Dáil debates

Thursday, 6 November 2014

Other Questions

Public Procurement Contracts

10:10 am

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank the Deputy for her question and I note her ongoing interest in issues of procurement.

The main purpose of the EU public procurement regime is to open up the market and ensure the free movement of supplies, services and works within the EU, having regard to Treaty of Rome principles including transparency, proportionality and equal treatment. This is the rationale that shapes the detailed rules and directives governing the regime.

Under the current regime and standard forms of contract, there are requirements in place for compliance with legal obligations under labour legislation. For example, clause 2 of the standard form of the public works contract requires the contractor and his or her personnel and subcontractors to comply with all legal requirements.

There is a substantial body of legislation that directly or indirectly governs construction activities. However, two key pieces of industry-specific legislation, the Safety, Health and Welfare at Work (Construction) Regulations 2013 and the Building Control Regulations 1997 to 2014, both place considerable responsibility not only on contractors but on all those involved in construction projects, including designers, supervisors and individual workers.

The ultimate sanction for a serious breach of health and safety regulations is a criminal conviction and imprisonment. Compliance with health and safety regulations is separately assessed in a pre-qualification of works contractors, with supporting evidence required to demonstrate that the applicant possesses sufficient resources and is competent to carry out the proposed works. The works requirements, which are a key part of the contract documents, also set out detailed specifications on how regulatory standards are best to be met.

Contractors are required to submit ongoing certification under clause 5.3 of the contract, which deals with pay and conditions of employment, to show that they have complied in full with the requirements of that clause, which covers aspects such as compliance with employment law and deductions for social welfare. Contractors are also required under this clause to maintain records and timesheets in respect of all those engaged on the works.

The new EU rules comprise a suite of three directives that repeal the existing rules governing conduct in procurement across the EU, but the basic architecture of EU procurement will remain intact.

I note that I will run out of time. I will come back with a reply to the Deputy's supplementary question. The key message is that I have opened this up to consultation for six weeks. I encourage people to go to the website www.procurement.ieand examine the consultation document. The first question relates to labour law. We are eager to get this right. We get only one opportunity to transpose these directives correctly, and that is why, while consultation was not necessary, I decided it was prudent. Consultation is open until 12 December.

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