Thomas Pringle (Donegal, Independent)
Link to this: Individually | In context

52. To ask the Minister for Housing, Planning, and Local Government if he will make the revisions to the defective blocks scheme cap and rates retrospective to include people who have availed of the scheme to date, in the interests of fairness and equity; and if he will make a statement on the matter. [37157/24]

Thomas Pringle (Donegal, Independent)
Link to this: Individually | In context

I ask this question in relation to the defective blocks scheme and the amendments that have come forward in regard to it. We know that when the scheme was announced, people were advised to continue on with the old scheme and that the new conditions would be applied retrospectively for them and they would be able to benefit from the new scheme. That actually is not happening. That is a problem causing huge distress to many homeowners in Donegal who in good faith went ahead with the scheme. Now they are not benefiting from the scheme. That is detrimental to them. I ask the Minister to reconsider that decision.

Darragh O'Brien (Dublin Fingal, Fianna Fail)
Link to this: Individually | In context

I thank the Deputy. It is a very important issue. As the Deputy is aware I commenced the Remediation of Dwellings Damaged by the Use of Defective Concrete Blocks Act 2022 on 22 June 2023. This was a greatly enhanced scheme where we upped the cap from €247,000 to €420,000. We adopted those regulations for that scheme on 29 June 2023. A review mechanism was included in that Act which provides for an increase or decrease to the overall grant scheme cap. It is currently at €420,000, a year after the Act has commenced. That allows us to do that one year after the Act has commenced of up to 10% in accordance with conditions of section 11 of the Act. My Department received updated costs reports from the Society of Chartered Surveyors Ireland because I wanted it to be done independently. That was a big debate we had during the legislation as the Deputy will recall. It is an important thing. That was considered by the expert group that I established. The expert group recommended increases under the 2022 Act. I will be bringing a memo to Government very shortly to increase the current scheme cap for remediation options, ancillary grants and grant rates. I have engaged directly with the Minister, Deputy McConalogue, on this matter and aim to bring this proposal to Cabinet very shortly. I am pleased to see more people are applying to the new scheme. We are seeing homes being remediated. That is important too. The application of the increased cost amounts and the increased rates will be a matter that I will be bringing to Cabinet very shortly, within a matter of weeks, and that will be implemented for those in the scheme. As part of the proposal, following my discussions with the Minister, Deputy McConalogue, I intend that it will apply also to those who are in the scheme with works currently in place and under way.

Thomas Pringle (Donegal, Independent)
Link to this: Individually | In context

Will it also apply to people who have completed works as part of the scheme, who did it in good faith and worked under the old scheme while this new scheme has been implemented and enacted? They are now left, having spent money they cannot access. As well as that, it is vitally important because the new scheme has seen inflation of more than 20% in construction figures and they need to benefit from that because they have expended that money. It is vitally important that everybody would benefit from this. Everybody bought into this scheme on the basis that it was going to happen and now they are worried that it is not going to happen. I would like to encourage and say today that it will happen and that that is what the Minister will be bringing to Cabinet to make a decision on.

Darragh O'Brien (Dublin Fingal, Fianna Fail)
Link to this: Individually | In context

I thank the Deputy. The scheme is gaining hold in the affected counties as well. We are seeing more people applying to it. I am looking at recent numbers up to 31 August. In County Clare there have been 112 applications, 1,760 in County Donegal, 38 in County Limerick and 392 in County Mayo. I will be bringing proposals around increased costs and an increased cap as well to Cabinet very shortly. It is obviously subject to a Cabinet decision. I take the Deputy's input on board certainly in the constructive way in which it has been put. I have engaged directly with my colleague, the Minister, Deputy McConalogue, as I said as well on this. I expect to be bringing proposals with regard to the increased grant rates and the increased costs amounts which were assessed independently of me. The Deputy mentioned an inflation rate of 20%. The cost allowable and the cost increases have been assessed independently of myself. That report has been looked at by the expert group. I am assessing it and preparing a memo right now to bring to Cabinet. It will be subject to Cabinet approval. My Cabinet colleagues across all three parties in government have been very supportive of us bringing forward this enhanced scheme in the first place and then also making sure that it is working on the ground for people to help them to get their homes and their lives back. It is crucially important. I will keep the Deputy informed of progress.

Thomas Pringle (Donegal, Independent)
Link to this: Individually | In context

I want to go back again in regard to the enhanced scheme and who will benefit from the proposals that the Minister will bring forward. Is it going to be everybody that has participated in the scheme up to date that will benefit from the proposals the Minister will bring into Cabinet? Will there be a cut off point or what is actually going to happen? The homeowners deserve that clarity in relation to the scheme because living in a home with defective blocks is a crisis for a family and for everybody to deal with. They are living through this all the time. They need that clarity to ensure that they know where they are, going forward.

Darragh O'Brien (Dublin Fingal, Fianna Fail)
Link to this: Individually | In context

All I can say is, Deputy, it is subject to my bringing the memo to Cabinet, which is being prepared at the moment, with options for Cabinet to decide upon. I can say to residents and affected homeowners that they will see an increase in the cap. They will see an increase in the allowable costs, the application of which and the approval of those is subject to Cabinet approval which I expect in the coming weeks, very shortly. I take on board the point raised by the Deputy and that will form part of our considerations as well.