Written answers

Thursday, 24 January 2013

Department of Environment, Community and Local Government

Pyrite Issues

Photo of Brendan  RyanBrendan Ryan (Dublin North, Labour)
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To ask the Minister for Environment, Community and Local Government the measures that have been introduced to tackle the Pyrite issue since March 2011 to date; and if he will make a statement on the matter. [3548/13]

Photo of Brendan  RyanBrendan Ryan (Dublin North, Labour)
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To ask the Minister for Environment, Community and Local Government the length of time it will take for the Pyrite Resolution Board to be operational; when it will begin to remediate Pyrite effected homes; and if he will make a statement on the matter. [3549/13]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I propose to take Questions Nos. 150 and 151 together.

In September 2011, I set up an independent Pyrite Panel to explore options for a resolution to the pyrite problem in private housing. Following detailed research and consultation, the Panel submitted its report to me at the end of June 2012 which I subsequently published in July 2012. The report, which contains twenty four inter-related recommendations, set out a framework to provide solutions for affected homeowners.

In its report, the Panel was unambiguous in its conclusion that the State was not responsible for the pyrite problem and should not bear the cost of remediation. However, it was equally clear that the State had a pivotal role to assist and co-ordinate the provision of the necessary infrastructure to provide for the remediation of pyrite damaged dwellings where no other option is available to homeowners. It was the Panel’s view that the stakeholders with direct or indirect responsibility for the pyrite problem should face up to their legal and moral responsibilities and provide solutions for homeowners, including funding the cost of remediation.

Reflecting on the approach recommended in the report for the engagement of stakeholders in processes to provide a solution to the pyrite problem, my Department and I have been involved in on-going discussions with key stakeholders and in particular with representatives from the Construction Industry Federation, Irish Concrete Federation, HomeBond, and the Irish Banking Federation since July 2012. My objective in engaging in this process, which has taken longer than I anticipated, was to achieve collective agreement for the provision of structures to deliver solutions for homeowners in line with the recommendations in the pyrite report.

The Construction Industry Federation, the Irish Concrete Federation and HomeBond have agreed to establish an entity for the purposes of operating the remediation scheme in respect of those homes affected by pyrite and where the homeowner has no other form of redress. A number of financial institutions have agreed in principle to make initial loan funding available to facilitate the early commencement of pyrite remediation work and it is intended that the entity will engage with those institutions in relation to this loan facility.

I have recently received Government approval for the imposition of a levy on both the quarrying and insurance sectors, as recommended by the independent Pyrite Panel, in order to provide the funding necessary for the remediation of pyrite damaged dwellings. The imposition of the levies will require primary legislation and I am committed to having the legislation published and enacted in the shortest timeframe possible.

The Government also approved the establishment of a Pyrite Resolution Board which will have oversight of the operation of the remediation scheme and ensure that the public interest, and the particular interest of the affected homeowners, is well served.

I am currently finalising the membership of the Pyrite Resolution Board. I have appointed a Chairman who, with me, is keen for the Board to commence its work as soon as possible. While, I am not in a position at this stage to indicate when the remediation work will begin, there will be no undue delay on my part or that of my Department in putting the necessary structures in place for a remediation scheme.

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