Mary Seery Kearney (Fine Gael)
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I thank the Minister of State, Deputy Noonan, for taking this Commencement matter at very short notice this morning. I appreciate that. He is well aware of the issues arising for homeowners in particular due to apartment defects. I applaud the work of the report of the working group examining defects in purpose-built apartments and duplexes between 1991 and 2013, which was published on 28 July. The report points to a number of factors as having created the situations where homes have been left with fire defects, water ingress, structural issues and a myriad of other issues. They defined the defects in question as being attributable to defective design, defective or faulty workmanship, defective materials, and any combination of these at the time of construction, and as being in contravention of the relevant part of the building regulations. One thing that is clear from that definition and all of the findings in the report is that the owners of these properties are not at fault. It is not a situation of their creation, yet those homeowners are now faced with enormous, and in many instances, life-changing bills. While they have to continue living, in some cases in dangerous and unsafe properties that they cannot sell, one of the issues I raise this morning is that they cannot insure them. The hardship to owners is obvious. Extreme stress is being caused by the enormous financial demands on these families and now at a time of a cost-of-living crisis and uncertainty about our economic stability and all that is facing us in the coming months, they have no way out of this nightmare. They cannot sell. They cannot escape it in any way, shape or form. They are locked into these homes, knowing that in some instances they can be death traps, in particular in the case of a fire defect.

I have well over 100 emails from people and I have received phone calls from people who were crying because they do not know how to face the demands that have been made of them. In the area of Dublin South-Central, which is my home constituency, there is a particularly large number of apartment complexes. People have been given demands, even in recent months, for anywhere between €32,000 and €84,000. Most people cannot raise the amount of money that is being demanded of them in the short term.The report was published. Owner management companies now have to respond in respect of the defects. We know the situation and we know where the fault lies. We also know where the fault absolutely does not lie, and yet it has been placed on the people affected. A woman who appeared before the Joint Committee on Housing, Local Government and Heritage, almost two years ago now, described putting her child to sleep at night in an apartment where she knew there were fire defects. We need an urgent response to that. Insurers are refusing to insure premises. In response to the Grenfell tragedy, they are now introducing additional requirements in respect of cladding that have nothing to do with this. There are insurance requirements involved. These homeowners are being caught in every possible way.

There are also owner management companies that are reluctant to start the works because they are waiting for the Government response. They want to know when they will receive money from the Government to support them in going through the process. There is a delay and, with that, we have a potential disaster on our hands. We will act very fast on the morning after a fire. We need to act now before there is one. Thank God, thus far there have been no deaths and injuries arising from this situation, but we must act. What is the Government's response to this issue? Is there a sense of urgency? There is certainly a clear sense of urgency in the community and in Dublin South-Central in particular.

Malcolm Noonan (Carlow-Kilkenny, Green Party)
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I thank the Senator for raising the matter. I am aware that she has consistently raised it with my colleagues, the Minister of State, Deputy Burke, and the Minister for Housing, Local Government and Heritage, Deputy Darragh O'Brien. The Senator has described the trauma experienced by the residents. It is critically important that they have certainty. That is what we are attempting to provide.

My colleague, the Minister for Housing, Local Government and Heritage, and I acknowledge the difficulties that homeowners and residents of many apartments and duplexes are facing, and the stress that is caused when the defects arise in their buildings. We are both aware that there have been many incidences of failures and non-compliance concerns coming to light in apartment buildings built during the building boom. The Minister has repeatedly said that this is a nettle that the Government must and will grasp. The Government is committed to helping affected homeowners.

One of the Minister's first tasks following the formation of the Government was to establish an independent working group to examine defects in housing under the chairmanship of Mr. Seamus Neely, a former chief executive of Donegal County Council. This followed on from a commitment in the programme for Government to examine the issue and bring forward reforms. This commitment was further supported by actions contained in Housing for All. The group's terms of reference were focused on fire safety, structural safety and water ingress defects in purpose-built apartment buildings, including duplexes, constructed between 1991 and 2013. The Minister received and published the report of the working group at the end of July this year. The level of consultation and engagement the working group undertook with stakeholders and interested parties, both here and abroad, was extensive. As a result, the report is rich in data regarding the nature and scale of defects, as well as the cost of addressing the defects. The working group estimates that of apartments and duplexes or associated common areas constructed between 1991 and 2013, the number that may be affected by one or more fire safety, structural safety and water ingress defects is likely to range between 50% and 80%. This equates to between 62,500 and 100,000 apartments and duplexes. The scale is quite incredible. In addition, the working group estimates that the average cost of undertaking the remediation of defects is likely to be approximately €25,000 per apartment or duplex. This translates into a potential overall total remediation cost ranging from approximately €1.56 billion to €2.5 billion.

The working group's recommendations, along with the evidence gathered on options for potential supports contained in the report, will be of considerable assistance in informing this Government's next steps. Taking into account the learning gained through the development and operation of other schemes, such as the pyrite remediation scheme and the defective concrete blocks scheme, the Minister will now, in consultation with Government colleagues, develop a plan to address the situation that many homeowners find themselves in through no fault of their own, as the Senator said.

Mary Seery Kearney (Fine Gael)
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I thank the Minister of State. With respect, what I have heard is a description of the working group and its work and report. I have not heard an answer. From the Minister of State's reply, I note that the Government is planning to respond and accepts that this issue is not the fault of the homeowners. However, there are homeowners today who are living in apartments with bills sitting on their kitchen tables that they are expected to meet. They cannot draw down finance or borrow. There is no back-up or support. In many instances, the work is not being done, so these people are living in a very precarious situation from day to day.

We need the Government to underwrite advance loans until such time as a grant scheme is put in place in response to the report. An urgent interim response is required. The Government should tell people to go borrow the money and that it will underwrite the loan. In that way, while the response and the scheme is being designed people will have the funds required for the work to continue to be carried out in order that they will be safe in their homes with their children. We need that as a matter of urgency.

Malcolm Noonan (Carlow-Kilkenny, Green Party)
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I thank the Senator again for raising this important issue. The content of this report confirms what we already know, namely, that there is a significant and widespread issue with defects in a large number of apartments and duplexes built during the Celtic tiger years.

On behalf of my colleague, the Minister for Housing, Local Government and Heritage, I assure the Seanad of this Government's commitment to deal with the issue of defects in housing and to assist homeowners who may find themselves in difficult financial circumstances. The Government will also continue to drive regulation in the construction sector and more sustainable methods of construction to ensure the mistakes of the past are not repeated.

I will take the Senator's assertion that we must take urgent action back to the Minister. It is important. I have reiterated the Government's commitment to resolving this issue in as timely a manner as possible and also to ensure equity and fairness for all of the families concerned. As the Senator said, it is no fault of the homeowners that they ended up in these circumstances. Some of the management companies are ready to move on the issue. It is important, therefore, that we act with a sense of urgency. I will convey that point to the Minister on the Senator's behalf.

Joe O'Reilly (Fine Gael)
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I wish Mr. Seamus Neely, chairman of the working group, well. I worked alongside him in Cavan County Council and he is a brilliant individual. Please God, he will do a good job.