Oireachtas Joint and Select Committees

Thursday, 26 July 2018

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Public Private Partnerships - Liquidation of the Carillion Group: National Development Finance Agency and the Department of Public Expenditure and Reform

11:00 am

Photo of Gerry HorkanGerry Horkan (Fianna Fail) | Oireachtas source

I agree there is a title issue, rather than a certification issue. A sum of €250,000 would be significant for any company providing school desks because such businesses are generally not large.

As someone who happens to be the chairman of a board of management of a school, I am familiar with the running of schools and the costs involved. I also know that people in PPP schools cannot change the time on a clock on a wall or put a nail or tack in a wall because the facilities management company has to do all of these things. That is the way it is and some people like it and some people do not. Under the current system, a main contractor is given a large amount of money and can then let down subcontractors. This is wrong and a different approach is needed. Payment should be made in a staged way on foot of the subcontractors involved indicating that they have received their entitlements up to a certain point. While there will still be timing issues, subcontractors will not lose the full amount owed, as occurred in this case where large amounts appear to be outstanding. Perhaps some sort of bond or insurance mechanism could be used, similar to the Home Bond model used in construction in the past. There must be other ways of doing this, which do not leave the smallest, most vulnerable businesses at a loss. It is all very well for Apple and Google to lose €250,000 because large companies would notice it. Small companies have lost significant amounts of money. The process needs to be examined.

Is it the case that the NDFA will engage with DIF to try to have the amounts owed paid?

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