Seán Conlan (Cavan-Monaghan, Fine Gael)

The Bill which was initiated by Senator Feargal Quinn does a great service in restoring a sense of morality and fair play to the building sector by providing for the eradication of a culture that spawned and was allowed to develop in the construction industry during the boom years, with catastrophic results for the sector, the purveyors of contracts, those employed in the industry, those supplying goods and services to it, their dependants and even extended families. This allowed a perverse culture to prevail, whereby a Department would enter into a contract, normally with a large construction firm, to undertake a substantial Government development project. The construction firm would co-ordinate the skills and services of a number of smaller companies to meet its contractual liabilities. This would be achieved through subcontracts, oral or written, often of a loose nature. Those involved participated in the knowledge that the contract was Government-backed and that payment would not be in doubt as long as the service was provided to the satisfaction of the Government employed architects overseeing the project. The project would be finalised, the works certified and the construction firm paid. In many cases, however, the firm walked off with the money, leaving those who had actually borne the cost of undertaking the project unpaid.

This travesty of justice was allowed to continue for far too long and Senator Feargal Quinn does everyone in the subcontracting sector a great service by raising this issue in the Oireachtas and seeking to have it addressed. Large contracting firms, many of which are household names, established separate companies for each project such that, although those delivering the service believed they were working for a reputable firm on a Government contract, they were actually working for a firm which had minimal share capital and been established to provide the parent company with an instrument to achieve payment and evade paying legitimate construction costs, while insulating it from liabilities arising from its reprehensible behaviour.

This occurred all over Ireland, but it had devastating consequences for many in my constituency where its proximity to the capital, coupled with the availability of employment, resulted in many experienced tradesmen establishing subcontracting companies to meet the needs arising in the construction boom. Thousands of young people could be seen in work vans travelling to Dublin each day and playing their part in enriching the State's coffers. This was co-ordinated and facilitated by the subcontractors who became experts in building, as well as recruiting, logistics, procurement, etc. They have been the engine driving an industry that in 2006 accounted for 25% of GNP. Even when the country was in deep recession in 2010, it accounted for 9% of GNP. It is a substantial part of the economy, yet the rot has been allowed to set in and it is endangering the industry's fundamental welfare.

This legislation, while better late than never, ought to have been introduced years ago when it would have protected the many decent, hard-working subcontractors who did not get to enjoy the high profit margins during the boom, but who were forced to absorb the cost of the collapse of building firm after building firm, with no recourse. I have met many such individuals in the past year. They have certified proof of the outstanding debts owed to them by building firms which have been paid in full for work exclusively carried out and funded in total by the people mentioned. The firms pocketed the payment cheques and refused to hand over even a small fraction of the amounts due. In many cases, they were Government contracts. In a few, withheld payments remained in the Government's possession, yet they could not be accessed on behalf of the people concerned.

I have witnessed the decimation of small building enterprises and the heavy toll it has taken on families. I have also witnessed the hurt and broken lives left in the wake of this phenomenon. This Bill will inject a sense of morality into the construction sector. More so, prompt payment and inexpensive and speedy dispute resolution facilities will lead to the creation of an environment within this sector that will provide the confidence and security essential to nurture the delicate shoots of recovery. The introduction of a regular payments system will bring to an end the opportunity for one person or company to reap the rewards of another's labours.

It will take time but I have no doubt the building sector will recover. The measures we put in place in this legislation will ensure that when it does, it will present as a healthier and more socially conscious model capable of delivering our construction needs without wreaking the mayhem which I have witnessed being visited on the decent subcontractors of my constituency. I never again want a system capable of visiting such destruction on hard-working people to be any part of our public building procurement model.

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