Mica redress sliding scale
Deputy Pringle criticised the proposed enhanced mica redress scheme’s sliding scale and asked for full-cost coverage. The Tánaiste said the Minister was considering it, that a cap per square foot was sensible, and the index-based approach aimed to contain costs.
On Tuesday last, with much fanfare, the Government announced the so-called enhanced mica redress scheme, which is a dubious title, to say the least. There is a promise of primary legislation to follow in terms of implementation of that scheme. While I welcome the inclusion of elements of rental, storage and, vitally, mental health support, for which I have repeatedly called, the elephant in the room is the sliding scale, which was part of the announcement made by the Minister, Deputy Darragh O'Brien. He failed to mention this element during his engagement with the mica campaigners hours beforehand. That was one of the most disingenuous stunts I have witnessed in my time in politics.
The Tánaiste and the Taoiseach can attempt to spin however they like, but the scheme is not 100%. I would appreciate if they would stop saying it is. It will cost the average homeowner in Donegal over €50,000 to participate in this scheme. The sliding scale has no rational basis. The scheme has to deliver for people. The scheme as outlined on Tuesday will not work. Will the Government commit to omitting the illogical sliding scale from any proposed legislation?
Comment on this
The Minister, Deputy Darragh O'Brien, is considering this matter at the moment. Deputies Carey and McHugh and others have made a similar case to that being made now by Deputy Pringle in regard to the sliding scale. The whole idea of having a cap per square foot, in terms of cost, is a sensible one so that we can contain costs and make sure the money is spent most efficiently. It is based on an independent index compiled by the Society of Chartered Surveyors Ireland. If a house is damaged or destroyed by lightening or knocked down for some reason, this is the amount the insurance company will pay out per square foot. It is an objective index. It is updated every year and we would expect it to be increased in the spring in line with construction inflation. The logic behind the sliding scale is one of economies of scale, that is, that a smaller building costs more to build per square foot than a larger building does. People who work in the building trade - I note Deputy Canney is nodding - will know that a smaller building costs more to build per square foot than a larger one because of economies of scale. That is the logic behind it.