Brendan Howlin (Wexford, Labour)
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Question 154: To ask the Minister for Finance if he will ensure that future contracts in respect of Government projects stipulate that contractors must honour established conditions of employment in respect of all employees with financial penalties for non-compliance; and if he will make a statement on the matter. [31622/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Under public procurement law, contractors are required to comply with all existing employment-related legislation including the registered employment agreements, employment protection provisions and working conditions, applying under existing laws, regulations and legally binding registered collective agreements.

Employment-related legislation is a matter in the first instance for the Minister for Enterprise, Trade and Employment. I understand non-compliance with any particular contract is a matter for contracting authorities in the first instance and can lead to prosecution under the law.

In the construction sector, where national standard forms of contract exist, the position is that contractors are required to provide pay and conditions of employment that are not less favourable than the terms of the registered employment agreements for the construction industry for those employees to whom the agreements apply. These standard forms of contract provide for termination for serious breaches of contract.