Joe Carey (Clare, Fine Gael)
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Question 220: To ask the Minister for Finance the way the principle of section 5 of a public works contract is implemented and enforced by him; and if he will make a statement on the matter. [48120/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Clause 5 of the Public Works contracts require main contractors and all subcontractors employed by main contractors to comply with the rates of pay and conditions of employment including pension contributions in employment agreements registered under the Industrial Relations Acts 1946 to 2004. The one exception is in regard to the registered agreement for pensions where a firm registered in another Member State and working in this country has employees temporarily posted from that other jurisdiction and who subscribe to a national pension scheme in their own country, then the firm or its employees do not have to subscribe to the Irish pension scheme.

The Public Works Contracts also requires a main contractor to provide a certificate of compliance (titled 'Rates of Pay and Conditions of Employment Certificate') with each interim statement submitted (normally on a monthly basis). Failure to provide this compliance certificate will result in payment not being made by the contracting authority. If a main contractor provides a certificate of compliance and it is subsequently found to be untrue or partly untrue the contracting authority has the right to deduct the money relating to the work or part of the work covered by the certificate from any sums due to the main contractor. This money can be withheld until the pay and conditions of employment issue is made right. The ultimate sanction if a main contractor continues to be non-compliant is for the main contract to be terminated.

Under a Public Works Contract a contracting authority has the right, whenever it is deemed necessary, to access data and records on pay and conditions for work persons employed on the site. In the case of capital works projects in excess of €30 million and with a contract duration in excess of 18 months, contracting authorities provide in their contracts for random checks of the records of contractors and sub-contractors to assess compliance with the requirements of the Registered Employment Agreement, as appropriate.

The Public Works Contracts were developed by my Department working with the Government Construction Contracts Committee for use by all public contracting authorities. Each contracting authority must ensure that contractors comply with all the requirements of the contract.