Dáil debates

Tuesday, 22 March 2022

Saincheisteanna Tráthúla - Topical Issue Debate

Company Liquidations

10:10 pm

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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It saddens me tonight to have to raise this matter in the Topical Issue debate. It is outrageous that a major company such as Roadbridge would leave so many people without work. I want to speak about the subcontractors. In Mayo alone, anything up to €13 million may be owed by Roadbridge. It really annoys me that the ESB and Bord na Móna are involved in a big job in north Mayo. I am disappointed that no one from the Department is here to listen to the concerns raised. They need not think they are going to bring in a contractor from England, Northern Ireland, Dublin or wherever. There will be no contractor going into north Mayo until our people are paid their money.

You and I are here a long time, a Cheann Comhairle. I remember many years ago when I spoke in this House against the great public servants and Ministers who are not Ministers when they suggested we had to get major companies to come in and they had to have €1 million plus in their current account before they could apply for contracts from the State. If we had ten or 12 small contractors doing this now-----

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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The time is up now.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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I will have to raise this matter again tomorrow, a Cheann Comhairle, because this is not good enough.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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That is fine.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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I represent a lot of people who are hurt, out of pocket and will lose their jobs.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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I thank Deputy Ring.

Photo of Louise O'ReillyLouise O'Reilly (Dublin Fingal, Sinn Fein)
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As we can imagine, the news that Roadbridge entered receivership came as a massive blow to the workers and their families, and also to the subcontractors who are now in a state of incredible uncertainty. It is scandalous. While the receivers, Grant Thornton, go through the necessary processes over the next 30 days, it is important that affected workers and subcontractors can have access to social welfare. They are in the most awful form of limbo at the moment. If they want to take on new employment, they should not lose their redundancy entitlements if there is to be a transfer of undertakings, TUPE, situation.

Where does this matter currently stand? It is more than a week since the individuals in question were informed of the situation. Have Enterprise Ireland and the Tánaiste and Minister for Enterprise, Trade and Employment engaged with the company to try to protect these jobs? There are literally thousands of jobs on the line. Urgent action must be taken. The workers in question are doing vital infrastructure projects. There is a serious issue with the eTenders process if it has come to this and this has been allowed to happen.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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The receivership of Roadbridge is leaving a trail of human and economic destruction across County Mayo. In the short time I have I will make a couple of requests. The Department of Enterprise, Trade and Employment needs to establish a task force to identify what bonds and insurance are in place for the various projects in which Roadbridge is involved. The Government has responsibility for this because, as recently as July, it awarded a major tender to Roadbridge to complete the N5 from Ballaghadereen to Scramogue, thereby sending a message of confidence in the company. Subcontractors, who have been in business for generations, have been left on the hook for this. They have secured contracts from semi-State companies and Government agencies.

They are entitled to their money and their employees are entitled to their wages. I cannot tell the Minister the level of distress this is causing throughout our county.

I know the Minister will not have the answer to this but for those listening from the Department, where stands the Construction Contracts Bill 2013 championed by the late former Senator Feargal Quinn, which is supposed to protect suppliers in situations like this? It is an indictment of Government tendering policy, going back several administrations, that it seems to be price above everything. When the foundations were not there for the company, it collapsed and it is bringing subcontractors and employees with it.

10:20 pm

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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Roadbridge entering receivership has come as a major shockwave to workers, contractors and suppliers throughout Mayo and this State. The extent of the devastation for workers and contractors is unfolding each day before our eyes as employees find that their pension contributions have not been paid, their health insurance has lapsed and they cannot afford to keep paying their mortgages. It was alarming earlier today to hear the Tánaiste and Minster for Enterprise, Trade and Employment refer to the liquidation of Roadbridge when, in fact, the company has gone into receivership. It begs the question whether he or his Government know what is happening and whether they have a handle on this.

What engagement has taken place with Roadbridge? What bonds are in place? We all know that construction inflation has gone through the roof. We also know that due diligence carried out by companies before allocating major contracts has fallen short and there has been auditing of verified companies as financially stable when they were anything but that. The fact is many subcontractors and suppliers have now been burnt twice in the past decade and this is catastrophic. These are intergenerational companies and local employers that operate to the highest ethical standards. They are loyal to their communities, their workers and to the families who sacrificed and worked hard to build reputations and to carve out businesses in the toughest of times. The Government needs to step up here.

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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As others have said, the announcement by Roadbridge that it is entering into receivership has been met by major concern throughout the State but especially in my town of Limerick. There is concern for the plight of the workers, many of whom worked for that company for decades or more. This is, of course, a terrible blow to the workers, subcontractors and their families. There is also a huge concern regarding if or when important local projects contracted to Roadbridge will ever be completed. The projects in Limerick I am referring to are the Coonagh to Knockalisheen road and the houses in Moyross and Southill.

I welcome the intervention by SIPTU in securing supports from the Department of Social Protection for these workers, although it is disappointing that there was ever a suggestion that such supports would be withheld. These workers must now be compensated appropriately for the sudden loss of their employment. We cannot have a repeat of the defeat of the Debenhams workers in 2020. Will the Minister of State outline what steps the Government intends to take to ensure that these workers receive a fair payment, their entitlements and appropriate training, if required, following this receivership? The Minister of State will be well aware that employees have told us they do not know whether money they paid into their pensions, or money they paid to private health companies, is there. All this stuff needs to be clarified. For us, the core of all this is protecting the workers and their families.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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I thank all the Deputies for raising this very difficult issue. I am very concerned to learn of the difficulties being experienced by Roadbridge Limited and the potential knock-on effects on its sub-suppliers and customers. I am answering on behalf of the Tánaiste who is the Minister for Enterprise, Trade and Employment. I extend my sympathies to all employees and subcontractors who have been affected by this decision by the company to go into receivership. I know that this news will be very concerning for all the workers involved and their families. The Department of Enterprise, Trade and Employment and the Department of Social Protection will support the company and the employees in any way they can. Officials have been monitoring the situation carefully and have been working closely with the Department of Social Protection in order to assist affected employees during this difficult time.

The Government is committed to rebuilding a strong economy that provides stability for workers and helping those who have lost their jobs to secure alternative employment. We will continue to be as responsive as we can to the issues as they unfold. During this period of uncertainty, I am glad to report that employees have received assurances from the receiver regarding their redundancy entitlements and access to income supports. Following joint engagement late last week with the Department of Enterprise, Trade and Employment and the Department of Social Protection, the receiver has confirmed to employees that there is no statutory restriction on them taking up additional employment during a statutory redundancy consultation period in circumstances where they are not expected to attend the workplace. Provided that they do not resign from their current employment, there should be no obstacle to retaining their statutory redundancy entitlements.

Officials from the Department of Social Protection have already met with the receiver and employee representatives to provide information and assurances regarding measures taken to accept online applications for income support as quickly as possible. My Government colleague, Deputy Heather Humphreys, the Minister for Social Protection, has already gone on record to encourage individuals now seeking jobseeker's payments to apply online so that her Department can process their claims as quickly as possible.

Enterprise Ireland has been in regular contact with the company, including engaging in discussions with the acting CEO of Roadbridge and the receiver to investigate whether any Roadbridge contracts can be fulfilled by other operators in the market. This, however, will be challenging given the current inflationary pressures. Nevertheless, these discussions are ongoing and everything possible will be done to achieve as positive an outcome as possible. Indeed, the receiver has given an undertaking to continue discussions with Enterprise Ireland on the ground in the coming days to further discuss how Enterprise Ireland can further support employees and subcontractors impacted by the receivership.

Indications are that the staff of Roadbridge should be able to find alternative employment very quickly. The Department of Social Protection will provide all relevant supports through the local Intreo offices. The Department is still gathering information as to the scale of the potential adverse impacts on sub-suppliers and subcontractors and it would certainly welcome any further intelligence or information that Deputies may have in that regard.

There were a couple of questions. Will employees be able to access income supports? Yes, the Department of Social Protection has moved quickly to ensure that employees can access income supports through online application. Can an employee take up another job? There is no statutory restriction on employees taking up additional employment during the 30-day consultation period in circumstances where they are not expected to attend the workplace. Provided they do not resign from their current employment, there should be no obstacle to retaining their statutory redundancy entitlements. While there was initially some confusion regarding this matter, the receiver clarified the issue with Roadbridge employees on 15 March.

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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The people of Mayo supported many of the projects Roadbridge was involved in. They thought it was going to create jobs. Little did they think they would be taking away jobs from established businesses. I will put on the record that this is wrong. Businesses that have been in operation, some of them for 30 or 40 years, and family businesses that have been in operation for 70 or 80 years, will now be put out of business by a company like this. The Government has to step in. I again say to the receiver, and it was in the Minister of State's reply, that another company will not come in to finish that project. We had the Shell to Sea debacle. We will now have another debacle but I will be with those businesses, as will Deputies Calleary and Conway-Walsh. We will not allow another contractor to come in unless our people are paid.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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The best support the Government can give is to get these subcontractors paid. I welcome the changes that have been made for employees but there are subcontractors tonight who are facing redundancy decisions for their employees. Semi-State companies, such as Transport Infrastructure Ireland, TII, and Government agencies, had these contracts. Bonds are in place on these projects that can be used to pay subcontractors and insurance policies are also in place. That is why I reiterate the call for an urgent taskforce from the Department of Enterprise, Trade and Employment to establish what is available so these companies can be given that information and can pursue it. I reiterate what Deputy Ring said. Other companies are being asked to price jobs. As we speak, they are on-site pricing jobs for some of the projects, while Mayo-based companies are being left without any money. That cannot be allowed to happen.

Photo of Rose Conway-WalshRose Conway-Walsh (Mayo, Sinn Fein)
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The people of Mayo will not stand for this. We will not be pushed to one side. People and contractors who have worked in our communities for years and years are not going to stand by and be pushed around like this. Something needs to be sorted and the Government has to step up for them and for the workers. One worker told me today of his experience of having to go to the Society of St. Vincent de Paul. It is all right saying they are entitled to income support but the fact is they have mortgages, commitments and all these things that will not be met by income support

They are being driven into poverty. Something has to be done and the Government has to step up.

10:30 pm

Photo of Maurice QuinlivanMaurice Quinlivan (Limerick City, Sinn Fein)
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I want to clarify something in the Minister of State's response. I want to ensure that we can get a guarantee from the receiver that it will be the case that if workers do not resign from their current employment there should be no obstacle to retaining their statutory redundancy entitlements. That is what the Minister of State said and I accept her bona fides but I would like some more of a guarantee and for the Government to go back to the receiver and ensure that we get that commitment in writing for employees. I spoke to some today and they are in limbo. They are not looking for work at the moment because they believe it will affect their redundancy. We need to get something in writing from the receiver that we can give to those employees.

Photo of Mary ButlerMary Butler (Waterford, Fianna Fail)
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It is in the speaking note and in the supplementary note too. There was some confusion on that matter. The receiver clarified the issue with Roadbridge employees on 15 March that provided they do not resign from the current employment there is no statutory restriction on employees taking up additional employment during the 30-day consultation period in circumstances where they are not expected to attend the workplace. Those are the two caveats: if one is not expected to attend the workplace and also that one does not resign from one's current job.

The Government is now working in a co-ordinated way to assist the workers in terms of employee supports. The receiver issued a clarification on 15 March which should at least ease the fear of workers and provide assurance that the State will provide appropriate supports to them. The Intreo services of the Department of Social Protection will proactively help them to assess opportunities available for employment or appropriate training and development options. The concerns expressed by the Deputies about sub-suppliers and subcontractors are very real. The Department does not know yet the exact scale of the debt problem in Roadbridge but it could be significant. It may be that the only route for recovery is through the normal insolvency and receivership process. It may be, therefore, that certain major construction projects will suffer delays if such projects need to be retendered. However, the Minister and the Department of Enterprise, Trade and Employment are working across Government, including with the Department of Environment, Climate and Communications and the Department of Transport to examine what options are available with regard to how these projects might be progressed.