and above the issues I mentioned, I wish to discuss the ten-year Government bond I mentioned. There is a fear among homeowners that if they do some remedial works on the outside of their houses, the problems with pyrite or mica will return. The ten-year Government bond is about addressing that. If the Department has a look at the matter, the bond will ensure that people do not simply push and drive; instead they may need to step over the advice of engineers who seek to have their houses demolished when there is no need for that. It brings the assurance that they need. I thank the Minister of State very much for his contribution. We look forward to engaging much more with the Department on this matter.

Photo of Eugene MurphyEugene Murphy (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Senator for his co-operation. Senator Chambers has 50 seconds if she needs to use it.

Photo of Lisa ChambersLisa Chambers (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Acting Chairperson. I concur with what Senator Blaney said. We welcome that some progress is being made and that all avenues are being explored. Contributions from industry are crucial because, ultimately, it has a role to play. I urge the Minister of State to ensure that the process is concluded as quickly as possible. Homeowners have been fighting for many years and people are extremely distressed and upset at what has happened. Urgency is the order of the day. There must be a resolution to this in the short term.

Photo of Eugene MurphyEugene Murphy (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Minister of State has a minute to reply.

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

I will be conveying the remarks the Senators have made to the Minister, as well as the feeling of urgency about this situation that Senator Chambers mentioned.

Photo of Eugene MurphyEugene Murphy (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

That concludes Commencement matters for this morning. I thank all the Senators, the Ministers of State, Deputies Feighan and Brophy, the ushers and the officials who are, as always, helpful to me when I am in the Chair.

Sitting suspended at 10.05 a.m. and resumed at 10.30 a.m.