Thomas Byrne (Meath East, Fianna Fail) | Oireachtas source

We would accept that. The Minister of State has already spoken at length and he has heard some of what we had to say.

I am grateful to my colleague, Deputy McGuinness, for affording me the opportunity to speak on behalf of the committee of which I was formerly a member, as was the Minister of State, Deputy D'Arcy. It is an issue I have previously spoken on in the House and on which I have long had an interest, both as Fianna Fáil's education spokesperson and as a Deputy for Meath East where, frankly, many subcontractors were shafted, there is no other word for that. The report's most important recommendation is its last substantive recommendation that a contingency fund be set up. The committee heard in its evidence that about €14 million is owed to subcontractors. I have no doubt that millions of that is owed in Kells, where my constituency office is located, and in the surrounding areas.

I have met many of those subcontractors. When we think of subcontractors, we tend to think of individuals. While many individuals have been badly affected, so too have many businesses, including large local undertakings and family businesses. I remember when the project in Kells was starting an open day was arranged for local business people. I believe it was held in Carlow or wherever the Sammon Group had its office. Business people were invited to meet representatives of the group to find out about the opportunities. When I heard about the open day, I thought it was a wonderful opportunity for local business people. It was fantastic to have a major construction project coming into a rural town like Kells. It could only be good news, we thought, but unfortunately for many local contractors, it was a disaster. There is no other way to describe it. Contractors and businesses, some of which had offices across the road from where the school was being constructed, were delighted to get that stream of business because the economy was at its lowest point at the time.

Before the Sammon Group collapsed, contractors who were looking to be paid got in touch with me asking if I could I do anything about it. I raised the matter in the House with the then Minister for Education and Skills, Deputy Bruton, and whatever happened at the time, whether through embarrassment or something else, moneys were paid. This was before the company collapsed. Many issues arose with this project and they left a sour taste in north County Meath.

If there is a problem with a school building project, it will be resolved at some point. The girls attending Eureka secondary school will get the benefit of the school at some point, even it has been substantially delayed, even beyond initial expectations. However, business people, workers and families in Kells will suffer forever as a result of lack of payment for goods and services. One of the points made to me is that in some cases the goods provided, for example, tarmacadam and blocks, are in the building are on site. The providers have paid for the building, a public service, but are not getting paid for what they have provided. It is scandalous and outrageous that this has been allowed to happen. It is important for the country's economy and the future of public private partnership programmes that the fine recommendations of the committee's report are put into practice and such a case never occurs again.

The committee also pointed out that the Construction Contracts Act 2013, which was initiated by the former Senator, Mr. Feargal Quinn, in the Seanad, has not worked to the level expected. At the same time, people need to know about the provisions of the Act. That is another recommendation of the report.

I worry when I hear the word "learning". I accept there have to be learnings from this. Learning is a new word that has entered into the political and administrative lexicon in recent years. We used to hear that mistakes had been made. Mistakes were clearly made in this case. One of the biggest was the failure to look at what was going on in the UK where the authorities also made the mistake of trusting Carillion too much. They said it was a fine company without looking at the underlying position of the company or asking how on earth it was able to provide all these contracts at rock bottom prices in the public sector. It simply was not possible to do so and it created a bubble that was waiting to burst. Unfortunately, when it burst the consequences were devastating for subcontractors and severe for school children.

Having said that, I am generally supportive of PPPs but only if there are adequate protections for the subcontractors who provide work to the main contractor. If the State is directly contracting a project, some protection will be provided. In this case, where the financial arrangements were extremely complex and involved banks in Japan, a company in England and another company in the Netherlands, the State was removed from the process. The State has been subsidised by local business people in Kells and north Meath. That cannot happen again and Fianna Fáil will not be able to support PPPs if that is allowed to be the case and the recommendations are not looked at with the seriousness they deserve by those in charge of public procurement.

I pay tribute to the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach. If the Ceann Comhairle will forgive me, I also pay tribute to Mr. Ken Murray who has done the radio work for five counties, including, I understand, the Minister of State's county, and also on Shannonside FM. Today could be the last day the debates are broadcast on the various local radio stations, which is a great tragedy. This is a matter for the Oireachtas Commission but instead of cutting back, we should be expanding coverage of Dáil proceedings to all of the radio stations that are willing to take it. It is a useful public service and one of a number of ways of following debates. I express my gratitude to Mr. Murray for his work in the Oireachtas over many years, as I am sure will Deputies Fitzmaurice and D'Arcy given that radio stations in their areas are covered by his work.

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