John O'Mahony (Mayo, Fine Gael)
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I thank the Ceann Comhairle for selecting this major issue for discussion on the Adjournment. I raise it because of my concern for Cordil Construction, a major construction company which has been trading for many years in the west - in fact, all over the country - and completed numerous projects for both the State and private clients to the highest standards. It has continued to grow and be profitable, even in the teeth of a recession in the past four years. It has successfully completed projects for the Departments of Education and Skills, Defence, Environment, Community and Local Government and Health and Children, as well as many other State agencies. It employs more than 50 workers directly and hundreds indirectly when subcontractors and suppliers are taken into account.

It was ironic that last Tuesday, just as the Minister was announcing the jobs initiative, which I welcome, this company was getting ready a letter to its subcontractors and suppliers and temporarily suspending work on 15 sites throughout the country because of a serious cash flow problem caused by the withdrawal of overdraft facilities by its bank. The facility was reduced from €2 million to €150,000. However, the company is owed up to €4 million for projects already completed for the State and has many live projects ready to start. I appeal to someone to explain why there is no joined-up thinking on this issue. The bank involved is State-owned and the contracts involved are State contracts. Could one side of the house not help the other in order to save more than 1,000 jobs and the State the cost of putting all these workers on the dole queue at more than €25,000 per head?

I am glad to see the Minister of State with responsibility for small business, Deputy John Perry, is taking this matter because I know of his keen interest in this topic and the great work he has done on the jobs initiative projects and in bringing jobs to his area. I have no agenda whatsoever for this company. My only interest is to keep people at work and paying taxes to the State rather than drawing social welfare payments from it.

In the past few days alone I have been contacted by a number of suppliers and subcontractors who are facing ruin if this company goes under. It would cause ruin to all of the people concerned and their families and cost the state more than €11 million per year in social welfare payments. It would also delay all of the State projects mentioned, as well as the other work in which the company is involved, and cost extra money to put these projects back on track and award them to some other company. As I said, I have been contacted by a number of subcontractors and suppliers. I have also been speaking to employees of the company who are willing to restructure in any way possible if it will keep the jobs alive. I appeal to whoever is in power to do whatever is necessary. I am sure there are many other companies in a similar position. It just does not make sense to let this company go over a simple cash flow problem. We have spoken here on many occasions about recapitalisation of the banks and so on. This is a classic example of a bank squeezing a company and not allowing it to trade or continue to employ workers.

John Perry (Sligo-North Leitrim, Fine Gael)
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I thank the Deputy for raising this important matter on the Adjournment and assure him of my concern about the matter. I know he has been working on this case for some time and his concern is evident.

I understand the company yesterday informed various employers and subcontractors that it intended to suspend all works on its projects for a period of two weeks owing to unforeseen factors encountered by it on its building sites, with the temporary loss of approximately 450 jobs. I am informed that it is involved in a number of contracts with Departments, including some school building and Health Service Executive projects. It has stated it is owed payment for building projects undertaken on behalf of the State and that it is experiencing cash flow problems due to difficulties in securing credit from its suppliers. Officials from my Department have been in contact with the Department of Education and Skills and I have been assured that all moneys due to be paid under the terms of the main contracts have been paid to the company.