Ciarán Lynch (Cork South Central, Labour)
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Question 119: To ask the Minister for Finance if he will accept the provisions of the Construction Contracts Bill or make similar regulations; if he will consider the points raised by an organisation in correspondence (details supplied) and other representative groups and organisations; and if he will make a statement on the matter. [7297/11]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware that the Construction Contracts Bill 2010 was introduced by Senator Feargal Quinn and passed Committee and remaining stages in the Seanad on 8 March 2011. It is now before the Dáil. The two main points raised in the correspondence supplied relate to the exemption contracts under €200,000 from the provisions of the Bill and the provision in the Bill that an adjudicator's decision is non-binding where the dispute is referred to arbitration.

In relation to the exemption of contracts below €200,000 from the Construction Contracts Bill 2010, I understand that the Senator pointed out in the Seanad that this threshold was proposed to reduce the administrative burden on contractors involved in smaller contracts.

I understand that the provision making the decision of an adjudicator non-binding where the dispute is referred to arbitration was included in the Senator's Bill to ensure that the State had the right to appeal a decision to protect the taxpayer.

These two concerns remain valid, nonetheless, I am now examining the Bill and will then decide how best to proceed.

It is important that a solution to the problem of non-payment must not place an unnecessary regulatory or cost burden on the parties to the dispute, other parties involved in the project, or the State.