Robert Troy (Longford-Westmeath, Fianna Fail)

It is a signal of more to come and I hope the Minister of State will in future accept other Private Members' Bill, especially when they have the unanimous support of the House. For example, I refer to the family home protection Bill introduced by my colleague, Deputy Michael McGrath, prior to Christmas. It is a worthwhile Bill and I hope the introduction of this legislation is a sign of things to come because we are all democratically elected and we can all play a constructive role in trying to rebuild our economy and putting the country on a better footing and trying to reach reasonable solutions to the many problems facing people. The construction industry has a negative name, undeservedly in certain regards. As in every other profession and walk of life, rogues worked in it but it is an important sector in our economy and it has provided great employment down through the years. Most people in the industry do an honest day's work for an honest day's pay.

The Bill will address the issue of payments between employers, contractors and subcontractors and it is welcome. Its main aim is to improve the payment practices within the construction industry by providing for a range of statutory rights for contractors and subcontractors supported by the ability to refer disputes to a fast track adjudication process. The legislation applies to contracts, whether oral or written, relating to construction operations, which are broadly defined and will include all construction and engineering works as well as professional construction services. However, it will not apply to construction contracts with a residential occupier or those that may be specifically excluded from its operation by the Minister for Finance.

It is right and proper to acknowledge the work of Senator Quinn and the former presidential candidate, Seán Gallagher, on this Bill. It is a pity that it took so long to come before the House but I would like to acknowledge the strident work of Mr. Gallagher. As a member of Westmeath County Council I received copious documentation from him regarding his endeavours in this regard. Given the current economic difficulties faced by the country, it is important to put supports in place in the construction industry. Sustainable businesses in the industry find it increasingly difficult to access credit, which is another issue the Government must pursue vigorously. Earlier this week, my party leader highlighted the lack of provision of mortgage credit by financial institutions. Many people with good credit histories are finding it difficult to secure mortgages, which is also having a knock on effect on the construction industry. In addition, these institutions are using the fact that housing estates have not been taken in charge by local authorities to refuse mortgages, despite fact that, in some cases, 95% of the houses are occupied. That is having a depressing effect on the domestic economy and this issue needs to be tackled as a priority.

Deliberate non-payment or delays in payment are common in this industry and it is difficult for compliant builders to match the prices of non-compliant builders who price jobs knowing they will never fulfil their obligations to subcontractors.

None the less, they are able to get the contract on day one, although someone will be burned at the end of the day. It is very difficult for the honest to God, compliant contractors who are trying to compete.

The Bill proposes State intervention by creating a regulatory framework to provide for minimum contract terms regardless of whether the contract is written or oral. It allows for a speedy review and resolution of construction contract payment disputes as they arise to ensure prompt cash flow and thereby improve efficiency. It is important, given the stagnant domestic economy at present, that we keep cash in circulation and ensure speed in paying our bills.

Before I finish, I wish to identify some possible improvements to the Bill, although I did not hear all of the Minister's remarks. It is very important the scope of the Bill is widened to include a provision that would guarantee payment on a construction contract, perhaps through the use of a financial instrument such as a bond or designated trust account. It is important to remove the minimum monetary thresholds that put private sector contracts under €200,000 and public sector contracts under €50,000 outside the scope of the legislation. Will action be taken to bring them within its scope?

We also need to broaden the scope of the Bill to include goods and products specially manufactured for a product, namely, concrete, and to include the suppliers. I have heard many stories of incidences where construction companies, large and small, have left suppliers with large bills and walked off with a nest egg. These people are competing for contracts but are undercutting compliant contractors who fulfil their obligations to their subcontractors, to Revenue and to suppliers but who are unable to get jobs because the non-compliant contractors are not fulfilling their obligations. At this stage, the Minister should consider broadening the scope to include suppliers under the remit of the Bill.

Although it is not primarily connected to this legislation, the Government should examine the awarding of State contracts. Onerous requirements are being put in place in regard to the previous year's accounts and turnover. Many small, viable businesses which, due to the downturn in the economy, did not have the normal level of activity in the previous year are precluded from tendering for specific contracts in the current year. We must examine this situation. Many small family businesses and medium-sized enterprises have the necessary capability and tax clearance, have met their requirements to their subcontractors and are totally compliant but, because of the reduction in turnover from previous years, they are not even allowed to tender. While it is a little away from the issues dealt with in the Bill, the Minister should consider it in the not too distant future.

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