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THE REGULATIONS FOR the Defective Concrete Block scheme should be up and running “in the next number of weeks”, according to Finance Minister Michael McGrath.
The Mica redress scheme, which is designed to help homeowners whose houses were damaged by the presence of mica in their concrete blocks, stands at €2.7 billion.
A new 10% levy on concrete blocks, pouring concrete and other products, will help fund the Mica redress scheme, and is expected to raise €80 million annually.
Concerns have been raised about delays in recent months, with questions now being posed about the role insurance companies and banks will play going forward.
Speaking in the Dáil today, McGrath confirmed that the regulations are now being finalised and are expected to be in place in the next number of weeks when the new scheme “will finally be in place and up and running”.
Regarding the issue of costs and the price cap, the minister said the Society of Chartered Surveyors has provided an update on rebuilding costs for 2023 for Donegal and Mayo.
The cost to rebuild eight house types are shown to have increased of by 13% to 15% since their first cost report in February 2022. Building costs for 2023 for Clare and Limerick, received on 18 April are currently under consideration with the expert group, said the minister.
McGrath said he believes insurance companies and banks have a role to play in the scheme. Independent TD Thomas Pringle said concerns have been raised about the bank’s mortgage terms and conditions, which make the repair of homes potentially an automatic default event.
“Mortgage providers are standing outside the remediation issue, taking all the benefits without any of the pain,” he said.
McGrath said he will meet with the homeowners group on the banking and insurance issues.
“I recognise the reality that taxpayers’ money here is being used to essentially repair or reconstruct an asset, which is the security for loans that the banks hold. And equally it is the taxpayers rather than insurance companies who will be funding the costs involved here,” he said.
McGrath said the Banking Federation of Ireland have been in correspondence with the Mica action group and have indicated willingness to meet and enter into a process of structured dialogue.
“So I welcome that. I think that is important… I’ll do whatever I possibly can to support the homeowners in relation to those banking and insurance related issues,” he added.
Taoiseach Leo Varadkar has said by this time next year he wants to see hundreds of homes in Donegal being repaired or being demolished and rebuilt.
There was already regulation, but not enforced, but who cares, nobody accountable
@Jules: The concrete cartel is strong.
@GT McMahon: not strong enough it seems
@GT McMahon: but their products definitely were not.
@Jules: The construction industry was in cahoots with developers and politicians in the Galway tent and all the regulation was watered down to be non-existent. During the Celtic Tiger you’d lads sitting in pubs signing off houses. Ultimately it is the fault of The Government that allows corruption and malpractice is at fault but taxpayers carry the can. The taxpayers had to bail out the bankers too. And their pensions got robbed.
And drive up house prices even more!!
Concrete built is……….what?
Jaysus there won’t be a Donegal man working on the sites in Dublin or London for the next 10 years, they must think they’ve won the lotto. Ah sure it might increase the prices for the rest of us in Dublin without Donegal’s. Happy days.
@ggg: good to see ignorance is still bliss, I am living in a house I bought and paid for, I worked since I was 16 paying tax, now 51. My home is falling down around me. I payed vat on everything I buy. I bought the blocks that were meant to be solid. (you would think) They were meant to be regulated by the gov to ensure of quality. but not. (whats is more enraging is these blocks are still being made and gov knows it, and doing nothing about it. ) – I am facing a bill of over 160000 that I dont have to fix my home this is after grant. (are you facing this?) (yes Developers will make a killing of me. What did I do wrong? why am I under this pressure now. who is going to help me. Why is gov turning this into people against people. There has been 2000 houses fixed in Dublin in past number of years, all bills paid. 100% grant and not a word about it.
So when you make comments, try and find out a wee bit about what your talking about first.
First it was the dodgy banks, now the dodgy builders. As long as Fianna Fáil are in power this will keep happening again & again. As long as they stay in power, businesses will not be touched and citizen & the tax payer will be screwed over & over again.
have your say