Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 68: To ask the Minister for Finance his plans to introduce legislation to protect the interests of subcontractors; if he will ensure the inclusion of an effective exclusion from all public works tendering by contractors who have been shown to have failed to honour their commitments to contracts with subcontractors engaged by them; and if he will make a statement on the matter. [8328/11]

Michael Noonan (Limerick City, Fine Gael)
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Under a public works contract the contractual relationship is between the public body and the main contractor. A public body has no contractual ties with a subcontractor engaged by a main contractor. Any contractual relationship is exclusively a matter between the main contractor and its sub-contractor. In addition, I would point out that public procurement rules are governed by EU Directives with which Irish procurement rules must comply. In this regard, the extent to which a tenderer can be automatically excluded from tendering for public works projects is confined to specified cases such as where convictions have been obtained or where grave professional misconduct can be proven.

However, the Deputy may 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. The purpose of which is to help address the issue of non-payment to construction sector sub-contractors who have completed work on construction projects. I am now examining the Bill and will 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. This Bill has moved to the Order Paper of the Dáil.