A LEVY on certain construction materials is to be introduced to fund a €50m redress scheme for homeowners affected by pyrite.
The scheme will initially focus on the 850 homes in need of immediate repair. It will then turn to homes where pyrite is present but has not yet caused damage.
Pyrite, a naturally occurring mineral, was included in filling used in the foundations of some homes and later became unstable, causing major structural damage.
It is expected that the average funding to be made available to owners of pyrite-damaged homes will be around €45,000.
The Pyrite Action Group (PAG) welcomed the move from the Department of the Environment as it was a "recognition of the hardship" faced by homeowners.
The Construction Industry Federation (CIF) also offered its support for the initiative despite its adding costs to an industry "that is already struggling".
The federation hoped the scheme would ensure affected homeowners were no longer subjected to uncertainty about the structural stability of their houses.