Written answers

Tuesday, 3 December 2013

Department of Environment, Community and Local Government

Pyrite Panel Report Recommendations

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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265. To ask the Minister for Environment, Community and Local Government his views on the observations in the pyrite report that it would be in the banks' own interest to facilitate a process that would protect their assets; and if he will make a statement on the matter. [51767/13]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The report of the independent Pyrite Panel, which was published in July 2012, recommended engagement by key stakeholders, including the banks, in processes which would provide solutions for affected homeowners. My preferred approach was for responsible stakeholders to take ownership of the problem and to work with me to provide a voluntary industry led solution to the problem. Against this background and following receipt of the pyrite report, I engaged with the stakeholders, which included the banking sector, with the objective of securing a voluntary, industry-led response which would include appropriate funding arrangements. However, despite protracted discussions, the stakeholders would not commit to putting in place a voluntary scheme. In the absence of an agreement with the stakeholders the Government approved, in April 2013, the funding of a remediation scheme through the imposition of mandatory levies on the construction and insurance sectors.

Implementation of the remediation scheme was to be supported by a not-for-profit entity, established by the construction stakeholders, who would have operated under the supervision of the Pyrite Resolution Board. Under that process, it was intended that the entity would have been the borrower of a loan facility, which a number of financial institutions had signalled their willingness to provide, to facilitate the early commencement of pyrite remediation works. Unfortunately, due to legal difficulties it was not possible to proceed on the basis of those proposals. The revised arrangements which have recently been approved by Government do not involve a role for the banking sector. However, I would encourage the banks to respond sympathetically and positively to customers who may have particular financial requirements while their homes are being remediated.

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