Dáil debates

Thursday, 3 May 2012

Construction Contracts Bill 2010 [Seanad]: Second Stage

 

1:00 pm

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)

At the height of the boom 269,000 people were working in the construction industry. This figure has since fallen to approximately 100,000, a major decline that has delivered a massive blow to the construction industry which is clearly on its knees and needs a major stimulus. The potential to provide more jobs is considerable, although I accept employment in the sector will never return to the levels encountered during the so-called boom. Jobs in construction have a large spin-off effect in terms of employment in industries that support the sector.

Local authority housing waiting lists are growing, as is demand for proper affordable housing. The Government's policy of not supporting social housing and its refusal to provide capital funding is contributing to the current housing crisis. It is making a mockery of plans to end homelessness through its unwillingness to provide sustainable, affordable social housing and appropriately supported follow-on housing. Instead, we have emergency accommodation bursting at the seams.

More than 100,000 families are on housing waiting lists and rental subsidy is costing more than €500 million per annum. This scandal speaks very clearly to the failure of a policy which no one in his or her right mind believes could solve a housing crisis. If the ghost estates that litter the country were brought into play, they would alleviate, albeit not solve, the current crisis.

Many contractors, subcontractors and subcontractors of subcontractors were left high and dry by unscrupulous firms which declared bankruptcy or were taken into the National Asset Management Agency. Some of their directors received a healthy salary as reward for their complicity in the downfall of the economy. In my constituency of Dublin North West I have encountered many small family firms which were owed thousands. Some of them went to the wall as they sought what was rightly theirs, while in other cases the owners sold their homes to pay staff rather than default on their responsibilities. Others still have emigrated rather than face the prolonged agony of fighting for their entitlements. It is important that employers and employees live up to their contractual obligations.

I welcome the provision in section 6 to introduce a right of adjudication and the stipulation that this right cannot be negated by any contract. I also welcome the right afforded to contractors to cease work if seven days pass without payment subsequent to a judgment being issued in the adjudication process. The appropriate Oireachtas committee, in conjunction with the Minister of State, should have a greater role to play in the appointment of the adjudication panel.

I am concerned that the value thresholds provided for will mean that those affected in many of the cases where the protection provided by this legislation may be required will not be eligible to the entitlements established in the Bill. While small contractors may not deal with large contracts, the sums they are due are just as important as the sums due to large contractors as they seek to keep their businesses afloat and pay their workers and those they owe arising from the routine costs of business. The high thresholds are a major oversight which render the legislation much less valuable. Greater clarification is required to establish the rationale used in setting the thresholds. I acknowledge, however, that the Minister of State has indicated amendments are to be introduced in this regard and look forward to changes being made on Committee Stage.

In general, I welcome the Bill as it makes a start in dealing with the outstanding issues arising from the construction collapse. I thank Senator Feargal Quinn for the work he did in drawing it up and I am grateful to the Government for facilitating it in the House.

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