Seán Canney (Galway East, Independent) | Oireachtas source

I appreciate that as I know other committee members wish to contribute. I have watched the discussion of the public works contract on screen. From a roads, transportation and civil engineering point of view, and as I was a quantity surveyor who worked in the industry and lectured on procurement, I have received a lot of feedback that the civil engineering contractors in this country are turning their backs on us because they can go to England and get a fair new engineering contract, NEC, as the risks are shared and there is a greater opportunity to have a viable proposition. I do not know how the Department is getting on with tenders at the moment.

Does the Department have any works out for tender at the moment? My understanding is that building contractors and civil engineering contractors are refusing to price contracts because they cannot price the risk.

I have a very simple question for the officials. Earlier the Chairman and others asked how we fix the problem with public works contracts. I suggest this problem can be fixed by one simple amendment to the existing public works contracts. The amendment can be put in because it can be agreed between both parties. Therefore, if the contracting authorities and the contractors agree to insert a price variation clause in the contract, it will solve this problem not forever but until we get to more stable ground again.

There are two aspects to the public works contracts. We have the existing contracts, which are assigned and people are in a quandary. Some contractors are recklessly trading at the moment because they are trading at a loss and they know it. I understood that the Office of Government Procurement and the Department of Public Expenditure and Reform had issued a direction on how to deal with variations for other contracts that have been tendered. As late as three days ago, a contracting authority's quantity surveyors looked for clarification from the builder as to where this direction has come from because they do not have sight of it. Did the Department of Transport get any direction from the Department of Public Expenditure and Reform regarding contracts that are tendered for but not yet signed? What model is being used to deal with variations? Did the officials get any direction on that?

The Chairman spoke about the road between Limerick and Cork. The outer city bypass for Galway is in a quandary because of planning and other issues, and it has now been referred to Europe. As far as I am concerned, we have spent millions of euro doing nothing on that.

There was talk earlier about phases. This issue will be close to Deputy Crowe's heart. Phase 1 of the western rail corridor was done; phases 2 and 3 were never done. Appraisals are now being done on them again. More money has been spent on appraisals than on doing work.