I move: "That the Bill be now read a Second Time."
I am delighted to introduce the Defective Dwellings Bill to this House on Second Stage. I look forward to seeing the progress of this Bill to pre-Committee Stage scrutiny at the Joint Committee on Housing, Local Government and Heritage, where we can have a more thorough discussion of it with the Minister, departmental officials, relevant stakeholders and experts.
I thank those who assisted with the drafting of the Bill and those who have devoted so much of their time and expertise to this area to try to improve our laws around defects, namely, Dr. Deirdre Ní Fhloinn and Conor Linehan SC, who have done Trojan work in this area, both on research and on informing us, the legislators, of the gravity of the issue when it comes to defects. It would be remiss of me not to mention Pat Montague of the Construction Defects Alliance, who has campaigned tirelessly and advocated for thousands of homeowners across the country who are impacted by defects. I make special mention of the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, Deputy Catherine Martin, and her team, particularly Donal Swan, for starting the work in the previous Dáil on the foundations of this Bill, which I am proud to present today on behalf of the Green Party.
We have a serious problem with defects in this country, as everybody knows. As Dr. Deirdre Ní Fhloinn as established in her research, Ireland's problem with defective properties stems from a weak building regulatory system and an enforcement regime which has failed to prevent deficiencies and secondly the legal problem which restricts and, in many cases, prevents homeowners from seeking redress. This Bill aims to resolve some of the issues facing thousands of homeowners affected by defective properties in this country. It protects homeowners, including families, young couples and pensioners, who, after saving and working hard to purchase a home or deciding to downsize, later realise the home they have purchased has a defect or multiple defects.
The Bill does this, first, by establishing liability and responsibility that all parties involved in carrying out construction work are liable for that work. This is based on the recommendations of the Law Reform Commission report of 1977. This ensures that works will be carried out in a good and workmanlike manner, with due skill, care and diligence, and that the materials they use are fit for purpose.
Second, the Bill provides a clear legal redress framework for homeowners impacted by defective properties, whether they be the first or subsequent purchaser of the property. Any breach of duty which causes defects will be subjected to the regime established by the Civil Liability Act 1961. In other words, this will ensure that those involved in construction are liable for the whole of the damage.
Third, the Bill provides for specific time limits relating to claims. Currently, the Statute of Limitations only allows a person to present a claim six years from the date on which the damage took place. This Bill will introduce a new Statute of Limitations of two years from the discovery of the defect, rather than the current six years from purchase of property, providing protection for a wider cohort of affected owners, specifically if the owner of the property is not the first purchaser. This is based on the Safe as Houses report recommendation by the Joint Committee on Housing, Planning and Local Government in the previous Dáil.
At present, property is bought on the basis of caveat emptor. I was told that when I purchased my home. It means buyer beware. This means that the property is bought as is. The buyer should assume the risk of buying the property. The seller is not obliged to disclose any defects that the buyer could not find. Therefore, the responsibility lies wholly with the buyer to realise the risks associated with the physical condition of the property. Homes are built on the basis of contracts between the original parties. For various reasons, contractual remedies may not be available to the homeowner, which restricts litigation, especially if the homeowner is not the first buyer of the home and not the original party to the contract.
Consequently, we have in excess of 100,000 Celtic tiger-era properties with defects across the State. A shocking two out of three apartments and duplexes across the country have defects. Thousands of people live in homes that are quite literally crumbling from reactive materials like mica and pyrite, which has subsequently led to an inquiry committee and a scheme in which the State, or, should I say, the taxpayer, will pick up a bill for €2.6 billion. The type of defects that homeowners face can include fire safety defects, which is the most common, at 40% to 70% of affected homes, and can be as severe as not having an escape route or not having a fire-detecting alarm system. Other defects include water ingress defects, which adversely affect roofs. This defect is present in between 20% and 50% of homes. Structural defects which make the home quite literally uninhabitable, where the roof or walls of the home are defective and therefore a risk to the inhabitants, account for between 5% and 25% of defective homes.
Ireland is lagging behind other countries when it comes to both protecting homeowners and robust building compliance regulations. In Alberta, Canada, the warranty provided for defective issues in a property is attached to the home and not the owner. This Bill will provide not only the current owner with protections, but also any subsequent owners. The legislation in Queensland, Australia, ensures that the building industry is regulated and that all standards are adhered to. This includes holding persons responsible for the safety of products used during the carrying out of construction works.
While I commend the Department for its ongoing work in developing State schemes for homeowners impacted by mica and pyrite and those impacted by defects in apartments and duplexes, it took a long and emotionally draining campaign for these families to be heard. In August 2018, homeowners in Hunterswood, including young couples, families and pensioners, were hit with a €65,000 bill for fire safety and balcony defects. That was not their fault, nor were they flagged prior to them buying the properties. They cannot afford these extortionate costs. They cannot insure their homes and therefore cannot resell. They are stuck and the law as it currently stands does not protect them. In fact, it protects the companies that carried out these construction works.
It would be remiss of me not to mention the apartment owners in the condemned building of Priory Hall, which was considered a firetrap. This led to families being rendered homeless. The question we really need to ask ourselves and that the Department needs to think about is how many more disasters and scandals, such as those at Priory Hall, Park West and the Hunterswood apartments in my constituency, we will wait for before we take meaningful action to get to the heart of this issue and make the legislative changes needed to resolve the deficiencies in our law. How many more million- and billion-euro schemes does the State have to create and do taxpayers have to pay for before we change the laws that protect construction companies which build homes that are not fit for purpose and are life-threatening, backed by ineffective regulatory enforcement regimes? More importantly, how many more lives are we willing to put at risk?