Gerard Craughwell (Independent) | Oireachtas source

It is particularly scandalous in circumstances where thousands of subcontractors have gone out of business in the wake of the worst downturn in the construction sector that this country has ever seen. Almost one year ago, the Construction Industry Federation, CIF, director general, Mr. Tom Parlon, stated that builders were facing collapse over pay delays and that thousands of those in other trades had suffered hardship.

In view of the gross injustice that was done to these subcontractors by contractors who could not - or more likely would not - pay them, the delay in commencing this Act has been an example of careless government and lackadaisical public administration at their worst. Let us not forget that most subcontractors are themselves employers offering well-paid professional careers to skilled crafts people. These are the kinds of careers that even the most imaginative of activation measures could not create. However, such small businesses have been jeopardised, not just by market forces and payment disputes, but by the inaction of the very Department charged with responsibility for jobs and innovation. The entire situation beggars belief.

Yesterday in the budget, the Government announced a number of positive initiatives for the construction sector, including the extension to the home renovation grant, the increased provision for social housing and measures to assist the self-employed, but what small to medium-sized contractor will take the risk of accepting a job and hiring people to undertake it without the legislative safeguards that the Act provides? This is a case of, while administration differs, small businesses die.

A small number of subcontractors are outside the gates of Leinster House this morning. Many of them employ six or seven people. They are the lifeblood of employment, yet we have let them down badly. The developers have hopped off to the south of Spain or other parts of the world. One subcontractor whom I met outside this morning had been told that the payments he had been awaiting since last April could not be made because of a difficulty with NAMA. That is unacceptable behaviour. From meeting the Minister of State in the House several times, I know that he has a genuine interest in seeing jobs created and secured.It is totally and utterly beyond belief that we have still not taken the steps we need to take to protect these small subcontractors, many of whom have five, six, ten, 20 or 30 people working with them. Contractors I met outside this morning and contractors I have been in contact with over the last few days tell me they will not employ anybody and would be very slow to seek work from some of the developers who are now re-emerging, having spent their time in the limbo of NAMA. I thank the Minister of State.