The Central Bank has stated that it cannot force banks to support families in MICA-affected homes as they face contribution costs for the redress scheme.
The statement comes after Donegal TD Pearse Doherty called on the regulator to step up and encourage banks to assist the families with the 10% contribution they will have to make to the cost of making their homes safe under the forthcoming Redress/ Repair Scheme.
However, the Central Bank’s reply stated that it has no remit over the day to day commercial decisions of banks. “Whether or not an institution provides financial assistance to families is a policy matter for the individual institution,” said the regulator.
In light of the response, Donegal Senator Pádraig Mac Lochlainn is calling on the next Government to deliver a fully funded Mica Redress Scheme for the thousands of affected families across Donegal.
Senator Mac Lochlainn also stated that the next Minister for Finance must insist that the Banks and financial institutions step up to the plate to support families with the 10% contribution.
He said: “These families have waited so long for a redress scheme that would allow them to make their homes safe. This scheme should have been announced at the last meeting of the cabinet as we have been told for months now that the only delay is the Attorney General’s office signing of on the proposed scheme.
“The next government needs to commit to a fully funded scheme and the next Minister for Finance needs to ensure that the Banks and financial institutions step up the plate on supporting families with the 10% contribution. I know from speaking to a large number of families that they will struggle with finding this funding. No family can be left behind and with the outgoing Minister for Finance and now the Central Bank wiping their hands of responsibility, the next government and Minister needs to act straight away.
“If Sinn Féin are in the next government, I commit to this happening,” Senator Mac Lochlainn concluded.