Jim Daly (Cork South West, Fine Gael)

I am thankful for the opportunity to speak on this important Bill before the House. I have previously mentioned in the House a trip I took to Brussels a couple of months ago, where it was stated that 23 million people are unemployed across the EU, with 23 million small to medium enterprises registered across the Union. It is vital that the Government focuses on small to medium enterprises and supports them in every possible way. This Bill has an important role to play in the support of many sole traders in all our constituencies, with implications for employment.

We all know the sad history associated with the construction boom from the so-called Celtic tiger era, when up to 25% of GNP was taken up by the construction sector. That was an inflated figure and has brought a significant cost on our economy. In 2010, it was estimated that 9% of GNP, or close to €12 billion, was taken by this sector, which gives an idea of its importance to the overall economy. As legislators, we must ensure its survival and support it in every way possible. The image of many builders was tarnished and brought into disrepute by the actions of a few at the top while many down the ladder worked away at the same pace throughout the Celtic tiger years and are now struggling to support the industry through which they have built a livelihood. It is important not to tar everybody with the same brush.

While it is late in the day to introduce this legislation, this highlight the difficulty with legislation. Much of its must be reactive and this is an example of us having to react to circumstances as we are made aware of them in our constituencies. Many large builders can rely on NAMA but sole traders and subcontractors are often the silent victims. They do not generate headlines and many column inches in the newspapers but, nonetheless, they are important employers and contributors to our economy.

I welcome the Bill, which proposes State intervention by creating a regulatory framework to provide for minimum contract terms regardless of whether the contract is written or oral. It also provides for a speedy review and resolution of construction contract payment disputes as they arise. The Bill has by and large been welcomed by both Houses. Many small companies will be delighted when it is enacted. Many households would have been saved from severe hardship in recent years if these legislative provisions had been implemented at the time.

Many employers got into genuine difficulty and were let down by banks and so on midway through a contract. However, there was also rampant abuse of subcontractors by people and companies who withheld payments from them. Many of them were supplied with large volumes of material, which cost a multiple of the labour required for a job. We often think of labour but forget to consider the value of materials provided for a job. This has a domino effect as this not only affects the subcontractors but also the suppliers of the materials used by them. This can have huge consequences for businesses struggling in difficult times. The bill probably falls short in the protection it offers to material suppliers who may not have a formal contract with the contractor. For example, the trucks of concrete readymix suppliers deliver product to site in a short time and the value of the delivery is thousands of euro. The legislation could be strengthened to offer more protection to the material suppliers. Once a product such as concrete is laid, it is worthless as the supplier cannot retrieve. The contract has to have expired as soon as the concrete has been delivered because it is only use for a specific purpose on a site. The supplier of such a product cannot seek to reclaim his material as it is worthless to him.

I welcome the provision detailing the timeframe for dealing with disputes. Currently, such disputes take years and significant energy and money and effort on the part of those involved and that will be welcomed by all concerned.

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