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THE GOVERNMENT HAS announced a scheme to help homeowners affected by pyrite with a new Pyrite Resolution Board to oversee the implementation of remediation works on the thousands of homes affected.
Environment Minister Phil Hogan announced today that banks will provide loans totalling as much as €50 million to a special fund that will assist homeowners affected by the problem.
A levy will also be placed on certain building materials such as stone and non-health insurance policies to meet the costs accrued from the scheme. The details of this have yet to be finalised.
Pyrite is a mineral compound that naturally occurs in rock but can swell and produce crystals when it comes into contact with oxygen and moisture.
During the property boom, infill containing high levels of pyrite was used in the construction of buildings. This has led to around 12,250 ground floor dwellings experiencing problems with cracking walls and floors due to problems caused by pyrite.
Of these, a report from a panel that was set up by Environment Minister Phil Hogan found that around 850 dwellings were in need of immediate remediation as of March this year.
Allowing for an increase since March, it is estimated 1,000 dwellings are currently in need of remediation while there are a further 10,000 ground floor dwellings in 74 estates where pyrite has been identified.
The scheme will see homes that are damaged by pyrite repaired first before homes where pyrite is found to have been present are dealt with. The Pyrite Resolution Board will determine how much money homeowners are entitled to from the fund.
The announcement today is acting on the recommendations contained in the Pyrite Panel’s report in July of this year which involved input from the Construction Industry Federation, the Irish Concrete Federation, HomeBond and the Irish Banking Federation.
These stakeholders could not agree a voluntary mechanism for funding repairs but the Department said that there was an “almost universal acceptance” that remediation process must be in place that does not involve homeowners meeting the costs of repairs.
In its report, the Pyrite Panel said that the average cost of remediation for a typical home would be in the region of €45,000.
“While no agreement could be reached on a voluntary funding mechanism, the stakeholders have agreed in principle on a mechanism that will facilitate the remediation of dwellings affected by pyrite in accordance with best international practice,” the Department of Environment said.
Hogan said in a statement: “While much work remains to be done to complete the jigsaw, I am confident that the end is now in sight for affected homeowners. Today’s decision provides a detailed roadmap of how that is going to be achieved.”
In a statement, the Construction Industry Federation (CIF), said it supported the initiative taken by the government but criticised the levy which is going to be applied to certain building materials.
“It is unfortunate that the industry must now pay a price with a levy on aggregates which will drive up costs for industry and procurers of new infrastructure,” the CIF said.
“The levy on construction materials will add to costs in an industry that is already struggling. It will be necessary to ensure that this levy is not implemented indefinitely so that it does not become a general tax on the construction industry.”
Why the hell are we bailing out home bond? They offered a 10 year guarantee and renege when something goes wrong.
That’s question I was about to ask too , Barry. Homebond made a fortune during the boom and it almost seemed as if you couldn’t buy a house then, without buying their house insurance too. It seemed very suspicious to me then, and now we know why. They wanted the money, but it seems that they never had any intention of meeting their obligations, if anything went wrong. Now that it has, it appears that they’re spending their ill gotten gains on hiring expensive lawyers, in a shamefull attempt to hold onto the loot. The fact that they have been able to force the ordinary taxpayer into subsidising their losses, ( without our knowledge ), just proves how corrupt our little island really is. I can’t understand how they are so easily able to deny their responsibilities, without ending up in court. It seems, instead of them going to jail, we just pay more tax. The scent of corruption seems to be everywhere these days.
Just goes to show the Homebond guarantee is worthless & useless !!
We second that. Home Bond was never an insurer, just jobs for the boys and big fat pensions for a monopoly that virtually never paid out.
It is a scandal that they have been let off the hook on the pyrite but then it’s not a surprise in Ireland.
It’s does not seem to be there! It’s been there for a long time! We have been scammed ! All the officials and property developers who built these bad houses must put on a pair of overalls, grab the tools and go out and repair the bad workmanship they sold to people for an absolute fortune. Same as the insurance companies who seem to think they run the world
The taxpayer pays for the sins of the construction industry yet again, unbelievable!!
In 2004, I said to my colleagues that the property market will crash and houses prices will be worth half it’s value. They all told me I was mad. Sadly I was wrong. With this new property Tax and house hold charge, which every Western world country pays incidently, will drive house prices even further down. Especially the bigger houses.
So am I reading this right? We the common people, minding our own business, are going to pay for the Pyrite debacle? There is no sanction for the people who were to blame?
A levy on non-health insurance policies…… Sure why not!!! We’ve bailed out the banks,property developers,Quinn insurance better not forget the cowboys in the building industry!!! FML
…. and on top of which we are all expected to pay the Property Tax …..
They are deluded fools. I am glad that the individual home owners are finally being helped out , now Priory Hall residents must be helped also.
Boycott the property Tax too.
Eileen
You want everyone compensated from the public purse but refuse to pay the Household Charge or the Property tax. What an inverted form of morality in this sick world of ours. I wonder how long you’ll hold out against the Revenue Commissioners. I’d say as long as it takes to put a cheque in the post!
Now that all this bailing out is going on. Has anybody thought about what will happen when the honey pot runs dry. And it will run dry!!!! Who’s going to bail us out????
A levy = the tax payer takes another hit. What happened to the famed house bond?
So I’m paying for this by way of another levy through my insurance! Brilliant!
Phil Hogan trying to sort this one out?? Should be a bit of crack..
A levy on non-health insurance I take that to mean a levy on regular house insurance. By applying a levy it will ultimately be us the consumers that will have to pay and not the builders who used dodgy materials
Jesus is there no end to this crazy system where innocent people have to pay for the greed of. others . builders .county councils. banks . all made a huge amount of. money from the building boon .now that there shoddy work comes to light we get screwed . AGAIN
Great to see people rightly getting recompense for the collusion and connivance of FF and the Building Industry in influencing permits for opening of quarries to extract faulty grade infill and allowing unregulated builders to build to their own liking on land in most cases zoned residential against the advise of planners.
In case anyone is lulled into a sense of appreciation at this outcome people should be reminded of Hogan’s appointment of Conor Taffe Customer Services Manager at insurance company HomeBond to the Building Regulation Advisory Board earlier this year. Homebond you may be aware is the Insurance Company affiliated with the Construction Industry Federation which walked away on desperate homeowners.
The cracks are now being papered over but the rats are still hiding in the wainscoting!
10 year home bonds, insurance companies, builders, banks, unsecured bond holders, politicians,
Don’t worry we will pay and pay and pay for your endless feckups,
Carry on as usual,
And if we say “NO”, they will just find another way to steel our money!
Pyrite? That should be spelt pirate. How did it end up in houses at the first place, and why on earth does it cost in repairs nearly as much as a new-built now?
Because the card board houses that somebody from Eastern Europe built for you and you paid maybe 4 or 5 times the value of it in the boom years, is now not worth the stamp duty the government wanted
Well done Phil… A levy to sort out past mistakes…. Of course, nobody will be taken to account. Tell you what Phil… I’ll buy materials in the North.
So another bail out by the tax payer ..more Levies on Joe soap too shoulder the burden ..banks .Quinn insurance ,pyrate now .suppose proiry hall next on the list ..when is there going be accountability for the people who cause all this problems..feffing disgrace, sick of it .
As most of you will know, i am no fan of this Government, and especially not Hogan. But something had to be done to help the people who were screwed over by FF and the rogue builders. These people were left with huge mortgages and houses that were not worth squat. Although i must admit I am skeptical that Hogan will have the where-with-all to deal with this properly. He may use the money to go off on another state sponsored holiday to another 5 star hotel and the home owners will probably get diddley squat. I really do hope that its done right, and that Hogan must get Dail approval on how each cent is spent, to remove the temptation from him to go off jet-setting again with the money.
True Cal something has to be done to help these people. Maybe the government should introduce a bill to raid the home bond coffers? After all they have raided everything else. Also does this mean philpot Hogan is going to help the people of Priory Hall or are there not enough votes there…..
What a sick post from our Sinn Fein poster boy. The suggestion that Minister Hogan has misused or embezzled State funds is obnoxious. The only retort is to suggest that the graves of IRA victims still not revealed probably contain funds from Republican Bank robberies.
As I recall, there was another FG troll abusing the name of Michael Collins over the last few months. Seems like the same person again. Shame on you.
Why the hell should my tax money go into repairing some bodies house, who were stupid enough to buy it at such high prices in the first place???
The high price did not crack the walls , cracks were not visible at purchase , floors expanded and pushed everything up and out, Homebond wasn’t home
That might be so! But surely some people must have realised these houses were way over priced!!!
I still done see why my tax money should go to repairing these houses!
About time. A lot of people suffering out there because of this problem.
Thanks to the politicians, from all parties, who took on this problem and mediated a solution on this. Its a big relief. The pyrite panel report also sets out recommendations to ensure that no-one should have to go through this nightmare again.
My back wall needs repainting due to the bad weather and using a low quality paint . Itll be fine though , that minister hogan will put a levy on paint products and pay to remedy my wall. Thanks Phil your a genius. :)
My house has pyrite problems and our insurance company have said they’ll cover it. However, we can’t accuse the builder as they said they’ll do it for us yet are making us pay €3000 in one payment to get the test done even though it is jnown thst the whole estate is affected. I don’t know about any one else but 300e is hard to come by these days never mind 3000e; anyone know if this fee for testing can be incorporated into overall cost covered by insurance (premier guarantee).
In my case (Homebond) the guarantee was for 10 years. Not that it meant anything of course. Homebond insure against major structural defects, unless you find a major structural defect, in which case they run away.
The important thing is to fill in whatever claim form Premier have, and get it submitted. This will stop the clock on the guarantee. The next step is the testing of 2 foundation samples for pyrite, and the new Pyrite Remediation board should be working out procedures for getting this done. So, with any luck, you won’t be stuck with the bill for the test.
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