Compensation cap for Mica redress would be ‘crude’ says Joe McHugh

Campaign group says suggested €350,000 redress limit is unacceptable

Campaigners looking for 100% redress for homes effected by defective blocks were protesting outside the Dáil ahead of the release of the report from the working group. Video: Enda O'Dowd

Donegal TD Joe McHugh has said that putting a cap on the redress scheme for homeowners whose houses have been affected by Mica was “a crude instrument”.

When asked on RTÉ radio's Today with Claire Byrne about the figure of €350,000 being mentioned as a cap, Mr McHugh said that it was unfortunate that figures were coming out. "Putting a cap on it is a crude instrument," he said, adding that the pyrite scheme had not been capped.

In the Dáil Tanaiste Leo Varadkar said he could not confirm if media reports regarding the €350,000 figure were accurate.

He was responding to Sinn Féin finance spokesman Pearse Doherty who condemned as “completely unacceptable” the “selective leaking” of elements of the Mica redress scheme before the families had received the report of the working group established to consider the impact of mica on thousands of homes in Donegal, Mayo, Clare and a number of other counties.

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Raising the issue during leaders’ questions, Mr Doherty said “here are families who didn’t have a decent night’s sleep last night because of worrying if that leak was accurate and what it would mean for them.”

“So you need to treat these families with respect and instead of leaks and speculation over the next number of days there’s a need to provide clarity, move swiftly and do the right thing in terms of 100 per cent redress .”

Mr Varadkar said “I haven’t seen that report myself but I can’t confirm whether what’s being reported is correct or not”.

But he said the working group is going to submit the final report to Minister for Housing Darragh O'Brien on Thursday.

At that stage the Minister, the Taoiseach, Tanaiste, Green Party leader Eamon Ryan and Ministers for Finance and Public Expenditure Paschal Donohoe and Michael McGrath will consider the proposals with input from the Attorney General “with a view to them being presented to Cabinet”.

“Minister O’Brien intends to bring a memorandum to cabinet in the coming week.”

‘Massive programme’

Taoiseach Micheál Martin has pledged a “massive programme” of public spending to pay for the rebuilding and restoration of homes affected by Mica damage, but officials remain opposed to a scheme that grants 100 per cent redress for every house affected, as campaigners have sought.

A final decision on a new scheme will not be made until proposals are brought to Government, expected in two to three weeks.

Minister for Housing Darragh O’Brien met the Mica steering group on Wednesday night.

Mr O’Brien said he would publish the report of the group on Thursday, though the views of the officials and the campaigners are unlikely to be reconciled, and it is expected the report will reflect both positions.

Earlier on Thursday, the Mica redress campaign said a cap of €350,000 for compensation would not be acceptable as it would not fully cover 40 per cent of homeowners.

Michael Doherty told RTÉ's Morning Ireland that no figure for a cap was mentioned during a meeting with Mr O'Brien and officials from his department yesterday.

“I’m very concerned at this kite-flying,” he said. Various numbers for a cap were being “floated” he said, from €350,000 to €500,000.

“This is the usual form, stuff being leaked through to see where it goes. We won’t accept €350,000 as it leaves 40 per cent behind.”

Mr Doherty said owners already faced €40,000 in costs required for testing and planning permissions as well as rental accommodation. The figures the homeowners were basing their claims on were those used by insurance companies and were for “basic finishes” for the homes affected.

Ann Owens, a member of the Mica working group, said she believes the Government will deliver a 100 per cent redress scheme.

Ms Owens told Newstalk Breakfast that she had seen a change in attitude and was confident about a 100 per cent scheme.

The Government now understood that the previous scheme would not work, she said.

“It was never a 90/10 scheme and there were so many obstacles to families accessing that. Charges of up to €6,000 to get a lab to test cores, the payment of structural engineers, etc.,” she said.

The working group had been happy with the meeting with the Minister on Wednesday. It had been part of the process and had to happen, added Ms Owens.

A protest will be held outside Leinster House on Thursday demanding 100 percent redress.