'Vendetta by the Housing Department against the homeowners' - Mica Action Group

The Mica Action Group said homeowners were completely excluded from the drafting of the Society of Chartered Surveyors of Ireland (SCSI) terms of reference for the organisation's report on construction costs for the defective concrete block scheme.

Speaking to Donegal Live, Mica Action Group PRO, Michael Doherty, said: "I think Housing Minister, Darragh O'Brien, is being thrown under the bus, at every opportunity, by the Housing Department . It seems like a vendetta by the Housing Department against the homeowners. That's how it feels at this stage."

Mr Doherty added that The Mica Action Group contacted Minister O'Brien because he had not come good on what he promised from Christmas.

The Minister's response is carried in full below.

Michael Doherty said: "I was told that I would be involved in the putting together the homeowner position regarding the outcome from the SCSI. In putting that together, the Housing Department has been involved all along but I told them that was completely one sided and that the homeowners needed to be part of this as well, as the key stakeholder in this. Minister O'Brien accepted all of that.

"I was told I would be given a draft of the terms of reference and then, on the back of that, we could make homeowner input to that and work it to something that was going to be more agreeable to everybody. 

"We were never afforded that opportunity. Instead, I was told it just was not ready in December and then it had to be ratified by the SCSI board and that was what the hold up was but I would get it in January. January passed and at the beginning of February, I asked where this was at and I put pressure on to see where it was at. 

"The Minister was in Brussels on Monday and Tuesday this week and John O'Connor [former CE of the Housing Agency] who is my conduit, was in contact with the Department because it had not answered any of my messages over the last couple of weeks, since the new year," said Michael Doherty.

Mr Doherty said the problem was that John O'Connor was not getting answers from the Housing Department either.

He added: "What we needed was a seat at that table, where we could talk about what the SCSI terms of reference would be. This is only the terms of reference we are talking about. It is no the final SCSI outcome. The terms of reference dictates the framework for that final outcome so it is important the homeowners are part of that and we have not been allowed to be part of that. So, I pushed it hard this week  and lo and behold, published on the SCSI website was the terms of reference.

"That was published without us even getting a look at it first of all and when it was published, it had all the fingerprints of the Housing Department all over it again. 

"It is meant to be an independent terms of reference by SCSI, yet it contains the entire documentation and position of the Housing Department in their, including the discredited sliding scale, that was slipped in on November 30.

"The Minister has since backpedaled and said he does not expect to see an SCSI sliding scale in there but I think he is being thrown under the bus, at every opportunity by the Housing Department here. It seems like a vendetta by the Housing Department against the homeowners. It seems to be hell bent on penny pinching everything it can from the homeowner that was completely innocent in the process and, instead of focusing in on how it can get our lives put back together, and work with us to do that, it is doing the complete opposite and, on top of that, instead of worrying about penny pinching from us, it still has not stopped the source of the problem.

"The Housing Department still has not nothing in place today to stop the production of rubbish blocks," said Mr Doherty

Terms Of Reference For SCSI Report On Construction Costs For The Defective Concrete Block Scheme

Full text of letter from Housing Minister Darragh O'Brien to the Mica Action Group regarding the Defective Concrete Block Scheme (February 10, 2022)

Dear Michael,

Thank you for your correspondence in regard to the Defective Concrete Block Scheme and terms of reference document between the Department of Housing and the Society of Chartered Surveyors Ireland.

The roll out of the newly enhanced scheme is a matter of priority for the government and significant progress has made since November 30th 2021. I note your concerns around aspects of the document and I am happy to directly address them. I also want to use this opportunity to update you on the work undertaken to date.

At the outset I want to clarify that the role of the SCSI is limited to producing a report on current construction costs in the North West. The final setting of the specific grant scheme is a matter for me as Minister. The SCSI is providing a valuable independent real cost report to provide clarity and certainty for homeowners based on best real cost data available.

It is important to state that the terms of reference paper is a short paper to commission a bespoke paper from the SCSI. The Terms of Reference is not the final report.

It confirms that the SCSI are an independent body and will publish a full, independent standalone report on the re-build construction costs for the North West within the parameters of the government grant scheme.

My approval of the final scheme will be based on and informed by that detailed report on real costs, not the preceding Terms of Reference. I can assure you the final, independent SCSI report will form the basis for my approval of the scheme.

Construction costs within the SCSI report will be reviewed annually to reflect any changes the real cost of construction. The SCSI has advised the department that they do not produce sliding scales in their construction costs reports. I believe the final report will provide welcome clarity and certainty for homeowners by ensuring the cost levels in the grant scheme reflect the best data available as set out by the SCSI.

The data input by the Department of Housing Quantity Surveyors will be considered by the SCSI as part of their comprehensive work. Material from the Department has been included as an Appendix in the Terms of Reference for context and background.

I understand that the SCSI will also be seeking homeowners data input into their analysis of the real costs involved. This request will be made in the coming days and will directly feed into the work of the SCSI.

It is an opportunity for homeowners to put forward their analysis and information on costs to the process. The final position will be set out by the SCSI in its report based on its independent, expert opinion.

You raised issue with a number of specific aspects of the parameters that are important to clarify.

- Foundations are being considered as part of the NSAI 1S 465 standard review and any future changes to that will be integrated into the scheme.

- The scheme is a “like for like” remediation grant, based on legal advice that adheres to Building Regulations. Homeowners will also be eligible for the newly revised SEAI retrofit grants. I am working with my colleague Minister Eamon Ryan to ensure this process can be streamlined for defective concrete block scheme applicants.

- Salvage value, if any, is open to consideration by the SCSI. It is no longer a basic part of the scheme.

- Driveway damage as a result of construction is included.

I recognise that it is important that homeowners have the opportunity to engage with the format of the scheme and ensure it is fit for purpose. I know this link needs to be strengthened. In this light I am happy to confirm that I have asked John O’Connor to serve as a formal Homeowners liaison for the scheme. John brings a wealth of experience to the role from his work with the Housing Agency and Pyrite remediation scheme. He serves on the expert group that is working through the implementation of the enhanced scheme and will serve as a direct link for home owners.

I have instructed my officials to assist him in any way possible in his work and he will have the full support of my office in ascertaining information and inputting to the process.

Given the sensitive nature of the role and its importance to home owners, prior to formally appointing John I would appreciate your views on the matter to ensure your group is comfortable with the selection. You might revert to me in the coming days so
we can proceed with this important role as quickly as possible.

Furthermore I expect to sign regulations with my colleague Minister Michael McGrath next week to allow emergency works to take place and to reimburse engineering fees.

This will have an immediate benefit to homeowners.

My office has been directly engaging with the Attorney General to accelerate the publication of a Defective Concrete Block Scheme bill next month. I am eager to pass this legislation to give effect to the €2.2bn scheme as soon as possible.

The Expert Group on Enhanced Defective Concrete Blocks Scheme was established last month and has been meeting weekly. A number of sub-groups have been formed to work through detailed issues. This work is vital in creating a fit for purpose scheme that delivers for homeowners.

John O’Connor is a member of the group and will be the homeowner’s liaison to ensure that perspective is integrated into its proceedings.

The Housing Agency have appointed a project lead on their role in the area which will be vital in setting up a system that works for homeowners. Bob Jordan the head of the agency is prioritising this work and has already been to Donegal and Mayo to assist the Local Authorities there and initiate setting up a Housing Agency presence in the region.

I understand the level of anxiety and apprehension around the scheme given the scale involved and homeowner’s experiences of the devastation cussed by MICA. I want to re-iterate my commitment to build a grant scheme based on the independent work of the SCSI that covers the real costs involved.

I look forward to the completion of the report over the coming weeks and taking the next steps to address this crisis.

Yours sincerely,

Darragh O'Brien 

Minister for Housing, Local Government and Heritage