Mica redress scheme changes to be announced in a 'few weeks'

Mary and Seamus Hanley at their home in Drumline, Newmarket-on-Fergus, Co Clare, which is affected by mica. Picture : Eamon Ward

Changes to the €1bn mica redress scheme will be announced in a “few weeks”, to help almost 500 families in several counties whose homes are disintegrating. 

Housing Minister Darragh O’Brien said greater Government contributions toward upfront engineering costs, increasing the level of grants on offer and lowering  homeowners' contribution are “all on the table”.

Sinn Féin launch motion to ensure 100% redress for homeowners affected by Mica & Pyrite defective block in Donegal, Mayo, Clare and elsewhere.https://t.co/CsWSrO0rKL pic.twitter.com/4UngpKeOBL

— Eoin Ó Broin (@EOBroin) June 14, 2021

The Cabinet will on Tuesday approve a counter-motion to a Sinn Féin motion calling for the State to provide 100% cover, including rent costs, while homes are repaired.

At present, the State is contributing 90% but families have argued the 10% cost is unaffordable and have called for the Government to cover rent costs, as it did in the pyrite remediation scheme in Dublin and Meath.

“This is an awful scourge to be visited on any family,” Mr O’Brien said.

The point has been very well raised with me by residents that the 10% is not 10% when you add it all up. With all the additional costs that becomes much, much greater. So that is a central focus to the work we are doing.” 

Government TDs in the affected counties of Donegal and Mayo are under intense pressure and Agriculture Minister Charlie McConalogue has demanded his Cabinet colleagues support a 100% full redress scheme.

Insurance levy abandoned

Meanwhile, a redress scheme for homeowners affected by pyrite, which was to be funded by an industry levy, was abandoned when insurance companies threatened legal action, the Irish Examiner has learned.

A protest in Buncrana, Co Donegal, at the mica redress scheme, which offers 90% of rebuilding costs. Picture: Windy Day Media

The failure to establish this levy is understood to have had a huge influence on the subsequent decision not to impose a levy to compensate homeowners affected by mica in concrete blocks. Instead, the Government set up a redress scheme in which the State paid up to 90% of costs to those affected. The scheme has been widely criticised by homeowners, who are today taking part in a major protest at Leinster House in Dublin.

The industry levy to compensate homeowners affected by pyrite was proposed by a board set up by government, which reported in 2012. The following year, then environment minister Phil Hogan announced he was establishing a fund of €50m to be financed by the insurance, construction and quarrying industries.

However, before the fund was put on a statutory footing, the Insurance Industry Federation wrote to the minister protesting it was “vehemently” opposed to the scheme, according to documents released under the Freedom of Information act to Sinn Féin housing spokesperson, Eoin Ó Broin.

The insurance sector “did not create the pyrite problem and will oppose any attempt to apply a levy to non-life insurance policies”, Kevin Thompson, CEO of the federation wrote.