Results 6,041-6,060 of 26,018 for speaker:Kieran O'Donnell

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

Kieran O'Donnell: I call Deputy Ó Murchú.

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

Kieran O'Donnell: It probably operates quite effectively in a low inflationary environment but in the current high inflationary environment, it is not fit for purpose.

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

Kieran O'Donnell: They have one common denominator. They are all being affected by hyperinflation.

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

Kieran O'Donnell: That is the kernel of the problem at present.

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

Kieran O'Donnell: The problem is that it is a double-edged sword. Many of the contractors are chasing cash flow to survive. That is what people do. In many cases even if they are not making a profit they can survive for a period. It is called "liquidity". In essence, they are probably insolvent. At the same time, they cannot make claims for inflationary rents. The bulk are existing contracts and this...

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

Kieran O'Donnell: I urge the Deputy to be careful.

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

Kieran O'Donnell: Can we have an update?

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

Kieran O'Donnell: I have spoken to representatives of Limerick City and County Council. Am I correct that a negotiated tender is needed to deal with the bridge, as in immediate emergency works, and side by side with that a new tender will be sought to finish the remainder of the road in phase 1?

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

Kieran O'Donnell: Deputy Canney is next. Even though he is not a member of this committee I will allow him to ask a question.

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

Kieran O'Donnell: I would like to flesh out that point about potential variations. The Deputy spoke about projects that have been contracted for but not signed

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

Kieran O'Donnell: Is that 15%?

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

Kieran O'Donnell: Is that for new contracts?

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

Kieran O'Donnell: That has been our understanding since 1 January.

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

Kieran O'Donnell: Going back to what Mr. Mullaney said, it may not be necessary to bring in a completely new contract but just do a variation within the existing contract.

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

Kieran O'Donnell: Correct.

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

Kieran O'Donnell: It probably worked in a low inflationary environment.

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

Kieran O'Donnell: I call Deputy Mullaney. I am sorry, I mean Mr. Mullaney. I was giving you a dual role there. I suspect you have no interest in getting involved in one of them anyway, having probably put many Deputies under your charge. We will go back to Deputy Canney's point. Another witness is due to appear before the committee and we need to conclude.

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

Kieran O'Donnell: However, there is an inherent flaw at the moment with the new contracts in terms of timing. I accept that 15% is fine, but we need to wait 24 months before it can be used. Within that 24 months, the contractors probably will not tender because they think the risk is too high. The ones who already have it are caught in an inflationary spiral affecting their cash flow. If they are prior to...

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

Kieran O'Donnell: That is something to be communicated. Would that come from the Office of Government Procurement, the Department of Transport or both?