Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

Three amendments are under discussion, namely, amendments Nos. 25 to 27, inclusive. While amendment No. 27 is in my name, I understand members will deal with all three together. I might first deal with amendment No. 25 and then members can discuss the other two amendments because I am accepting the premise of amendment No. 26 tabled by Deputy McDonald. However, as I am proposing my own amendment No. 27, I might set out to the sub-committee the reason the Government is opting for its own amendment and not that tabled by Deputy McDonald. I accept precisely what she is suggesting because it was a key point to emerge from the discussions by Members over the last number of years. In the original legislation, the provision was for 14 days and everyone has accepted that limit was unacceptable. I gave a commitment on Second Stage that I would respond on this subject, which has resulted in amendment No. 27. However, this does not take away from amendment No. 26, as tabled by Deputy McDonald. I will go through the reason the Government is tabling its own amendment later.

Amendment No. 25 is a proposal by Deputy McDonald to delete the phrase "work" and substitute "any or all of its obligations". The scope provided in the legislation for suspension of work was examined carefully in the context of developing the legislation. It is important that the right to suspension is limited to the individual payment dispute to avoid the possibility of a contractor being able to suspend work on other sites on which the contractor has been paid. The power to suspend any or all of its obligations would have health and safety implications, which could pose a serious risk for fellow contractors working on a site. It is for this reason that the right to suspend work is limited to the phrase "work". If I may, I will give the Deputy an example. When I asked earlier what was the reason the Government could not accept this amendment, I was given an example. A scaffolder erects scaffolding on a construction site and then goes into dispute with the main contractor. While that dispute is going through the adjudication process and is being tested and argued out, the scaffolder still has obligations. They are not so much work obligations as obligations under health and safety regulations to make sure the scaffolding is in a good condition or is maintained because it exists on the site. As for limiting this to the question of work, there is a wider application on sites and such an application will exist as one goes through the process of adjudication or is contesting what that adjudication is about. This is the reason the Government cannot accept amendment No. 25.

In respect of amendments Nos. 26 and 27, I will propose amendment No. 27, which is a substitute for amendment No. 26 tabled by Deputy McDonald. The current provisions, which require the unpaid subcontractor to return to work after two weeks, even though he or she may not be in receipt of payment for work carried out, favours the main contractor. There is no doubt about this and I made that clear on Second Stage. I am amending this provision to provide for suspension, following notification in writing giving seven days' notice of the intention to suspend work. This suspension can continue until referral of the payment dispute for adjudication and following an adjudicator's award where the award has not been paid. The amendment provides for a more balanced solution, while not prejudging the outcome of a payment dispute.

This was a key issue in the original Bill to which many Deputies referred in the Chamber and which was most unsatisfactory. Effectively, people would have been obliged to go back on site without the dispute having been resolved. Having listened to the industry and having listened to the points Deputies on all sides made about this issue, the Government amendment No. 27 deals with a key outstanding issue that was contained in the original assessment of the Bill by the industry itself. I hope it meets with the favour of colleagues today.