Calleary says new pyrite redress scheme will be kept under review

MINISTER of State, Dara Calleary, has said that the rates of compensation in the new pyrite redress scheme will be kept under review.

Minister Calleary was speaking to The Mayo News following the launch of the enhanced Defective Concrete Blocks Grant Scheme, which can see homeowners claim up to €420,000 to rebuild their house.

Compensation is awarded based on the square footage of the house, rather than the cost of rebuilding it.

However, many homeowners have complained that they will still be liable for tens of thousands of euros in costs even after drawing down their compensation.

One Westport-based homeowner recently told this newspaper that she would be liable for €102,000 to rebuild her house after accessing the new scheme.

“I think it’s going to meet the requirements of a large number of householders across the county,” said Minister Calleary.

“The concerns about the operation of the scheme, we’re going to keep that under review and we’re going to watch this to make sure that it’s operating effectively and that it’s doing what it’s supposed to do.”

When it was put to him that some successful applicants would be liable for significant costs, Minister Calleary acknowledged that there were ‘still issues’ that need to be resolved with the new scheme.

The Fianna Fáil TD said the scheme’s compensation rates would be kept under review by the Minister for Housing, Darragh O’Brien.

“There’s a much higher square metre rate for the first 180 metres and then it goes down as the house gets bigger, and that’s to trap the expensive building and rebuilding of a smaller house and to make sure those in smaller houses aren’t penalised,” Minister Calleary explained.

“Because [the cost of] building a bigger house, as you increase the square metre rate, gets bigger. So we tried to design it that way.

“But the rates are going to be kept under review. The minister has been very clear on that. There’s new rates that will come in place for the launch of the scheme. He has said they will be reviewed annually. I will certainly be monitoring that.

“We’re trying to make sure this is a 100 percent scheme and we’re trying to make sure that for the majority of homeowners it will be.”

‘REALLY ANGRY’

THE former Minister for Agriculture added that he was ‘really angry’ that builders and quarries who had supplied defective concrete blocks could not be held accountable.

Many pyrite-infected buildings were constructed at a time when quarries were allowed to self-certify their own building blocks, which led to the supply of defective materials.

Minister Calleary said the government would try to put ‘watertight’ regulations in place to prevent such occurrences in future.

“There’s quite a lot of regulation in place but this shouldn’t have happened. Absolutely,” Minister Calleary replied, when asked if Fianna Fáil accepted responsibility for failing to regulate builders and quarries who supplied defective materials.

“We’re looking at all the regulation and there’s an analysis being completed of concrete providers. It’s frustrating for me. I’m really angry that those who caused this, people who supplied faulty blocks, that we can’t hold them to account.

“The priority for the last two years was to get a proper functioning scheme in place. We’re getting there now. We’re still going to be working on it. There’s still issues that we need to get resolved on it and we’re going to keep those under review.

“But certainly, we want to make sure this never happens again either and we’ll be trying to make sure those regulations are absolutely watertight in terms of 21st century building standards.”

CRITICISM

Meanwhile, the enhanced pyrite redress scheme has come in for criticism from Sinn Féin TD Rose Conway-Walsh, who said the scheme ‘does not provide 100 percent redress’ to homeowners.

In a statement, Deputy Conway-Walsh outlined several issues with the new scheme.

These included the lack of redress for foundations affected by pyrrhotite – which cannot be built upon – as well as the IS 495 quality standard, which she said was ‘undermined by the emerging scientific evidence’.

“Sinn Féin remains convinced that the flaws in the underlying legislation must be addressed to ensure that no homeowner or tenant is left behind,” Deputy Conway Walsh stated.

“We will be publishing amending legislation over the summer, following consultation with affected homeowners, to address these very serious concerns.”

The Defective Concrete Blocks Grant Scheme is expected to cost the state of €2 billion, which is to be partly funded by a levy on new concrete blocks.

Up to 1,000 houses in Mayo are believed to be infected with pyrite.

To date, Mayo County Council has received 346 applications for the Defective Concrete Block Grant Scheme, 332 of which have been approved.