100% Redress backed by Northern and Western Regional Assembly

Housing Minister Darragh O'Brien said the Defective Concrete Blocks Grant Scheme was "not a compensation scheme".

In a letter to Mr Denis Kelly, the the Assistant Director and Senior Planner of the Northern and Western Regional Assembly (NWRA), Minister O'Brien stated: "It is not a compensation scheme and is very much a scheme of last resort for homeowners who have no other practical options to obtain some form of redress."

The Minister added that he expected the review being undertaken by the Working Group [on the Defective Concrete Blocks Scheme], to be completed by the end of September.

He said: "[The review] will inform any proposed improvements to the Scheme which I will bring forward to Government in consultation with the Minister for Public Expenditure and Reform and the Attorney General."

Minister O'Brien was replying to correspondence from the NWRA following a special meeting on July 29, 2021, at which it discussed the MICA Redress Scheme: Dwellings (and other buildings) impacted by defective concrete blocks.

The NWRA comprises 25 elected members nominated by the nine local authorities within the region. It covers eight counties (Galway, Roscommon, Leitrim, Sligo, Donegal, Monaghan, Mayo and Cavan) and works with key stakeholders at EU, national, regional and local level to "accelerate and optimise effective regional development".

Following a comprehensive meeting, the Members of the Assembly unanimously agreed a motion to be brought to the attention of Minister O'Brien.

The motion stated: "The Members of the Assembly bring to your attention their serious concern with the pace of progress in resolving this avoidable housing crisis that is having an unacceptable and potentially irreversible social and economic impact upon citizens. In view of this, Members are fully united in agreement with their as of Government as set out below: 

"The Members of the Northern and Western Regional Assembly unanimously request the current Mica / Pyrite Redress Scheme be amended immediately to reflect the following: 

(i) That all affected homeowners are afforded 100% compensation to restore their homes.

(ii) That the Scheme be extended to include all affected property owners and not be limited to Principal Private Residential properties.

(iii) That the State establish a Public Inquiry / Tribunal of investigation to ascertain the origins of the Mica / Pyrite / Pyrrhotite crises .”

The NWRA letter to Minister O'Brien said: "The Regional Assembly held a Special Meeting as it was considered that the above issue [the MICA Redress Scheme: Dwellings (and other buildings) impacted by defective concrete blocks] has become an emergency situation that needs immediate and effective action to resolve the escalating housing crisis that is emerging as
a consequence in the Northern and Western Region, particularly in Counties Donegal and Mayo.

"This housing crisis needs immediate resolution not only because of the impact it is having upon the economic and social well being of people affected and their wider communities, but it is also making the job of tackling the economic challenges of this region significantly more difficult to address.

"As you will be aware, the Northern and Western region’s economy is at a significant disadvantage comparable to the rest of the country. The European Commission has recognised the decline in our region’s economy and as a consequence has downgraded the Northern and Western Region from a 'More Developed Region' to a 'Transition Region' post-2020, while the European Parliament’s Committee on Regional Development has categorised the region as a 'Lagging Region', which is a
region characterised by extremely low growth which is divergent from the rest of its country.

"Furthermore, the Northern and Western Region is now the only region in Ireland to be classified by the European Commission as a “Moderate Innovator”. The housing crisis is a challenge that requires immediate and comprehensive resolution. In view of the foregoing, the Members of the Assembly have asked that I bring to your attention their serious concern with the pace of progress in resolving this avoidable housing crisis that is having unacceptable and potentially irreversible social and economic impact upon citizens."

In his reply to the NWRA, Minister O'Brien said he was "acutely aware of the distress that the issue of defective blocks has caused to the people and families affected".

He added: "As a result, I have established a time bound working group with representatives from the Department, the local authorities and homeowner representative groups, to review and address any outstanding issues in relation to the operation of the Defective Concrete Block Grant Scheme. The terms of reference for this group include issues such as grant caps, eligible homes and the role of responsible parties and financial institutions et cetera.  

"I expect the review, to be undertaken by the working group, to be completed by the end of September, and will inform any proposed improvements to the Scheme which I will bring forward to Government in consultation with the Minister for Public Expenditure and Reform and the Attorney General."

Speaking to Donegal Live following his receipt of Minister O'Brien's letter, Cllr Frank McBrearty (Independent) who is a member of the NWRA said he thought the way the Government was treating the people of Donegal and Mayo was "disgusting".

He said: "In addition, the fact that other counties are also coming out now and highlighting the structural problems they have got with their own homes and properties, shows the complete failure of the Irish Government and the Irish political establishment to deal with scandals like this one and many other scandals similar to it.

"The issue here is that we should be getting 100% compensation for rebuilding our homes, plus a financial compensation package for what this has done, every single person who is affected by it. That is why my family will be issuing multiple statements of claim against the State because the [Defective Concrete Blocks Grant] Scheme does not work. 

"As far as I am concerned, this Working Group [on the Defective Concrete Blocks Scheme] has led everybody up a garden path, in allowing the Government to kick the can down the road, because the last part of the Minister's letter basically states that [the Review] will go to the Minister for Housing, then to the Minister for Public Expenditure and Reform, and then on to the Attorney General.

"What the letter does not tell us is that when the Review comes back from the Attorney General, it comes back to the Housing Minister and then it would have to go before the Cabinet itself. It would then have to go before Seanad Éireann and from there into the Dáil, in order for any changes to be made. How long will that take? In my opinion, from my experience fighting the Irish State, the Minister's letter clearly shows to me that there are not going to be very many changes to the current [Defective Concrete Blocks Grant] Scheme. We are all being hoodwinked by politicians that are using this as a political football," said Cllr McBrearty.

Cllr McBrearty queried how many chartered engineers have to state publicly that the only solution open to a mica  / pyrite / pyrrhotite house is demolition, before the Government accepts their expert advice.

He added: "I think it is disgusting the way the Government is treating people with properties affected by mica, pyrite and pyrrhotite. It is exactly the same as the way in which the haemophiliacs in the Blood Tribunal (Lindsay Tribunal), the women with cervical cancer, the many victims of child abuse, and the victims of Garda corruption in this country were treated, not to mention The Stardust, the Kerry Babies, the Mahon Tribunal (planning) and the Moriarty Tribunal (payments to politicians).

"Accountability is seriously lacking for what has happened to the people of Donegal and May and other counties now that are coming out," said Cllr McBrearty.

Below is the full text of the letter received by Mr Denis Kelly, the Assistant Director and Senior Planner of the Northern and Western Regional Assembly, from Mr. Darragh O’Brien TD, Minister for Housing, Local Government and Heritage.

"I have been asked by Mr. Darragh O’Brien T.D., Minister for Housing, Local Government and Heritage, to thank you for your letter dated 10 August 2021 in connection with the Defective Concrete Blocks Grant scheme.

The Dwellings Damaged by the Use of Defective Concrete Blocks in Construction (Remediation) (Financial Assistance) Regulations 2020 provides for a grant scheme of financial assistance to support affected homeowners in the counties of Donegal and Mayo only, to carry out necessary remediation works to dwellings that have been damaged due to the use of defective concrete blocks. The regulations came into operation on 31 January 2020 and the scheme has been open for applications since the end of June 2020. Section 5 (1) (b) and (c) of the Regulations provide for the application of the scheme to the principal private residence only.

It is not a compensation scheme and is very much a scheme of last resort for homeowners who have no other practical options to obtain some form of redress. The issue of defective concrete blocks is a particularly emotive one for households and I sympathise with all caught up in this distressing situation.

The Defective Concrete Blocks Grant scheme was informed by the work of an Expert Panel which was established in 2016 to investigate the incidence and causes of the significant cracking of external walls in Donegal and Mayo since 2013. The Panel reported in 2017 and estimated that that up to 4,800 private homes and 1,000 social homes could be affected in Donegal and 345 private homes and 17 social homes could be affected in Mayo. The priority must be to ensure that homeowners living in affected dwellings as their principal private residence are helped to the fullest extent within the funding resources currently available.

The Minister is acutely aware of the distress that the issue of defective blocks has caused to the people and families affected. As a result he has established a time bound working group with representatives from the Department, the local authorities and homeowner representative groups, to review and address any outstanding issues in relation to the operation of the Defective Concrete Block Grant Scheme. The terms of reference for this group include issues such as grant caps, eligible homes and the role of responsible parties and financial institutions etc.  

I expect the review, to be undertaken by the working group, to be completed by the end of September, and will inform any proposed improvements to the Scheme which the Minister will bring forward to Government in consultation with the Minister for Public Expenditure and Reform and the Attorney General."