Dáil debates

Wednesday, 20 June 2012

Construction Contracts Bill 2010 [Seanad]: Second Stage (Resumed)

 

5:00 pm

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael)

I thank all colleagues for their contributions on the Bill. We have had a substantial debate in the course of the past two months. In excess of 40 or 50 colleagues spoke in the debate. There is urgency, however, in putting the legislation on the Statute Book because it was first mooted by my colleague, Senator Feargal Quinn, in the previous Seanad more than 16 months ago. We have done a lot of talking about it and there is now a need to get it in place. That is the crucial part of what we are trying to do.

It is fair to say there is cross-party support for the Bill. Given the fact that it remains a Private Members' Bill, I have made it clear from the start that it is in the ownership of Senator Feargal Quinn, it just happens to be in my charge in this House. We have gone through a thorough examination of the issues in the regulatory impact statement. In that assessment I was privileged to bring Opposition speakers and all of the construction industry together under the one roof, as it were, around the same table to tease out many of the issues that they thought required amendment in the original draft. I made a commitment at the outset of Second Stage, which I repeat, that we will introduce a number of amendments on Committee Stage which will greatly improve the operation of the Bill, not least on the issue of thresholds and the length of time involved in terms of the right of individuals to move off-site, as it were, if they consider their contract is not being upheld. We will also examine how suppliers can be incorporated into the Bill.

I have heard comments from all sides about those who produce products who find they are not being paid. They are also part of the supply chain and there is a fundamental issue of fairness that must be shown to them also. It is a difficult issue to resolve, but I am committed to doing so. We have also given a firm commitment that the adjudication process will be robust, fair and come down clearly in favour of subcontractors, all of whom have been left in a difficult position. The entire objective of the exercise is to be fair.

I was very impressed to see in the United Kingdom the adaptation of its adjudication system that had been in place for some years. It works well. In the great majority of cases there is a result and people get back to work and are paid over a period. The crucial responsibility we, as legislators, have is to put in place robust legislation that will allow for the current situation and what will happen in the future.

Deputy Paschal Donohoe has made the point that we will not always have a construction industry accounting for approximately 6% of GDP. That is not the position in any modern economy. We should have a construction industry which accounts for approximately 10% of GDP, but, equally, it is unsustainable to have a construction industry which accounts for 20% of GDP. That situation will not return any day soon, nor should we want it to. Therefore, we must plan for the future and put in place a sustainable construction industry with correct rules that will apply to everyone and in which there is fairness. In the great majority of construction cases people do not enter into contracts. That is the case, principally in the private sector, but there are also examples in the public sector. We must ensure the contracts in place are adhered to in order to achieve a swift resolution of disputes when the time comes.

The task we face, having concluded Second Stage, is to quickly take Committee Stage so as to introduce the Government amendments I have mentioned and seek the support of colleagues at the select committee and on Report Stage in the House. It is an ambitious timescale. We do not know when the Bill will be returned to the Seanad, but we have a responsibility to the entire industry to ensure we can move the Bill along as soon as we possibly can and in a manner which has cross-party support.

I very much appreciate the support we have obtained for the Bill from the Opposition parties with which I have worked in developing some of the ideas behind the amendments. I look forward to receiving their support. I am open to the production of additional amendments from all sides which will strengthen the legislation. This is a piece of work which has come from both Houses, from an Opposition Senator, as it were, and we have a responsibility to ensure the bipartisan approach applies on Committee and Report Stages. I will not be found wanting in that regard.

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