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Pyrite Remediation Programme

Dáil Éireann Debate, Tuesday - 18 September 2012

Tuesday, 18 September 2012

Questions (1017, 1074, 1076, 1079, 1081, 1113, 1136)

Terence Flanagan

Question:

1017. Deputy Terence Flanagan asked the Minister for the Environment; Community and Local Government the date on which he expects a testing protocol to be put in place for the testing of pyrite in homes; the date on which he expects all the actions in the pyrite report to be implemented; when he expects remedial work to be completed; and if he will make a statement on the matter. [37020/12]

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Patrick Nulty

Question:

1074. Deputy Patrick Nulty asked the Minister for the Environment; Community and Local Government if he agrees with the designation of an amber category in the Pyrite Panel report which could lead to homeowners affected by pyrite being unable to access remediation works and removal of pyrite from their homes and unable to sell their homes due to no fault of their own; who he proposes will be responsible for conducting the monitoring of pyrite damage on an ongoing basis for homes in this category; if he will ensure instead that all homes with reactive pyrite have the infill removed and replaced and are certified pyrite free without delay; and if he will make a statement on the matter. [37944/12]

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Patrick Nulty

Question:

1076. Deputy Patrick Nulty asked the Minister for the Environment; Community and Local Government if he will ensure that pyrite remedial works are carried out in a systematic rather than an ad hoc manner to ensure homeowners receive full structural certification and avail of economies of scale given the impact both pyrite damage and remedial works can have on adjoining properties; and if he will make a statement on the matter. [37946/12]

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Patrick Nulty

Question:

1079. Deputy Patrick Nulty asked the Minister for the Environment; Community and Local Government if he will ensure that all pyrite remedial works are coordinated and managed by an independent person/agency and not by HomeBond which the Pyrite Panel clarified for the Oireachtas environment committee was responsible for managing only a handful of the properties remediated so far and does not have extensive experience of managing the remediation specifically of pyrite related damage as noted on page 113 of the Pyrite Report; and if he will make a statement on the matter. [37949/12]

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Patrick Nulty

Question:

1081. Deputy Patrick Nulty asked the Minister for the Environment; Community and Local Government if he proposes to take action to identify pyrite affected developments and counties as further pyrite related problems emerge; the person homeowners should contact if they suspect that their home or development is affected by pyrite now that the Pyrite Panel has completed its work; and if he will make a statement on the matter. [37951/12]

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Bernard Durkan

Question:

1113. Deputy Bernard J. Durkan asked the Minister for the Environment; Community and Local Government if, arising from the report of the Pyrite Panel, he intends to proceed with a particular plan to mutualise or share the responsibility for pyrite damage between the various bodies including the insurers and HomeBond with a view to achieving the highest possible level of protection for the householder; if it might be feasible to compile a federation of suppliers of product, builders, HomeBond and any relevant insurers culminating in the creation of an insurance bureau which might share any liability arising and thus protect the consumer; and if he will make a statement on the matter. [36902/12]

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Bernard Durkan

Question:

1136. Deputy Bernard J. Durkan asked the Minister for the Environment; Community and Local Government the extent to which progress is being made to address the on-going issue of pyrite; if the full extent of the problem is being identified, quantified or costed; if he has studied the points raised by the Pyrite Action Group with a view to identifying a financial structure and a comprehensive plan to deal with the issues arising with particular reference to the need for the adoption of a fully integrated system to deal with the issues in order that householders can be reassured and that the financial impact on them can be minimised by way of home bond or other insurance provisions; and if he will make a statement on the matter. [39316/12]

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Written answers

I propose to take Questions Nos. 1017, 1074, 1076, 1079, 1081, 1113 and 1136 together.

Homeowners affected by pyrite are faced with very difficult and challenging situations and my objective in setting up the Pyrite Panel was to find solutions for those homeowners. My focus now is to ensure that the recommendations in the pyrite report are implemented in a way that delivers solutions for the affected homeowners. Liability for the problem must lie with the responsible parties. The costs of remediating pyrite damaged dwellings must fall to those stakeholders who are deemed to be responsible for the pyrite problem and who are identified in the pyrite report.

I have always said that the State is not responsible or liable for the pyrite problem and this position is vindicated in the pyrite report which clearly states that those parties with direct or indirect responsibility for the pyrite problem should bear the costs of remediation. Those identified as having responsibility include quarries, material suppliers, vendors, builders/subcontractors and relevant insurance companies.

On receipt of the pyrite report I immediately engaged in discussions with the key stakeholders, the Construction Industry Federation, the Irish Concrete Federation, HomeBond, the Irish Banking Federation and the Irish Insurance Federation and outlined my position to them and what I expected from them in the context of advancing solutions for homeowners. I have set a deadline of the end of September for them to come back to me with credible solutions. As I have previously stated, my preferred approach to deal with this problem is for the stakeholders to take ownership of the problem and work with me in advancing solutions for affected homeowners. However, in the absence of credible proposals from the stakeholders, I will consider an imposed solution along the lines recommended in the report in relation to the establishment of a Resolution Board which could be funded by a levy on the construction/quarrying sectors and the related insurance sector.

I have asked the National Standards Authority of Ireland (NSAI) to develop a testing and categorisation protocol for reactive pyrite in sub-floor hardcore material and a method statement to provide guidance for the remediation of pyrite damaged dwellings. This work has already commenced. The NSAI has set up two broad based Technical Standards Committees with people who have expertise in the particular areas and they have also sought written submissions from the public. They are aware of the timeframe which the Pyrite Panel suggested for the completion of this work and they are also aware of the urgency I am attaching to it. The testing protocol will facilitate the categorisation of dwellings to determine the appropriate approaches to remediation and provide guidance on how monitoring of pyrite damage should be undertaken. It will also incorporate a certification process.

I agree with the proposition in the pyrite report that it would be unreasonable to expect dwellings not exhibiting damage to be remediated simply because there is pyrite in the hardcore and this position is supported in the High Court judgement of Mr Justice Charleton in the case of JEC-v-Irish Asphalt which is on appeal to the Supreme Court. The pyrite report details the basis for arriving at this decision. I believe the approach suggested by the Pyrite Panel to classify the dwellings into red, amber and green is a practical solution to prioritise the remediation of affected dwellings.

The Pyrite Panel recommends progressive implementation of the report’s recommendations. Implementation of many of the recommendations requires the involvement and co-operation of a number of stakeholders and other bodies and may also involve detailed policy and legislative considerations. The Pyrite Panel included a detailed Implementation Plan in its report identifying the bodies with primary responsibility for implementation of the various recommendations. While it is not possible to put a definite timeframe on implementation at this early stage, I will be working with those bodies identified in the Implementation Plan to achieve progress as quickly as possible.

Recommendations in relation to the development of a mandatory certification system for buildings and a registration process for builders are currently being dealt with by my Department under the Building Control reform programme that I announced last year. I hope to have revised Building Control Regulations signed in the next few months.

The Pyrite Panel undertook a desktop study, in conjunction with stakeholder consultation, to establish facts in relation to the potential exposure to pyrite problems. The information was gathered from a number of sources including local authorities, structural guarantee providers, representatives of homeowners, private builders, construction professionals and public representatives and was cross referenced, to verify, as far as practicable, its validity. Seventy four estates were identified to the Panel which amounts to 12,250 ground floor dwellings. Of these dwellings, the Panel understands that approximately 850 dwellings currently have a claim with a guarantee provider and a further 1,100 dwellings have already been remediated or are in the process of being remediated, leaving the remaining 10,300 ground floor dwellings as the estimated future potential exposure to pyrite. However, it should be noted that in the case of 23 estates (included in the figure of 74 above), with 3,250 ground floor dwellings, there are no claims with structural warranty companies or no other evidence to support the view that they have pyrite problems other than being notified to the Pyrite Panel. Taking cognisance of the methodology used to conduct the study and the rate of presentation in Ireland to date, I am reasonably confident that the figures given represent the extent of potential future exposure to pyrite.

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