Pearse Doherty (Sinn Fein)

This issue is the need to introduce legislation so that all those successful in tendering for State contracts would be obliged to comply with the registered employment agreement as laid down for the construction industry. I bring this to the Seanad because I am aware of certain incidents and have been in direct correspondence with the Minister about them.

In the county I represent, Donegal, companies are bidding for State contracts such as the construction of schools or much-needed refurbishment work to schools or Garda stations, among other public works. Whereas companies from Donegal must comply with the registered employment agreement, companies from the Six Counties do not have to comply with the agreement, leading to an anomaly. I am for an all-Ireland economy and do not advocate the idea that people from Strabane should not be able to bid for a contract in Lifford. However, a company in Strabane should not be able to bid for a contract in Lifford while paying their employees lower rates than the Donegal company.

The registered employment agreement sets out minimum wage rates for its workers. For example, an electrician under the registered employment agreement is paid €21.49 per hour, with the cost to the employer of the labour per week, taking in employer's PRSI and pension contributions, coming to €957.29. If we allow State contracts to be awarded to companies outside the State which do not have to comply with the registered employment agreement or pension scheme, we are discriminating against our own registered contractors in this State. There is no way companies in places such as Donegal can compete with those outside the State.

Is there a way to introduce legislation to ensure that out-of-State contractors would be obliged to offer their employees the same terms and conditions laid down by the registered employment agreement in the South? I note the issue of registered employment agreements has been taken to the High Court and a judicial review was sought with a judgment given last week. I do not support the idea of renegotiating these agreements but this issue is about ensuring compliance across the island. I noted the judge in the case stated the agreement applies to self-employed people and subcontractors, and out-of-State workers should enjoy the terms and conditions as laid down in the agreement while working in southern Ireland.

An example may clarify the issue. There is much-needed work ongoing in Pobalscoil Ghaoth Dobhair, a secondary school I attended. An emergency works scheme will start over the next couple of weeks. There is a pre-qualification application sent out by the Department of Education and Skills, and this is done across the board. Some other Departments dealing with public works ask in a questionnaire if the applicant complies with the registered employment agreement or the pension scheme, which is a signal that there is compliance with the agreement. There is no qualification in the Department of Education and Skills.

I do not want to name the company which has been successful in the Gweedore project but it comes from outside of the State. I do not know if it complies with the agreement but having spoken to people involved in the application, it seems likely that companies in the past and in this case may not be compliant with the registered employment agreement.

Will the Minister of State shed light on this and can legislation be introduced in this respect? Is the legislation already in place but not enforced adequately? Could we ensure through pre-qualification documentation from the Department that we ask all companies - both inside and outside the State - that they be compliant with the registered employment agreement and pension scheme? How can we address the issue otherwise as it is currently unacceptable to companies in Donegal.

Senator Keaveney and I understand how many State contracts are going across the Border. As a republican I have no problem with people across the Border getting the work as long as the employees are treated the same and there is a level playing field. If it is a case that a company on the other side of the Border can pay a lower wage for doing a job in Donegal than a company from the county, the indigenous companies will not be able to compete.