Dominic Hannigan (Meath East, Labour)

I welcome the opportunity to speak to the Bill. This is another example of how politics is changing because the Bill started out as a Private Members' Bill in the other House where it was introduced by Senator Feargal Quinn whom I am delighted to see in the Distinguished Visitors Gallery. It has made its way through following a change of Government to be presented to us. As I am sure the Senator knows, if we pass it, it will be the first which started out as a Private Members' Bill in the other House to be passed since 1965. It is the new politics the people want to see and I hope we will continue to do things like this in the coming years.

In the programme for Government the Government committed to protecting all small business subcontractors who had been denied payment by larger companies. The Bill introduces a new dispute resolution system for subcontractors in order that they will not have to wait years for payment from larger contractors. It also allows for contracts to provide for interim payments during the duration of a contract. It is very worthwhile legislation, but some issues have been raised with me by a number of small contractors. The Minister of State, Deputy O'Dowd, may also have been contacted by them because they were from the east Meath-Drogheda area. I am sure he is familiar with these issues.

One issue concerns the proposed €200,000 threshold for contracts that fall within the scope of the Bill. This provision caused some unease among many small businesses which felt they would be left out in the cold by the high limit. The Bill would have done nothing for them at all and would have meant continued non-payment for work. It would have put some of the businesses under financial pressure. Many of the businesses are struggling because of the economic climate. I have raised this issue with the Minister on numerous occasions. I was very glad when I received word from his office that the proposed financial thresholds are to be re-examined. In effect, they will be reduced considerably, or possibly removed from the legislation. This is excellent news for small subcontractors and I very much welcome it.

I wish to raise another issue that has been raised with me in respect of this Bill and on which issue I have not received clarification. I hope we will receive clarification in the Minister of State's closing remarks. Will the Bill help suppliers of construction products that are irretrievable from a site because they have been incorporated into the structure of a building? An example includes subcontractors who provide tiling to a larger contractor. One cannot take tiling or a partition wall away from a site after installation. Will subcontractors in this category be included in the legislation? Perhaps the Minister of State will confirm this in his closing remarks.

I hope we can pass this legislation as soon as possible, preferably before the summer recess. There are many businesses that need to see the legislation put into law as soon as possible. They will welcome it and so will we.

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