Derek Nolan (Galway West, Labour)

Hindsight is great. If we were to examine the history of the economic downturn and its effect on the construction sector, our hindsight would show that subcontractors and others working in the sector were clearly not properly protected. This Bill seeks to address the imbalance and protect the workers concerned. If we are to do anything during the term of this Dáil, we must consider all the dreadful mistakes of the past, the blind eye that was turned to various practices, the complete indifference to the market, etc. and try to put some protections in place to remedy what occurred. We should use this term to ensure that what we construct over the next five to 15 years as an economy will be different from what preceded it and that we look after people. This Bill is a small but very significant piece in the larger puzzle that is being solved and I am delighted to support it.

The reason I chose to speak on this Bill is the great cross-party support for it. Countless subcontractors and others who worked in the building industry have come to see me in Galway and I have spoken to them. Irrespective of whether the contracts are big or small, contractors fear being at the mercy of a large developer. We must never forget the significant power play that took place. Very large developers and companies with considerable assets were able to dictate terms in many respects and completely set the agenda regarding contracts and operations. If one tried to go against this or to assert oneself, one found very quickly that one was excluded from subsequent contracts or one was treated so badly or poorly that one was forced out of a contract. There was an imbalance and this Bill will go a long way towards redressing it.

I read Senator Quinn's opening speech in the Seanad. He spoke, quite rightly, about how corporate and company law allows large companies to set up various companies. The corporate veil was not simply between the developer and the company. There were many different corporate veils protecting people from various factors. We may have to consider the means by which company law, which involves limited liability, can be and has been abused. In this House, it was recognised recently how company law has protected people. It has been abused and we need to put in place protections for those who are suffering.

What I like about the Bill is that it is putting the architecture on a statutory footing. For far too long, we have regarded the introduction of codes of conduct and best practice guidelines for businesses as sufficient, but this has always been the weak approach in that it really accounts only for those who are compliant in the first place.

The only way one can regulate and ensure people have rights is through legislation where their rights are spelt out and are put down in law, and people can have access to them and can litigate for them.

On the litigation, what I particularly like about this Bill is that it speaks of a right to adjudication. Many of these companies are small, do not have significant cashflow and simply do not have the ability to pay large legal fees. Having the right to an adjudication - the real focus of developing law reform is alternative dispute resolution and dispute settling mechanisms - is important and to be commended.

I am not sure the Government is focusing enough on the black economy and on business that is being done outside the law. In speaking on the corporate donations aspect of the electoral reform Bill yesterday, I stated that one cannot legislate for a moral compass. We can provide as many laws as we want to reduce donations but we cannot stop somebody pocketing money and not declaring it. We are increasingly seeing, particularly in the construction sector, a move towards the black economy where people who were capable of operating in a more regulated environment are competing for work in such an aggressive manner with such strict competition that the black economy is growing. Laws never apply to the black economy. Considerable emphasis needs to be placed on the black economy which is estimated to cost the taxpayer €5 billion a year in lost revenue. I am working on proposals in this regard about which I hope to speak to the relevant parties in Government.

I commend Senator Feargal Quinn on his Bill. In his opening speech in the Seanad he acknowledged the work of Mr. Seán Gallagher who approached him about it, and I commend Mr. Gallagher, too, on his input into the Bill. It is a good example of a Private Members' Bill being used properly and constructively and being facilitated, and that is to be commended. I will not get into the debate of my colleague on the worthiness of the Seanad except to say that this certainly shows the Seanad is capable of proposing excellent legislation, and I am delighted to support it.

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