Written answers

Tuesday, 12 April 2011

Department of Finance

Construction Contracts

9:00 pm

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Question 125: To ask the Minister for Finance the position regarding the proposed exemption of contracts below a certain monetary threshold from the Construction Contracts Bill 2010; the reason behind this provision; and if he will make a statement on the matter. [7334/11]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Question 126: To ask the Minister for Finance the position, in the context of the Construction Contracts Bill 2010, regarding the proposal that an adjudicator's decision is not binding where the dispute is referred to arbitration; and if he will make a statement on the matter. [7335/11]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 125 and 126 together.

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.

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.

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