John Paul Phelan (Carlow-Kilkenny, Fine Gael)

I welcome the opportunity to contribute to the debate on this Bill. I do not recall whether I spoke in the other House on the occasion of its introduction by Senator Feargal Quinn some years ago. I commend the Senator on his achievement in bringing it through the Upper House and to the Dáil. Several speakers observed that there is an element of closing the stable door when the horse is gone. However, it is never too late to do the right thing and it is proper that legislative provision is made to ensure persons who have legitimately carried out work are paid for it.

A properly functioning construction sector is important in any economy. At the same time, whatever action future governments take, we must ensure we never again find ourselves in a situation of over-reliance on one sector of the economy. While seeking to avoid any recurrence of the construction bubble that featured in the latter years of the Celtic tiger, it is important for any normal economy to have an operational construction industry. The Minister of State, Deputy Brian Hayes, includes within his remit the Office of Public Works, which is engaged in construction-related matters throughout the country. This legislation goes some way to ensuring a fairer and more sustainable industry into the future. Deputy Marcella Corcoran Kennedy mentioned a recent case in her constituency where the completion of a public project was marred by protests at the lack of payment for work completed to certain subcontractors. I am entirely in agreement with Deputy Pat Deering's suggestion that we should ensure no future public contract is awarded to large contractors which have withheld payment in the past from subcontractors engaged to carry out specific works. That is a reasonable proposal.

I take this opportunity to highlight the difficulties experienced by many people who worked formerly in the construction sector in terms of accessing benefits and payments. I am aware that the Minister for Social Protection is reviewing this issue. Thousands of people in the sector are now unemployed, many of whom have left the country. Many others, however, are not in a position to leave because of commitments in this country. For the self-employed, access to any benefits is a minefield and provision in this regard is completely unsatisfactory. I urge the Minister for Social Protection to introduce changes to make the system fairer for previously self-employed persons, in the construction sector and elsewhere, who subsequently find themselves out of work.

There has been a huge increase in recent years in black market activity in construction. We have all, for example, heard anecdotal evidence of people who continue to work as carpenters, tilers, blocklayers and so on but must compete for business against others who can afford to charge lower rates because they are simultaneously claiming benefits. It is unacceptable that people who are legitimately striving to keep businesses afloat are being undercut in this way. It is not, unfortunately, an issue that is easily addressed. I had a long discussion last week with a constituent who formerly employed eight or ten carpenters and is now reduced to operating as a sole trader. This individual is struggling to stay in business while competing against former employees of his who are undercutting his prices while continuing to draw welfare benefits. People who are obeying the law and striving to meet their costs on a weekly basis are competing on a far from level playing field. There is significant work for the Government to do in this area.

The information provided by the library and research service highlights an area for possible amendment in the Bill by way of the introduction of a payment system based on bonds or trust accounts. This is particularly relevant in the context of the significant number of unfinished housing estates throughout the country. What we currently have is a highly unsatisfactory system where local authorities are drawing down bonds for the completion of necessary works on unfinished schemes, particularly in regard to safety issues. The problem is not just that these estates are unsightly but that many of them present significant dangers to residents. Our antiquated system means it takes far too long before work can be done to make these sites safe. There have already been tragic accidents in several estates. I could show the Minister of State schemes in my constituency where it is only a matter of time before disaster happens. If the legislation is to include provision for bonds and trust account payments for subcontractors, we must take on board the fact that the current system of bonds in respect of the construction of residential estates is unsatisfactory. The whole area should be reviewed in its entirety with a view to securing a satisfactory result for the owners of properties in the hundreds of unfinished housing estates throughout the State.

I support the provisions contained in the Bill for making the construction industry more viable into the future and fairer for those who are working in it.

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