A new redress scheme for homeowners affected by defective blocks could be in place for at least a decade, Minister for Housing Darragh O’Brien has said.
Mr O’Brien on Tuesday received Cabinet approval to publish the general scheme of the legislation underpinning the €2.7 billion defective blocks remediation scheme.
He said that, with some 7,000 homes impacted, works will have to be carried out on a phased basis.
A number of homes are ready to go now, he told RTÉ Radio’s News at One, which was why he wanted the proposed legislation to go through before the summer recess.
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Not all homes could have the work carried out at the same time as families would have to live elsewhere, and his department would be working with the Housing Agency in assisting families, he said.
“This scheme will be in place for at least 10 years,” he added.
On the issue of foundations and if they would be covered by the scheme, Mr O’Brien said an independent scientific assessment was being carried out to assist Engineers Ireland in its work on the scheme. That report would conclude in 2023 and if necessary assessments already concluded could be amended.
Mr O’Brien said he was anxious that the process of remediation should commence immediately. The Minister was also in favour of a levy on the building industry, which was being discussed with the Minister for Finance. It was a matter for the Department of Finance, he said. “It has been flagged. I want it to be introduced,” he said.
Tánaiste Leo Varadkar said the Government wanted the legislation passed before the summer recess.
“We want the scheme up and running before the end of the year. We want to see in Donegal and Mayo and other parts of the country houses being repaired, houses being demolished, houses being rebuilt. We want to see that happening next year.”
He said there would be an opportunity for homeowners and other groups to have their say on the legislation during committee hearings which are planned for this week.
“I’ve been in some of these homes, I’ve met some of these people affected. The homes are cracking up and people are cracking up too.” Mr Varadkar said the scheme was overdue.
The enhanced scheme was originally set to cost €2.2 billion when it was agreed by the Cabinet last November, but this has now risen to €2.7 billion. Last week, Ministers were presented with three scenarios of inflation which could mean the cost could balloon to €3.65 billion, meaning that high inflation could add up to €1.5 billion on to the final taxpayer bill in the worst-case scenario.
Two counties, Clare and Limerick, were added to the enhanced scheme. Ministers were also told that it was possible the problem would extend beyond Donegal, Mayo, Clare, Limerick, Sligo and Tipperary.
Mr O’Brien will also establish a parallel scheme for local authority and social homes affected by defective blocks. Up to 1,300 such homes could need remediation.
Separately, there have been concerns about residential units affected by defective blocks that are situated within multiunit developments. The Department of Housing believes many of the units may have other latent defects and so these properties have not yet been included in the new scheme.
