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MICA scandal could cost up to €3.2 billion, says Govt report

written by Staff Writer October 1, 2021
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The cost of the MICA scheme would run to €3.2 billion, the latest Government report into the scandal claims.

The report, commissioned by Minister for Housing Darragh O’Brien, says the maximum estimated number of private homes in Donegal affected could be as high as 4,800.

A further 1,000 social housing units could also be potentially impacted.

The report also recommends 100% redress for some of those affected with an estimated cost to the tax payer of €1.4 billion.

The revised scheme would cover the costs to affected homeowners of fixing their damaged houses.

However, those who have to demolish and rebuild their homes may not receive 100% redress.

The Irish Times says the report found that damage to houses was made worse in some cases by the locations they were built in.

“In many of the affected dwellings, the problems appear to have been exacerbated by their location in geographic areas of severe exposure and the ingress of moisture into the concrete blocks,” it reads.

“The problems were possibly accelerated by the extreme weather conditions arising in
the winters of 2009 and 2010.”

The report outlines the initial projection of €150,000 per home and that based on 6,600 homes, the likely overall cost of redress was estimated at just under €1 billion.

“On the basis of actual applications and approvals therefore, the projected cost of remediating homes under the Scheme, as well as remediating social homes, has risen by almost 50% in recent months and is now estimated at €1.4 billion,” it says.

“Based on the homeowners’ final submission the estimated costs of the changes requested could rise by €1.8bn to €3.2bn.

“This is on the basis of capital works and associated costs only and does not take account of potential costs for items sought such as; compensation for homeowners and inclusion of all non-residential buildings impacted.”

O’Brien is expected to send the draft report to coalition leaders before bringing further recommendations to Cabinet.

The government has already given a commitment that they will enhance the existing redress scheme for residents affected by defective Mica blocks in Mayo and Donegal.

The Department of Housing said the Minister understands the stress and the hardship which affected homeowners are facing and assured them that enhancements would be made to the current scheme.

MICA scandal could cost up to €3.2 billion, says Govt report was last modified: October 2nd, 2021 by Staff Writer
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