Michelle Mulherin (Mayo, Fine Gael)

I welcome the jobs initiative, particularly the way in which it sets about tackling competitiveness and the cost base. As has been stated, these have gone against our ability to create jobs and attract tourists and so on.

I wish to address another jobs issue of which we are all aware, namely, that of subcontractors. People have done jobs but cannot get paid by main contractors. I am particularly concerned about State contracts, in that construction companies owed money by the State are using it as a reason not to pay subcontractors. A well known main contractor in my town has won a number of the State's capital projects and was paid some money yesterday. When the subcontractors that carried out the work on a project looked for their money, they were told that the main contractor needed to get the rest of the money first. This is a disgrace. The prospect of main contractors going to the wall is increasing. Since they are protected by the corporate veil, their directors' personal assets are not affected. Subcontractors are usually the main employers whereas main contractors are typically project managers. The latter have incurred bills in a race to the bottom to get projects at any price. The problem is that the accepted tenders are not realistic. Therefore, the real price is the difference between the tender amount and what the subcontractors must pay.

Subcontractors are paying the price for the schools, hospitals, theatres and public infrastructure that we all enjoy as citizens. They cannot get social welfare payments or turn to anyone. We can have fine discussions in the Chamber on mental and emotional health and the number of people turning to suicide. It is a reality that people are under such pressure, yet main contractors will not cough up the taxpayers' money we have paid them for State projects.

I have a proposition for the Minister, Deputy Howlin. The Construction Contracts Bill 2010 will not solve the problems facing many of the country's subcontractors. Contagion has set in and people are frantic and desperate. In the many cases where subcontractors have signed off a final account with the main contractor, where costs are agreed between the two parties and where the State still owes money to the main contractor, I urge that an arrangement be introduced whereby the State can make arrangements with the latter to pay subcontractors directly. That would ease some of the difficulties in which subcontractors are finding themselves. It is not good enough - and I have been on to various Departments about this - simply to quote the law to these people, because the law is inadequate and there have been abuses left, right and centre. We have had abuses of the corporate veil where individuals trading under that protection have undertaken reckless commercial behaviour.

Let us stand up and be counted. We must find ways and mechanisms to protect subcontractors. The Construction Contracts Bill will not do it, but we have money in our hands. I ask the Minister, Deputy Howlin, to instruct all Departments, where there is a final bill of costs agreed, to seek an arrangement to pay subcontractors directly. This would go some way towards meeting our moral duty to help these people.

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