Seanad debates

Thursday, 3 May 2018

Commencement Matter

Schools Building Contractors

10:30 am

Photo of Jennifer Murnane O'ConnorJennifer Murnane O'Connor (Fianna Fail) | Oireachtas source

I thank the Minister of State, Deputy Catherine Byrne, for coming to the House. I am a bit disappointed that the Minister for Education and Skills is not here but I understand he is busy. I have a very serious issue to raise this morning which relates to my home town of Carlow. Two nights ago I met with very concerned subcontractors in Carlow who had worked on the construction of Tyndall College and the college of further education on the outskirts of Carlow town. Some subcontractors were there also from some of the six other schools that were built by the same group.

I remember the day the sod was turned on this multi-million euro investment in the Kilkenny and Carlow Education and Training Board, Carlow campus. It was a great day for local jobs and the local economy. This investment promised a much needed new post-primary school for 1,000 students and a new 1,000 place facility for the Carlow Institute of Further Education and Training on the Kilkenny Road, with a shared sports hall and accompanying fitness room at a cost of around €30 million. They revealed an exciting target date for completion of September 2017, but in May 2018 there is no school and good workers are down in pay and out of a job. Because Sammon went into examinership the business cannot continue trading and the High Court protection of creditors means debts cannot be enforced before the appointment of an examiner. The contractors are small businesses, many of whom are family businesses, with entire families depending on their wages. They cannot absorb the losses.

I have previously been in contact with the Minister on the issue but I was not happy with his response to my parliamentary question. When Carillion collapsed earlier this year the company it hired in Ireland, namely, Sammon, went into examinership and the contractors were not paid. They deserve good pay for good work. They worked hard and they should not have lost out. The Minister for Education and Skills told me that Sammon was paid what was due under its contract. He also told me that the payment of the subcontractors is a matter for themselves and that he could not intervene. Why should they be out of pocket for the work that was done in good faith?

I wish to ask the Minister questions on behalf of the contractors. How much time remains in the examinership period for the Sammon Group? Currently, the process protects Sammon from having to pay what is due to the contractors. The contractors have also asked me to find out exactly how much has been paid to the Sammon Group by Carillion for each school, and specifically, Tyndall College in Carlow, which is in my area. Schools all around the country are idle and unfinished. Parents and students wonder if they will ever see the doors of those fabulous facilities open. The students, staff, parents and management deserve answers. They deserve the schools they were promised.

What is the status of Tyndall College and the college of further education and training? I understand a tender went out. If it is processed will the contractors lose out? They were promised pay and work and now they have neither. The contractors are in an awkward position. They did the work, they got their certification but they did not get paid, yet Revenue seeks to be paid and they have no money to pay it. Could the Minister intervene? A special fund should be provided to pay contractors. I am very annoyed that this situation has been allowed to drag on for months.There are subcontractors out there who need to pay bills. They have families, they have mortgages and they have not been paid. A subcontractor or contractor who has to apply for a C2 certificate has to pay Revenue and cannot tender for other projects without that certificate. The schools are built on lands owned by the State, which is paid for out of taxpayers' money. The Minister has a duty to ensure that these subcontractors get paid. Will the Minister meet with the subcontractors? When a major contractor does not pay its subcontractors, there should be legislation barring it from tendering for further projects. I am very disappointed to be standing here while many subcontractors I know - and whose families I know - are not being paid, which is very upsetting for them.

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