An enhanced scheme for homeowners affected by the mica crisis is set to go to Cabinet in less than two weeks with a new cap of up to €400,000 per home under discussion.
It was originally intended that the scheme would be presented to Cabinet this week but Ministers and officials have been locked into negotiations as the State seeks to balance the final costs with the requirements of the thousands of homeowners whose properties have been affected.
Mica is a mineral that can absorb water, leading to cracks and crumbling in bricks containing it. The likely cost of rebuilding or repairing affected homes is growing rapidly as further problems emerge in Clare, Limerick and Sligo after first surfacing in Donegal and Mayo.
A new proposal is now set to go to Cabinet the week after next.
Sources have said that two of the remaining major sticking points are the size of the cap on works and the inclusion of rental properties in the scheme. Under discussion is a cap of about €400,000 but there are differences of opinion in Government about whether it should be more generous than that or closer to €350,000 instead. It has also not yet been decided whether rental properties will be included.
Officials are understood to be concerned that including these properties could significantly widen the scheme and impact on the overall cost.
A source said there also remained the potential for political difficulty over so-called ancillary costs. Homeowners have highlighted the cost of testing and engineers reports at up to €15,000.
They have also said that the cost of paying for rent while the house is being repaired is coming in at €15,000-€18,000, but it is understood a figure of €10,000 is currently under discussion for this specific aspect.
Industry levy
Including the cost of connecting and disconnecting from utilities such as electricity and broadband as well as other ancillary costs, homeowners believe that about €40,000 will be needed overall for ancillary costs. A figure under discussion, however, is about €25,000 for such costs.
The details of an industry levy to co-fund the cost of the scheme are also still being worked on.
Minister for Housing Darragh O’Brien has said that he plans to “pursue and identify those who have been found to have been responsible” for the mica problem, and has held discussions with Attorney General Paul Gallagher.
The new scheme was discussed by the party leaders and a number of Ministers earlier this week but no final decisions were taken.
Government TDs in affected counties are coming under significant pressure to ensure that any revised system meets the requirements of homeowners.
Former government chief whip and Fine Gael minister Joe McHugh has said he would “consider all options” politically if the final scheme does not meet the wishes of homeowners. The Donegal TD said that “nit-picking” affected the first iteration of the scheme and he fears the same may be happening again behind the scenes. “Ultimately my message is, if fairness is not at the heart of the scheme this time, I won’t be supporting it,” he said.
The existing Defective Concrete Blocks Scheme covers €50,000 worth of repairs in cases where a house can be saved, and up to a maximum of €275,000 in cases where houses must be demolished and rebuilt. The largest grant payable is 90 per cent of the maximum cost allowed under the scheme, or 90 per cent of the actual cost of the qualifying works carried out, whichever is less.
While a previous report warned that it was difficult to predict with accuracy the number of affected homes, the Department of Housing has estimated that about 6,600 homes may require remediation.
