Anthony Lawlor (Kildare North, Fine Gael) | Oireachtas source

I thank the Minister of State for attending. I compliment the Minister, Deputy Quinn, on the provision of six new schools in north Kildare, in Naas, Celbridge and Maynooth where new schools will be built, and in Clane, Celbridge and Kilcock where major extensions will take place.

I wish to highlight a problem in my parish in Kill, where two new primary schools were built in the past three years. One of them is incomplete and one was completed a year and a half ago. Following a tendering process a contractor was allocated. However, the dogs in the street knew this contractor would be in trouble within a few months of commencing the building and this was proven to be true. He only completed the rising walls of the building and then went into liquidation. This resulted in a number of subcontractors and building supply merchants not being paid.

The question I had to ask at the time was whether due diligence had been given during the tendering process to the company that had been awarded the contract. I thought lessons might have been learned. However, I recently discovered issues have arisen in regard to the tendering process in respect of a project at a second school in my parish of Ardcath.

It is worrying to note that the tendering process is not being properly adhered to. In my view this problem arises because the Department only considers low tenders, as a result of which many contractors submit tenders which are below cost. The awarded contractor then discovers half way through the process that he cannot afford to continue with the contract, leaving subcontractors, many of whom are from the locality in which the school is being built and those who supply materials to them out of pocket. There is a Bill before the Oireachtas dealing with subcontractors and the issues facing them.

Having undertaken some research I discovered that under EU rules the Department of Education and Skills can only deal with the lowest tender. As far as I am aware, most European countries do not award to the lowest tender, rather they give the job to whomever they believe will be able to complete the project. However, the Department of Education and Skills is rigidly following the rules laid down by the EU procurement section.

I hope the Minister of State will take on board the following points. The cheapest tender is not always the best value or best option. In my experience, this results in the Department having to re-tender to have the project completed. Below cost does not mean we get value for money. It may lead to poor quality building materials and to the non-payment of subcontractors. I ask the Minister of State to ensure the procurement section of his Department, when undertaking an analysis at prequalification stage, ensures all risks associated with a contractor are taken into consideration and the Department is not constrained by EU rules. It is important that common sense is allowed to prevail. We cannot allow a situation to arise again whereby the hopes of parents, pupils and teachers are dashed when their school is not completed on schedule.

I ask that the Minister of State, when reviewing the procurement process in his Department, would take on board these issues to ensure we do not end up with half-built schools around the country and no contractors on site owing to their having gone into receivership.

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