Ruairi Quinn (Dublin South East, Labour)
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Question 138: To ask the Minister for Finance the reason post-doctoral researchers contracted to third level institutions in receipt of public funding have been included in recent public sector pay cuts; if a post-doctoral researcher on a temporary contract with a publicly-funded third level institution is a public servant; and if he will make a statement on the matter. [16546/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Financial Emergency Measures in the Public Interest (No 2) Act, 2009 makes provision for the reduction in the pay rates of all persons employed by public service bodies with effect from 1 January 2010. As publicly funded third-level institutions come within the definition in the Act of public service bodies, post-doctoral researchers employed by such universities are considered public servants for the purposes of the Act and are subject to the pay reductions provided for under the legislation. I have no plans to exempt persons in that position from the pay reductions.

Terence Flanagan (Dublin North East, Fine Gael)
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Question 139: To ask the Minister for Finance if he will support a matter (details supplied); and if he will make a statement on the matter. [16666/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Under the Government's Capital Works Management Framework (CWMF), my Department has developed a standard model form of Performance Bond, which is to be used in the procurement of public works contracts. During the procurement process contractors have to show evidence that they can obtain such a Performance Bond, which has been designed specifically to deal with issues of insolvency, bankruptcy and repudiation.

In relation to individual contracts that are about to be awarded, it is a matter for a contracting authority to establish if the contractor/supplier is solvent. Under the European Communities (Award of Public Authorities' Contracts) Regulations 2006 (S.I. 329 of 2006) Section 53(5) and Directive 2004/18/EC Article 45.2(a) and (b), a contracting authority can confirm that contractor/supplier is not : (i) bankrupt, or (ii) being wound up in this or any other jurisdiction, or (iii) the subject of proceedings for a declaration of bankruptcy, or (iv) the subject of an order for compulsory winding up, or (v) under administration by a court, or (vi) subject to an arrangement with creditors in this or any other jurisdiction.

The contracting authority can check these issues throughout a procurement process up to the point of awarding a contract to ensure that such provisions have not changed. If they have changed, the contractor can be excluded from any further participation in the competition.