Banks and insurance companies will be asked to contribute to the mica and pyrite redress schemes, according to the Housing Minister.

The mica redress scheme has already cost the taxpayer more than €1bn, while the pyrite scheme has cost around €160m.

Between 5,000 and 6,000 homes in May and Donegal are believed to have been built using defective concrete blocks containing high levels of the mineral mica.

The redress scheme established in January 2020 offers homeowners 90% of the cost of repairs; however, campaign groups are calling for that to be increased to 100%.

In around one-third of cases, the houses will need to be demolished and rebuilt and the total cost is expected to be well over €1bn.

On The Pat Kenny Show this morning, Housing Minister Darragh O’Brien said banks and insurance companies will be asked to make a contribution.

“The scheme was agreed by the last Government and only launched last January,” he said.

“I think it is the basis for us to move forward off but there will be some changes to it and, where changes are made, that will lead to increased Exchequer contribution.

“One thing I am at pains to say as well is, I am not closing the door from going after those who actually caused this problem or those who actually have a stake.

“Think about it this way, a lot of those homes are still mortgaged. We have banks who the State will be bringing the asset back up to full value for.

“I think we have got to look at the insurance companies, the banks and others about how they could make a potentially voluntary contribution to the scheme.”

Liability

He said he has asked the Attorney General to examine ways for the State to seek damages from the companies that made the blocks – but warned that many have already folded.

“One of the first visits I did as minister was to Donegal to visit homeowners there to see the disaster that is mica and I have experience of pyrite in my own areas here in Malahide and in north Dublin,” he said.

“Unfortunately, some of those block manufacturers have already folded and wound down their limited companies but I have asked the Attorney General and his team to assess options the State would have insofar as recompense for the Exchequer.

“The State is stepping in here on humanitarian grounds really as a last resort for a lot of desperate families and homeowners who are distraught.”

Mica

He said the working group set up to examine the mica redress scheme is due to report back at the end of next month.

He said the group is making “good progress” on agreeing changes to the scheme.

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