'Cabinet is fully committed to delivering the Defective Concrete Block Scheme'

The Government and Cabinet are fully committed to the roll out of the new Defective Concrete Block Scheme and to providing homeowners with the financial support needed to rebuild their homes, according to Donegal cabinet minister, Charlie McConalogue.

Commenting following media reporting this week on legal advice provided to the Department of Housing in 2021, Minister McConalogue said: “As a Cabinet minister I worked with ministerial colleagues throughout the development of the new scheme to ensure that it would be as strong as possible in supporting homeowners to have their homes rebuilt, and to ensure that the issues that plagued the first defective block scheme were addressed.

“I was glad to be at the Cabinet table throughout this process to ensure that the voice of homeowners was clearly heard by all in Government. Work continues today as the scheme continues to be rolled out."

"The new scheme introduced by this Government is radically different from the one it replaced. It currently provides for a rebuild grant of up to €420,000 compared to the previous 90% maximum grant under the old scheme of €247,500. The new scheme also extended eligibility to include a registered rental property, as well as introducing a 40-year guarantee for any house that is approved for less than full demolition.

“I worked recently within Cabinet to ensure the delivery of SEAI grants to further support homeowners with upgrade costs for heating and insulation, with a specific SEAI scheme now open alongside the Defective Concrete Block Scheme with grants of up to €37,550. Particularly important also was the decision by Cabinet to ensure the Defective Concrete Block Scheme legislation provides the option for the scheme to be updated annually in order to take account of changes in construction costs.

“I have been working closely with the Minister for Housing, Darragh O’Brien, and his department over the last few weeks with the aim of securing approval for the first annual increase in the maximum overall cap and cost of build rates. I’m confident of a decision on this before the end of July. Securing the maximum 10% increase to the overall cap would see the maximum grant under the scheme rise to €462,000. Along with the SEAI energy upgrade grants, this would bring the total maximum funding available for rebuilding a home to €499,550.

“It has been positive to see the progress made by both Donegal County Council and the Housing Agency in the last number of months in administering the scheme. Following the adoption by Cabinet of the new scheme regulations last July, Donegal County Council started issuing grant approvals under the new scheme from October followed shortly afterwards by the Housing Agency.

"Together they have now issued grant approvals under the new scheme to 713 homeowners in Donegal totalling €236 million of grant approvals with almost two thirds of approvals being for full demolition. The roll out of remediation construction projects is now significantly picking up pace with each week seeing more homes commencing construction - 164 remediations now underway with another 43 fully completed. Phased payments to homeowners are also being administered by Donegal County Council in a prompt manner facilitating drawdowns of grants by homeowners as construction costs are incurred.

“While the Government may receive regular criticism from opposition politicians, the delivery by the Cabinet of the new scheme stands in stark contrast to the opposition’s track record. As an example, Sinn Fein promised to publish alternative Defective Concrete Block Scheme legislation in the summer of 2022, but then failed to do so. They then again promised to publish legislation in summer 2023, but again failed to follow through. When invited by the Government to submit their proposals on the development of the new scheme’s regulations, they simply didn’t reply. Then at the most recent meeting organised by defective concrete homeowners in Buncrana, they finally disclosed that they would only commit if in Government to funding remediation of principal private residences and one rental property - eligibility the Cabinet has already provided for in the new scheme.

“This issue has traumatised families causing untold stress. It is an unbelievably stressful ordeal for every family affected and will remain an immense burden on families until each individual home is remediated. Issues remain to be addressed as the scheme progresses and I will continue to work at Cabinet level as well as closely with the Fianna Fáil councillor team in Donegal to ensure an effective roll out of the new scheme that delivers the support that homeowners need. We are fully committed to continuing the work to ensure all homes are remediated that will enable families to return to the normal life they are entitled to in their homes."