Written answers

Thursday, 1 February 2024

Department of Finance

Defective Building Materials

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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103. To ask the Minister for Finance for an update on his engagement with the Banking and Payments Federation and the Department of Finance with respect to the defective concrete blocks redress scheme; and if he will make a statement on the matter. [4595/24]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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As the Deputy is aware, the overall Government response on the problems associated with defective concrete blocks is led by my colleague the Minister for Housing, Local Government and Heritage.

His Department is engaging with impacted householders and relevant stakeholders and has put in place a scheme of financial support to help affected homeowners.

This scheme provides for grants of up to €420,000 to remediate homes and includes ancillary grants of €25,000 to assist homeowners to meet costs relating to temporary accommodation, storage and essential immediate repairs.

I understand that some homeowners have identified a potential challenge with funding the commencement of remediation works in circumstances where it is necessary to make a payment to professionals engaged on a remediation project, prior to receipt of the first grant payment.

The Banking and Payments Federation of Ireland submitted an interim funding proposal to the Department of Housing to address this timing mismatch.

The BPFI propose that funding would be provided upfront from a BPFI member to a homeowner, on the commencement of remediation works. It is proposed that this funding would subsequently be repaid to the BPFI member on the release of the approved grant payment, subject to any requirements of the scheme.

I understand that this proposal was reviewed at a sub-group meeting of the Implementation Steering Group, chaired by the Department of Housing, on 11 January 2024.

Last year, I have asked my officials to engage with the BPFI and with officials in the Department of Housing to support that Department in exploring the funding mechanism proposal. This work is ongoing and includes consideration of the legislative and operational implications of the proposal.

The Government fully understands the importance of this issue in the communities affected by defective concrete blocks and I will continue to work with my Government colleagues, as necessary, to ensure that the Scheme operates effectively and consistently for all affected homeowners who access it.

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