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Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: The N25 from Carrigtwohill to Midleton was mentioned, as was the N2 from Clontibret to the Border.

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: Regarding funding, as mentioned in the Department's opening statement, the figure referred to was €733 million. The issue we have now with cost inflation will have a knock-on impact on that capital funding envelope. Am I right about that?

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: At €733 million.

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: Of that €733 million, given the cost of materials going up and the issue of hyperinflation, and the Chair referred to existing projects earlier, has the Department factored the difficulties that will be encountered in this context into the information presented to the committee regarding the funding envelopes for the national roads network?

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: Correct. I am sorry Chair, that is why-----

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: No, the Chair actually said what I was alluding to. For the sake of €10 million, we have stopped six projects. What percentage is that of the Department’s budget? This does not make sense, to be honest, and that is why I am glad the Chair said what he said. I am not picking a row now, but €10 million is not a huge amount of money in the overarching budget of the...

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: I thank the Chair, but I would like to hear the response to his question. I will then come in again.

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: Okay. I understand the response from Mr. Ebrill in respect of the six projects. This comes back to my fundamental comment, however, and it is one I know many members will be sick of me saying, that the national development plan is the flagship policy. This meeting is about the reform of public works contracts. In that context, I would like to hear what the Department has done in respect...

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: As a matter of interest, does Ms Brogan think it should be, or where should it rest? I know I am presenting her with an academic type of question.

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: I am happy to conclude there.

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: The comments of the Chairman are backed up by the documentation we received in the context of the report I spoke about in terms of public tendering and the one the Chairman has quoted from. That is why it is important we have further meetings on this. I ask Ms Brogan to give me, if not today then by email, the concluding dates for Dunkettle and Macroom. I thank her again for being here today.

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: I welcome the witnesses and thank them for being here. If Mr. Parlon were to give us a task from today's meeting, what would it be, based on his meeting with us and the presentation we received earlier from the Department of Transport?

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: Could Mr. Sheridan distil the last two chunks of his presentation down for us? In simple language, what does it mean for the committee to go to the Department of Public Expenditure and Reform? Does he believe that Department, from the Minister down, is seriously engaged, passively engaged or not engaged at all?

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: Is that in terms of staff personnel, working from home or otherwise?

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: Mr. Parlon's reference in his opening statement to the issue concerning the Office of Government Procurement from 2019 about risk transfer because the market was not pricing risk, as well as Mr. Sheridan's contribution, are interesting to us. We are in a perfect storm, but it has led to an opportunity for reform and realignment of the process. The case study at the back of Mr. Parlon's...

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: That is true.

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: I am happy, Chairman. Well, I am not happy. I go back to my earlier conversation piece about the documentation we got today and Mr. Sheridan's remarks about the CIF members. The decline in the Civil Engineering Contractors Association membership, the tendering process and the number who are not tendering, and the development of contractors disproportionately increasing their turnover in...

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: May I ask a question on that issue? My apologies to Deputy Canney for interrupting. On Mr. Parlon's point relating to banks, how have banks facilitated, helped or hindered in the whole process? I ask that as an aside.

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: To add to that, the supplier and the bank's relationship with the supplier is also part of that equation.

Joint Oireachtas Committee on Transport, Tourism and Sport: Reform of Public Works Contracts for the Construction of Transport Infrastructure: Discussion (27 Apr 2022)

Jerry Buttimer: As part of its preparation for today’s meeting, the committee received a document entitled, Public Tendering Practices and their Impact on Delivering Value in the Construction Sector. A worrying issue for me and other members of the committee is that since 2009 the number of members of the Civil Engineering Contractors Association has fallen from 138 to 77. Another recent...

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