Government set to approve €2.5bn redress scheme for defective Celtic Tiger homes

Fiachra Gallagher

The Government is expected to approve of a €2.5 billion redress scheme to remedy defects in up to 100,000 apartments built during the Celtic Tiger.

Minister for Housing Darragh O'Brien is expected to bring a memo to cabinet on Wednesday, proposing a scheme which will cover the remedial costs of fire, structural safety and water-caused defects on apartment buildings and duplexes built between 1991 and 2013.

Between 62,500 and 100,000 housing units are affected by defects, it has been estimated, with the average cost of remediation standing at roughly €25,000. The potential cost to the State lies between €1.56 billion and €2.5 billion.

The Construction Defects Alliance, an advocacy group linked to more than 200 defective developments around the country, has called for retrospective payments when the scheme is introduced, given many affected home-owners have already paid for remedial work.

"It's crucial that the scheme will be retrospective," Pat Montague, spokesperson for the Construction Defects Alliance, told Newstalk.

"In other words, that it will include people who have paid, or are paying for remediation works already, to ensure that those works can continue and we don't end up in an appalling situation where works grinds to a halt because of uncertainty over that."

The Irish Times reported on Wednesday that the Government was expected to make a commitment to impacted owners who have already paid for works.

Sinn Féin spokesperson for housing Eoin O Broin repeated calls for all affected homeowners to receive full redress under the "significant" scheme.