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Housing Minister Darragh O'Brien said he is committed to helping those whose lives have been impacted by this issue. Sasko Lazarov

Housing Minister: Plan will be developed to help owners of Celtic Tiger-era apartments with defects

As many as 100,000 homes are estimated to be impacted.

LAST UPDATE | 28 Jul 2022

THE MINSTER FOR Housing has said a plan is to be developed to help owners of Celtic Tiger-era apartments and duplexes with construction defects, following the publication of a working group report today.

The working group was established by the Department of Housing in February last year. It was tasked with examining the scale of fire safety and structural safety defects in apartments and duplexes built between 1991 and 2013 and report to the minister on costs associated with repairs. 

Although the most prominent defects relate to fire safety, some complexes also have water ingress, which causes damp issues in homes and adds thousands of euro to owners’ repair bills.

According to the report, the cost of remedial works ranges from €1.56 to €2.5 billion and as many as 100,000 homes are estimated to be impacted. The working group has recommended that a State-funded remediation scheme be “fully considered from a policy and cost perspective”.

The group concluded that there was no single cause for the defects.  

“They tend to arise due to a variety of design, product, supervision, inspection and workmanship issues, occurring either in isolation or in various combinations. This position was replicated throughout the country,” the report notes.

The group assessed the concept of imposing penalties on certain construction firms who were responsible for the defects. However its final report states that it is “not feasible to retrospectively impose a penalty on individual firms”.

Minister for Housing Darragh O’Brien welcomed the publication of the report and said it will be given full consideration in developing a plan to address the situation “that many homeowners find themselves in through no fault of their own”.

“Upon my appointment as minister I said that this was a nettle we had to grasp and I am very much committed to helping those whose lives have been impacted by this issue,” he said. “I believe this report will help us do just that.”

Retrospective support

Fire safety defects referenced in the report include inadequate escape routes, ineffective fire stopping and inappropriate external cladding systems.

Examples of significant structural safety defects were also given in the report, such as significant cracks,  movement in foundations, insufficient tying (which reduces the resistance of a multi-storey building to disproportionate collapse) and inadequate balcony design.

Homeowners who have spoken to The Journal have received bills of between €15,000 and €20,000, with some complaining they were given a short period of time to come up with large lump sums.

Those who could not or refused to pay faced what some described as “frightening” legal threats from their Owners’ Management Companies, even, in some cases, after they had made offers of alternative pay arrangements.

It is estimated that remedial works have already been completed in 12,000 apartments or duplexes and may have begun in up to 34,000 properties. 

The working group considered the “potential of a moral hazard” arising should a support scheme exclude those developments that have already begun or completed their works. 

Its report states that there is a risk that necessary safety works could be delayed or deferred to ensure the availability of any potential support scheme that might come into effect. 

“Such a scenario might give rise to unnecessary risk to health and safety arising from
the deferral of important works or where necessary works have only partially been completed within a development,” the report notes.

“The working group considered that the inclusion of a relief for retrospective expenditure on remedying defects could mitigate the risk of such a moral hazard materialising.”

Industry levy

The working group report presented a wider industry levy as one of a number of options, but it pointed to several potential issues with this approach.

It advises that legal issues may arise in relation to imposing a financial burden on construction firms and that there may be a wider impact on construction costs.

A general levy, the report notes, would also target “those who did not contribute to the problem” and it said the government should consider the perceived fairness of this option for both the industry and homeowners. 

Although the report points to a number of problems with imposing an industry-wide levy, it notes that the government is already considering a proposal to introduce a levy on the construction industry in relation to the defective blocks (mica) issue. The aim of this levy would be to raise around €80 million per year.

Minister for Public Expenditure Michael McGrath recently told RTÉ News that the financial burden of repairing these defects cannot solely fall on the State and that “the industry will have to step up to the mark as well in order to meet the overall costs”.

The Construction Defects Alliance, which represents owners impacted by this issue, described the report as “a very welcome landmark”. 

Spokesperson Pat Montague said access to retrospective financial assistance “has to be provided for” in Budget 2023. 

“Any delay in doing so will, unfortunately, lead to the very unnecessary risks to health and safety the working group is warning about,” he said.

He said the Construction Defects Alliance has proposed that the government introduce refundable tax credits for the full value of defects levies paid for owner-occupiers, grants to housing associations and extended tax reliefs for landlords in Budget 2023.

“The working group has set out a number of options for financing remediation works for government to consider,” he said.

“It’s clear from its analysis that loans are fraught with practical difficulties, so the focus will need to be on grants to owners’ management companies (OMCs) to undertake remediation works or the State directly commissioning such works. In this regard, government should look at transforming the Pyrite Remediation Board into a Defective Homes Board to oversee and manage the remediation scheme here.”

In addition, Montague said a levy on the construction sector will need to be put in place.

“A 1% levy on the industry’s output could raise around €5 billion over a 10-year period and assist greatly with the combined bill for mica and apartment defects, which will probably exceed €7 billion,” he said.

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62 Comments
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    Mute Luke Sarpish
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    Jan 16th 2016, 4:31 PM

    So basically we have to apologise for everything we say.

    271
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    Mute Jbob How
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    Jan 16th 2016, 4:35 PM

    Only the stupid shit. I don’t know how that affects you…

    124
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    Mute Deborah Behan
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    Jan 16th 2016, 5:42 PM

    I lost a close friend a year ago. I would not be able to joke about it now because the pain is so bad. He was right to apologise. Just because someone is famous it does not mean people don’t have the same pain.

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    Mute Lurfic
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    Jan 16th 2016, 5:51 PM

    Deborah you should try joking about it. It’s a very good way of helping yourself get through it.

    92
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    Mute Wolves 1966
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    Jan 16th 2016, 5:55 PM

    Jon Snow should have to apologise for being Jon Snow. Channel 4 would be a much better place without the likes of him.

    11
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    Mute Luke Sarpish
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    Jan 16th 2016, 6:19 PM

    I’m sorry for your loss Debbie.Ok.

    40
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    Mute Enda Kenny
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    Jan 17th 2016, 4:33 AM

    @ Deborah Behan

    sorry

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    Mute Keith D'Arcy
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    Jan 16th 2016, 4:32 PM

    You can’t even joke about the dead now. The PC brigade have finally put a nail in that coffin.

    156
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    Mute Patrick Hurley
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    Jan 16th 2016, 9:14 PM

    Remember when that French comic made a joke about that dead Arab fella.

    19
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    Mute Louis Jacob
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    Jan 16th 2016, 4:28 PM

    FFF… There’s always room for a bit of humour. The joke wasn’t funny but he’s worse to apologise.

    119
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    Mute Enda Kenny
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    Jan 16th 2016, 8:10 PM

    Kevin Costner was gonna play Michael Collins (and direct)

    Alan loved working with Costner on robin hood prince of thieves

    i reckon the ‘dances with wolves’ stars involvement is what attracted Rickman to the project

    he was probably ashamed of himself for being involved in what Neil Jordan eventually made

    same as Gabriel Byrne was ashamed of what Jim Sheridan did with Gerry Conlon

    3
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    Mute Len Brennan
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    Jan 16th 2016, 8:37 PM

    Did you for get to take your tablets again Enda?

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    Mute T Beckett is back
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    Jan 16th 2016, 8:57 PM

    @Ek

    The Costner interest in Collins is true, but it was Jordan that pitched for that film. He got Rickman involved.

    Costner probably would have been more historically accurate though!

    Don’t know what you’re on about with Gabriel Byrne but I’d take Danny Day over him any day of the week ;)

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    Mute Enda Kenny
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    Jan 16th 2016, 9:06 PM

    would an irish actor make a film that glorified

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    Mute Louis Jacob
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    Jan 16th 2016, 9:24 PM

    True Enda Kenny and guess who’s script they were going to use.

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    Mute Louis Jacob
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    Jan 16th 2016, 9:26 PM

    I’ll give you one guess… Otherwise I won’t tell you.

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    Mute Enda Kenny
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    Jan 17th 2016, 4:31 AM

    @ T Beckett is back

    imagine the hatred british people must have had for DDL when he made in the name of the father

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    Mute Cosmo Kramer
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    Jan 17th 2016, 5:08 AM

    DDL played Gerry Conlon.. An innocent man framed by the British for murders he didn’t commit.. Why would British people have hatred for him playing that part??

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    Mute Grumpeee Oldman
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    Jan 16th 2016, 4:49 PM

    Kinda funny though… Would Mr Rickman have minded?

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    Mute Walter Black
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    Jan 16th 2016, 4:56 PM

    Mountain out of a molehill

    56
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    Mute David McShite
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    Jan 16th 2016, 5:05 PM

    One of those moments when something seems funny in your head until it escapes and is savaged by the delicate flowers looking to be injured by any perceived slight.

    50
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    Mute Vinnie_the_yute
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    Jan 16th 2016, 5:29 PM

    Injured on behalf of a dead person they have no connection with whatsoever.

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    Mute Rasputin
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    Jan 16th 2016, 4:54 PM

    I wonder how they’d handle us Irish where in the face of even overwhelming tragedy the first thing out of our mouths is usually a joke…

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    Mute Harry Whitehead
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    Jan 16th 2016, 7:24 PM

    Unless Richard Wilson himself has complained, I fail to see what gives everyone else the right to take offence on his behalf. Still, you’ve got to hand it to these self-appointed guardians of decency – they never waste an opportunity. As usual, they leapt aboard the outrage bus faster than Usain Bolt at the 100 metre finals.

    38
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    Mute @dela
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    Jan 16th 2016, 4:37 PM

    Look once he realised himself it didn’t sound right I’m cool with that. If he apologised cos of some tweets I know we’re near Armageddon. Especially tweets from weirdos who live, sh|t, breathe and fester by that medium.

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    Mute Shane Gubbins
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    Jan 16th 2016, 4:44 PM

    You know nothing jon snow.

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    Mute Neil Holland
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    Jan 16th 2016, 5:31 PM

    What’s it like to be so predictable?

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    Mute Shane Gubbins
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    Jan 16th 2016, 5:37 PM

    You must be fun at parties

    16
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    Mute Tom Burke
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    Jan 16th 2016, 5:28 PM

    Some people are just waiting to be offended.

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    Mute Deborah Behan
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    Jan 16th 2016, 5:47 PM

    Ordinarily I would agree but the pain of losing someone is so great that this joke in the week they died is simply horrible. Could you joke about your friends death the week they died?

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    Mute Suzie Sunshine
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    Jan 16th 2016, 7:07 PM

    People need to lighten up a bit .

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    Mute ted hagan
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    Jan 16th 2016, 8:28 PM

    Yea lighten up a bit people. It was only someone’s death we’re talking about. Anyone got any jokes?

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    Mute Suzie Sunshine
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    Jan 16th 2016, 8:36 PM

    The joke was aimed at Wilson so he wasn’t being disrespectful towards Alan . no harm done .

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    Mute Kieran Roche
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    Jan 16th 2016, 10:00 PM

    I really dont know why I read this tripe

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    Mute Hugh G. Johnson
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    Jan 16th 2016, 4:30 PM

    Well as Richard Douchet has already proven, British journalists are masters of putting ones foot in their own mouth.

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    Mute Con O'Donnell
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    Jan 16th 2016, 5:28 PM

    I don’t believe it!!

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    Mute Kirsha Sova
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    Jan 16th 2016, 4:40 PM

    Not just bad taste ,but also a terrible joke .

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    Mute Grot Master
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    Jan 16th 2016, 4:50 PM

    Generation Wuss, indeed.

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    Mute Evelyn Murphy
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    Jan 16th 2016, 8:34 PM

    Absolutely ridiculous. People need to get a grip on themselves. We won’t be able to say anything at all soon for fear of upsetting someone. Alan Rickman would uave probably appreciated the joke for goodness sake.

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    Mute Evelyn Murphy
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    Jan 16th 2016, 8:37 PM

    *have*

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    Mute Enda Kenny
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    Jan 17th 2016, 4:39 AM

    @ Evelyn Murphy

    once obama was elected people started sniffing around looking to be offended and when there isn’t anything to be offended by.. t

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    Mute Patrick Fitzgerald
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    Jan 16th 2016, 8:12 PM

    There is a big difference from saying something offensive to saying something in bad taste or some thing stupid or something really awkward. He made a tit of himself and apologised. There is no mention in the article or the tweets about masses of people taking offense. If you just read the comms here youd swear the whole world was up in arms about. Calm down lads. He was right to apologise out of respect alone. Red thumb away

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    Mute FlyingDogThing
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    Jan 16th 2016, 11:30 PM

    You know nothing Jon Snow.

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    Mute Eugene Walsh
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    Jan 16th 2016, 5:05 PM

    All these celebrity DJ, tv anchor newsreader types, tv hosts and presenters need all to be put out to pasture. Sick to the back gnashers of the lot of em. Condescending, contemptuous, over bearing over paid egotistical self righteousness and centred maggots. Ya you heard me !!

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    Mute Peter McGlynn
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    Jan 16th 2016, 5:27 PM

    What u expect from a man that knows nothing.

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    Mute James Stratford
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    Jan 17th 2016, 6:02 PM

    Saw the interview, didn’t cross my mind that it was inappropriate at all. Was a very personal and difficult enough conversation to have, I thought Jon Snow did his job admirably and it was a moment that lightly trivialised the sad news, which is exactly the normal human response to dealing with something tragic that we don’t want to believe has happened. I’d say most people upon hearing the news of Rickman’s passing couldn’t believe it. It was perhaps just a subtle side note that ironically the person who was famous for the phrase could sadly believe it all too well.

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