Developers’ failings will cost the taxpayer, not themselves

People living in defective apartments are now paying twice for the privilege, as their taxes are to be used to carry out repairs

Minister O’Brien said it may take some months for the enabling legislation to pass through the Oireachtas, so perhaps the role of the builders and administrators will be examined in those debates. Picture: Gareth Chaney/Collins 

Minister for Housing Darragh O’Brien has announced a scheme designed to carry out remedial works on apartments around the country, a huge undertaking that may cost as much as €2.5bn.

It is aimed at apartments built between 1991 and 2013 and will address issues such as fire safety and water damage, a welcome move as it will help allay the fears of thousands of people who bought apartments in good faith, and who have been concerned by defects discovered in those buildings.

As noted by many observers, these apartment owners deserve clarity and peace of mind when it comes to issues that are not their responsibility. The reporting in the Irish Examiner by Mick Clifford on the matter of defective apartments has shown the seriousness of the problem.

Responsibility is a term that deserves closer attention when it comes to this scheme, however. Yesterday’s announcement stated the scheme would be fully Exchequer funded, which should give taxpayers pause this morning.

What this means is that developers and builders who are responsible for sub-standard apartments do not have to pay for remediation works on those apartments.

In fact, the people living in those defective apartments are now paying twice for the privilege: first when they bought their apartments; and now again as their taxes are used to carry out repairs on those apartments.

On the face of it this looks grossly unfair, and can be read as public absorption of costs which should be borne by private operators. 

Those responsible for building these apartments should surely make some contribution towards the cost of bringing them up to the necessary standard.

The acknowledgement that those apartments need so much work also raises very uncomfortable questions about planning processes and enforcement procedures: how were these buildings given planning permission, and then built?

Again, the administrators who are indirectly responsible for saddling taxpayers with a €2.5bn bill seem conspicuous by their absence from this discussion.

Minister O’Brien said it may take some months for the enabling legislation to pass through the Oireachtas, so perhaps the role of the builders and administrators mentioned above will be examined in those debates.

It would be no harm to do so. Otherwise we could be making similar provisions in 20 years’ time for more faulty buildings.