Pringle: Ineffectual Government leadership leaves homeowners affected by defective blocks taking the initiative

By Thomas Pringle
Updated: 16th October 2023

Independent TD for Donegal, Thomas Pringle, told the Tánaiste that homeowners affected by defective blocks are taking the initiative in meeting with the banking and insurance industries because of ineffectual Government leadership.

Addressing the Tánaiste in the Dáil today, Deputy Pringle said: “Because of the ineffectual leadership of your government on this issue, affected homeowners in Donegal have taken the initiative in meeting with the banking industry, the insurance industry and various ministers to articulate their concerns and they have had good success where your government has failed.

“One recent example is where they have secured in principle with the banks access to zero percent finance to bridge the enormous gap in funding between what your flawed scheme offers and the reality of what is needed.

“But there remains questions and a lack of urgency with engagement from the Department of Housing along with conflicting responses coming from government and the banking industry. Just this week the Banking and Insurance focus group were informed by banks that there has been no dialogue on the damage clause/return to mortgageable condition under each of the remediation options between themselves and the department. Homeowners need to know that when they engage with the scheme that their property will be returned to what the bank terms mortgageable condition.

“The Banking and Payments Federation (BPFI) have told them that the Department are going establish a working group to look at the various financial issues raised, yet in a PQ response to me on Tuesday there was no such commitment from the Minister,” he said.

The deputy asked: “Will you commit to establishing a working group to look at the specific issues that the Redress Focus Group on Banking and Insurance have identified and raised with your ministers of finance and housing?

“And will you commit to including representation from the Redress Focus Group on Banking and Insurance on that group alongside other relevant stakeholders?”

In his response, the Tánaiste, Micheál Martin, said the minister has set up an implementation group for the scheme. He said the Department of Housing has had a number of engagements with the Banking and Payments Federation (BPFI) on specific issues raised by homeowners. He said the Department received an interim funding proposal from the BPFI and Department officials met with BPFI officials in September to discuss proposals for low-interest loans. The Department of Finance is working directly with BPFI on the proposal, he said.

In his response, Deputy Pringle said: “Your government ministers continuously go on about a 100% redress scheme. The redress scheme is nowhere near 100% redress. Householders are looking at an average of probably around €50,000 to €70,000 to pay for redress in your 100% redress scheme.

“That is nonsensical. You continuously do it, and every government minister continues to do it as if you say it often enough, it will happen. It’s not going to happen. And this is the problem,” he said.

The deputy concluded: “The reality is, Tánaiste, for this to even come close to being a 100% redress scheme, the banks have to be able to work with the people that they give the loans to, to give them money to actually get into this scheme. Will you engage with them to make sure that happens?”