Seanad debates
Wednesday, 19 May 2010
Construction Contracts Bill 2010: Second Stage
6:00 pm
John Paul Phelan (Fine Gael)
I will not need my eight minutes. I missed most of the debate thus far and I am not long in the House, but I wanted to take the opportunity to commend Senator Quinn on his introduction of this Bill and to support it. I remember the Minister of State, Deputy Mansergh, who was then a Senator, was here five or six years ago when we discussed a Private Members' motion in the name of the then Senator Jim Higgins, who is now an MEP. He proposed a similar Bill applying specifically to electrical contractors in the construction sector, although it was voted down by the Government at the time - perhaps not surprisingly, as we were then in the middle of a housing bubble which later proved to be catastrophic and there were many voices on the Government benches who did not want to believe there would ever be a day of reckoning for construction and for the people employed in it. Sadly, however, that day did come to pass, and many people in the construction industry have lost their jobs or are in financial difficulties.
I was struck by the comments of Senator Jim Walsh, with whom I do not often agree but who was perspicacious with regard to the construction industry in the south-eastern region. I spoke recently to a person involved with IDA Ireland who said he regarded the south east as a part of the country that had not seen anything from the Celtic tiger. Construction was a major employer in that area, particularly in Wexford but also in Carlow and Kilkenny and perhaps in the Minister of State's constituency of Tipperary South. Many of those jobs are now gone; some people have left the country to try to gain a livelihood and are not part of the live register figures any more.
I commend the Minister of State's decision to consider the issue for the next five months before returning to the House on Committee Stage. It is quite likely - I read through the Bill before I came in - that some amendments will be necessary to improve the Bill; I hope the Minister of State will be in a position to introduce these.
I wish to note a couple of items of correspondence that Senators received about the proposed Bill. I was struck by the comments of the Construction Industry Federation, which I saw as a group that was more concerned with the interests of larger companies rather than subcontractors; however, it certainly nailed its colours to the mast on this Bill. Don O'Sullivan was the county engineer in Kilkenny County Council when I was elected for the first time 11 years ago. I was a starry-eyed young student and I can say with my hand on my heart that Mr. O'Sullivan was the most exceptional local authority official I have ever dealt with, although I have not dealt with him since he left the employ of the county council. I take great interest in his support for the Bill as expressed in his letter.
I am anxious that whatever sort of mechanism for arbitration is drawn up from the legislation, if it comes to pass, should not be too cumbersome. It will need to be able to react quickly to difficulties that arise between contractors and subcontractors. It is particularly important at this juncture, when so many small businesses, particularly those in construction, are having difficulty in getting their hands on credit from the banks. Many people in my area were employed as carpenters and electricians during the construction boom. Some of those businesses were quite viable and successful and could have continued into the future, but they were pushed to the wall because of difficulties in obtaining money from contractors and credit from our financial institutions. Anything that can be done should be done to ensure a speedy flow of cash for work that has been done by subcontractors. That is why I am supporting this Bill.
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