Noel Harrington (Cork South West, Fine Gael)

I also welcome the Minister of State, Deputy Brian Hayes, and I am pleased to support the Bill. Like previous speakers, I recognise the tenacity of Senator Feargal Quinn in proposing the Bill in the current and previous Seanad. I also acknowledge the work of Mr. Seán Gallagher in bringing forward the Bill.

The Minister of State has said he will be introducing amendments to the Bill on Committee Stage. I welcome this approach and hope we will see more Bills introduced in this way. Like previous speakers, I particularly welcome the changes made to the thresholds for contracts to be covered by the Bill. This makes sense.

The Bill reinforces a basic principle of business and commerce, that one is paid for materials supplied and work done. The very idea that we have to legislate to solve this problem is not logical. A contract is a contract and my word is my word. In the last decade this was, unfortunately, not the case.

I understand many businesses ceased trading or closed down because their debtors had failed to pay them. This had knock-on effects and caused the closure of other businesses because of their inability to pay their debts. There was a domino effect. The failure of just one business can have a domino effect on other businesses and the employment of hundreds, if not, thousands.

I am sadly and acutely aware of subcontractors who took their own lives after the failure of developers to pay their contracted costs. This contrasts with reports on certain developers and major contractors toasting the creation of NAMA with champagne in Marbella.

The need for the Bill is perplexing. It is strange that we must protect a certain sector within the construction industry. Why do we not have a Bill to cover every supplier of goods and services in all sectors? The construction sector must look at itself. We must differentiate between major developers, on the one hand, and contractors, builders and small family firms, on the other. We tend to think all contractors are the same, but this is not so. We must look back at the development of the construction sector between 1997 and 2007 when the Government, led by Fianna Fáil, took control of the nation when it was on a rising tide. Even the highest tide cannot prevent a ship from running aground if the captain and officers are sipping champagne down below. The close connection between government and the building industry is one of the major reasons the Bill needs to be enacted.

In the 1980s the construction sector was largely made up of small family firms which had operated honourably for generations. The change came in the 1990s, which was one of the worst and saddest periods in the history of the country. The prospect of instant profits and doubling one's money overnight attracted people with few or no morals. What was revealed at tribunals, particularly the Mahon tribunal, was merely the tip of the iceberg. We saw the ostentatious lifestyle of those involved in the construction sector. Racecourses became like air traffic control centres as they dealt with helicopters which now patrol the Grand Canyon for our tourists who visit such places. It is a pity the people concerned did not keep their feet on the ground when they felt it was more appropriate to be high fliers, leaving subcontractors, for whom we must now legislate, high and dry. A new generation of developers was spawned in the Galway tent and moral standards and behaviour slipped accordingly. Those who were attracted by super profits left much to be desired. This is one of the reasons we must legislate to protect the smallest and most vulnerable in the sector.

I hope the Bill is the first step in reforming the construction sector, in which proper regulation and legislation is required. The time is right to get rid of those with the Del Boy mentality which has led us to the current sorry situation in the sector and the economy.

Honest, genuine, competent and hard working contractors need not be concerned about the legislation. We already regulate taxi drivers, publicans, driving instructors, architects and others. It should not be beyond the bounds of possibility to bring people who are tempted to enter the black economy into a more regulated sector. Those who are competent and genuine have nothing to fear. We do not want to see another Priory Hall. We have enough of them to deal with and will have more in the coming months and years. These difficulties were not caused by contractors but by developers who got others to do the work for them and then refused to pay them.

I welcome the legislation and thank Senator Feargal Quinn and Members of the Seanad for introducing the Bill. I congratulate the Minister of State and the Government for bringing it to this point.

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