Sliding scale in Mica redress plan to be abandoned in favour of new model

People taking part in a Mica & Pyrite protest held in Dublin last year. Picture: John O'Grady.

The controversial sliding scale model in the government’s mica redress scheme is to be abandoned and replaced with a new model.

Housing Minister Darragh O'Brien, in a bid to quell mounting criticism, requested the Society of Chartered Surveyors Ireland (SCSI) to devise a model of assessing costs.

As opposed to the previous sliding scale model, it is understood the new model will give the estimated rebuild cost and average rebuild cost for eight different types of houses ranging from an 800 square foot two-bed terrace estate house to a 3,300 square foot five-bed house in a rural area.

The SCSI set out its proposed model in recent days and Mr O'Brien has written to the Mica Action Group in relation to the new proposed terms of reference.

"He informed them the SCSI has advised the department that they do not produce sliding scales in their construction costs reports and he assured them that approval of the final scheme will be based on and informed by the SCSI’s detailed report," a spokeswoman for Mr O'Brien told the Irish Examiner.

It is expected the SCSI will complete their report at the end of February.

Housing Minister Darragh O'Brien, in a bid to quell mounting criticism, requested the Society of Chartered Surveyors Ireland (SCSI) to devise a model of assessing costs. Picture: Gareth Chaney/Collins

"Work is currently underway on the legislation and the Dept is working with the Attorney General to complete the legislation as quickly as possible. It will then be brought to Cabinet and introduced in the Dáil as quickly as possible after that," Mr O'Brien's spokeswoman said.

Under the previous scheme announced in November, the maximum grant under the scheme announced last November was €420,000, with a sliding scale capping rebuilding costs of affected properties at €145 per square foot for the first 1,000 sq ft, €110 for the next 1,000 sq ft, and €100 per sq ft after that.

The SCSI, in its new terms of reference, said it would not be providing a like-for-like update on the sliding scale square footage scheme as set out by the department.

“The SCSI does not use sliding scales in any of its construction cost reports,” a SCSI spokesman said.

“The use of a sliding scale in relation to the defective concrete block scheme is a matter for the Minister and Department of Housing.” 

Mr O’Brien said he would accept whichever model the SCSI sent to him, confirming that the old sliding scale scheme was set to be abolished in favour of the SCSI model.

It is unclear whether the new model would mean the redress scheme would be more expensive than the €2.2 billion already set aside by the government.