Sinn Féin has said that rebuilding the smallest of homes will require homeowners putting their hands in their pockets to meet major shortfalls, under the Government's mica redress scheme.

Speaking during Leaders' Questions in the Dáil, Sinn Féin Finance spokesperson Pearse Doherty said that the sliding-scale must go and people in Mayo and Donegal just want their homes built.

"Get rid of the sliding-scale...and we can work on this scheme," he urged the Taoiseach.

The mica redress scheme announced by the Government yesterday will see grants capped at €420,000 and will also be open to rental properties, if they were registered with the Residential Tenancies Board by the beginning of this month.

Homeowners will be able to receive €145 per square foot on the first 1,000 feet of a property.

This will reduce to €110 for the next 1,000sq ft and a sliding scale will apply after that.

Responding to Mr Doherty, the Taoiseach said the €2.2 billion scheme makes huge advances.

Micheál Martin said the square footage figures are indicative and will be updated next April and thereafter.

"We're not asking families to come up with €45,000 or €60,000," he said.

He accused Mr Doherty of feigned outrage and said his party wanted "endless campaigning" on this issue.

Earlier, Fine Gael TD for Donegal Joe McHugh said the scheme did not meet local people's expectations.

Speaking on RTÉ's Today with Claire Byrne programme, Mr McHugh said the introduction of a sliding scale "is not going to work" and said he would not stand over the scheme if people are excluded by cost shortfalls.

Mr McHugh said Housing Minister Darragh O'Brien "knows there is an issue, he knows I have an issue with it, he knows my colleagues have an issue with it and so we need to get it fixed".

He added: "I want to know will it be fixed because it's not going to work".

Mr McHugh said that while "it's a good scheme overall and a massive scheme with massive changes" Minister O'Brien needs to give people an assurance before the end of December.

He said the sliding scale was introduced "at the eleventh hour" and was not on the table on Monday.

"It came from left of centre … and makes no sense from a quantity surveyor or construction point of view".

Sinn Féin TD for Donegal Padraig Mac Lochlainn said the redress scheme is a devastating blow for those affected and needs to be reversed immediately.

He said there are over 2,000 households in Dublin and north Leinster that received 100% redress for pyrite and that scheme is managed "from start to finish" by a housing agency.

However, he said families in the west of Ireland are being told to fend for themselves and negotiate and a housing agency to look after the scheme there would deliver much better value for money.

Earlier, Independent TD for Donegal Thomas Pringle said it is shocking it has taken so long for the Government to come up with a scheme "that is unaffordable and ... has to be adjusted to make it affordable".

Speaking on RTÉ's Morning Ireland, he said the sliding scale on the rates of redress per square foot will leave many homeowners with a €65,000 shortfall and they "simply cannot afford that".

Deputy Pringle said it seemed that the Government "lost their nerve and pulled back" after going so far to seek an acceptable redress scheme.