Written answers

Tuesday, 7 December 2010

Department of Environment, Heritage and Local Government

State Bodies

11:00 am

Photo of Mary WallaceMary Wallace (Meath East, Fianna Fail)
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Question 283: To ask the Minister for the Environment, Heritage and Local Government the steps he will take to deal with the increasing reports and concerns regarding the non-handing over of payment to subcontractors of funds owed to them by contractors following works carried out on behalf of his Department for which his Department or its agencies have already paid the contractor and the substantial number of tenders that are being awarded to contractors from outside of the jurisdiction and the subsequent loss of income to the State and the consequential loss of jobs adding further costs to the State; and if he will make a statement on the matter. [46354/10]

Deputies:

All capital investment projects initiated or funded by my Department are subject, inter alia , to EU and national public procurement requirements and guidance, as set out by the Department of Finance, relating to capital project management in the public sector. It is a matter for contracting authorities to administer procurement procedures in accordance with the relevant requirements and guidance; it is not possible to exclude contractors from outside the jurisdiction from participation in a competitive tendering process. Irish companies are entitled to tender for public competitions in other Member States.

Deputies:

The Department of Finance has established a suite of contract documentation to be used by public contracting authorities in the procurement of public works contracts. Payments to contractors and subcontractors are governed by the terms set out in these contracts which inter alia require the contractor to certify to the employing authority that all relevant payments have been made. The relevant policy and guidance material is published on-line at www.constructionprocurement.gov.ie/P1Contracts . These standard forms of contract are used by local authorities engaged in projects under the Department's capital programmes.

Deputies:

Proposed legislation sponsored by Senator Fergal Quinn, the Construction Contracts Bill 2010, is currently before the Seanad. It seeks to provide some remedy for construction sector subcontractors who are unpaid for work done. The Department of Finance has been working closely with Senator Quinn to bring his proposals into an effective scheme without exposing the taxpayer to further costs or risks.

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