Housing Minister admits Mica plan needs 'a bit more work'

Minister for Housing Darragh O'Brien said a review of the rates payable in February will address many of the concerns being articulated by residents. Photo: Damien Storan

Housing Minister Darragh O’Brien has conceded his proposed plan to give redress to Mica affected homeowners needs further work, following a backlash from residents.

Speaking on Highland Radio on Wednesday morning, less than 24 hours after the enhanced redress scheme was announced, Mr O’Brien said: “Is there a bit more work to do on this? I believe so."

He said a review of the rates payable in February will address many of the concerns being articulated by residents and he said he is confident it will deliver 100% redress for most.

“I think to be fair, we have moved from a scheme that was brought in under the last government, which was well-intentioned but didn't work as intended, with a cap of €247,500 to now where we have a situation, we have an overall cap of €420,000,” he said.

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“There is work to be concluded by February in relation to a new rate. And I'm saying to you now, that I am confident when that work is completed, that in all remediation options will be full 100%,” he said.

He said that the work on the review of rates is being done independently of him and will take into account building cost inflation. “That work is not concluded but it will be,” he said.

There has been significant criticism from government TDs and the Opposition over the setting of a €145 per square foot cap for the first 1,000 square foot on a sliding scale thereafter which could leave homeowners still forking out tens of thousands of euro.

The Dáil heard yesterday that some homeowners could be facing €56,000 to rebuild their homes based on the formula devised by Mr O’Brien’s officials.

Mr O'Brien said he is confident upon revising the square foot 'sliding scale' next year, homeowners will receive 100% redress.

Speaking on RTÉ radio, Fine Gael TD Joe McHugh said he was “blindsided” by the late inclusion of the sliding scale formula ahead of the plan going to government on Tuesday. He said he is not happy but said Mr O’Brien’s comments on radio give him confidence this matter can be sorted.

“A mistake was made at the 11th hour, it was a mistake to throw in the figures that won't be the real figures. We really have to look at whether this sliding scale is fit for purpose,” he said.

He said “there is a piece of work to do” and he said his presence within Fine Gael is contingent on a successful conclusion. He said he wants a solution to this before Christmas.

“We need to find a solution, this is not working. We need to finish this work. I am appealing to my government colleagues, whatever needs to be fixed, fix it quickly,” Mr McHugh said.

“If there are people excluded from this to the tune of €85,000 or even €17,000 I won’t be standing over it,” he added.

Sinn Féin's Padraig MacLoughlainn said what the government is doing is “cruel” and the late move by officials was all about avoiding 100% redress.

He called on the government to fix this matter quickly. He said Sinn Féin would put aside €200 million a year for up to 15 years to fund the cost of this.