Jim Walsh (Fianna Fail)

I join with others who complimented Senator Quinn in relation to the introduction of this Bill. It is a short but nonetheless important Bill, and coming from a county such as Wexford where a large proportion of employment was based in the construction industry, and where there is a considerable number of contractors, large and small, this is obviously a very important topic for us.

I know from speaking to many people involved in the industry that many of the problems which have been elucidated here in the debate reflect the difficulties they are experiencing at local level. To some extent, we must close off the exploitation of legal loopholes. Many people operate their businesses to the letter of the law while others do this while also operating to a high personal ethical standard. That is where we need to get to. We need the legislation to reflect that type of ethical standard as well. The Minister of State indicated that many people here would have been contacted about large main contractors with a group of companies, one of which - effectively a paper company - was allowed to fold, and as a consequence all creditor subcontractors of that company receive nothing for work they have done. This Bill sets out a mechanism for tackling that issue. The experience in Britain is one that we could seek to replicate here. I understand that over the past 15 years there have been strict provisions on payment within the construction industry; it is claimed that this has minimised the effect of the recession on the construction industry in the UK, which is a not unimportant consideration in view of the difficulties we are experiencing here. The idea of an adjudication process in which cases must be decided on within a time limit of six weeks and which would have the force of being temporarily binding is good. The vast majority of cases, apparently, are concluded based on the recommendation of the adjudication process rather than being taken through the lengthier and more costly arbitration system. I urge the Government to address all the issues involved to ensure there is a fair payment system.

One item that is not provided for in the Bill is a requirement for a clause in contracts with subcontractors specifying that payments are to be made when they become due. It should be the right of the subcontractor to withdraw from his obligations under the contract pending payment without any recourse for the main contractor to dismiss him from the works or the site. This would create an imperative for the main contractor to deal with issues of payment.

Senator Alex White made a pertinent point about the application of employment regulation agreements across the board, including to people who were not party to them. This is now an impediment to the restoration of progress within the construction industry and is adding to the problem of unemployment. It should be considered as a matter of urgency.