Michael Moynihan (Cork North West, Fianna Fail)

I welcome the Bill. Many sectors in society have experienced huge difficulties over the past three or fours years. People in the construction industry - contractors and subcontractors - have been very badly hit. These people were earning a living but saw their industry disappear. There are many positives in the Bill and it is important it is passed by the Houses of the Oireachtas as quickly as possible.

I would like to raise a number of issues. While perhaps slightly outside the scope of the Bill, although related, subcontractors, small contractors, brick layers, electricians and so on have seen their livelihoods wiped away and when they have gone to look for benefits they have found they are not entitled to any because they have S class contributions. As in the United Kingdom and other countries in Europe, the Department has been looking at amending the regulations in regard to PRSI for company directors, sole traders or people with C2 certificates. During the discussion on the Social Welfare Bill last December, we heard it was looking at the issue of the S class contribution and to upgrade it to a contribution which would entitle the sole trader or the self-employed person to access benefits for whatever reason, whether going out of business, ill health and so on. Can that be looked at to ensure there is fair play?

Anyone who became a Member of this House in this Dáil or the last one will have had many people come to his or her clinic on this issue. I cannot verify it but I understand negotiations are ongoing between the Minister's office and the Office of the Attorney General on the issue and at possibly looking at some of the rulings which have been made in different countries in Europe in regard to this class of contribution. Perhaps we can get clarity on that.

I turn now to the substance of the Bill.

It is important that we acknowledge the contributions of Senator Quinn and Mr. Seán Gallagher, who are the motivation behind the Bill and its passage through the Houses. The reason for the Bill is simple, in that far too many small to medium-sized contractors were going unpaid for work done or services rendered. When a major company or person in the chain went out of business, the contractor was left high and dry. This would have a knock-on effect, as the contractor would be unwilling to be burned by the industry again.

Many people have been affected. We know of examples of State contracts in which the people at the lower end of the chain have not received their payment. The Bill goes a long way towards rectifying this problem, which has caused significant hardship. Many sectors in society have felt pain in the past three or four years, but construction has been the worst hit. In our clinics, each Deputy has been approached by people who have been badly burned. The Bill's main purposes are to improve payment practices and to put them on a statutory footing, thus providing contractors and subcontractors with statutory rights. Disputes can be referred to a fast-track adjudication process. However, the measures contained in the Bill should not be viewed as an alternative to undertaking appropriate due diligence in a project or to the contract terms under which contractors are to perform their work or provide their services.

While this may be the case, we must acknowledge the excellent work done across the sector. People might claim that some work was shoddy, but subcontractors in every sector of the construction industry who have done excellent work have been left unpaid. During our debate on this and Committee and Report Stages, we should acknowledge the great work that has been done. Craftsmen of all types have been left high and dry.

The Seanad's amendments make a case for the excellent work that House can do. It is important that we acknowledge that process as well.

As has been stated, many people depend on suppliers, food outlets, filling stations and small businesses, yet those businesses' incomes have collapsed. A certain age group of people entered the Celtic tiger economy after leaving school early or without attaining further qualifications because of the buoyancy in the economy at the time. Some people gained trade qualifications and moved on to do what they did best, yet they have been left high and dry. No parish or townland has gone unaffected. Some crafts people have decided to emigrate and others are unwilling to take further chances. The expertise built up over the years will be lost because of late payments or the difficulty in getting paid.

A State contract relating to a school was brought to my attention. The main contractors were paid, but the contractors furthest down the line were not. In many cases, the State or an arm of it agreed to extend a contract's terms to allow additional work to be done. When squeezed, however, the State reverted to the original contract and people were left high and dry. It is vital that the State honour its responsibilities and contractual arrangements and respect the people who carry out excellent work for it.

While the Bill goes a long way towards resolving issues for small to medium-sized contractors, will the Minister of State use his good offices to clarify with the Department of Social Protection the situation regarding the S class PRSI contributions paid by the people in question? This is an ongoing issue and discussions have been under way between the Minister's office and the Attorney General's office since September or October regarding the question of whether S class contributions should actually have been A class contributions in cases of, for example, sole traders or companies formed by husbands and wives working together. In other EU countries, court decisions have allowed people to access payments when they are most in need. Will the Minister of State clarify this important issue? Too many sole traders and self-employed individuals in all spheres have been unable to access State benefits or services due to sickness or unemployment. This is unfair.

I commend the Bill to the House and I thank the Acting Chairman for allowing me the opportunity to contribute.

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