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One of the key issues is the extension of the insurance compensation fund to deal with losses of the Quinn family. A large percentage of insurance losses result from speculative gambling on the property market by the family and, in effect, the legislation provides for the transfer of those gambling debts on to the shoulders of hard pressed taxpayers and working people who need to insure cars, homes and so on. As previous speakers pointed out, this is the third time a private company has been bailed out by the State — Equitable Life in the 1960s and PMPA and ICI in the 1980s. The original levy was not discontinued when PMPA’s historical liabilities were run down but, instead, was replaced with a stamp duty to which the Government proposes to add a Quinn Insurance levy. Clearly, that is a disgrace and should be condemned by all.

I would like to concentrate on one aspect of the legislation. It proposes that the insurance compensation fund would cover all insured risk in the State with the exception of a number of excluded risks. It then defines one of those as a risk relating to a building in the State. Will the Minister address the Homebond issue in this regard? He may be aware that householders will take to the streets tomorrow to protest outside Homebond’s offices because it has opted out of its liability under a structural guarantee against major defects and has said it will not honour offers made to residents in that regard. Is this an insurance policy or not, given it was sold to people on that basis? Were people tricked into taking up this policy? Payments come out of the insurance compensation fund for insolvent insurers and, therefore, this issue is relevant.

People bought their houses in the belief that Homebond offered them a structural guarantee against major structural defects for ten years. The homeowner had no choice in that regard as he or she was obligated to go down that route. He or she did not have the option of choosing the insurance route. It was provided to the developer and the Irish Home Builders Association. It is a consequence of the light touch regulation that existed. The banks legitimised Homebond by mandating that people to whom they were giving loans had to have a Homebond guarantee before they were able to avail of the mortgage. Warnings were issued repeatedly from 2000 onwards that the company was significantly underinsured. The Law Society issued a warning in 2000 while Grant Thornton and others produced reports in which they warned the society that this was a potential major liability, yet nothing was done.

I would like the Minister to address this because between 30,000 and 50,000 houses have fallen victim to heave inducing pyrite, a defect that costs between €40,000 and €50,000 per household to repair. A claim would result in a liability of between €1 billion and €1.5 billion. If Homebond is deemed to be insolvent and the pre-2008 insured members are deemed liable for heave inducing pyrite resulting in major structural damage, who will pay the bill? Is the Minister exposing the State by bringing this under the insolvent insurers scheme? If not, why not? He can offer a compensation fund to Sean Quinn and his family to defray their gambling debts but the victims of Homebond who did nothing other than a buy a home in good faith that they thought was fit for purpose have to pay the cost of heave inducing pyrite. There is no compensation fund for them.

This more than anything else exposes the Government’s record and the double standards it is applying. The Minister is rushing this legislation and that is not on. It will be exposed in the eyes of the public for what it is. full debate

Previous Audio



Clare Daly TD First Dáil speech 09/03/2011
Clare Daly TD (mp3)

PFG Debate 15/03/2011
Clare Daly TD – PFG Debate 15/03/2011 (mp3)

moriarty tribunal debate 30/03/2011
Clare Daly TD moriarty tribunal debate (mp3)


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