Kieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

The problem is that it is a double-edged sword. Many of the contractors are chasing cash flow to survive. That is what people do. In many cases even if they are not making a profit they can survive for a period. It is called "liquidity". In essence, they are probably insolvent. At the same time, they cannot make claims for inflationary rents. The bulk are existing contracts and this means the companies cannot make claims until inflation is above 50%, which it is at present, but they still have to meet the 30-month time limit. It is impractical. The new contracts cover 15% inflation but the companies have to wait two years. For a claim made on 1 January 2022 a company will be waiting until at least 1 January 2024. The bottom line is that many of them will have gone under before then. People are working, paying people wages, paying suppliers and paying for diesel and materials. Creditors will not wait 24 or 30 months to be paid. They want to be paid tomorrow. If they are not paid tomorrow, they will not supply the materials. If they do not supply the materials, the roads cannot be built. It is the basic commerce of how to build a road. I am worried that if the changes are not made quickly we are in danger. I do not want another Roadbridge. The quality of its work was second to none. Apart from the roads it constructed, it was a huge employer. There has to be a sense of realism about what is happening. There needs to be a sense of urgency in reacting to it now. We are in a wartime situation. Roads and the national development plan are fundamental to how the Government reacts.