Michael Healy-Rae (Kerry South, Independent)
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Question 138: To ask the Minister for Public Expenditure and Reform his views on a matter (details supplied) regarding the Construction Contract Bill; and if he will make a statement on the matter. [25379/11]

Brendan Howlin (Wexford, Labour)
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The Programme for Government contains a commitment to introduce new legislation to protect small building subcontractors that have been denied payments from bigger companies. In addition, you 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. It is now before the Dáil.

In this regard, my colleague Minister of State Mr Brian Hayes is working with Senator Quinn to continue a collaborative approach in regard to advancing the Bill. The Senator's Bill is a welcome initiative and I understand that Minister Hayes and Senator Quinn held a meeting with relevant stakeholders and opposition spokespersons on 28th June 2011.

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, and were highlighted by the consultation as matters that required further consideration. These issues have been examined in the Regulatory Impact Assessment of the Bill which is being finalised in my Department at present.

These steps will make it possible to bring proposals to Government about how to progress this legislation. It is intended to have the legislation progress in the Dáil in the current session.

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